What tax benefits can I get when investing in real estate?

Investing in real estate in the Dominican Republic offers several notable tax advantages for foreign investors. Here are the key benefits to consider:

1. Exemption from Property Transfer Tax

When purchasing your first property, you may qualify for an exemption from real estate transfer tax, which is normally 3% of the property’s value.
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2. Reduction of Annual Property Tax (IPI)

Investors under the Residency by Investment program can receive a 50% reduction on the annual property tax (IPI) applied to the portion of the estate exceeding a certain value threshold.
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3. Reduced Mortgage Fees

If you obtain a mortgage loan from a recognized financial institution, you may benefit from a 50% reduction in mortgage registration fees, lowering the cost from 2% to 1%.
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4. Exemption from Tax on Foreign Income

Foreign residents may be exempt from paying income tax on foreign-earned pensions or retirement income, subject to specific conditions.
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5. Exemption from Import Duties on Personal Belongings

Foreign investors may qualify for duty-free importation of their household goods and personal belongings.
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