Closing Costs

  • A transfer tax of 3.1% of the government assessed value of the property will be imposed.
  • This tax transfers ownership from the vendor to the new buyer.
  • The tax is based on the market value of the property as determined by the tax authorities, not the purchase price in the deed of sale.
  • Tax authorities often value properties lower than their market value.
  • The tax usually ranges from $2,000 to $6,000, depending on the purchase price of the property.
  • Some investor/pension residencies may be exempt from this tax. Please inquire for more information.

Associated Fees Legal/Professional

Legal and Professional Fees

  • Your real estate lawyer will charge a percentage of the purchase price for their services.
  • The standard fee is typically between 1% and 1.5% of the purchase price.
  • This fee covers all necessary expenses, due diligence, and the transfer of ownership into your personal name or corporation, depending on your preference.
  • Note that the seller or developer, not the purchaser, is responsible for paying these fees.

Taxes

Relevant Tax Fact Sheet

  • An annual 1% tax is imposed on real estate properties owned by individuals, based on the cumulative value of all properties owned as assessed by government authorities.
  • Note that the assessed value of the property does not typically reflect its true market value and is usually lower.
  • The 1% tax is applied only to property values above $6,858,885.00 DOP (approximately $150,000). For un-built lots, the 1% tax is calculated on the actual appraised value without the exemption.
  • The real estate tax is due annually on or before March 11, or in two equal installments: 50% on or before March 11 and the remaining 50% on or before September 11.
  • The amount of the exemption is adjusted annually for inflation.
  • Certain properties are exempt from paying the real estate tax, such as: (a) farm properties; (b) homes whose owner is 65 years old or older, and has no other property in his or her name; and (c) properties owned by companies, which pay a separate tax on their company assets.