Closing fees Dominican Republic

An overview from Real Estate Taxes and Expenses on Transfers from property in the Dominican Republic.

Notary and taxes at closing:

  • 3,1% of the purchase price of the property (as mentioned the sales contract) or the price resulting from the valuation carried out by the DGII, whichever one is higher.
  • If the property is purchased by the purchase of company shares, then there is a 1% tax.
  • Tax must be paid within six (6) months of signing the sales contract.
  • These taxes need to be paid by the buyer

Lawyer Fees:

  • 1% of the purchase price

Summary

  • Taxes and fees will vary depending on values.  It is safe to assume 5% of the purchase price for taxes, fees and al legal documentation.

Yearly real estate taxes:

  • If the property is owned by a company 1% yearly real estate taxes are 1% over the appraised tax value.
  • If the property is on a private name the yearly taxes are 1% over the appraised vanlue above the 5 milion pesos (around 150.000 usd). So when you have an appraised property from 400.000 usd the taxes you pay is 400.000 - 150.000 = 250.000 usd. So you pay 1% over the 250.000 usd. So 2.500 usd a year.

Appraised value:

  • In general you can say around 50% from the sales price.

Company:

  • Establish a company is around 1500-2000 usd at a lawyer and protects you for liability.