Usually calculated on the higher of the contract price or DGII appraisal when title changes hands.
Tax and permits
Dominican Republic real estate taxes, fees, and building permits.
A practical advisory guide for foreign buyers, investors, sellers, and developers who need to understand transfer tax, IPI property tax, company ownership, and construction approvals before committing to a property.
DGII 2026 exempt amount for individual real estate patrimony before IPI applies.
IPI may be paid annually or in two equal instalments under the usual payment schedule.
Municipality, utilities, environment, tourism when applicable, and MOPC final licensing.
Tax residence
Territorial tax system
Dominican tax law is primarily territorial: taxes are levied on Dominican-source income. Income from work performed abroad is generally not taxable only because a person is Dominican or resident. For tax purposes, a person present in the country for 182+ days in a 12-month period may be treated as a tax resident. Taxpayers must register with the Internal Revenue Agency and obtain an RNC when required.
Real estate taxes and fees
Transfer tax
One-time 3% tax on the higher of the sale price or DGII appraisal when title is transferred.
Legal fees
Commonly around US$1,000 or about 1% depending on transaction scope, documents, and legal coordination.
Annual IPI
1% for individuals and trusts on taxable real estate patrimony above the annually indexed DGII threshold.
Exemptions
May include farm properties, certain homes owned by people aged 65+, and properties held under company regimes.
Registration scenarios
| Scenario | Tax due |
|---|---|
| Title transferred to an individual | 3% transfer tax on sale/appraised value |
| Title transferred to a company (SRL) | 3% transfer tax applies on transfer to the company |
| Property already held by a company; buyer acquires shares | No title transfer at that moment, so no 3% title-transfer tax then. Ongoing company taxes still apply. |
Property Tax (IPI) quick view
| Who pays | Rate | Base | When |
|---|---|---|---|
| Individuals | 1% annually | Cumulative appraised value above the indexed exemption threshold | By Mar 11, or 50% Mar 11 / 50% Sep 11 |
| Companies | Company regime | Company assets tax may apply instead of individual IPI | Confirm with accountant |
The 2026 DGII exempt amount for individual real estate patrimony is RD$10,695,494.00. Furniture and equipment are excluded from real estate appraisals.
Construction
Taxes and building permits in the Dominican Republic
Before building, obtain a property title certificate and a complete architectural plan set from a licensed architect. Architectural services commonly range from US$15-30/m2 depending on expertise and complexity. The initial design and filing phase can take around 60 days before the deeper permitting route begins.
Main permits and typical fees
01Municipality permit
Certificate of no objection, land use, plan submissions, and urbanization or subdivision payments.
02Water and sewer
INAPA no-objection for network connection, filing, and approval. Guide fee around RD$10,000.
03Electric utility
Grid connection permit, plans, and technical data. Guide fee often RD$3,000-6,500 depending on capacity.
04Environment
Environmental authorization with application, supporting studies, and ministerial evaluation.
05MITUR
Design parameters and land-use no-objection for tourism-related projects when applicable.
06MOPC license
Final construction license from the Ministry of Public Works and Communications.
Complete permitting often takes 6-12 months, and third-party costs may reach several thousand USD. Work with local licensed architects and project managers.
Law 5038 (Condominiums) - key provisions
- Allows vertical property division into condominium units.
- Defines rights and obligations of unit owners and common areas.
- Requires a condominium association for common-area management.
- Sets meeting rules, decision protocols, common expenses, amendments, unit sales, and reconstruction procedures.
Document set for construction licensing
- Construction license application on the plan-processing portal.
- Descriptive project memo in physical and digital form.
- Two stapled plan sets on white paper per Regulation R-021.
- Title copy and marked cadastral survey plans.
- Municipal Technical Form (Model F-3).
- Municipal land-use and no-objection certifications.
- Structural calculations, load analysis, and geotechnical study.
- Hydraulic calculations when applicable.
- MOPC receipts, evacuation routes, and formwork specifications.
- Digital PDF or TIFF deposit of required documents.
Important notes
- Projects over two floors and certain construction area parameters require specific permissions under local regulations.
- Zoning maps define permitted uses by city. No residential construction is permitted within 60 meters of the ocean.
- The process is complex. A local licensed architect and project manager can reduce time, cost, and compliance risk.
Official reference points
For final decisions, verify current rates and thresholds directly with DGII and the corresponding municipality, ministry, utility provider, legal advisor, accountant, and licensed architect.