The Dominican Republic’s real estate sector generated more than RD$22 billion in property-related tax revenue during 2025, according to figures released by the General Directorate of Internal Taxes (DGII). The results came as the country’s overall tax collection increased by nearly 8% year over year, underscoring the growing contribution of real estate to the formal economy.
Beyond the fiscal impact, the data points to a market that remained active throughout the year, with higher transaction values, stronger property appreciation, and continued investor confidence. These trends are expected to influence buying, selling, and investment decisions in 2026.
Property Transfer Tax Reflects Stronger Market Activity
One of the most significant indicators was the nearly 16% increase in revenue from the Real Estate Transfer Tax, which is paid whenever ownership of a property changes hands. Because the tax is calculated based on the registered value of the transaction, the increase suggests not only a greater number of formal property sales but also higher average sale prices.
For market participants, this trend signals sustained demand and a property market that continued to generate activity despite broader economic challenges. It also highlights the importance of accurate valuations and proper legal documentation in real estate transactions.
Higher Property Values Boost IPI Revenue
The Property Tax (IPI) also recorded solid growth, rising by approximately 13% compared with the previous year. This increase reflects both an expansion of declared real estate assets and continued appreciation in residential property values, particularly in major cities and tourism-driven destinations.
Growing IPI collections often indicate a more mature and transparent property market, where assets are increasingly registered within the formal tax system. For owners and investors, the trend reinforces the need to incorporate ongoing tax obligations into long-term financial planning.
International Capital Continues to Support the Sector
Another noteworthy indicator was the more than 10% increase in taxes associated with foreign-source income. Although this category extends beyond real estate, it is widely viewed as an important measure of international investment activity, particularly in residential developments, tourism projects, and income-producing properties.
The continued presence of foreign capital has been a defining feature of the Dominican Republic’s real estate market in recent years, supporting demand across coastal destinations, urban residential projects, and mixed-use developments.
What the 2025 Figures May Mean for 2026
The latest tax data suggests that the Dominican property market is likely to remain active in 2026, although buyers, sellers, and developers may face greater attention to tax compliance and legal documentation. As transaction values continue to rise, careful financial and legal planning is expected to become increasingly important for both local and international investors.
Understanding how property-related taxes performed in 2025 can also help investors anticipate future costs, evaluate market conditions, and make more informed decisions before acquiring or disposing of real estate assets. Investors considering the country’s growing tourism market may also benefit from reading our complete guide to investing in vacation rental apartments in the Dominican Republic, which explains the key legal, financial, and market considerations before purchasing.
A More Formal and Valuable Real Estate Market
The growth in property tax revenue during 2025 was more than a fiscal milestone—it reflected a real estate market that became increasingly formalized, valuable, and economically significant. If these trends continue, 2026 could present attractive opportunities for investment while also demanding greater attention to taxation, compliance, and strategic planning.