What are the closing costs for purchasing a house in Dominican Republic?
There are two taxes each owner has to pay for a property:
- The tax on transfer of property rights, 3% of the value of the property
- The real estate tax (IPI), which is equal to 1% of the value of the real estate. There is an exempt amount of RD$8,138,353.26 (about $142,000) and the 1% is applied only to the amount exceeding this value.
In case you decide to use a lawyer, which is highly recommended, the legal services fees are 1% of the property value.