Authored by the expert who managed and guided the team behind the Dominican Republic Property Pack
Yes, the analysis of Punta Cana's property market is included in our pack
When you buy a property in Punta Cana, the purchase price is just the starting point because there are mandatory taxes, professional fees, and other costs that can add a significant chunk on top.
This guide breaks down every cost, tax, and fee you need to budget for as a foreign buyer in Punta Cana in 2026, from the 3% transfer tax to hidden HOA fees in places like Cap Cana and Bavaro.
We constantly update this blog post to reflect the latest tax rates, fee structures, and market practices in Punta Cana.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Punta Cana.
Overall, how much extra should I budget on top of the purchase price in Punta Cana in 2026?
How much are total buyer closing costs in Punta Cana in 2026?
As of early 2026, foreign buyers purchasing residential property in Punta Cana should budget approximately 5% to 7% of the purchase price in additional closing costs for a cash purchase, or roughly RD$3,000,000 to RD$4,200,000 (USD 50,000 to USD 70,000, EUR 46,000 to EUR 65,000) on a typical USD 1 million property.
The minimum extra budget possible in Punta Cana is around 4.5% of the property price (roughly RD$2,700,000 or USD 45,000 or EUR 42,000 on a USD 1 million home), but this only works if you pay cash, find a property with a clean title, and keep legal fees at the low end.
The maximum extra budget buyers should realistically plan for in Punta Cana is 12% to 15% of the purchase price (roughly RD$7,200,000 to RD$9,000,000 or USD 120,000 to USD 150,000 or EUR 111,000 to EUR 139,000 on a USD 1 million home), especially if you finance the purchase, need translations, or buy in a condo development with upfront HOA charges.
The main factors that determine whether your closing costs fall at the low or high end in Punta Cana include whether you pay cash or take a mortgage (the 2% mortgage registration tax is a big swing), whether the property is in a condo or resort setup with administrative fees, and how much legal due diligence and translation work you need.
What's the usual total % of fees and taxes over the purchase price in Punta Cana?
For a typical foreign buyer purchasing residential property in Punta Cana in 2026, the usual total percentage of fees and taxes over the purchase price is around 6% to 8% for cash purchases and 9% to 12% for financed purchases.
The realistic low-to-high percentage range that covers most standard property transactions in Punta Cana runs from about 5% on the lean side (simple cash deal, clean title) to 12% on the higher side (mortgage involved, condo fees, more legal work).
Of that total percentage in Punta Cana, government taxes typically account for 3% to 5% (the 3% transfer tax plus the 2% mortgage tax if financing), while professional service fees like lawyers, notaries, and registry filings make up the remaining 2% to 4%.
By the way, you will find much more detailed data in our property pack covering the real estate market in Punta Cana.
What costs are always mandatory when buying in Punta Cana in 2026?
As of early 2026, the mandatory costs when buying property in Punta Cana include the 3% property transfer tax paid to the DGII, registry filing fees paid to the Registro Inmobiliario, and if you take a mortgage, the 2% mortgage registration tax.
Optional but highly recommended costs for buyers in Punta Cana include hiring an independent conveyancing lawyer (around 1% to 1.5% of the price), obtaining a legal status certificate from the Registro Inmobiliario to verify the title is clean, and paying for professional translation services if you do not speak Spanish fluently.
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What taxes do I pay when buying a property in Punta Cana in 2026?
What is the property transfer tax rate in Punta Cana in 2026?
As of early 2026, the property transfer tax rate in Punta Cana is 3% of the property's registered value, which is the standard national rate set by the Dominican tax authority (DGII).
There are no extra transfer taxes specifically for foreigners buying property in Punta Cana because the 3% transfer tax applies equally to Dominican citizens and foreign buyers alike.
Buyers generally do not pay VAT (called ITBIS in the Dominican Republic) on residential property purchases in Punta Cana because the DGII has clarified that the transfer of real estate (land and buildings) is not subject to the 18% ITBIS tax.
In Punta Cana, the main tax you pay at purchase is the 3% transfer tax (and the 2% mortgage registration tax if you finance), rather than a separate stamp duty, as these are the primary purchase-related taxes built into the Dominican transfer process.
Are there tax exemptions or reduced rates for first-time buyers in Punta Cana?
There is no automatic, generic "first-time buyer" reduced transfer tax rate in Punta Cana, so you should budget the full 3% transfer tax unless you can confirm your specific property qualifies under a special incentive law.
If you buy property through a company in Punta Cana instead of as an individual, the 3% transfer tax still applies at acquisition, but your income tax treatment, compliance obligations, and future sale reporting will differ and may require more accounting work.
For new-build versus resale properties in Punta Cana, the DGII does not charge ITBIS on the real estate transfer itself, so the main tax you budget for remains the 3% transfer tax regardless of whether you buy new or resale.
Since there is no standard first-time buyer exemption in Punta Cana, buyers who believe they may qualify for any special regime should consult a local tax advisor and gather documentation proving their eligibility under the specific incentive law in question.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in the Dominican Republic versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
Which professional fees will I pay as a buyer in Punta Cana in 2026?
How much does a notary or conveyancing lawyer cost in Punta Cana in 2026?
As of early 2026, a conveyancing lawyer in Punta Cana typically charges between 1.0% and 1.5% of the purchase price (for example, RD$600,000 to RD$900,000 or USD 10,000 to USD 15,000 or EUR 9,300 to EUR 14,000 on a USD 1 million property), while notary fees usually add another 0.25% to 1.0% depending on deal complexity.
In Punta Cana, lawyer and notary fees are most commonly charged as a percentage of the property price, though some attorneys offer flat-fee arrangements for simpler transactions.
Translation or interpreter services for foreign buyers in Punta Cana typically cost between RD$9,000 and RD$24,000 (USD 150 to USD 400 or EUR 140 to EUR 370) for a signing-day interpreter, and RD$18,000 to RD$54,000 (USD 300 to USD 900 or EUR 280 to EUR 830) if you need full document translation of contracts or powers of attorney.
A tax advisor is optional for simple personal purchases in Punta Cana, but if you plan to rent the property, set up a company, or need residency guidance, you should budget RD$18,000 to RD$60,000 (USD 300 to USD 1,000 or EUR 280 to EUR 930) for a one-time consultation.
We have a whole part dedicated to these topics in our our real estate pack about Punta Cana.
What's the typical real estate agent fee in Punta Cana in 2026?
As of early 2026, the typical real estate agent commission in Punta Cana ranges from 5% to 10% of the sale price, though 5% to 6% is most common in standard residential transactions.
In most Punta Cana listings, the seller pays the agent commission, but buyers should not assume it is always "free" because the cost is effectively built into the asking price, and some buyer's agents may negotiate a fee or commission split.
The realistic low-to-high range for agent fees in Punta Cana runs from about 3% (rare, negotiated deals) to 10% (luxury or resort-style properties in places like Cap Cana where multiple agents may be involved).
How much do legal checks cost (title, liens, permits) in Punta Cana?
Legal checks in Punta Cana, including title search, liens verification, and permits review, typically cost between RD$18,000 and RD$90,000 (USD 300 to USD 1,500 or EUR 280 to EUR 1,400), with simpler cases at the low end and complex condo or tourism-zone properties at the higher end.
The property valuation fee in Punta Cana, which is often required by banks if you take a mortgage, typically costs between RD$15,000 and RD$42,000 (USD 250 to USD 700 or EUR 230 to EUR 650) depending on the lender and property type.
The most critical legal check you should never skip in Punta Cana is obtaining the "Certificacion del Estado Juridico del Inmueble" from the Registro Inmobiliario, which confirms the property's legal status, ownership history, and whether any liens or encumbrances exist.
Buying a property with hidden issues is something we mention in our list of risks and pitfalls people face when buying real estate in Punta Cana.
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What hidden or surprise costs should I watch for in Punta Cana right now?
What are the most common unexpected fees buyers discover in Punta Cana?
The most common unexpected fees buyers discover in Punta Cana include condo or HOA onboarding charges and prepaid quarterly fees (especially in Cap Cana, Bavaro, and Punta Cana Village), developer "administration" or document fees in new-build projects, and extra legalization costs if you sign via Power of Attorney from abroad.
Yes, there can be unpaid property taxes or debts attached to a property in Punta Cana, which is why buyers should always request a legal status certificate from the Registro Inmobiliario and verify the seller's tax standing before closing.
Scams with fake listings or fake fees do happen in Punta Cana, typically involving pressure tactics and requests to wire a "reservation fee" to a personal account, so you should always verify the property's legal status through the registry system and never pay fees that are not in the formal contract.
Fees that are usually not disclosed upfront by sellers or agents in Punta Cana include HOA onboarding deposits, developer administrative charges, translation or Power of Attorney legalization costs, and sometimes the first quarter's condo fees that must be prepaid at closing.
In our property pack covering the property buying process in Punta Cana, we go into details so you can avoid these pitfalls.
Are there extra fees if the property has a tenant in Punta Cana?
If the property has a tenant in Punta Cana, you may face extra costs including legal review of the existing lease (RD$6,000 to RD$18,000 or USD 100 to USD 300 or EUR 90 to EUR 280), potential eviction expenses if disputes arise, and possible delays while sorting out deposit handovers.
When you purchase a tenanted property in Punta Cana, you typically inherit the existing lease agreement, which means you become the new landlord and must honor the lease terms until they expire or are legally terminated.
Terminating an existing lease immediately after purchase in Punta Cana is generally not possible unless the lease contract allows for it, the tenant agrees, or you follow the formal legal eviction process, which can take several months and cost additional legal fees.
A sitting tenant in Punta Cana can reduce the property's appeal to owner-occupiers and sometimes lowers the market value by 5% to 10%, but for investors, a reliable tenant can actually be a selling point that justifies the asking price.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in Punta Cana.
We have made this infographic to give you a quick and clear snapshot of the property market in the Dominican Republic. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which fees are negotiable, and who really pays what in Punta Cana?
Which closing costs are negotiable in Punta Cana right now?
The closing costs that are negotiable in Punta Cana include the legal fee structure (percentage versus flat fee), who pays for specific registry certificates and filings, developer or administrative fees in new-build projects, and how furniture or inventory value is allocated in the contract.
The closing costs that are fixed by law and cannot be negotiated in Punta Cana are the 3% transfer tax and the 2% mortgage registration tax (if you finance), both of which are set by the DGII.
Buyers in Punta Cana can typically negotiate 10% to 30% off legal fees by comparing quotes, and in slow-moving developments, developer admin fees may be reduced or waived entirely as part of the deal.
Can I ask the seller to cover some closing costs in Punta Cana?
In Punta Cana, there is a moderate likelihood that sellers will agree to cover some closing costs, especially when inventory is high or the property has been on the market for a while.
The specific closing costs sellers in Punta Cana are most commonly willing to cover include certain registry certificates, a portion of HOA arrears or prepaid fees, and occasionally a credit toward legal costs built into a price reduction.
Sellers in Punta Cana are more likely to accept covering closing costs when the market favors buyers, such as during low tourist seasons, when condo supply exceeds demand in areas like Bavaro or Los Corales, or when the seller is motivated to close quickly.
Is price bargaining common in Punta Cana in 2026?
As of early 2026, price bargaining is common in Punta Cana, especially in condo-heavy areas like Bavaro and Los Corales where inventory levels give buyers more leverage, though prestige pockets like Cap Cana tend to see firmer asking prices.
Buyers in Punta Cana typically negotiate between 3% and 8% below the asking price (roughly RD$1,800,000 to RD$4,800,000 or USD 30,000 to USD 80,000 or EUR 28,000 to EUR 74,000 on a USD 1 million property) for listings that have been on the market a while, and 0% to 3% in hot listings or prime micro-locations.
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What monthly, quarterly or annual costs will I pay as an owner in Punta Cana?
What's the realistic monthly owner budget in Punta Cana right now?
A realistic monthly owner budget in Punta Cana (excluding mortgage payments) ranges from RD$18,000 to RD$54,000 (USD 300 to USD 900 or EUR 280 to EUR 830), with condo owners in amenity-heavy buildings at the higher end and simpler setups at the lower end.
The main recurring expense categories that make up this monthly budget in Punta Cana include HOA or condo fees (often the largest item), property insurance, utilities and internet, a maintenance reserve for coastal humidity and corrosion, and property management or cleaning fees if you rent the property.
The realistic low-to-high range for monthly owner costs in Punta Cana runs from about RD$12,000 (USD 200 or EUR 185) for a simple apartment with minimal amenities, up to RD$72,000 (USD 1,200 or EUR 1,110) or more for a luxury villa or high-end condo in Cap Cana with extensive services.
The monthly cost that tends to vary the most in Punta Cana is the HOA or condo fee, which can range from RD$6,000 (USD 100) in basic buildings to RD$36,000 (USD 600) or more in resort-style developments with pools, gyms, security, and beach access.
You can see how this budget affect your gross and rental yields in Punta Cana here.
What is the annual property tax amount in Punta Cana in 2026?
As of early 2026, the annual property tax (called IPI, Impuesto al Patrimonio Inmobiliario) in Punta Cana is 1% of the property value that exceeds the exemption threshold of approximately RD$10,695,494 (roughly USD 178,000 or EUR 165,000), paid in two installments per year.
The realistic low-to-high range for annual property taxes in Punta Cana runs from RD$0 (if your total taxable property value is below the threshold) to RD$100,000 or more (USD 1,700+ or EUR 1,550+) for higher-value properties, depending on how much the assessed value exceeds the exemption.
The IPI property tax in Punta Cana is calculated based on the combined value of all real estate owned by the individual in the Dominican Republic, minus the exemption threshold, with the 1% rate applied to the excess amount.
Certain property owners in Punta Cana may qualify for exemptions or reductions, such as properties under special incentive laws or qualifying low-value holdings, so it is worth checking with the DGII or a tax advisor if you believe you may be eligible.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of the Dominican Republic. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
If I rent it out, what extra taxes and fees apply in Punta Cana in 2026?
What tax rate applies to rental income in Punta Cana in 2026?
As of early 2026, rental income from property in Punta Cana is subject to Dominican income tax (ISR) rules, with rates varying based on your total taxable income and whether you file as an individual or through a company.
Yes, landlords in Punta Cana can typically deduct documented, rental-related expenses from their rental income before calculating taxes, including property management fees, maintenance costs, insurance, HOA fees, and depreciation, which lowers the effective tax burden.
The realistic effective tax rate range after deductions for typical landlords in Punta Cana can vary widely, but many individual owners end up paying between 15% and 27% on their net rental profit depending on their total income level and deductions claimed.
Foreign property owners in Punta Cana pay tax on their Dominican-source rental income under the same rules as residents, though withholding mechanics and compliance requirements may differ depending on whether a company or individual tenant pays the rent.
Do I pay tax on short-term rentals in Punta Cana in 2026?
As of early 2026, short-term rentals in Punta Cana (such as Airbnb or VRBO listings) are subject to income tax on your rental profits, and in addition, the 18% ITBIS (VAT) can apply if your rental is considered a commercial, furnished, or tourism-style service, which is common in the Bavaro and Punta Cana tourist zone.
Short-term rental income in Punta Cana can be taxed differently than long-term rentals because the DGII has specifically addressed furnished rentals in Bavaro as potentially triggering the 18% ITBIS, whereas traditional long-term residential leases typically do not carry this VAT obligation.
If you want to learn more about what it takes to do Airbnb in Punta Cana, our pack dedicated to the property market in Punta Cana covers this topic in greater detail.
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If I sell later, what taxes and fees will I pay in Punta Cana in 2026?
What's the total cost of selling as a % of price in Punta Cana in 2026?
As of early 2026, the total cost of selling a property in Punta Cana typically ranges from 6% to 10% of the sale price, depending on agent commission levels, legal fees, and whether you have a mortgage to pay off early.
The realistic low-to-high percentage range for total selling costs in Punta Cana runs from about 5% (if you sell without an agent and have minimal legal costs) to 12% or more (if you pay a full agent commission and have early mortgage repayment penalties).
The specific cost categories that typically make up the total selling expenses in Punta Cana include agent commission (often 5% to 6%), legal and notary fees (around 1% to 2%), registry and certificate charges, and capital gains tax on your profit (which is separate and depends on your gain, not the sale price).
The single cost that is usually the largest contributor to selling expenses in Punta Cana is the real estate agent commission, which alone can account for half or more of your total selling costs.
What capital gains tax applies when selling in Punta Cana in 2026?
As of early 2026, capital gains from selling property in Punta Cana are treated under Dominican income tax rules, with a widely applied rate of 27% on the net gain (the profit you made, not the total sale price).
Exemptions to capital gains tax in Punta Cana may be available under specific incentive laws or qualifying regimes, but there is no automatic exemption for primary residence or holding period, so you should consult a tax advisor to determine if any exception applies to your situation.
Foreigners selling property in Punta Cana do not pay a special "foreigner surcharge" capital gains tax, but they may face more compliance friction, such as proving their original purchase price and documenting improvements, which can affect the final tax calculation.
The capital gain in Punta Cana is calculated as the sale price minus your documented purchase price and any provable improvements you made to the property, with the 27% rate applied to that net profit.
We made this infographic to show you how property prices in the Dominican Republic compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Punta Cana, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why It's Authoritative | How We Used It |
|---|---|---|
| DGII Transfer Tax Calculator | Official Dominican tax authority tool for the 3% transfer tax | We used it to anchor the mandatory transfer tax rate. We treated it as the baseline for purchase taxes in Punta Cana. |
| DGII/Registro Inmobiliario Joint Brochure | Official government guide on the property transfer process | We used it to validate the formal transfer steps and fees. We cross-checked what belongs in closing costs versus professional fees. |
| DGII Help Center (ITBIS Q&A) | Official DGII answer on VAT treatment for property sales | We used it to confirm real estate transfers are not ITBIS-taxable. We avoided wrongly adding 18% VAT to purchase budgets. |
| DGII Property Tax (IPI) Page | Tax authority's official page for annual property tax rules | We used it to set the 1% IPI rate and exemption threshold. We translated it into realistic yearly owner budgets for Punta Cana. |
| DGII Mortgage Tax FAQ | Official help center entry on the 2% mortgage registration tax | We used it to quantify the cost premium for financed purchases. We built the mortgage scenario into our maximum closing cost estimates. |
| Registro Inmobiliario Fee Schedule | Official property registry page for service fees and forms | We used it to confirm registry services have payable fees. We included small but real registry charges in closing cost estimates. |
| Registro Inmobiliario Legal Status Certificate | Official document describing the key title verification buyers need | We used it to identify the critical check buyers should request. We justified the recommended legal checks budget line. |
| DGII Technical Consultation (Bavaro Rental) | Official DGII interpretation on ITBIS for furnished rentals in Bavaro | We used it to explain why tourist-style rentals can trigger ITBIS. We built the short-term rental tax section with Punta Cana-specific relevance. |
| Guzman Ariza Buyer Guide | Leading Dominican law firm with offices in Bavaro-Punta Cana | We used it to triangulate market-standard legal and closing practices. We sanity-checked fee ranges against common practice for foreign buyers. |
| Pellerano & Herrera Withholding Guide | Top-tier Dominican law firm summarizing tax withholding mechanics | We used it to clarify how withholding can apply to rental scenarios. We avoided oversimplifying rental tax cash flow for landlords. |
| DGII Tax Code (Ley 11-92) | Primary legal text for all Dominican tax rules | We used it as the backstop for capital gains and withholding concepts. We triangulated rates mentioned by practitioner sources. |
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