Buying a House in Puerto Plata: Costs, Taxes, and Legal Requirements

Purchase price alone does not tell the whole financial story. Every buyer needs to budget for a set of transaction costs that sit on top of what you agree to pay for the property itself. Here is a complete breakdown.

1. Property Transfer Tax (3%)

The single largest closing cost is the property transfer tax, set at a flat rate of three percent of the DGII (Dominican tax authority) assessed value — or the purchase price, whichever is higher. This tax is paid once at the time of purchase and applies equally to Dominican nationals and foreign buyers. There is no surcharge or additional tax for non-residents.

For a $250,000 house, this means approximately $7,500 in transfer tax. For a $400,000 property, roughly $12,000.

One important exception: qualifying new-build developments covered under the CONFOTUR law may receive a full exemption from this transfer tax. More on that in a moment.

2. Legal Fees (1% to 1.5%)

Engaging a qualified Dominican attorney is not optional — it is the single most important step you can take to protect your purchase. Attorney fees for a standard residential transaction typically run between one and one and a half percent of the purchase price. On a $250,000 property, expect to pay between $2,500 and $3,750.

Your attorney handles the title search, reviews the purchase contract, verifies there are no liens or outstanding taxes on the property, confirms the seller has full legal authority to sell, and manages the registry process that transfers ownership to your name.

Always hire your own independent attorney. Do not use a lawyer recommended exclusively by the seller — independent legal representation is worth every peso.

3. Notary and Registry Fees

Notary costs and title registry fees are additional line items, though they are smaller. These vary depending on the complexity of the transaction and the specific notary engaged, but buyers should budget an additional half to one percent of the purchase price to cover these administrative and documentation costs.

4. Property Survey (Deslinde)