The short version: when you buy property in the Dominican Republic, budget roughly 4 to 6 percent of the purchase price on top for taxes and closing costs. Selling costs more like 10 percent once commission and capital gains are counted. Here is the line-by-line breakdown so nothing surprises you at the closing table.
Buyer costs, line by line
| Cost | Typical amount | Notes |
|---|---|---|
| Transfer tax | 3% of government-appraised value | Paid to the DGII before title transfers. Waived for Confotur-approved properties. |
| Legal fees | 1 to 1.5% of purchase price | Your lawyer handles due diligence, contracts, and title transfer. Never skip this. |
| Notary | Often included in legal fees | Confirm with your lawyer what their quote covers. |
| Title search and surveys | US$300 to US$800 | Verifies clean title (Certificado de Título) and boundaries. Non-negotiable in my book. |
| Bank charges / wire fees | US$100 to US$500 | Varies with how you move the money. |
Note the phrase government-appraised value. The 3 percent transfer tax is charged on the DGII’s appraisal, which is often lower than the market price you actually paid. Your lawyer will confirm the exact figure before closing.
The cheapest part of buying here is the lawyer. The most expensive part is not hiring one.
What you pay every year after that
| Cost | Typical amount | Notes |
|---|---|---|
| Property tax (IPI) | 1% per year | Only on the portion of appraised value above the exemption threshold (around RD$10 million, adjusted annually). Many condos fall under the threshold and pay nothing. Confotur properties are exempt for a period. |
| HOA fees | US$100 to US$450/month | See the HOA 101 guide for what these cover and the red flags. |
| Insurance | US$300 to US$1,000/year | Unit contents and liability; the building’s structure is usually covered by the HOA policy. |
| Utilities | US$100 to US$250/month | Electricity is the big one, especially with AC. Internet is fast and cheap by comparison. |
Seller costs (worth knowing even as a buyer)
- Agent commission: typically 5 to 10 percent on the North Coast, agreed up front.
- Capital gains tax: 27 percent on the gain, with the calculation based on documented purchase price. This is one reason your lawyer makes sure the real price is on the contract when you buy.
The honest timeline
A clean transaction in Cabarete typically takes 30 to 60 days from signed offer to title in your name: due diligence first (1 to 3 weeks), then the promesa de venta with a deposit, then closing and registration. Title registration at the Registro de Títulos can add a few weeks after closing, which is normal and not a problem when the paperwork was done right.
Cost questions I get all the time
How much are closing costs in the Dominican Republic?
Plan for 4 to 6 percent of the purchase price: a 3 percent transfer tax on the government-appraised value, legal fees of 1 to 1.5 percent, plus title search and small administrative costs. Confotur-approved properties skip the transfer tax entirely.
Is there annual property tax in the DR?
Yes, the IPI. Individuals pay 1 percent per year on the portion of the appraised value above roughly RD$10 million (the threshold adjusts annually for inflation). Properties appraised below the threshold pay nothing, which covers many Cabarete condos. Confotur properties are exempt for a set period.
Do I need a lawyer to buy property in the DR?
Legally you could close without one. Practically, never do that. Your lawyer verifies the title is clean, checks for liens and HOA debt, confirms the seller actually owns what they are selling, and registers the transfer. Legal fees of 1 to 1.5 percent are the best money in the whole transaction.
Can I get a mortgage in the Dominican Republic as a foreigner?
Yes, some Dominican banks lend to non-residents, but expect higher rates than North America or Europe, larger down payments, and slower approval. Most foreign buyers in Cabarete pay cash, use home-country financing, or negotiate developer financing on new builds.
What is a Certificado de Título?
It is the official registered title document in the Dominican Torrens system, and it is the only proof of ownership that matters. If a seller cannot produce one, or offers a “constancia anotada” or rights-only paperwork, the deal needs extra scrutiny. This is exactly what your lawyer is for.
Are prices in Cabarete negotiable?
Usually, yes. Listed prices on the North Coast often have 5 to 10 percent of room in them, more if the property has sat unsold. A local agent who knows what comparable units actually closed for, not just what they listed for, is your edge here.
Figures above are typical ranges and the legal thresholds adjust over time. Before you commit to anything, get current numbers from your lawyer. If you do not have one, write me and I will connect you with the ones my buyers use.
Want all of this on one page? Grab the free Buyer’s Cheatsheet. Real talk, no bulto.
Don’t take my word for it
Real talk means you can check this yourself. The official Dominican sources:
- DGII: the 3% transfer tax and the IPI property tax, straight from the source.
- Ministerio de Turismo: the Confotur law that waives transfer and property tax on qualifying properties.
- Registro Inmobiliario: title registration, the final step that puts the property in your name.