Authored by the expert who managed and guided the team behind the Dominican Republic Property Pack
Everything you need to know before buying real estate is included in our The Dominican Republic Property Pack
Buying property in Santo Domingo as a foreigner comes with extra costs beyond the purchase price, and understanding them before you sign anything can save you thousands of dollars.
The biggest expense most buyers face is the 3% property transfer tax, which is mandatory and paid directly to the Dominican tax authority (DGII).
We constantly update this blog post to reflect the latest tax rates, fees, and real estate market conditions in Santo Domingo.
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 Santo Domingo.
Overall, how much extra should I budget on top of the purchase price in Santo Domingo in 2026?
How much are total buyer closing costs in Santo Domingo in 2026?
As of early 2026, most foreign buyers purchasing residential property in Santo Domingo should budget around 5% of the purchase price for total closing costs, which translates to roughly 300,000 Dominican pesos (about 5,000 USD or 4,600 EUR) on a 6 million peso property.
If you keep expenses to the absolute legal minimum and pay cash without a mortgage, you could potentially reduce your extra budget to around 3% to 3.5% of the purchase price, covering just the mandatory transfer tax and basic paperwork.
On the other hand, if you need a mortgage, require extensive legal work due to title complications, or pay a buyer-side agent fee, your closing costs in Santo Domingo could realistically reach 9% to 12% of the property price.
The main factors that push your Santo Domingo closing costs toward the high end include financing with a mortgage (which adds a 2% registration tax), complex title histories requiring extra legal work, and whether you hire your own buyer's agent or need certified translations.
What's the usual total % of fees and taxes over the purchase price in Santo Domingo?
For a typical residential property purchase in Santo Domingo, buyers should expect total fees and taxes to fall between 4.5% and 6% of the purchase price when paying cash.
The realistic range for most standard property transactions in Santo Domingo spans from about 3% at the very minimum (transfer tax only) to around 10% if you finance with a mortgage and need comprehensive legal services.
Of that total percentage, government taxes typically account for 3% to 5% (the transfer tax plus any mortgage registration tax), while professional service fees like lawyers, notaries, and due diligence checks make up the remaining 1.5% to 2.5%.
By the way, you will find much more detailed data in our property pack covering the real estate market in Santo Domingo.
What costs are always mandatory when buying in Santo Domingo in 2026?
As of early 2026, the mandatory costs when buying property in Santo Domingo include the 3% property transfer tax paid to DGII, title and registry certification checks, and the small 0.15% bank transfer tax that may apply to your payment method.
Optional but highly recommended costs for foreign buyers in Santo Domingo include hiring your own independent real estate lawyer (not the seller's), getting an independent property valuation or inspection, and arranging certified translations if you are not fluent in Spanish.
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What taxes do I pay when buying a property in Santo Domingo in 2026?
What is the property transfer tax rate in Santo Domingo in 2026?
As of early 2026, the property transfer tax rate in Santo Domingo is 3% of the property value as determined by DGII, making it the single largest tax expense for most residential buyers.
There are no extra transfer taxes specifically for foreigners buying property in Santo Domingo, as the standard 3% rate applies equally to Dominican citizens and foreign nationals.
Buyers generally do not pay VAT (called ITBIS in the Dominican Republic, currently 18%) on the residential property purchase itself, though ITBIS may apply to certain professional services connected to the transaction.
In Santo Domingo, buyers typically experience transaction taxes as the 3% transfer tax and, if financing, a 2% mortgage registration tax, rather than a separate stamp duty line item like in some other countries.
Are there tax exemptions or reduced rates for first-time buyers in Santo Domingo?
Santo Domingo does not have a general first-time buyer tax exemption, but the 3% transfer tax can be waived for qualifying low-cost housing purchases (vivienda de bajo costo) or properties in CONFOTUR-certified tourism development projects.
If you buy property through a company instead of as an individual in Santo Domingo, the core 3% transfer tax still applies, though the tax treatment of future rental income and capital gains may differ based on corporate reporting requirements.
There is no significant tax difference between buying a new-build property versus a resale property in Santo Domingo, as the 3% transfer tax applies equally to both transaction types.
To qualify for the low-cost housing exemption in Santo Domingo, buyers must prove this is their first and only home, the property must be developed through an approved low-cost housing trust, and the price must fall below the legal cap set by DGII.
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 Santo Domingo in 2026?
How much does a notary or conveyancing lawyer cost in Santo Domingo in 2026?
As of early 2026, hiring a lawyer and notary for a residential property purchase in Santo Domingo typically costs between 1.5% and 2.5% of the purchase price, or roughly 90,000 to 150,000 Dominican pesos (1,500 to 2,500 USD or 1,400 to 2,300 EUR) on a standard transaction.
Lawyer and notary fees in Santo Domingo are usually charged as a percentage of the property price rather than a flat rate, though some attorneys offer fixed-fee packages for straightforward purchases.
Translation and interpreter services for foreign buyers in Santo Domingo typically cost between 9,000 and 30,000 Dominican pesos (150 to 500 USD or 140 to 460 EUR) for basic needs, rising to 30,000 to 90,000 pesos (500 to 1,500 USD or 460 to 1,380 EUR) if you need certified translations for multiple documents.
If you plan to rent out your Santo Domingo property or buy through a company, budgeting 18,000 to 60,000 Dominican pesos (300 to 1,000 USD or 275 to 920 EUR) per year for a tax advisor is common, with higher fees for full bookkeeping services.
We have a whole part dedicated to these topics in our our real estate pack about Santo Domingo.
What's the typical real estate agent fee in Santo Domingo in 2026?
As of early 2026, the typical real estate agent commission in Santo Domingo ranges from 3% to 5% of the sale price, which on a 6 million peso property would be 180,000 to 300,000 Dominican pesos (about 3,000 to 5,000 USD or 2,750 to 4,600 EUR).
In Santo Domingo, the seller typically pays the real estate agent commission, though this is negotiable and some deals (especially direct purchases or buyer's agent arrangements) may involve the buyer covering part of the fee.
The realistic range for agent fees in Santo Domingo spans from around 3% in competitive situations to 6% or more when a dedicated buyer's agent provides extensive services or when dealing with off-market properties.
How much do legal checks cost (title, liens, permits) in Santo Domingo?
Legal checks including title search, liens verification, and permits review in Santo Domingo typically cost between 12,000 and 48,000 Dominican pesos (200 to 800 USD or 185 to 735 EUR), with higher fees for properties with complicated ownership histories.
Property valuation fees in Santo Domingo generally range from 18,000 to 42,000 Dominican pesos (300 to 700 USD or 275 to 645 EUR) for a standard residential property, though unique or high-value properties may require more comprehensive assessments.
The most critical legal check that should never be skipped in Santo Domingo is the Certificacion del Estado Juridico del Inmueble from the Registry of Titles, which confirms the property's legal status, current owner, and any existing liens or encumbrances.
Buying a property with hidden issues is something we mention in our list of risks and pitfalls people face when buying real estate in Santo Domingo.
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What hidden or surprise costs should I watch for in Santo Domingo right now?
What are the most common unexpected fees buyers discover in Santo Domingo?
The most common unexpected fees buyers discover in Santo Domingo include the 0.15% bank transfer tax on payment transactions, unpaid condo maintenance balances or special assessments, multiple due diligence certificates beyond the initial estimate, and the fact that DGII may calculate the 3% transfer tax on a value different from your negotiated price.
Yes, you can inherit unpaid property taxes or debts when purchasing in Santo Domingo, which is exactly why buyers should always request Registry certifications and tax payment confirmations before closing.
Fake listings and fraudulent fee requests do occur in Santo Domingo, and buyers can avoid scams by never paying deposits to unauthorized parties, always verifying seller identity through official records, and insisting on properly documented payments through legal channels.
Fees that sellers and agents in Santo Domingo often fail to disclose upfront include condo building special assessments, move-in fees, and the true cost of making a unit livable (such as air conditioning replacement, inverter or battery backup systems, and water pump repairs).
In our property pack covering the property buying process in Santo Domingo, we go into details so you can avoid these pitfalls.
Are there extra fees if the property has a tenant in Santo Domingo?
If the property you are buying in Santo Domingo has an existing tenant, expect extra legal fees of roughly 12,000 to 36,000 Dominican pesos (200 to 600 USD or 185 to 550 EUR) to review the lease terms, verify deposits, and assess eviction risk.
When purchasing a tenanted property in Santo Domingo, the buyer inherits the existing lease agreement and must honor its terms, including the tenant's right to remain until the lease expires and any deposit obligations.
Terminating an existing lease immediately after purchase in Santo Domingo is generally not possible unless the lease has a break clause or has already expired, as Dominican tenant protection laws require landlords to respect valid lease agreements.
A sitting tenant in Santo Domingo typically reduces the property's market appeal and can give buyers more negotiating leverage on price, though the impact varies depending on whether the tenant is paying market rent and how much time remains on their lease.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in Santo Domingo.
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 Santo Domingo?
Which closing costs are negotiable in Santo Domingo right now?
Negotiable closing costs in Santo Domingo include lawyer and notary professional fees, who pays for which certificates and due diligence documents, and real estate agent commissions (especially in direct deals or when using a buyer's agent).
Closing costs that are fixed by law and cannot be negotiated in Santo Domingo include the 3% property transfer tax and, if you are financing, the 2% mortgage registration tax.
On negotiable fees in Santo Domingo, buyers can typically achieve discounts of 10% to 25% on professional services by shopping around, bundling services with one firm, or negotiating when the deal is straightforward.
Can I ask the seller to cover some closing costs in Santo Domingo?
In Santo Domingo, asking the seller to cover some closing costs is possible and happens in roughly 20% to 30% of transactions, though success depends heavily on market conditions and the seller's motivation.
The specific closing costs that sellers in Santo Domingo are most commonly willing to cover include legal and document preparation fees, outstanding condo assessments or utility balances, and sometimes a contribution toward the buyer's due diligence costs.
Sellers in Santo Domingo are more likely to accept covering closing costs when the property has been on the market for several months, when there are multiple similar listings competing in the same building, or when the unit needs renovation.
Is price bargaining common in Santo Domingo in 2026?
As of early 2026, price bargaining is common and expected in Santo Domingo, especially on resale apartments, older inventory, and properties that have been listed for more than a few months.
Buyers in Santo Domingo typically negotiate between 3% and 8% below the asking price, which on a 6 million peso property would mean a discount of 180,000 to 480,000 Dominican pesos (about 3,000 to 8,000 USD or 2,750 to 7,350 EUR), though premium towers with high demand may leave little room for negotiation.
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What monthly, quarterly or annual costs will I pay as an owner in Santo Domingo?
What's the realistic monthly owner budget in Santo Domingo right now?
A realistic monthly owner budget for a typical apartment in Santo Domingo ranges from 15,000 to 45,000 Dominican pesos (about 250 to 750 USD or 230 to 690 EUR), depending on the building's amenities and your unit's size.
The main recurring expense categories that make up this monthly budget in Santo Domingo include condo or HOA fees (often the largest item), building reserve contributions, property insurance, and routine maintenance for air conditioning, inverters, and water systems.
Monthly owner costs in Santo Domingo can range from as low as 8,000 pesos (about 135 USD or 125 EUR) for a basic apartment in a simple building to over 90,000 pesos (about 1,500 USD or 1,380 EUR) for a large unit in a premium tower with extensive amenities.
The monthly cost that varies most in Santo Domingo is electricity, because many buildings require owners to run their own air conditioning, pay for inverter or generator fuel during outages, and maintain backup power systems.
You can see how this budget affect your gross and rental yields in Santo Domingo here.
What is the annual property tax amount in Santo Domingo in 2026?
As of early 2026, the annual property tax in Santo Domingo (called IPI, Impuesto al Patrimonio Inmobiliario) is 1% of the property value exceeding the exempt threshold of approximately 10,695,494 Dominican pesos (about 178,000 USD or 164,000 EUR).
Annual property tax in Santo Domingo can range from zero pesos if your property is below the exempt threshold to over 100,000 pesos (about 1,670 USD or 1,535 EUR) per year for high-value properties, with payment due in two installments on March 11 and September 11.
Property tax in Santo Domingo is calculated based on the combined taxable value of all properties owned by an individual, with only the portion exceeding the exempt threshold subject to the 1% rate.
Exemptions and reductions to the annual property tax in Santo Domingo are available for owners over 65 with a single home, foreign pensioners or rentistas with qualifying status, and properties within CONFOTUR-certified tourism development projects.
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 Santo Domingo in 2026?
What tax rate applies to rental income in Santo Domingo in 2026?
As of early 2026, rental income in Santo Domingo is subject to income tax (Impuesto Sobre la Renta or ISR) under the standard individual tax brackets, with rates ranging from 15% to 25% depending on your total taxable income.
Yes, landlords in Santo Domingo can deduct legitimate expenses from their rental income, including property maintenance, condo fees, insurance, depreciation, and property management costs, provided they keep proper receipts and invoices.
After allowable deductions, the effective tax rate for typical landlords in Santo Domingo often falls between 10% and 20% of gross rental income, though this varies significantly based on how well expenses are documented.
Foreign property owners in Santo Domingo are generally subject to the same rental income tax rates as residents, though the reporting requirements and withholding mechanics may differ, making a local tax advisor highly recommended.
Do I pay tax on short-term rentals in Santo Domingo in 2026?
As of early 2026, short-term rentals in Santo Domingo (such as Airbnb-style lodging) are subject to income tax on the earnings and may also trigger ITBIS (VAT) registration and collection obligations at the 18% rate.
Short-term rental income in Santo Domingo is taxed differently than long-term rentals because long-term residential housing leases are explicitly exempt from ITBIS, while short-term lodging activity is treated more like a hospitality service and may require VAT compliance.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in Santo Domingo.
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If I sell later, what taxes and fees will I pay in Santo Domingo in 2026?
What's the total cost of selling as a % of price in Santo Domingo in 2026?
As of early 2026, the total cost of selling a residential property in Santo Domingo typically ranges from 4% to 7% of the sale price before any capital gains tax is considered.
The realistic range for total selling costs in Santo Domingo spans from around 3% for a straightforward sale with minimal preparation to 10% or more if you include capital gains tax liability on a significant profit.
The specific cost categories that make up total selling expenses in Santo Domingo include real estate agent commission (typically 3% to 5%), legal and administrative fees (about 0.5% to 1%), any outstanding condo balances, and capital gains tax if applicable.
The single largest contributor to selling expenses in Santo Domingo is almost always the real estate agent commission, which commonly runs 3% to 5% of the final sale price.
What capital gains tax applies when selling in Santo Domingo in 2026?
As of early 2026, the capital gains tax rate for foreign individuals selling property in Santo Domingo is 27% of the taxable gain, making it one of the most significant potential costs when exiting an investment.
Exemptions to capital gains tax in Santo Domingo may apply in certain documented situations, though the safe budgeting assumption for foreign individual sellers is that the 27% rate applies unless your tax advisor can prove otherwise with proper documentation.
Yes, foreign property owners in Santo Domingo pay a specific capital gains rate of 27%, which is explicitly listed by DGII as the rate for foreign individuals and is distinct from resident rates.
Capital gains in Santo Domingo are calculated as the difference between the sale price and the original purchase price, with potential adjustments for documented improvements, though the specific calculation should be verified with a local tax professional.
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 Santo Domingo, 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 | It's the Dominican tax authority's own official tool for transfer tax calculations. | We used it to confirm the 3% property transfer tax rate. We anchored all buyer tax estimates on this official source. |
| DGII IPI Property Tax Page | It's DGII's official reference for annual property tax rates and thresholds. | We used it to confirm the 1% IPI rate and exempt threshold. We built owner annual budget sections using these official figures. |
| DGII Capital Gains Help Answer | It's DGII's official portal providing the capital gains tax rate for foreigners. | We used it to pin down the 27% rate for foreign sellers. We separated selling costs from selling taxes using this source. |
| Registry of Titles Certification Guide | It's the official Registry describing the legal-status certificate used in due diligence. | We used it to justify why title checks are mandatory. We grounded legal check costs on these official requirements. |
| DGII Bank Transfer Tax Guide | It's DGII's official guide to the 0.15% bank debit and transfer tax. | We used it to flag the small but real bank tax during closings. We included it as a hidden cost many buyers miss. |
| DGII Rental ITBIS Exemption Answer | It's DGII's official clarification on VAT treatment for housing rentals. | We used it to confirm long-term residential rent is ITBIS-exempt. We separated long-term from short-term rental tax treatment. |
| DGII CONFOTUR Benefits Answer | It's DGII's statement of what the CONFOTUR law can exempt. | We used it to explain transfer tax and IPI exemptions for qualifying projects. We warned readers to verify project status before relying on exemptions. |
| Carlos Felipe Law Firm | It's an established Dominican law firm providing professional market insights. | We used it to confirm typical agent commission practices. We referenced it for negotiability of professional fees. |
| Airbnb Dominican Republic Tax Guide | It's a platform-issued guide focused on short-term rental tax obligations. | We used it to support that short-term lodging triggers ITBIS obligations. We kept the short-term rental section practical using this source. |
| ProUsuario Financial Consumer Guide | It's a public consumer-protection body explaining common banking charges. | We used it to cross-check DGII's bank-tax information. We translated it into buyer-friendly wording for the hidden costs section. |
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