Dominican Republic – Selling Property

What are the steps involved in selling property yourself in the Dominican Republic?

Completing a property sale in the Dominican Republic requires following a defined sequence of legal and administrative steps. Whether or not you engage an agent, a licensed attorney and a notary public are indispensable participants — both are legally required to bring the transaction to a valid conclusion.

1. Assemble your documentation. You will need a valid form of identification — either a Dominican cédula or a current passport — along with the Certificate of Title, evidence that annual property tax (IPI) is current, and a certificate confirming that the property carries no outstanding debts or encumbrances.
2. Commission an independent valuation. Engaging a qualified appraiser to determine the property’s market value — typically costing between USD $200 and USD $500 — gives prospective buyers confidence and provides a sound basis for price negotiations.
3. Advertise and market the property. Without an agent, you can promote your property through Dominican listing portals and international real estate websites. Professional photographs and video tours are particularly valuable for reaching overseas buyers. Your listing should clearly describe the property’s key features, any recent works or upgrades, and the advantages of the surrounding area.
4. Reach agreement and sign a Promise of Sale (Promesa de Venta). Once a suitable buyer is found, both parties negotiate and agree on the sale price, payment method, and conditions. A Promise of Sale is then executed — this preliminary contract binds both parties to proceed to the final transaction and must specify the property’s details, the agreed price, the payment structure, and the deadline for signing the definitive deed. A buyer’s deposit typically accompanies this agreement.
5. Conduct legal due diligence. A property law specialist examines the title certificate, verifies the land registry entries, and confirms that the property is free from any liens, claims, or ongoing legal disputes. This step protects both parties and is essential before the final deed is signed.
6. Execute the final Deed of Sale before a notary. The Deed of Sale (Contrato de Venta) is signed by both parties in the presence of a notary public. The buyer settles the outstanding purchase balance at this point, typically by wire transfer. The notary then submits the deed to the property registry to effect the formal change of ownership.
7. Settle taxes and register the transfer. The 3% transfer tax must be remitted within six months of executing the sales contract, or financial penalties will accrue. Separately, the seller must discharge any capital gains tax liability with the Dirección General de Impuestos Internos (DGII) before the transaction is considered fully closed.
8. Obtain the new title certificate. Following registration at the Property Registry, a fresh Certificate of Title is issued in the buyer’s name. This marks the formal conclusion of the legal process and confirms that ownership has been transferred.

Do most sellers in the Dominican Republic use an estate agent, or is private selling common?

Engaging a real estate agent or broker with solid knowledge of the Dominican market is by far the most practical route to a successful sale. A capable agent will help you arrive at the right asking price, advise on any improvements that could strengthen your position, and deploy marketing strategies designed to attract the best possible offer in current conditions.

In practice, the overwhelming majority of sellers — and particularly those from overseas — choose to work with an agent. Contrast this with markets such as France, where direct-sale platforms like PAP command a meaningful share of transactions, or Australia, where private listing portals have gained considerable traction. The Dominican Republic’s property market is firmly agent-driven. There is no comparable private-sale infrastructure, and without in-depth local knowledge, setting a competitive price and identifying qualified buyers independently is a significant challenge.

In most Dominican Republic transactions, the seller bears the cost of the agent’s commission out of the final proceeds, though this is a matter for negotiation. Fees typically range from 4% to 6% of the sale price, with the precise figure depending on the property’s characteristics, its location, and the negotiating positions of both parties.

Market activity in the Dominican Republic is often shaped by tourist seasons and local events, and understanding these rhythms can help sellers choose an optimal moment to list. For properties in coastal resort areas, where international buyers represent a substantial portion of demand, an agent experienced in cross-border transactions offers a distinct practical advantage for foreign sellers.

How does capital gains tax work when selling property in the Dominican Republic?

Capital gains arising from property sales in the Dominican Republic attract a flat rate of 27% on the net profit, applicable to both individuals and companies. This is a national tax administered by the Dirección General de Impuestos Internos (DGII). Given that tax rates can change, sellers should always confirm the current applicable rate directly with the DGII before proceeding.

As of 2024, gains from property disposals are taxed at 27%. The taxable gain is calculated by deducting the inflation-adjusted acquisition cost from either the gross sale price or the assessed market value, whichever is greater. This means that the original purchase price, the cost of documented improvements, and certain qualifying acquisition expenses can all reduce the taxable amount before the rate is applied.

Importantly, the tax is levied on the profit rather than the full proceeds. To illustrate: if a property was acquired for $250,000 and subsequently sold for $400,000, the taxable gain is $150,000 — the 27% rate applies to this figure alone, not to the entire $400,000 sale price. Keeping this distinction in mind is essential for accurately projecting your net return.

It is also worth noting that the tax treatment differs between individuals and companies. While corporations face the flat 27% rate, individual sellers are subject to a progressive scale running from 0% to 25%. Depending on the size of the gain, individual sellers may therefore pay a lower effective rate — a factor worth exploring in detail with a qualified local tax adviser.

Long-term owners may benefit further: if a property has been held for more than ten years, partial or total exemptions from capital gains tax may apply in certain circumstances. This is a potentially significant saving — confirm whether you qualify with the DGII or a licensed Dominican tax professional before completing your transaction.

One practical point that foreign sellers must not overlook is that all capital gains calculations must be carried out in Dominican pesos. Because exchange rates fluctuate between the date of purchase and the date of sale, currency movements can materially affect the peso-denominated gain and, consequently, the resulting tax bill.

Unlike several European jurisdictions — Germany’s ten-year ownership exemption or France’s progressive abatement system being notable examples — the Dominican Republic does not provide a blanket primary residence exemption. That said, the DGII does distinguish between a sale of a principal family home and a disposal of a pure investment asset such as a rental apartment. The tax implications may therefore differ considerably depending on how your property has been used. Clarifying your individual circumstances with a local tax professional before committing to a sale is strongly advisable.

Are there other taxes or costs involved in selling property in the Dominican Republic?

Beyond the capital gains tax, a Dominican Republic property sale entails a range of additional costs. Some fall on the buyer, others on the seller, and some are open to negotiation. A clear understanding of all these items allows foreign sellers to plan their net proceeds with confidence.

Property Transfer Tax (Impuesto de Transferencia Inmobiliaria)
A transfer tax of 3% is levied on whichever figure is higher — the agreed sale price or the DGII’s own appraised value (as of 2025). This cost is conventionally borne by the buyer, though it can be the subject of negotiation. Sellers should be aware that buyers may factor this expense into their offer.

Agent commission
Where a real estate agent handles the sale, commission is typically around 5% of the sale price, though the range generally runs from 4% to 6% depending on the property, its location, and what is agreed between the parties.

Legal and notary fees
Legal and notary costs in the Dominican Republic generally amount to between 1.0% and 1.5% of the purchase price — on a USD $200,000 sale, this translates to roughly USD $2,000 to USD $3,000 — with an additional 18% ITBIS (value-added tax on services) applied on top of that figure (as of early 2026). Attorney fees are normally calculated as a percentage of the property value rather than a fixed sum, and notary fees are regulated by Law No. 140-15.

IPI (annual property tax) clearance
Sellers must ensure that all annual property tax (IPI) payments — set at 1% of the property value above the exempt threshold — are fully up to date before completing the sale. If these obligations are outstanding at the time of transfer, the tax authority may hold the buyer responsible for the arrears, along with any charges and interest. Clearing IPI before listing is therefore both good practice and a legal necessity.

CONFOTUR exemptions
The CONFOTUR Law (Law 158-01) creates meaningful incentives for qualifying tourism development projects. Buyers of properties within a certified tourism project receive a fifteen-year exemption from both the 3% property transfer tax and the 1% annual IPI. These savings can be a compelling selling point and may make your property noticeably more attractive to prospective buyers.

For the most up-to-date rates and thresholds, refer to the DGII official website or seek guidance from a licensed Dominican notary or conveyancer.

What legal requirements must sellers meet in the Dominican Republic?

Property transactions in the Dominican Republic are governed by Law 108-05 on Real Estate Registration, which operates through the Torrens System — a state-backed land registration framework that provides strong assurances of ownership. Under this system, a registered title functions as conclusive proof of ownership, and each property is associated with a Certificate of Title that constitutes definitive legal evidence of proprietorship. This framework underpins the security and transparency of property dealings in the country.

Unlike markets such as the UK — where energy performance certificates are a legal prerequisite before a property can be marketed — or France, where sellers must commission a battery of technical diagnostics prior to listing, the Dominican Republic imposes no comparable mandatory pre-sale inspection or energy certification requirements. However, sellers are expected to disclose any material defects and to ensure that their title is unencumbered before placing the property on the market.

Careful attention must be given to title verification, contract review, and confirming that no liens or charges are registered against the property. Even within the structured protections of the Torrens system, rigorous due diligence remains a critical safeguard for all parties.

A notable feature of Dominican law is that foreign nationals enjoy the same rights to acquire and dispose of property as Dominican citizens. There are no ownership restrictions for foreigners, with the exception of land situated in border zones, where specific limitations are in force. Foreign sellers are subject to precisely the same legal process as local vendors.

Foreign investors are required to obtain an RNC (National Taxpayer Registration Number) in order to meet their tax obligations — including filing returns and paying any taxes associated with property ownership and disposal. This step should be addressed early in the selling process, particularly for non-residents who may not yet hold an RNC.

Retaining a lawyer with proven expertise in Dominican real estate is strongly recommended. Such a professional will review all contracts, confirm the integrity of the title, and ensure full compliance with local legislation. A notary public plays the complementary role of authenticating documents and overseeing the signing of the final deed, giving the transaction the legal force necessary for registration and binding effect.

How does the exchange and completion process work in the Dominican Republic?

The Dominican Republic follows a two-stage contractual model that has parallels with France and Portugal, but diverges from the single-stage contract approach prevalent in Germany or the Netherlands. The process begins with a preliminary Promise of Sale and culminates in a notarised final Deed of Sale.

The Promise of Sale functions as a binding preliminary agreement committing both sides to proceed to the definitive transaction. It must set out the property’s identifying details, the agreed sale price, the payment method, and the latest date by which the final deed must be signed. A deposit or advance payment from the buyer typically accompanies this agreement as a demonstration of commitment.

The notary occupies a central and irreplaceable role in finalising the transaction. Their function is to verify both parties’ identities, authenticate signatures, and certify the agreement — without their formal involvement, the contract lacks the validity required for registration. Crucially, the Dominican notary acts as an impartial officer of the law rather than as an advocate for either party, which distinguishes their role from that of attorneys in common-law systems.

While ownership technically passes between the parties at the point of agreement on property and price, the transfer only becomes enforceable against third parties once transfer taxes have been paid and the title has been formally registered at the Title Registry. It is the notarised purchase and sale contract that enables this registration to take place.

Once due diligence is complete and all conditions have been satisfied, both parties attend before a Dominican notary to sign the final deed. The outstanding purchase balance — normally transferred by wire to the seller’s Dominican bank account — is settled at this same appointment.

For a straightforward resale, the period from accepted offer to completion typically runs between 45 and 60 days. Complications such as title irregularities, financing conditions, or incomplete documentation can extend this considerably.

Final title registration is handled by the Registro Inmobiliario (Registry of Titles). Sellers should confirm that their attorney lodges all required documents promptly following execution of the deed, since ownership is not formally recognised as transferred until registration is complete.

Is property exchange or part-exchange an option in the Dominican Republic?

Direct property swaps — where two owners exchange their respective assets without money passing between them — are not an established or commonly encountered feature of the Dominican Republic real estate market. No dedicated legal framework specifically governs such arrangements, and the concept is seldom seen in mainstream transactions.

That said, the general principles of contract law applicable in the Dominican Republic — rooted in the French Civil Code tradition — do not prohibit parties from structuring a deal as an exchange or permuta if they mutually agree to do so. Any such arrangement would still require notarisation and registration with the Registro Inmobiliario, and both parties’ tax liabilities — including capital gains tax — would be assessed on the basis of the market value assigned to each property involved.

For a foreign seller, pursuing a direct exchange introduces a significantly higher level of complexity: two simultaneous title transfers, two separate due diligence exercises, and the inherent difficulty of agreeing a fair valuation for each property in the absence of a cash reference point. In practice, most sellers looking to move up or down the property ladder opt for two independent transactions rather than attempting a swap. Anyone seriously considering a part-exchange arrangement should seek tailored legal advice from a Dominican real estate attorney with experience in non-standard transaction structures.

What should foreign sellers know about repatriating sale proceeds from the Dominican Republic?

The Dominican Republic’s tax system operates primarily on a territorial basis, meaning it taxes income and gains that arise from sources within the country. All earnings from activities conducted within Dominican territory are taxable, irrespective of whether the recipient is a Dominican national, a resident, or a non-resident foreigner. Accordingly, a capital gain arising from the sale of a Dominican property must be settled with the Dominican tax authorities before any funds are moved abroad.

The Dominican Republic does not maintain a blanket regime of capital controls, and foreign sellers are generally free to transfer sale proceeds internationally once all outstanding local tax obligations have been discharged. However, any transaction involving substantial sums must comply with the regulations of the Dominican Central Bank, applicable anti-money laundering laws, and Know Your Client requirements imposed by financial institutions.

The Dominican Republic has double taxation agreements in place with Canada (in force since 1977, covering income taxes) and Spain (in force since March 2014, covering both income and capital gains taxes). Sellers who are tax-resident in either of these countries should examine whether treaty provisions affect how Dominican capital gains tax is treated in their country of residence — consulting a tax adviser qualified in both jurisdictions is the most reliable course of action.

Under FATCA arrangements, the DGII and the US Internal Revenue Service (IRS) have established a bilateral framework for the exchange of financial and tax information. This requires Dominican financial institutions to report account data relating to US citizens, residents, companies, estates, and trusts directly to the IRS. Sellers with US tax obligations must therefore ensure that any Dominican property sale is fully and accurately reported in both countries.

Before transferring significant sums internationally, it is prudent to seek guidance from both a Dominican tax adviser and a foreign exchange specialist, so as to understand current exchange rates, banking fees, and any applicable reporting thresholds. The DGII and the Banco Central de la República Dominicana are the authoritative official sources for information on tax clearance procedures and foreign exchange regulations respectively.

Frequently asked questions about selling property in the Dominican Republic

How long does the full selling process typically take from listing to completion?

From an accepted offer to closing, a standard resale transaction generally takes around 45 to 60 days. The period between first listing a property and receiving an acceptable offer is harder to predict and depends heavily on location, pricing, and prevailing demand. In high-profile tourist destinations such as Punta Cana or Las Terrenas, competitively priced properties can generate buyer interest quickly, whereas more remote or specialist properties may remain on the market for several months before finding the right purchaser.

Can I sell my Dominican Republic property remotely, without being in the country?

Yes, remote sales are entirely feasible. By executing a Power of Attorney (Poder Notarial) in favour of a trusted representative — most commonly your Dominican attorney — you authorise that person to sign contracts and fulfil all necessary formalities on your behalf. If the Power of Attorney is prepared outside the Dominican Republic, it must be properly notarised and apostilled before it will be recognised as legally valid within the country. This arrangement is well understood and widely used by non-resident foreign sellers.

What happens if the buyer pulls out after signing the Promise of Sale?

The Promise of Sale is a binding agreement that commits both parties to completing the transaction. It is normally accompanied by a deposit paid by the buyer. Should the buyer withdraw without valid legal grounds, the seller is generally entitled to retain the deposit as compensation for the breach. Conversely, if it is the seller who withdraws without justification, they are typically obliged to return twice the deposit amount to the buyer. The precise consequences depend on the specific wording of the contract, which makes it essential to have your attorney draft clear and enforceable penalty clauses from the outset.

Do I need to clear outstanding mortgages or liens before selling?

Any mortgage, charge, or lien registered against the property must be extinguished — either prior to completion or from the proceeds of sale at closing — before an unencumbered title can pass to the buyer. Your attorney will identify all registered encumbrances during the due diligence phase, allowing you to plan accordingly well in advance of the signing date.

Is there a difference between selling a property held personally versus through a company?

Yes — the tax treatment differs. Companies are subject to a flat 27% capital gains tax rate, while individual sellers are taxed on a progressive scale ranging from 0% to 25%. This means disposing of a property held through a Dominican SRL (limited liability company) may produce a higher tax liability than an equivalent sale by an individual. Company ownership may offer other structural or planning advantages, however. The right approach depends entirely on your individual circumstances, and specialist advice from a local tax attorney is essential before making any decision.

Are there any restrictions on which currency sale proceeds can be held or transferred in?

Real estate transactions in the Dominican Republic are routinely agreed and settled in US dollars, particularly where international buyers are involved — although prices may equally be quoted in Dominican pesos. For tax purposes, however, all capital gains calculations must be expressed in Dominican pesos, so the gain will be converted at the prevailing rate for assessment. Proceeds from the sale can generally be held in a Dominican dollar-denominated bank account and transferred abroad once all tax obligations have been met and standard anti-money laundering checks have been completed.

Do I need to pay tax in both the Dominican Republic and my home country on the same gain?

The Dominican Republic’s double taxation treaties with Canada and Spain provide mechanisms that may allow tax paid locally to offset the liability arising in those countries. For sellers resident in countries without a treaty — which includes many European nations and the United States (which has a FATCA information-sharing arrangement with the DR but no comprehensive double taxation agreement) — there is a genuine risk of being taxed on the same gain in two jurisdictions. It is essential to seek professional tax advice in both the Dominican Republic and your country of residence before completing the sale.

What official sources should I consult when preparing to sell?

The key official sources are: the Dirección General de Impuestos Internos (DGII) for matters relating to capital gains tax, IPI obligations, and RNC registration; the Registro Inmobiliario for title registration and land registry searches; and the Banco Central de la República Dominicana for guidance on foreign exchange regulations. When selecting legal representation, verify that your attorney is registered with the Dominican Bar Association (Colegio de Abogados de la República Dominicana).