Other Important Matters for Buyers and Investors

Advisory for Investors

In the real estate sector, it’s not only important to avoid fraud but also to comply with taxes and procedures. In the DR, the IPI (1% annual tax on properties exceeding the exempt amount) and the 3% transfer tax apply to each purchase. There are also notarial and registry fees, as well as mandatory documentation that must be up to date. For greater security, trusts protect investments in pre-sale projects. At Certitrustt, we recommend transparency and legal advice to ensure safe and delay-free transactions.

September 17, 2025

Beyond laws and fraud, it is vital to understand other practical aspects:

  • Real Estate Property Tax (IPI): this is an annual tax of 1% on the total value of your properties that exceed the exempt amount (RD$10,190,833.00 for 2025). The IPI is paid in two installments (March and September). There are important exemptions: the primary residence of a person over 65 years old (if it is their only property) is exempt; also exempt are rural land and homes whose combined value does not exceed the above threshold. The tax must be declared and paid to the DGII, because without proof of updated IPI payment, the purchase cannot be registered in the Title Registry.
  • Transfer Tax: when you purchase a property, the DGII charges 3% of the sale value. This payment is mandatory for the Registry to proceed with recording the property in the buyer’s name. Therefore, at closing, the sales contract must be submitted to the DGII for appraisal and payment of this 3%.
  • Notarial and Registry Costs: when the sale is formalized through a public deed before a notary, several fees apply: for example, Law 140-15 establishes RD$130 in notarial fees per signed act. Additional small regulatory fees are also paid (e.g., RD$20 for title certificates under Law 33-91). The Title Registry charges a service fee (RD$300 or RD$800, depending on the area) to process the file. Knowing these amounts and scheduling payments accordingly helps avoid registration delays.
  • Required Documentation: to transfer property, you need the title certificate or duplicate, the updated IPI certification, and IDs (and RNC, if applicable) of both buyer and seller. If married, a marriage certificate and spouse’s signatures must also be provided when required. All requirements are described by the Title Registry; providing complete documentation speeds up the process.
  • Real Estate Trust (Law 189-11): for pre-sale projects, the trust provides reinforced protection. This mechanism creates a separate estate where buyers’ funds are deposited, managed by an impartial trustee. As provided by law, the trust can be established “to promote the development of the real estate market,” and prevents the developer from misusing the funds. If buying in pre-sale, request that a trust be established and verify it is duly registered – this is an increasingly common and safe practice in the DR.

At Certitrustt, we recommend handling every step with transparency: review official documents with DIGEPI/DGII (such as proof of tax payments) and maintain clear communication with authorized notaries and agents. This way, your investment will be positioned within the established legal framework, with the peace of mind that the State protects your property rights.

Sources: Dominican legislation (Laws 108-05, 189-11, 140-15, 33-91), Real Estate Registry website, DGII (IPI and transfer taxes), case law, and statements from Pro Consumidor on fraud.

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