Below I have outlined the fees and taxes associated with buying property here in the DR. 

Costs 

LEGAL FEES – Paid at closing

In the Dominican Republic when purchasing a home or condo you will have some closing costs. Typically for a standard purchase, the legal fees will run in the 1% of the purchase price range (to a minimum of $800). This is paid in full to your lawyer at closing. 

EXAMPLE

A house for $150,000 would have $1500 in legal fees

A condo for $60,000 would have $800 in legal fees

LAND TRANSFER TAXES – Paid at closing

Land transfer taxes are equivalent to 3% of the assessed value of the property as determined by the government tax office (this amount tends to be lower than the selling price). This is paid on closing and is a tax due to transfer the title to the buyer’s name.

ANNUAL PROPERTY TAXES

A 1% annual tax is assessed on real estate properties owned by individuals, based on the value of all the properties as appraised by government authorities.

For built lots, the 1% is calculated only for properties appraised over 7,019,383.00 DOP (about $150,000). For unbuilt lots, the 1% tax is calculated on the actual appraised value without the exemption.

The real estate tax is payable every year on or before March 11, or in two equal installments: 50% on or before March 11, and the remaining 50%, on or before September 11.

The amount of the exemption is adjusted annually for inflation.

The following properties are exempt from paying real estate tax:

(a) farm properties;

(b) homes whose owner is 65 years old or older, and has no other property in his or her name; and

(c) properties owned by companies, which pay a separate tax on their company assets.

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