Closing costs in the Dominican Republic are simpler than in the United States but have a few line items that catch first-time foreign buyers off guard. The total is predictable — budget 3% to 4% of the purchase price — but the specific allocation matters for negotiation and for knowing when each check gets cut. Here's exactly what you'll pay and when.
The Big-Ticket Item: 3% Transfer Tax
The largest line item by far is the transfer tax (impuesto de transferencia), at 3% of the property's assessed value.
The key word is "assessed." The tax authority (DGII) maintains an assessed value for every registered property, which can match the purchase price or sit below it. For older properties or undervalued tax assessments, the transfer tax may calculate on the DGII assessed value rather than the full purchase price — which saves money.
However, recent DGII practice has been to update assessments to closer match market transaction prices, especially on high-value transfers. Plan your budget assuming 3% on full purchase price; if the assessed value comes in lower, treat it as a pleasant surprise.
The transfer tax is traditionally paid by the buyer and is due to DGII before the new title can be registered in your name. Your attorney collects this amount along with other closing funds and handles the payment.
Legal Fees: 1% to 1.5%
Your Dominican real estate attorney will charge for due diligence, contract review, representation at closing, and post-closing title registration. Fees typically run 1% to 1.5% of the purchase price, with a minimum often around $1,500 to $2,500 for small-dollar transactions.
Some attorneys quote a flat fee, others a percentage. Both are fine. What you want to verify is scope: the fee should include title search, deslinde verification, review of any HOA documents, contract drafting or review, attendance at closing, post-closing registration, and delivery of the new title certificate.
Our attorney-hiring guide covers exactly what questions to ask before signing an engagement.
Notary Fees: Typically 0.25% to 0.5%
In the Dominican Republic, the notary (notario público) is a highly credentialed legal officer whose role is more substantial than a U.S. notary. They draft the final deed of sale (contrato de compraventa), authenticate signatures, and are personally responsible for the legal correctness of the document.
Notary fees are set by a fee schedule based on the transaction value, and typically run 0.25% to 0.5% of purchase price. Your attorney will often work with a notary they know; you can use your own notary if you prefer.
Registry and Administrative Fees
Smaller fees that add up.
Registry fees at the Título office for recording the new deed: roughly $200 to $500 depending on the property.
Certified copies of the new title: $50 to $150.
DGII filings and payment processing: minor, usually under $100.
If your purchase involves a corporate structure (Dominican SRL), there are additional fees to establish or transfer corporate ownership, typically $500 to $1,500. See our ownership-structure comparison for when this makes sense.
Things Buyers Often Forget
A few items that appear on the closing statement but rarely get mentioned upfront.
Pro-rated HOA fees. If you're buying a condo or a home in a gated community, HOA dues for the current month are typically pro-rated between buyer and seller.
Pro-rated utilities. Water, electricity, and any other municipal fees.
IPI property tax pro-ration. If the seller has paid the annual IPI property tax and you're buying mid-year, you reimburse the seller for the unused portion.
Transfer of bank accounts, utility accounts, and service contracts. Sometimes requires small administrative fees.
Home inspection, if you ordered one. Typically $300 to $800.
Appraisal, if required by your lender (rarely needed for cash purchases). $300 to $600.
Title insurance, if you choose to purchase it. Optional in the DR and not widely used by domestic buyers, but some foreign buyers prefer the extra layer. 0.5% to 1% of purchase price if you opt in.
The Wire Fees
For foreign cash buyers, bank wire fees are often overlooked. Sending funds from a U.S. or Canadian bank to a Dominican escrow account typically costs $30 to $75 per wire. Some buyers do one large wire, some split into several — your attorney's escrow instructions will specify.
Receiving-side fees in the Dominican escrow may add another small amount. Our financing and payment methods post walks through the mechanics.
A Sample Closing Sheet
For a $350,000 purchase, here's a realistic breakdown.
Transfer tax (3%): $10,500
Legal fees (1.25%): $4,375
Notary fees (0.35%): $1,225
Registry and administrative: $500
Pro-rated HOA and utilities (if applicable): $200 to $500
Wire fees: $100
Total: roughly $16,900, or about 4.8% of purchase price.
For the same purchase without HOA pro-rations (raw land, for example), you'd be closer to 4.5%. For a higher-value transaction, the percentage tends to edge down toward 3.5% because the fixed fees are spread over a larger base.
When Each Payment Happens
Timing matters for cash flow planning.
At offer acceptance (promesa de venta): 10% earnest money deposit, held in escrow.
At closing: remaining purchase price balance, transfer tax, legal fees, notary fees, pro-rations.
Post-closing (within 30-60 days): registry fees, certificate issuance.
Most buyers wire funds to their attorney's escrow account in stages — the 10% at offer, the rest 48-72 hours before closing.
Negotiation Notes
A few conventions worth knowing.
Transfer tax is typically paid by the buyer but is genuinely negotiable. On a softer market or a longer-sitting listing, asking the seller to split the transfer tax is reasonable.
Notary choice is typically the buyer's. If the seller insists on their notary, ask why — sometimes there's a pre-existing relationship that's fine, sometimes it's a flag.
Legal fees are your cost; the seller has their own attorney whom they pay separately.
Commissions on the sale are typically paid by the seller, not the buyer. A buyer's broker like us is paid out of the commission pool the seller has already committed to — meaning our representation costs you nothing additional.
Your Next Step
Once you're working on a specific property, your attorney will prepare a pre-closing cost estimate. Review it before signing. If you want a realistic budget before you've picked a property, multiply your target purchase price by 0.04 and set that aside as your closing reserve. Start your search here and we'll match listings to your total buying budget, not just the sticker price.
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