The Cost of Buying Property in the Dominican Republic: Lower Than You Think (2026)

For international buyers, the Dominican Republic is one of the easiest and most affordable places to own property in the Caribbean. The cost of buying property in the Dominican Republic is low by Caribbean and North American standards, refreshingly transparent, and in many cases far smaller than people expect, because the country's CONFOTUR tourism incentive can remove the largest costs entirely.

That is the part most buyers are pleasantly surprised by. On a qualifying property, the taxes that would normally make up the bulk of your closing costs can be waived, leaving little more than a modest legal fee. It is one of the reasons the Dominican Republic has become such an attractive market for second homes and investment property.

Here is how the numbers actually work, from the best-case CONFOTUR scenario to a standard purchase, so you can see just how affordable ownership here can be. Tax rules do change and each situation is different, so treat these figures as general guidance and confirm the specifics with a qualified attorney or tax advisor.

Start with the biggest advantage: CONFOTUR

The Dominican Republic actively encourages tourism-related real estate through an incentive called CONFOTUR, and for buyers it is a genuine game-changer. When a property is part of a CONFOTUR-certified project, it can be exempt from the 3% real estate transfer tax at purchase and from the annual property tax for up to 15 years, with favorable treatment of rental income during that period as well.

In practical terms, that means the single largest cost of buying can drop to zero. On a CONFOTUR-certified purchase, a buyer's closing costs can come down to little more than legal fees of around 1% of the price, an exceptionally low figure by any international standard. And because a large share of new developments across Punta Cana, Samaná, and Las Terrenas are CONFOTUR-certified, this is a realistic everyday scenario rather than a rare exception. Whether a specific property qualifies depends on the project, so it is worth confirming the certification in writing, and it is one of the first things we help buyers check.

The 3% transfer tax, and when you simply do not pay it

For a property outside the incentive, the main closing cost, and often the only significant one, is the real estate transfer tax of 3%. It is a one-time tax paid when title is transferred into your name, calculated on the value assessed by the tax authority. Compared with the layered taxes and fees common in many countries, a single predictable 3% is straightforward and easy to plan for.

And as noted above, on a CONFOTUR-certified property that 3% is waived entirely. This is why the certification status of a project matters so much to the final math, and why two similar-looking properties can carry very different costs. The transfer tax is the biggest number in a standard purchase, so removing it changes the picture considerably in the buyer's favor.

Legal fees: small, and worth every dollar

Working with an independent attorney is standard practice here, and the fee is modest, commonly in the region of about 1% of the purchase price, with a small minimum on lower-priced properties. For that, your attorney confirms the title is clean, verifies the seller's authority to sell, reviews condominium documents, and manages the closing and title registration.

This is the one cost worth paying happily. Good legal guidance is exactly what makes a cross-border purchase feel simple and secure, and it is the same standard of care we bring to every transaction. On a CONFOTUR property where the transfer tax is waived, this modest legal fee is effectively the main cost of the entire purchase.

The few small items to round out your budget

Beyond the transfer tax and legal fees, there are a handful of minor costs: notary fees, title registration, and small administrative charges. Individually they are minor, and together they add only a little to the total. If you choose to buy through a company structure for tax or estate reasons, there may be some setup cost, which is a decision we help buyers weigh based on their goals, as we discuss in our guide to investment property in Punta Cana.

What buyers actually budget, and why it is so competitive

Put it together and the picture is genuinely attractive. On a standard purchase, total closing costs generally land in the range of about 4% to 6% of the price, with the 3% transfer tax as the largest piece. On a CONFOTUR-certified property, that total can fall to roughly 1% to 2%, essentially just the legal and administrative costs.

Either way, this compares very favorably with buying in the United States, Canada, or many other Caribbean destinations, where combined taxes and fees often run higher with far less transparency. For a buyer comparing markets, the Dominican Republic consistently stands out on cost, which is a recurring theme across the best places to invest in Dominican Republic real estate. Setting aside around 5% for a standard purchase, or as little as 1% to 2% on a CONFOTUR property, is a sensible planning figure to refine with your attorney.

Low ongoing costs, too

The good news continues after closing. The annual property tax, known as IPI, is charged at just 1% per year, and only on the portion of a property's assessed value above an exemption threshold, which for 2026 sits at roughly RD$10.7 million, or about US$182,000. Many individual properties below that value owe no annual property tax at all, and CONFOTUR-certified properties can be exempt from IPI for years regardless of value.

Beyond that, owners budget for condominium fees where applicable, insurance, utilities, and maintenance, all generally reasonable relative to comparable markets. Foreign owners pay exactly the same as Dominican nationals, with no surcharge for being non-resident. For a property you also rent out, sensible income planning completes the picture, and the low tax environment helps those numbers work.

Financing, if you want it

Many international buyers purchase in cash, which keeps everything simple. For those who prefer to finance, mortgages are available to non-residents through several Dominican banks. Financing carries its own costs, such as appraisal and bank fees and higher interest rates than in North America, so it is worth running the full numbers, but on a strong rental property the income can comfortably support the payments.

The point is that you have options. Whether you pay cash or finance, the underlying cost structure, especially with CONFOTUR, keeps the Dominican Republic among the more accessible places to own Caribbean property.

An easy market to buy into

Taken together, the cost of buying property in the Dominican Republic is low, clear, and often lower than buyers expect, especially on the CONFOTUR-certified properties that fill our markets. Transparent taxes, a modest legal fee, and the possibility of waiving the largest cost entirely add up to one of the most buyer-friendly cost structures in the Caribbean.

The best way to see it for yourself is on a specific property, with the costs itemized clearly before you decide. For a clear, no-pressure estimate on a home that fits your budget, contact Samana Real Estate, or browse our current property listings to get started.