Real estate taxes in the Dominican Republic are additional costs associated with buying or selling a
property. These costs vary depending on the location and the taxes that must be paid. Closing
costs, property expenses, and property taxes are some factors that must be considered when buying,
selling, or transferring property in the Dominican Republic.
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Closing cost refers to the expenses incurred by a buyer during the purchase of a property. These expenses
may include agent fees, attorney fees, utility fees, filing fees, notary fees, and other expenses related to
the purchase. These costs will vary based on location, property price, and other factors.
A flat tax of 3.1% (cadastral value of the property) will be charged for the transfer of the property. <\/p>\n\n\n\n
This tax transfers the property from the seller to the new buyer. The tax is paid based on the commercial value of the property as determined by the tax authorities, not on the purchase price established in the deed. Historically, the taxing authorities have assessed properties below market value. Generally, this tax is between $2,000 and $6,000, depending on the purchase price of the property.
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Legal expenses are the fees and costs associated with the legal advice necessary to complete a property
purchase. These costs may include attorney’s fees, costs of documents needed for the purchase, notary
fees, and title search costs. These costs will again vary depending on the location of the property, the size
of the property, and the type of legal advice required.
Your real estate attorney will charge interest on the purchase price of the property. The fee is usually 1 to
1.5% of the purchase price. This amount includes all payments, due diligence, and transfer of title into your personal or business name, depending on the method of purchase you choose.<\/p>\n\n\n\n