Want a Low 1% Property Tax Rate?
Here’s Why the Dominican Republic is a Smart Investment for You
► Summary: When considering investing in real estate, the DOMINICAN REPUBLIC offers some attractive tax advantages e.g. with a 1% annual property tax rate and exemptions for certain property types, it’s NO SURPRISE that many international buyers are drawn to the country’s promising real estate market.
In this comprehensive guide, we break down everything you need to know about property taxes in the DOMINICAN REPUBLIC (DR), including tax rates, exemptions, and the benefits of special programs such as the real estate CONFOTUR Law detailed below.
The Dominican Republic Property Tax
The Dominican Republic has a property tax known as Impuesto Patrimonio Inmobiliario (IPI), which is designed to contribute to local development and municipalities―as it is in most other countries.
Here’s what you need to know:
Annual Property Tax Rate:
1%, applicable to real estate properties that exceed 10.19 M RD$ (roughly the equivalent to $166,000 US$ depending on the exchange rate).
Exemption for Properties Below the Threshold:
Properties valued below this threshold are exempt from paying property taxes.
Tax Payments:
Property tax payments are due semi-annually, on March 11 and September 11.
Corporate Ownership:
Companies pay the same 1% on the property’s total value without any deductions.
Special Tax Exemptions for Seniors and Tax Incentives
Good news for retirees! Seniors aged 65 and older who own a single property for personal use may qualify for a tax exemption. Additionally, properties in specific tax regimes such as agricultural land.
What is the Real Estate Tax CONFOTUR Law 158?
The Real Estate CONFOTUR Law program, established in 2001, is designed to stimulate tourism and real estate development in the main tourist areas of Dominican Republic. It offers attractive tax incentives for both developers and buyers.
What are the Key Points of the Real Estate CONFOTUR Law?
♦ Purpose:
To attract foreign investment in tourism-related projects like hotels, resorts, and other real estate developments by offering tax exemptions on construction materials, property taxes, and more.
♦ Benefits for investors:
Reduced construction costs, tax breaks on property sales, and potential for higher returns on investment in designated tourism areas.
♦ Important consideration:
Not all areas in the Dominican Republic are considered CONFOTUR "zones", only those specifically designated by the government as having high tourism potential.
Common CONFOTUR "Zones"
CONFOTUR "zones or areas" refer to regions where the Domincan government wants to promote tourism development.
The primary CONFOTUR zones are:
○ PUNTA CANA
○ CAP CANA
○ SAMANÁ
○ LAS TERRENAS
○ PUERTO PLATA
Tax Benefits for Property Buyers with CONFOTUR Law
If you’re purchasing a property in a project that is approved for CONFOTUR LAW, you could benefit from:
1. Exemption from title transfer payment of 3% of the property value for the registration and transfer of the property in your name (Transfer Tax on Real Estate Rights).
2. Exemption from annual property tax payment of 1% of the property's value for Real Estate Property Tax (IPI). The length of this exemption can vary depending on the project and is usually between 10 to 15 years.
3. Exemption from income tax for a period of 10 years.
Common Types of CONFOTUR Projects
CONFOTUR encompasses a wide range of tourism-related developments, catering to various styles and budgets. Here are some common types of CONFOTUR projects that could be perfect for your investment:
□ Beachfront Resorts
□ Boutique Hotels
□ Condominium Developments
□ Eco-Lodges
□ Marina Developments
Things to Consider Before Buying a CONFOTUR Property
While CONFOTUR offers undeniable benefits, here are some things to keep in mind before you jump in:
Verify CONFOTUR Status:
Double-check if the property you're interested in is indeed part of a CONFOTUR-approved project. Ask for official documentation from the developer.
Understand the Terms:
Each CONFOTUR project has its own specific terms and conditions regarding the duration of tax benefits and any potential restrictions. Carefully review the details before committing.
Location, Location, Location:
Don't buy a property "just because" it has CONFOTUR. As with any real estate purchase, location is key. Consider your lifestyle preferences, proximity to amenities, and the overall potential of the area.
Long-Term Vision:
CONFOTUR benefits are designed for the long term. If you're planning to sell your property within a few years, the tax advantages might not be as significant.
Research & Explore:
Familiarize yourself with different CONFOTUR-approved projects across the Dominican Republic. Consider your budget, lifestyle preferences, and desired location.
Connect with a Reputable Realtor:
Partner with a good real estate professional who has a proven track record, speaks your language, whom you are comfortable with, is trustworthy, provides clear documentation, and offers excellent customer service. Don't hesitate to ask questions and get everything in writing before making a decision.
Seek Professional Advice: Consider consulting with a reputable lawyer in the Dominican Republic to ensure a smooth transaction and navigate any legal complexities.
Why Invest in the Dominican Republic?
The DOMINICAN REPUBLIC is a top choice for real estate investment because:
✅ Booming Tourism Industry – Over 10 million visitors safely travel to the Dominican Republic each year, drawn by its world-class beaches, vibrant culture, and stunning natural beauty.
✅ Pro-Investor Laws – Foreign investors enjoy property ownership rights, tax incentives, and government programs that encourage foreign real estate investments.
✅ Affordable Luxury – Compared to other Caribbean destinations, the DR offers high-value properties at competitive prices.
✅ Ideal Climate – Enjoy warm tropical weather year-round, perfect for vacationers, beach lovers, and golf fanatics.
Furthermore, with the fastest-growing economy in the Caribbean, notable political stability, and high return on investment (ROI), the DR stands out as a prime location for property buyers.
► More Unique Qualities That Make The DR "Heaven on Earth".
Breathtaking Natural Beauty – From pristine white-sand beaches to lush mountains, waterfalls, and tropical rainforests.
Rich & Vibrant Culture – Experience the rhythmic beats of merengue and bachata, delicious gastronomy, and warm hospitality.
Year-Round Activities – Whether you’re into adventure sports, eco-tourism, or exploring colonial cities, there’s something for everyone.
Easy Accessibility – With seven international airports receiving flights from around the world, traveling to the DR simple and convenient.
💰 Low Cost of Living – Compared to the U.S. and other hotspots in Latin America and the Caribbean, the DR provides a more affordable lifestyle for retirees and expats with world-class healthcare ► CLICK HERE for more information about HEALTHCARE IN THE DR.
Make Your Dream Home in the Dominican Republic a Reality
When you purchase a property in the DOMINICAN REPUBLIC, you’re not just buying real estate; you’re investing in a lifestyle.
With competitive property taxes, special exemptions, and beneficial programs like CONFOTUR, it’s no wonder so many foreign nationals are choosing the DR as their investment haven―whether you’re looking for a vacation property, a retirement home, or an investment opportunity.
Start your journey today by consulting your trusted real estate experts to help you navigate this exciting opportunity!
Why Choose Dominican Real Estate Group Int'l?
At DOMINICAN REAL ESTATE GROUP INT'L, we are dedicated to helping you find your perfect property in paradise.
With years of experience and a deep understanding of the local market, our expert team guides you every step of the way—from finding the right property to ensuring a smooth legal process.
We provide value-added services, including expert property selection, legal guidance, and post-purchase support.
Ready to make your real estate dream a reality?
― >>> Visit our website at DominicanRealEstateGroup.com <<< ― Explore our listings and discover your dream property in paradise!
DOMINICAN REAL ESTATE GROUP INT'L
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