Do I have to pay taxes when buying a house in the DR?

Yes, the standard transfer tax is 3%. However, if the property is part of a CONFOTUR-approved project, you are 100% exempt from this tax.

What is the annual property tax (IPI)?

The IPI is a 1% annual tax. You only pay this on the total value of your properties that exceeds roughly $170,000 USD. Below this threshold, you pay $0 in annual property taxes.

Property Taxes & CONFOTUR Guide (2026)

Understanding property taxes is essential for any investor. In the Dominican Republic, the tax system is very favorable, especially with the CONFOTUR law.

The Two Main Taxes:

Transfer Tax: A one-time fee of 3% of the property value to transfer the title into your name.
Annual Property Tax (IPI): A 1% annual tax on the total value of all properties owned by an individual, but only on the amount exceeding approximately $170,000 USD.

The CONFOTUR Advantage: Many new developments in Sosúa and Cabarete are CONFOTUR-approved. This means you are exempt from both the 3% Transfer Tax and the 1% annual IPI tax for up to 15 years. This is a massive saving for smart investors.

The Step-by-Step Property Buying Process in the Dominican Republic (2026)

ROI and Rental Yields in Sosúa, Cabarete, and Puerto Plata (2026)

Piet Schenkels

Piet Schenkels was born in the Netherlands and relocated to the Dominican Republic at the age of 26. Having spent most of his time on the Dominican North Coast, he possesses an unparalleled knowledge of the area. Piet previously worked in the tourist industry and has been actively involved in real estate since 2010.