Countries › Dominican Republic › Guide › 11. Real estate and land › Tourism and retiree property incentives

Tourism and retiree property incentives

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

Two laws cut property taxes for specific buyers. A first buyer directly from the promoter of a tourism project classified under Ley 158-01 shares its exemptions, and later resale buyers do not. Retirees and rentiers admitted under Ley 171-07 pay no transfer tax on their first property and 50% of IPI and of mortgage tax.

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

Tourism exemption period	15 yearsLey 158-01 art. 7 as replaced by Ley 195-13, as of 2026-10-30 · in force
Transfer tax on retiree first property	Exempt Ley 171-07 art. 13, as of 2026-10-30 · in force

The rule

1. Companies under Ley 158-01 are exempt in full from national and municipal transfer taxes on real estate rights and from the property tax on luxury homes and lots, and from fees for plans and construction of the project.Ley 158-01 de Fomento al Desarrollo Turístico, art. 4 literal b, 2001-10-09 official text · verified 2026-10-30

2. The exemptions extend to villas, lots and apartments built to complement a classified project, whether run by the developer or sold.Ley 158-01 de Fomento al Desarrollo Turístico, art. 3 paragraph, added by Ley 184-02, 2001-10-09 official text · verified 2026-10-30

3. The exemptions go to individuals or companies who invest directly with the promoter. Any later transfer to third party buyers is excluded.Ley 195-13, art. 7, adding paragraph IV to art. 4, 2013-12-13 official text · verified 2026-10-30

4. The exemption period is 15 years from completion of works, with up to three years to begin operation or lose the benefit.Ley 195-13, art. 9, replacing art. 7, 2013-12-13 official text · verified 2026-10-30

5. IPI exempts Ley 158-01 property of first buyers who are individuals.DGII Guide 17 on IPI, 2026 edition, Exemptions, 2026 official text · verified 2026-10-30

6. Admitted retirees and rentiers and their spouses are exempt from taxes on real estate operations on the first property.
Example: RD$12,000,000 home: RD$360,000 saved / US$197,042.07 home: US$5,911.26 savedLey 171-07, art. 13, 2007-07-13 official text · verified 2026-10-30

7. While the residence permit is valid, they are exempt from 50% of IPI and of mortgage tax with regulated lenders.Ley 171-07, art. 2 literals b and c; art. 13, 2007-07-13 official text · verified 2026-10-30

8. On sale to third parties, property bought under the law has a 50% exemption from capital gains tax.Ley 171-07, art. 14, 2007-07-13 official text · verified 2026-10-30

Worked example

A retiree under Ley 171-07 buys a RD$12,000,000 (about US$197,042.07) home, saving RD$360,000 (about US$5,911.26) of transfer tax, and owns a total of RD$16,000,000 (about US$262,722.76). IPI of RD$53,045.06 (about US$871.01) is cut by half to RD$26,522.53 (about US$435.50).

Step by step

Confirm classification by CONFOTUR for the project.
Buy directly from the promoter.
Keep the resolution with the title.
Apply under Ley 171-07 before buying, since the exemption is tied to the granted residence.

Common traps

A resale buyer in a classified project pays full taxes.
Later reforms have narrowed some incentive laws. Check any change to Ley 171-07 benefits before relying on them.
The mortgage relief is tied to lenders under the Ley Monetaria y Financiera.
Project classification fee was not verified.

Sources

← Low cost housing and real estate trustsCash limits and AML rules in property deals →

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