Closing Costs When Selling Property in the Dominican Republic: Who Pays What

Selling a home in the Dominican Republic is usually simpler than buying one — but it is not free, and the division of costs between buyer and seller is not always what foreign owners expect. Many of the biggest expenses (transfer tax, legal review, title registration) are legally the buyer's responsibility, yet sellers often end up quietly absorbing some of them to close a deal, especially in a slower market. On top of that, you may owe a sales commission, capital gains tax, a notary bill, and — if your title still has not been individualized — a deslinde survey that can delay closing by months.

This guide walks you through who typically pays what when you sell, what to budget for, and the pitfalls that most catch out foreign sellers in Punta Cana, Las Terrenas, Sosúa/Cabarete, Samaná and Santo Domingo. Rules and figures change, so always confirm the current numbers with the DGII (tax authority), the Registro de Títulos, and an independent licensed Dominican attorney — not the buyer's lawyer — before you sign anything.

The Short Answer: Who Pays What

In a standard Dominican resale, costs break down roughly as follows:

Buyer typically pays:

• The 3% transfer tax (ITI) to DGII, calculated on the higher of the contract price or the DGII appraisal value — not simply the sale price.
• Registration of the new Certificado de Título at the Registro de Títulos.
• Their own attorney's due diligence and closing fees (commonly 1–1.5% of price, negotiable).
• Notary fees for the deed of sale (often split, but customarily buyer-side).

Seller typically pays:

• Real estate commission (customarily 5–8% + ITBIS/VAT on the commission).
• Capital gains tax on any inflation-adjusted profit.
• Any outstanding IPI (annual property tax), condominio/HOA dues, utilities, and municipal fees up to the closing date.
• Cost of producing a clean title package: deslinde (if not already done), updated certifications, and discharge of any mortgage or lien.
• Their own attorney, if they retain one (strongly recommended).

These are market customs, not statute. Everything is negotiable and should be spelled out in the Promesa de Venta (promise of sale).

Real Estate Commissions

Commissions in the DR are not regulated, and they are almost always paid by the seller out of the proceeds at closing. Typical ranges:

• Resale condos and villas: 5% to 7%, plus 18% ITBIS on the commission itself.
• Raw land and harder-to-move properties: 6% to 10%.
• Luxury/high-value listings: sometimes negotiated down to 4–5%.

Ask upfront whether the agent is exclusive or open listing, whether the fee is net to seller or inclusive of ITBIS, and whether co-brokerage splits are allowed. Get it in writing. Agents in the DR are not uniformly licensed the way they are in the US or Canada, so vet credentials, references and track record carefully.

Attorney and Notary Fees

You should have your own abogado reviewing the sale — never rely on the buyer's lawyer "for both sides." Expect:

• Seller's attorney: roughly 1% of the sale price, with a floor for low-value transactions. For complex sales (corporate-held property, inheritance, pre-construction assignment) fees are higher.
• Notary (Notario Público): notaries are licensed attorneys authorized to formalize the deed. Fees are set by professional guidelines and commonly land in the range of a small percentage of the deed value, with practical minimums. Who pays the notary is negotiable; by custom the buyer covers it, but in practice it is often split or absorbed into the overall closing budget.

Confirm the current notary fee schedule with the Colegio de Notarios or your attorney before closing.

Deslinde (Individualized Title Survey)

If your Certificado de Título is still a non-individualized older title referring to a larger parent parcel (common with inherited rural land, older beachfront, and some pre-2010 developments), a buyer's attorney will almost always require a deslinde — a judicially approved survey that individualizes your parcel under Law 108-05 — before closing.

• Who pays: legally this is the owner's obligation, so the seller usually bears it. Occasionally a motivated buyer will share the cost in exchange for a price concession.
• Cost: highly variable — it depends on parcel size, location, surveyor (agrimensor) fees, and whether neighbors contest boundaries. Budget conservatively and get at least two quotes.
• Timeline: months, not weeks. Factor this into your listing strategy; many sales collapse because sellers discover the deslinde requirement only after signing a Promesa de Venta with a tight closing date.

If your property already has an individualized Certificado de Título with a unique Designación Catastral, you can skip this entire headache.

Capital Gains Tax on the Sale

This is the area where foreign sellers get the most bad information. Key points:

• Capital gains on real estate are not a flat 27% for individuals. The 27% figure is the corporate income-tax rate. For individuals, the gain is added to ordinary income and taxed on a progressive scale of roughly 0% to 25% under current DGII brackets.
• The taxable gain is the sale price minus the inflation-adjusted acquisition cost (DGII publishes annual adjustment coefficients) minus documented improvements and selling costs.
• If you hold the property in a Dominican SRL or other company, the gain is taxed at the corporate rate on the company's books, and separately there are rules for distributing the proceeds to shareholders.
• CONFOTUR (Law 158-01) tourism-project exemptions can reduce or eliminate some taxes for qualifying projects, but these benefits attach to the certified project and realistically favor the first buyer. As a reseller, do not assume you can pass on a transfer-tax or IPI exemption — in most cases you cannot. Verify your project's current CONFOTUR status.

Have a Dominican contador (CPA) compute your gain before you accept an offer. Confirm current rates, brackets and inflation coefficients directly with DGII.

Clearing the Property for Transfer

Before closing, your attorney will need to produce — and the buyer's attorney will verify — a clean file:

• Certificado de Título (original) and recent Certificación de Estado Jurídico del Inmueble from the Registro de Títulos.
• Proof that IPI (annual property tax, 1% only on value above the inflation-indexed exempt threshold on an owner's aggregate holdings — check DGII for the current threshold) is paid up to date, or arrangements to settle it at closing.
• Current condominio/HOA certification showing no arrears.
• Paid utility bills (EDE, water, internet) through closing.
• If there is a mortgage, a payoff letter and arrangements to discharge the lien from the title simultaneously with the sale.
• Corporate documents if the property is owned by an SRL (updated minutes, RNC in good standing, DGII compliance).

Any gap here can delay registration — and the buyer's funds — for weeks.

Common Pitfalls for Foreign Sellers

• Signing a Promesa de Venta without knowing your deslinde status. This is the single biggest cause of broken Dominican sales.
• Assuming your purchase price is your tax basis. DGII uses their appraisal history. Document everything.
• Ignoring ITBIS on the commission. 18% on top of a 6% fee is real money.
• Letting the buyer's attorney handle "both sides." Conflicts of interest are routine; retain your own.
• Pricing in USD but receiving DOP. Agree on the currency of payment and the exchange mechanism in writing to avoid last-minute shortfalls.
• Wire-transfer compliance. Expect the buyer's bank (and yours) to request source-of-funds documentation. Start the paperwork early.

Short FAQ

Do I need to be in the DR to close? No. A Poder Especial (special power of attorney), properly notarized and apostilled from your home country, lets your Dominican attorney sign for you.

How long does a typical sale take? From signed Promesa to registered title transfer, usually 45–90 days with a clean file; longer if a deslinde, mortgage discharge, or probate is involved.

Can I be paid outside the DR? Yes, buyers commonly wire from a foreign account to a foreign account. Both sides' banks will require KYC/AML documentation, and the Dominican deed will still reflect the agreed price for ITI and capital gains purposes.

Will I owe tax in my home country too? Likely yes — the US taxes worldwide gains, Canada taxes residents' worldwide gains, and most EU countries have treaty mechanisms. Coordinate with a cross-border tax advisor.

Final note: Dominican tax rates, exemption thresholds, notary scales and registry fees change periodically. Treat every figure in this guide as a planning estimate and confirm the current numbers with DGII, the Registro de Títulos / Jurisdicción Inmobiliaria, and your own licensed Dominican attorney and contador before you commit to a sale.