This article reflects Law No. 30-26, published June 19, 2026, which introduced a 10% capital gains tax for individuals transferring real estate.
At a Glance
- The legal framework for a property sale
- Capital gains tax in 2026: what is confirmed
- How the 10% tax works — and what remains to be confirmed
- ITBI transfer tax: who normally pays
- Seller-side costs to budget for
- The selling process, step by step
- Selling remotely from abroad
- Common mistakes and practical checklist
1. The Legal Framework for a Property Sale
Property transactions in the Dominican Republic are governed by the country’s property-registration framework, including Law No. 108-05 on Real Estate Registration, along with the Civil Code, tax legislation and applicable registration rules. A typical sale of titled real estate requires a legally valid sale agreement and completion of the applicable tax and title-registration formalities.
The exact documentation depends on the property and how it is owned. Before accepting an offer, have a Dominican attorney confirm that the title, survey information, owner identification, tax status and any corporate records are in order.
If the property is held through a Dominican company (such as an SRL or SA), the transaction may involve either a direct property transfer or a transfer of company shares. These are legally and fiscally different structures. Do not assume that the individual 10% real-estate capital gains rate automatically applies to a company or to a share transfer.
Documents to locate early:
- Current Certificado de Título and the relevant survey/deslinde documentation, where applicable.
- Original purchase agreement and available evidence of the purchase price and acquisition costs.
- Records and invoices for documented capital improvements.
- Identification and tax-registration information requested by the attorney or DGII.
- Evidence that applicable property-tax obligations are current.
- For company-owned property: corporate documents, current Registro Mercantil information, shareholder records and required corporate approvals.
- If signing from abroad: ask counsel which power-of-attorney form, notarization, apostille/legalization and Spanish translation are required.
2. Capital Gains Tax in 2026
The tax treatment changed in June 2026. The DGII’s published guidance confirms that capital gains obtained by individuals from the transfer of real estate are subject to a 10% rate as a single and final payment. The DGII also confirms that the change under Law No. 30-26 took effect on June 19, 2026, when the law was published.
The 10% rate is a tax on the capital gain — not automatically 10% of the gross sale price. The tax base and the documentation needed to establish it should be confirmed with the DGII or a Dominican tax professional for the particular transaction.
Individuals versus companies:
| Ownership / Transaction | What to Understand |
|---|---|
| Individual selling personally owned real estate | The 10% capital gains rate applies. Confirm the tax base, filing steps and any withholding requirements. |
| Foreign individual who is non-resident | Non-resident sellers require a withholding agent to be designated. The buyer or relevant resident party may have withholding obligations. Confirm before closing. |
| Property owned by an SRL or SA | Do not apply the individual 10% rule automatically. Corporate income tax, the company’s tax position and the transaction structure must be reviewed separately. |
| Sale or transfer of shares in a property-owning company | Not the same as directly selling a titled property. Obtain specific tax and legal advice before choosing or agreeing to the structure. |
| Pre-construction assignment / transfer of contractual rights | If title has not yet been issued and the seller is assigning contractual rights, ask the DGII and counsel how the transfer is classified and taxed. |
3. How the 10% Tax Works — and What Remains to Be Confirmed
The DGII states that the tax on capital gains from the transfer of real estate by individuals is due within six months from the date the transfer of ownership is perfected. The tax is a single and final payment.
Before closing, ask the attorney or tax adviser to confirm:
- Whether the seller is treated as a resident or non-resident taxpayer for the transaction.
- Whether a withholding agent must be designated and who is legally responsible for withholding and remitting tax.
- How the capital gain and tax base must be calculated and which supporting documents are accepted.
- Which DGII form, submission channel and payment process apply on the closing date.
- Whether the transaction qualifies for a specific exemption or special treatment.
- How the tax payment should be coordinated with the sale agreement and release of proceeds.
Illustrative example (not a tax determination):
Suppose an individual’s sale produces a capital gain of US$100,000 as determined under the applicable Dominican tax rules. A simple 10% illustration equals US$10,000. This example does not establish that the gain is correctly calculated, that US-dollar figures are the accepted tax base, or that no withholding, adjustment, exemption or additional documentation applies.
Potential exemptions:
The DGII’s general guidance describes an exemption for an individual’s habitual residence when the proceeds are used to purchase another habitual residence within six months, subject to the applicable legal conditions. Other exemptions or eligibility rules should be confirmed directly with the DGII.
4. ITBI Transfer Tax: Who Normally Pays
The Impuesto sobre Transferencia Inmobiliaria (ITBI) is generally 3% of the applicable value determined under Dominican tax rules, commonly assessed by reference to the higher of the transfer price and the DGII’s valuation. The buyer normally pays this transfer tax in a standard sale, but the contract and the transaction’s facts should be checked.
The ITBI is separate from the seller’s capital gains tax. A contract can allocate certain costs between the parties, but private agreement does not necessarily change which party is legally responsible to the tax authority.
5. Seller-Side Costs to Budget For
The seller’s actual costs depend on the property, the brokerage agreement, the legal work, the financing and the agreed transaction terms.
| Cost Category | Practical Planning Note |
|---|---|
| Brokerage commission | Check the signed listing/commission agreement, the agreed rate, the calculation base and when the commission becomes payable. |
| Seller’s attorney / tax adviser | Obtain a written quote. Complex title, inheritance, company ownership, non-resident or pre-construction cases may require additional work. |
| Notary and transaction documents | Confirm who pays each item and whether the quoted amount is fixed or based on transaction value. |
| Mortgage discharge / lien cancellation | If applicable, request the lender’s payoff figure, release procedure and expected timing before agreeing to a closing date. |
| Tax, certificates and registration-related documents | Request an itemized list from counsel. Verify outstanding property-tax obligations and any required certificates before closing. |
| Capital gains tax | Budget separately. For individuals transferring real estate, the rate is 10% of the applicable capital gain under the 2026 reform, subject to the transaction-specific tax determination. |
Rather than relying on a blanket percentage estimate for all seller costs, prepare a transaction-specific net-proceeds statement before setting your minimum acceptable price.
6. The Selling Process, Step by Step
Step 1 — Prepare the file before listing
Collect the title, purchase documents, identification, tax records, improvement invoices and any corporate or mortgage documents. Ask counsel to identify title discrepancies, liens, unpaid obligations or missing authorizations early.
Step 2 — Set an evidence-based asking price
Use comparable properties and, where available, recent closed-sale evidence. Calculate a realistic net-proceeds estimate that includes commission, legal costs, tax and any mortgage payoff.
Step 3 — Review the offer and the Promesa de Venta
The Promesa de Venta usually records the agreed price, deposit, conditions, due-diligence period, closing deadline, responsibility for costs and consequences of default. Have your own attorney review it before signing.
Step 4 — Complete buyer due diligence
The buyer’s counsel commonly checks title, ownership authority, liens, survey/parcel details, property-tax status and any relevant condominium or community obligations. Respond promptly and keep a record of documents delivered.
Step 5 — Confirm the closing statement and tax treatment
Before signing the final deed, have counsel prepare an itemized closing statement. Confirm the sale price, payment instructions, commissions, legal fees, mortgage payoff, ITBI allocation and the seller’s capital-gains process. For non-resident sellers, specifically confirm the withholding-agent requirements with the DGII or a tax adviser.
Step 6 — Sign, receive funds and complete registration
The final sale documents are executed, the purchase price is paid under the agreed instructions, and the applicable transfer and registration filings are submitted. Put the release conditions and timing in writing rather than assuming funds will be released only after a new title is issued.
Step 7 — Retain the complete closing file
Keep the signed agreements, payment evidence, tax submissions and receipts, closing statement, correspondence and registration documents. Ask your attorney or accountant to confirm any post-closing tax reporting or record-retention requirements.
7. Selling Remotely from Abroad
A property can often be sold while the owner is abroad, but the signing and identification requirements should be planned early. Engage Dominican counsel before accepting an offer if you expect to close remotely.
- Ask the attorney to draft or approve the power of attorney before signing it abroad.
- Confirm whether the document must be notarized, apostilled or legalized, and translated into Spanish by an accepted translator.
- Verify the precise scope of authority: negotiating, signing the deed, receiving funds, making tax filings or appointing substitutes may require express language.
- Use verified payment instructions and independently confirm any changes to bank details by a trusted channel.
- Agree in writing when and how the seller receives the net proceeds, and what documents or conditions must be satisfied first.
- If the seller is a non-resident, confirm the DGII withholding-agent process and tax payment requirements before closing.
8. Common Mistakes and a Practical Checklist
Common mistakes:
- Pricing the property from gross sale proceeds without estimating tax and transaction costs.
- Assuming the 10% tax is 10% of the gross sale price rather than the applicable capital gain.
- Treating the individual tax rule as automatically applicable to an SRL, SA, share transfer or assignment of pre-construction rights.
- Signing a Promesa de Venta without clear terms for the deposit, due diligence, closing date, default, costs and release of funds.
- Starting a power of attorney or mortgage discharge only after a buyer has submitted a deposit.
Before you accept an offer:
- Have a Dominican attorney confirm title, ownership, liens and required documents.
- Ask for a written estimate of net proceeds and a transaction-specific tax opinion.
- For non-resident sellers, confirm the withholding agent and tax process with the DGII.
- Use written, verified payment instructions and retain all transaction records.
Disclaimer
This article is general educational material and is not legal, tax, accounting or investment advice. It does not replace a review of the law, current DGII procedures, the seller’s residency and ownership structure, or the specific transaction documents. Administrative procedures can change after publication. Confirm the applicable requirements directly with the DGII and a Dominican attorney or tax adviser before signing or closing.
Prepared by Alex Bucher, Real Estate Consultant, Coldwell Banker Dominican Republic — Punta Cana · Bávaro · Cap Cana
