Closing costs in DR are simpler than you think

Buyers from the U.S. and Canada often expect a long list of closing fees because that's what they're used to at home. In the Dominican Republic, the math is actually cleaner. Here's what shows up on the settlement statement, with real percentages.

The mandatory fees

Transfer tax (Impuesto de Transferencia)

3% of the higher of the purchase price or the cadastral value. Paid to DGII (the tax authority). This is the biggest line item. On a $300,000 purchase, expect $9,000.

Legal fees

1% to 1.5% of the purchase price, depending on complexity. Includes title search, drafting of the contract, registration with the Title Registry, and representation through closing. We always recommend a DR-licensed real estate attorney, not a notary alone.

Registry fees

Roughly 0.05% of the value, capped at small amounts. Usually a few hundred dollars total.

The optional but worth-it fees

Title insurance

Not required in DR, but smart on properties without a clean Constancia Anotada (the modernized title format introduced by Law 108-05). Premium is a one-time payment of roughly 0.5% of the value. We recommend it for any property where the chain of title has more than three previous owners.

Survey (Mensura Catastral)

Required on land and on some titled properties without recent surveys. $300-$800 depending on size.

The fees that often surprise foreign buyers

Bank wire fees

DR sellers usually want USD to a U.S. bank account, not pesos to a local bank. Your bank may charge $30-$50 for the outbound wire. Trivial compared to the rest, but allow for it.

Currency conversion spread

If you wire USD and pay closing costs in DOP, the conversion happens at your bank's rate. Spread is typically 1-2% vs. the official rate. On large amounts, use a service like Wise or Remitly.

Condo HOA transfer fee

Some condo associations charge a one-time transfer fee of $200-$1,000 when ownership changes. Always ask the seller's broker upfront.

What's NOT a closing cost

• Real estate agent commission. In DR, this is paid by the seller, not the buyer. Standard is 5-6%.
• Property tax at closing. The seller is responsible for any IPI owed up to the closing date.
• HOA backpay. Same. Seller's responsibility.

A real example

On a $300,000 condo purchase:

• Transfer tax: $9,000
• Legal fees (1.25%): $3,750
• Registry: $200
• Title insurance (optional): $1,500
• Survey: $0 (condo, recent)
• Wire fees: $50

Total all-in: ~$14,500 if you take title insurance, ~$13,000 if you don't. Roughly 4.3-4.8% of purchase price.

We always run this calculation for clients before they make an offer. If a broker can't give you a settlement estimate within 15 minutes, find a different broker.