Countries › Dominican Republic › Guide › 11. Real estate and land › Low cost housing and real estate trusts

Low cost housing and real estate trusts

Last verified: 2026-10-30 · Status: Stable

Ley 189-11 offers real tax relief to a developer who builds low cost housing through a construction trust: full exemption from income, asset, transfer and construction charges, plus a housing bonus for buyers. Units qualify up to a price of RD$3.5 million, adjusted for inflation. Real estate trusts can also pool capital to build, sell or rent, and Guide 17 keeps trusts inside the IPI unless excepted.

USD figures use the Banco Central de la República Dominicana reference selling rate of RD$60.9007 per US dollar for 29 October 2026, the latest row in its published rate file on the verification date, rounded to the cent.

Key facts

Low cost unit price cap, before inflation	3500000 DOPLey 189-11 art. 129, as of 2026-10-30 · in force
Tax relief for accredited construction trusts	100 %Ley 189-11 art. 131, as of 2026-10-30 · in force

The rule

1. Low cost housing projects have units priced at or below RD$3,500,000, adjusted yearly for inflation.Ley 189-11 Mercado Hipotecario y Fideicomiso, art. 129, as amended by Ley 195-19, 2011-07-16 official text · verified 2026-10-30

2. The housing authority accredits the projects, now within the Ministry after Ley 160-21.Ley 189-11 Mercado Hipotecario y Fideicomiso, art. 130, 2011-07-16 official text · verified 2026-10-30

3. Construction trusts for accredited projects are 100% exempt from income and capital gains tax, taxes on bank transfers and checks, asset and IPI tax, construction charges, and real estate transfer and registry taxes.Ley 189-11 Mercado Hipotecario y Fideicomiso, art. 131 literals a to e, 2011-07-16 official text · verified 2026-10-30

4. The exemptions apply only to projects developed through the construction trust.Ley 189-11 Mercado Hipotecario y Fideicomiso, art. 132, 2011-07-16 official text · verified 2026-10-30

5. First home buyers through accredited low cost trusts can get a housing bonus equal to the standard ITBIS paid on materials and services in construction, used toward the down payment. They ask through the trustee.Ley 189-11 Mercado Hipotecario y Fideicomiso, art. 131 paragraph I, as amended by Ley 195-19, 2011-07-16 official text · verified 2026-10-30

6. First home buyers through accredited low cost trusts are exempt from transfer tax when they finish paying for the home.Ley 189-11 Mercado Hipotecario y Fideicomiso, art. 131 paragraph III, as amended by Ley 195-19, 2011-07-16 official text · verified 2026-10-30

7. A real estate trust invests in projects at different stages, to finish and sell or rent, and may buy land for gain. It is an independent estate.Ley 189-11 Mercado Hipotecario y Fideicomiso, art. 58, 2011-07-16 official text · verified 2026-10-30

8. Gains on low cost units sold by the trustee from a trust project are not taxed.Ley 189-11 Mercado Hipotecario y Fideicomiso, art. 47 paragraph V, 2011-07-16 official text · verified 2026-10-30

9. Construction licences for low cost housing are exempt from fees.MIVHED communiqué on updated fees, Fee tables, 2026-06 official text · verified 2026-10-30

10. Registrable acts for investment funds or real estate trusts state their name, RNC and manager.Resolución 788-2022, Reglamento General de Registro de Títulos, art. 36 literal a numeral 3, 2022-10-27 official text · verified 2026-10-30

11. Trusts pay 1% on the whole value for IPI, except low cost housing and public offering trusts.DGII Guide 17 on IPI, 2026 edition, Exemptions, 2026 official text · verified 2026-10-30

12. Assets moved into a trust pay the ordinary transfer or registry taxes, on the value stated in the act, except public offering trusts. The settlor is exempt from income and capital gains tax on the contribution. Later moves on change of trustee, return to the settlor or delivery to beneficiaries are free of tax.Ley 189-11 Mercado Hipotecario y Fideicomiso, art. 46 and paragraph I, 2011-07-16 official text · verified 2026-10-30

Worked example

A developer sells 200 accredited units at RD$3,500,000 (about US$57,470.60). Through a construction trust it pays no income tax on the project, and no license fee. First home buyers skip the 3% transfer tax, RD$105,000 (about US$1,724.12) a unit, and may qualify for the housing bonus.

Step by step

Confirm the current inflation adjusted cap with the Ministry.
Form the trust with an authorized trustee.
Seek accreditation before selling.
Register the trust, and keep the RNC details ready.

Common traps

The adjusted cap for 2026 was not found.
Relief under art. 132 is lost if the project is not run through the trust.
Accreditation rules were set for the former INVI, now merged. Check who signs.
Trust law detail is at finance/trusts-and-guarantee-trusts.

Sources

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