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Dominican Republic Tax Guide

Caribbean

Last verified September 2026

Sources & verification

Figures on this page were last verified against the cited sources in September 2026. Always check official sources before making a relocation or incorporation decision.

PwC Worldwide Tax Summaries — Dominican Republic Individual PwC Worldwide Tax Summaries — Dominican Republic Corporate Dirección General de Impuestos Internos (DGII)OECD Corporate Tax Statistics

Territorial

Best for

Foreign income exempt
Territorial system — overseas income generally outside the local tax net.
Special regime available
Law 171-07 retiree / rentier regime — Pensioners (≥USD 1,500/month) and rentiers (≥USD 2,000/month) get residency fast-track, import duty …
Digital-nomad-friendly
Combination of foreign-income treatment and residency rules works for nomads.

Personal Tax Score

72/100

Tax Friendly

Business Tax Score

54/100

Mixed

Personal Income Tax

Tax Residency

Day Threshold

182 days

Note

Resident if present more than 182 days in a calendar year, continuous or not

Income Tax Rates

Top Marginal Rate

25%

Structure

Progressive 0% / 15% / 20% / 25%; zero band roughly DOP 416,000 (~USD 7,000)

Foreign Income Treatment

System

Territorial

Details

Only Dominican-source income is taxed. Exception: foreign-source financial investment income (interest, dividends, gains on securities) becomes taxable from the third year of residency.

Investment Income

Capital Gains

27%

Dividends

10% final%

Interest

10% final%

Gains treated as ordinary income; in practice taxed at the 27% corporate rate for asset disposals. Inflation adjustment on cost base allowed.

Wealth & Inheritance

Wealth Tax

Yes - 1% annual real property tax (IPI) on the value of an individual's real estate above ~DOP 10 million (~USD 165,000)

Inheritance Tax

Yes - 3% on the net estate of Dominican-situs assets; gifts taxed at 27%

Special Regimes

Law 171-07 retiree / rentier regime

Pensioners (≥USD 1,500/month) and rentiers (≥USD 2,000/month) get residency fast-track, import duty relief and exemption from tax on foreign-source pension and rental income.

Free zones (Law 8-90)

Companies in industrial free zones enjoy 100% exemption from CIT, ITBIS and import duties for 15 years, renewable.

Practical Notes

Genuinely territorial for earned income, which is what draws remote workers. The three-year clock on foreign passive income is the trap most new arrivals miss. Banking KYC is slow; open accounts before you need them. Residency by investment (~USD 200,000) exists alongside the retiree route.

Business & Corporate Tax

Corporate Income Tax

Headline Rate

27%

Effective Rate Note

27% on net taxable income; a 1% asset tax operates as a minimum tax where it exceeds income tax

Free Zone / Incentives

Industrial free zones (Law 8-90) and Special Border Development Zones: 0% CIT, 0% ITBIS, 0% import duty for 15-20 years. Tourism (CONFOTUR) and film incentives also available.

Withholding Taxes

Dividends

10%

Interest

10%

Royalties

27%

VAT / GST

Rate

18%

Note

18% ITBIS on most goods and services; 16% reduced rate on some foods; basic staples exempt

Compliance & Substance

Substance Requirements

Low outside free zones; free-zone status requires operating within the designated park

Compliance Friction

Moderate - DGII systems are digital but bureaucracy and monthly ITBIS filings add load

Notable Regimes

Territorial personal taxation
Law 8-90 free zones
Law 171-07 retiree / rentier regime

Data Sources

PwC Worldwide Tax Summaries — Dominican Republic Individual PwC Worldwide Tax Summaries — Dominican Republic Corporate Dirección General de Impuestos Internos (DGII)OECD Corporate Tax Statistics

Last verified: September 2026. Always check official sources before making a decision.

FAQ

What is the personal income tax rate in Dominican Republic?

Dominican Republic has a top personal income tax rate of 25%. The tax structure is: Progressive 0% / 15% / 20% / 25%; zero band roughly DOP 416,000 (~USD 7,000). See the detailed breakdown above and verify with official sources.

Do I need to pay tax on foreign income in Dominican Republic?

Dominican Republic uses a territorial system for foreign income. Only Dominican-source income is taxed. Exception: foreign-source financial investment income (interest, dividends, gains on securities) becomes taxable from the third year of residency.

What are the residency requirements for Dominican Republic?

Tax residency in Dominican Republic generally requires 182 days of physical presence. Resident if present more than 182 days in a calendar year, continuous or not. Always verify current rules with official sources.

Is there a wealth tax in Dominican Republic?

Yes, Dominican Republic does have a wealth tax. 1% annual real property tax (IPI) on the value of an individual's real estate above ~DOP 10 million (~USD 165,000)

What is the corporate tax rate in Dominican Republic?

The corporate tax rate in Dominican Republic is 27%. 27% on net taxable income; a 1% asset tax operates as a minimum tax where it exceeds income tax

US citizen moving to Dominican Republic? Read this first.

Dominican Republic uses a territorial system for foreign income. For US citizens this often combines well with FEIE.

•Foreign-source income may be exempt or only taxed on remittance in Dominican Republic, but the US still taxes US citizens worldwide. FEIE (~$130k earned income) plus FTC on any Dominican Republic tax paid is the standard combination.
•Self-employment tax (15.3%) is owed in full — Dominican Republic has no totalization agreement with the US.
•Carefully document whether income is "Dominican Republic-source" or foreign-source. The classification drives both Dominican Republic and US tax outcomes; getting it wrong is the #1 audit risk in this category.
•Residency requires 182 days. Special regimes may further reduce Dominican Republic tax — check the country page for current options.

Read the full US-citizen moving-abroad guide

Need someone to actually plan Dominican Republic for you?

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