Who Pays What at a Dominican Closing: Buyer vs Seller (2026 Guide)

Who Pays What at a Dominican Closing: Buyer vs Seller (2026 Guide)

Closing a real estate deal in the Dominican Republic looks deceptively similar to closing in the US or Canada — until you sit down at the table and discover the line items don't quite match what you expected. Who pays the transfer tax? Who covers the legal fees? What about the agent commission, the title transfer at the Registro de Títulos, the certifications from DGII? Misunderstanding these costs is one of the most common — and avoidable — frustrations for foreign buyers.

This 2026 guide walks you through who typically pays what at a Dominican closing, what the standard splits look like, and where you have room to negotiate. Treat the percentages below as customary practice, not legal mandates: most are negotiable in the Promesa de Venta (promise of sale), and laws and tax thresholds change. Always confirm current figures with DGII (for taxes), with the Jurisdicción Inmobiliaria / Registro de Títulos under Law 108-05 (for title matters), and with your own independent licensed Dominican attorney — not the seller's or developer's lawyer.

The Short Answer: Who Pays What

Here is the customary allocation at a typical resale closing in the DR:

Buyer typically pays:

• The 3% transfer tax (ITI) to DGII
• Title registration and Registro de Títulos fees
• Their own attorney's fees
• Notary fees on the deed of sale
• Bank wire and escrow fees on incoming funds
• Any new survey or deslinde they require for clean title

Seller typically pays:

• Real estate agent commission (usually the full commission, split between listing and selling agents)
• Any back IPI (annual property tax) owed
• Any unpaid HOA / condominio dues
• Capital gains tax on the inflation-adjusted gain
• Costs to clear liens, mortgages, or title defects
• Their own attorney, if they use one

Below, each item in detail.

Buyer-Side Costs Explained

1. The 3% Transfer Tax (ITI) — The Big One

The Impuesto sobre Transferencias Inmobiliarias (ITI) is 3%, paid by the buyer to DGII. Crucially, it is calculated on the higher of (a) the price stated in the contract or (b) the DGII appraised value of the property. A common mistake is assuming you'll pay 3% of your purchase price — if DGII's valuation is higher, that's the figure used.

You cannot register the title in your name at the Registro de Títulos until ITI is paid and DGII issues the corresponding receipt. Budget the full 3% in cash at closing; it is not financeable.

CONFOTUR exception: If the property sits inside a project certified under Law 158-01 (CONFOTUR), the ITI may be exempt — but in practice this exemption realistically applies to the first buyer from the developer. Resale buyers of a CONFOTUR unit usually do not get it. Confirm the project's certification status and which benefits transfer with your attorney and with MITUR/CONFOTUR.

2. Legal Fees

Plan on roughly 1%–1.5% of the purchase price for a competent independent abogado, though small transactions often pay a higher percentage and large ones can negotiate down. Your attorney should handle:

• Title search at the Registro de Títulos
• DGII status check (no liens, no IPI debt)
• Drafting or reviewing the Promesa de Venta
• Verifying the Certificado de Título and, if applicable, the deslinde (individualized survey)
• Closing, ITI filing, and title transfer

Do not use the seller's or developer's attorney. Even if it seems cheaper, you lose the single most important protection in the transaction.

3. Title Registration & Notary Fees

Recording the new title with the Registro de Títulos carries government fees plus minor stamp and certification costs. A notary public (a Dominican notary is a licensed attorney) authenticates the deed of sale — notary fees are negotiable but customarily fall in a modest range tied to the deal size. Together, registration and notary work typically add a small percentage on top of legal fees. Ask your attorney for a written estimate before signing the Promesa.

4. Survey (Deslinde), If Needed

If the property has not been individually surveyed and lacks a modern Certificado de Título with its own parcel designation, you may need a deslinde to obtain clean, registrable title. This is a surveyor-and-court process that can take months. Who pays is negotiable, but if the seller is offering a property without a finalized deslinde, you have leverage to push the cost — or the process itself — onto them as a condition of closing.

5. Escrow and Wire Costs

If you use an escrow agent (recommended, especially for remote closings and pre-construction), expect a flat fee or small percentage. Your international wire will also carry bank fees on both sides, and your Dominican bank may charge for receiving funds and converting currency. None of these are large, but they add up.

Seller-Side Costs Explained

1. Real Estate Commission

In the DR, the seller customarily pays the full agent commission, typically 5%–8% depending on the market and property type (Punta Cana resort condos and Las Terrenas villas often sit at the higher end; Santo Domingo apartments lower). The commission is split between the listing agent and any cooperating buyer's agent. Always confirm the rate in writing in the listing agreement, and verify the agent is registered.

2. Capital Gains Tax

This is the cost most often misunderstood — including by sellers. Capital gains on real estate are NOT a flat 27% for individuals. For an individual seller, the gain is taxed as ordinary income on the progressive personal income tax scale (roughly 0%–25%), applied to the inflation-adjusted gain (DGII publishes adjustment factors). The 27% rate is the corporate rate, which applies if a Dominican company (such as an SRL) owns the property.

In practice this means:

• An individual with a modest inflation-adjusted gain may owe relatively little.
• A company always pays 27% on the adjusted gain.
• The buyer's 3% ITI is separate — sellers sometimes confuse it with their own capital gains liability.

Have a Dominican contador (accountant) run the numbers against your acquisition cost basis, documented improvements, and DGII's inflation adjustment before you list, so you don't get surprised. Confirm rates and brackets with DGII for the current year.

3. Back Taxes, Liens, and HOA Dues

A clean closing requires the property to be free of debt. Sellers must clear:

• Any unpaid IPI (the annual property tax — 1% only on value above an inflation-indexed threshold on an owner's aggregate Dominican property; check the current threshold with DGII)
• Any outstanding mortgage
• Any judicial liens
• Past-due condominio/HOA fees and utility balances

Your attorney will pull the Certificación de Cargas y Gravámenes from the Registro de Títulos and the DGII status to confirm. Anything owed comes out of the seller's proceeds at closing.

Where the Lines Blur — Negotiable Items

Custom is not law. Plenty of items are routinely negotiated:

• Who pays ITI: Customarily the buyer, but in a soft market or a motivated-seller scenario, sellers sometimes contribute.
• Pre-construction units: Developers often quote prices "plus closing costs" — meaning you pay ITI and registration on top of the listed price, with the developer absorbing none of it. Read the contract carefully.
• Furniture and inventory: Often handled with a separate bill of sale to reduce the registered transaction value — but be cautious about understating, both for ITI exposure later and for your own future capital gains basis when you sell.
• Deslinde costs as discussed above.
• Currency: DR transactions can be in USD or DOP; specify which currency, at what reference rate, and at what bank.

Common Pitfalls

• Trusting one attorney for both sides. Never.
• Wiring a deposit before the Promesa de Venta is signed and the title is verified. Use escrow.
• Assuming CONFOTUR exempts you from ITI as a resale buyer. Usually it doesn't.
• Forgetting that ITI uses the higher of contract or DGII appraisal. Get the DGII appraisal estimate before you commit.
• Letting the seller delay paying back IPI or HOA dues "after closing." Settle everything at the table.

Quick FAQ

Do foreigners pay higher closing costs than Dominicans? No. Foreigners have the same property rights under the equal-treatment provisions of the Dominican Constitution (Articles 25 and 221). The old presidential-approval requirement was abolished by Decree 21-98. You pay the same ITI, IPI, and fees as a Dominican buyer.

Can closing costs be financed? Generally no — ITI and registration must be paid in cash to release the title. Some banks will lend slightly above the purchase price on a mortgage to help, but most foreigners pay closing costs out of pocket.

How long between Promesa and closing? Typically 30–90 days, longer if a deslinde, mortgage, or corporate structure is involved.

Is there a "border zone" restriction? No. There is no 50/60 km Haiti-border ownership ban — that's a myth. The only true coastal restriction is the 60-meter maritime zone under Law 305 of 1968, which is public land and applies equally to everyone.

A final note: Dominican tax thresholds, DGII appraisals, and registration fees change. Treat every number in this guide as a planning estimate and verify the current figures with DGII, the Jurisdicción Inmobiliaria, and your independent Dominican attorney before you sign anything.