Selling A Property In Dominican Republic

How to Sell Your Property in the Dominican Republic: A Step-by-Step Guide

Selling property in the Dominican Republic in 2026 is an attractive prospect thanks to the country’s pro-investment laws (like Confotur). However, the “tropical” pace of bureaucracy requires you to have your fiscal house in order long before the first viewing.

Step 1: Professional Valuation and Appraisal

In the DR, there are two values for every property: the Market Value and the DGII (Tax Office) Value.

• Commercial Appraisal: Hire a certified appraiser (approx. $200–$500 USD) to set a competitive price.

   

• DGII Assessment: The government maintains its own valuation for tax purposes. In 2026, the gap between market prices and DGII values has narrowed, so it’s wise to check your property’s standing at the Dirección General de Impuestos Internos.

   

• Agent Commission: Standard commission is 6%, usually paid by the seller.

Step 2: The “Saneamiento” (Title Verification)

Dominican buyers—especially international ones—are cautious about title fraud. You must prove your property is “clean.”

Required Document Checklist:

• Certificado de Título: The original duplicate of the title.

• Certificación de Estado Jurídico: A document from the Land Registry proving there are no active liens, mortgages, or legal disputes (must be recent).

• IPI Clearance: Proof that your Impuesto al Patrimonio Inmobiliario (Property Tax) is paid. For 2026, individuals are exempt on the first RD$10,695,494 (~$182,000 USD) of their total real estate portfolio.

   

• Deslinde: If your property hasn’t been “settled” (clearly demarcated with GPS coordinates under the 2005 law), you cannot easily sell it. Ensure your title says Deslindado.

Step 3: The Promise of Sale (Promesa de Venta)

Once you accept an offer, a formal Promise of Sale is prepared by an attorney. In the DR, Notaries are required to be licensed attorneys.

• Deposit: The buyer typically pays a 10% deposit, which is held in a secure Escrow account.

   

• Conditions: This contract outlines the timeline for due diligence and the final payment.

• The Spouse Rule: Under Dominican law, if you are married (even if the title is only in your name), your spouse must sign the sale documents unless you have a specific pre-nuptial agreement stating otherwise.

   

Step 4: Closing and the Deed of Sale

The final transfer happens through a Contract of Sale (Contrato de Venta).

• The Meeting: Both parties sign before a Notary Public.

   

• Transfer Tax: There is a 3% Transfer Tax (Impuesto de Transferencia). While legally the buyer’s obligation, in 2026, it is increasingly common to negotiate a split or a “grossed-up” price to facilitate the sale.

   

• Payment: Typically handled via a wire transfer or a Cheque de Gerencia (manager’s check).

Step 5: Capital Gains Tax (2026 Rules)

This is the most critical step for a seller’s bottom line.

• The Rate: Capital Gains are taxed as part of your income. For individuals, this is a progressive rate up to 25%; for corporations, it is a flat 27% on the net profit.

   

• Calculation: The gain is the difference between the sale price and your original purchase price (adjusted for inflation by the Central Bank).

   

• The 10-Year Exemption: If you have owned the property for more than 10 years, you may be eligible for significant exemptions. Always consult with a Dominican tax specialist before signing.

   

Step 6: Title Registration

After the final payment:

1. The buyer’s lawyer takes the notarized contract to the DGII to pay the taxes.

2. The documents are then filed with the Registry of Titles.

    

3. As the seller, your job is done once the funds are cleared, but you should keep copies of all “Paz y Salvos” (tax clearances) for your own records.

Quick Cost Overview for Sellers

Congratulations! You have successfully sold your property in the Dominican Republic.