Tax
Property taxes
Two taxes matter to most owners: a one-off transfer tax at purchase, and an annual tax on value above a threshold. Both are assessed on the tax authority’s valuation, not necessarily on what you paid.
Transfer tax, paid once
The property transfer tax (Impuesto de Transferencia Inmobiliaria) is 3%, and it falls due when ownership transfers. It is normally paid by the buyer, and the registry will not complete the transfer without the DGII receipt — so in practice it is unavoidable and it gates the whole transaction.
The base is the higher of the price you paid or the DGII’s own appraisal. This catches people out. A price negotiated below market does not produce a proportionally lower tax bill, because the tax authority values the property independently and taxes the greater figure.
IPI, paid annually
IPI (Impuesto al Patrimonio Inmobiliario) is an annual tax of 1%, and its structure has two features worth understanding.
First, it is charged only on value above an exempt threshold, not on the whole value. A property below the threshold pays nothing; one above it pays 1% on the excess only.
Second, that threshold is re-indexed for inflation every year. This is why no responsible source should quote you a fixed figure — any number published today is wrong by next year. Confirm the current threshold with the DGII or your attorney at the time you need it.
We have deliberately not printed a threshold amount. The figure moves annually, and a stale number repeated confidently is worse than no number at all — particularly when it is the difference between owing nothing and owing 1% a year. The DGII publishes the current figure.
Applied to individuals, IPI looks at total Dominican property holdings rather than each property in isolation, so a second purchase can change the position on the first. Property held through a company is treated differently again. If you are buying more than one unit, or buying through a structure, this is worth specific advice rather than a general guide.
How CONFOTUR changes both
A unit in a CONFOTUR-approved project is exempt from the 3% transfer tax on first transfer, and exempt from IPI for fifteen years. That is the largest single variable in the tax position of a Punta Cana purchase, and it depends entirely on whether the specific project holds a resolution.
See CONFOTUR explained for how to verify that before you rely on it.
Other tax you should expect
- Rental income is taxable in the Dominican Republic, whether or not you are resident, and whether or not the property is CONFOTUR-approved.
- Capital gains on a sale are taxable, with the acquisition cost adjusted for inflation in the calculation.
- Your home country may tax the same income or gain. Whether relief is available depends on the treaty position between your country of residence and the Dominican Republic. Take advice on both sides rather than one.
Common questions
How much is property transfer tax in the Dominican Republic?
3%, charged on the higher of the purchase price or the DGII appraised value, normally paid by the buyer at the point of transfer. Units in a CONFOTUR-approved project are exempt on first transfer.
How is the annual IPI property tax calculated?
IPI is 1% per year, charged only on the portion of value that exceeds an exempt threshold rather than on the full value. The threshold is adjusted annually for inflation, so the current figure should be confirmed with the DGII.
Is the tax based on what I paid for the property?
Not necessarily. The DGII conducts its own appraisal, and transfer tax is charged on the higher of that appraisal or the price paid.
Do foreigners pay higher property taxes than Dominicans?
No. The same rates and thresholds apply regardless of nationality or residency status.
Is rental income from a Dominican property taxable?
Yes. Rental income is taxable in the Dominican Republic even for non-residents, and a CONFOTUR exemption does not cover it. Your country of residence may also tax it, subject to any treaty relief.
Last reviewed August 2026
General information about Dominican Republic property law and practice, not legal or tax advice. Statutes are amended and thresholds are re-indexed; confirm anything you intend to rely on with a Dominican attorney and with the DGII before you act on it.