# Capital gains tax when selling Dominican property

> The Dominican gain is sale price less an inflation-adjusted cost base, so deeds, invoices and receipts reduce the bill. What CONFOTUR does not cover. 2026 orientation, not tax advice.

Source: https://canakeys.com/selling/capital-gains-tax
Publisher: Cana Keys (A&M Caribbean Group SRL), Punta Cana, Dominican Republic
Last reviewed: 2026-08-27
Language: en
Licence: quote and cite with attribution and a link.

The Dominican Republic taxes the gain on a property sale, calculated as the sale price less an inflation-adjusted acquisition cost, with the tax authority (DGII) applying its own adjustment factors. That makes documentation valuable: the recorded purchase price on the deed, notarised improvement invoices and professional fees all reduce the taxable gain, and undocumented cash spending does not. Non-residents are taxed on Dominican-source gains, and your home country may tax the same disposal subject to relief. Rates and adjustment rules change — confirm the current position with a Dominican tax adviser before you sign. 2026 orientation, not tax advice.

## How the taxable gain is built
- Sale price: The declared price on the deed. Under-declaring to save transfer tax at purchase raises your taxable gain when you sell — a saving today, a bill later.
- Adjusted acquisition cost: The original purchase price, adjusted for inflation using DGII factors. This is why the recorded purchase price on your deed matters years later.
- Documented improvements: Capital works with invoices and formal records add to your cost base. Informal cash work adds nothing.
- Professional and transaction costs: Legal, notarial and registry costs associated with acquisition and disposal are normally part of the calculation. Keep the receipts from day one.

## Structure and residency change the answer
Holding personally and holding through a Dominican company are taxed differently, and a company sale has its own compliance and cost profile. Non-residents are taxed on Dominican-source gains, and your home tax authority may also assess the disposal, with double-tax relief depending on the treaty position. None of this can be decided from a web page: take Dominican and home-country advice together, before you agree the price.

- [SRL: Dominican company ownership](https://canakeys.com/glossary/srl) — What holding through a company changes.
- [CONFOTUR](https://canakeys.com/confotur) — Which taxes the exemption touches and which it does not.

## What to keep from the day you buy
Treat the sale as something you are already documenting: the deed with the true price, the registry certificate, every notarised invoice for structural work and finishes, legal and notarial receipts, and the IPI payment history. Sellers who kept that file pay tax on a smaller gain than sellers who did not.

- [Closing costs](https://canakeys.com/costs/closing-costs) — The purchase-side costs worth recording properly.
- [The selling process](https://canakeys.com/selling/process) — The full exit sequence and the documents it needs.

## FAQ

### Do foreigners pay capital gains tax in the Dominican Republic?
Answer: Yes. Non-residents are taxed on gains from Dominican-source assets, including property. The gain is the sale price less an inflation-adjusted acquisition cost, so documentation of your purchase price and improvements directly reduces the bill.
Permalink: https://canakeys.com/selling/capital-gains-tax#do-foreigners-pay-capital-gains-tax-in-the-dominican-republi

### Does CONFOTUR remove capital gains tax?
Answer: No. CONFOTUR is a project-level incentive that covers transfer tax and a period of IPI exemption for qualifying projects. It is not a blanket exemption from tax on a later gain — check the resolution and take advice.
Permalink: https://canakeys.com/selling/capital-gains-tax#does-confotur-remove-capital-gains-tax

### Can I reduce the taxable gain?
Answer: Legitimately, yes: through the inflation adjustment on your acquisition cost and by documenting capital improvements and professional costs with proper invoices. Undocumented cash spending cannot be deducted.
Permalink: https://canakeys.com/selling/capital-gains-tax#can-i-reduce-the-taxable-gain

## Related

- [The selling process](https://canakeys.com/selling/process)
- [CONFOTUR](https://canakeys.com/confotur)
- [IPI property tax](https://canakeys.com/costs/property-tax-ipi)
- [Tax on rental income while you hold](https://canakeys.com/guides/rental-income-tax)