Selling Property in Punta Cana: The Ultimate 2026 Legal & Tax Guide

Selling Property in Punta Cana, The Ultimate Legal & Tax Guide

Selling a home in the Dominican Republic’s most popular tourist destination is a high-reward venture, but the legal landscape has evolved. Whether you are offloading a beachfront condo in Bávaro or a luxury villa in Cap Cana, navigating the “legal maze” requires more than just a handshake.

In this 2026 guide, we break down the essential steps, from capital gains calculations to the power of the CONFOTURlaw, to ensure your transaction is both profitable and protected.

1. The Seller’s Checklist: Documents You Need Now

Before listing your property, you must have your “Legal Kit” ready. In the Dominican Republic, the burden of proof regarding property status lies heavily on the seller.

  • Original Certificate of Title (Certificado de Título): This is the ultimate proof of ownership. Ensure there are no active liens or encumbrances.
  • Certification of Property Tax (IPI): You must prove that your Impuesto al Patrimonio Inmobiliario (IPI) is up to date.
  • Identification: Clear copies of your Cédula or Passport. If the property is owned by a company, you need the Registro Nacional de Contribuyente (RNC) and the assembly minutes authorizing the sale.
  • Municipal Permits: For newer builds, buyers will ask for the MIVED (Ministry of Housing) and Ayuntamiento(City Hall) permits.

Preparing these early is a cornerstone of selling success in Punta Cana, reducing the risk of a deal falling through during due diligence.

2. Navigating the 27% Capital Gains Tax

One of the most misunderstood aspects of selling in the DR is the Capital Gains Tax. As of 2026, the rate remains a flat 27% on the net profit.

Pro Tip: Your “profit” isn’t just the sale price minus the purchase price. The Dominican tax authority (DGII) allows for indexation adjustments. This means the original purchase price is adjusted for inflation, which can significantly lower your taxable gain.

Always consult a tax professional to calculate your “Cost Basis” including documented capital improvements and legal fees, as this directly impacts your final ROI.

3. The Power of Law 158-01 (CONFOTUR)

If your property is located within a development protected by the CONFOTUR law, you have a massive competitive advantage.

  • The Buyer Incentive: Buyers are exempt from the 3% Transfer Tax.
  • The Seller Benefit: Properties under CONFOTUR are far easier to sell because they offer the buyer a “15-year tax holiday” from the annual 1% IPI.

Understanding these benefits is part of why investing in Punta Cana makes sense, as it creates a high-velocity resale market.

4. Closing the Deal: The Notarial Process

The closing process in the Dominican Republic is a formal legal act.

  1. Promise of Sale: A contract where the buyer puts down a deposit (usually 10-20%) into escrow.
  2. The Definitive Contract (Contrato de Compraventa): This document is signed before a Notary Public.
  3. Title Transfer: Once signed, your lawyer must file the documents with the Registro de Títulos to cancel the old deed and issue the new one.

Avoiding the legal maze of selling in Punta Cana requires a specialized real estate attorney who understands local jurisdiction.


Real Estate Glossary (Bilingual Reference)

To assist our international clients, here are the essential terms translated into the specific dialects relevant to our market:

English TermSpanish (Dominican Republic)French (Quebec/Canada)
Title DeedCertificado de TítuloTitre de propriété
Property TaxIPI (Impuesto Patrimonio Inmobiliario)Taxe foncière / Impôt foncier
Notary PublicNotario PúblicoNotaire
Down PaymentAvance / InicialAcompte / Mise de fonds
EscrowFideicomiso / Depósito en GarantíaCompte séquestre / En fidéicomis

 

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