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Dominican Republic: Taxes and Costs

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Taxes are high in
the Dominican Republic

INDIVIDUAL TAXATION

INDIVIDUAL TAXATION

Non-residents are taxed on their income from Dominican Republic.

INCOME TAX

Income of non-resident individuals is taxed at the corporate tax rate of 25%.

RENTAL INCOME
Rental income is taxed at 25%. Income-generating expenses are deductible when computing for taxable income.

Rental income is subject to 10% withholding tax, which is considered as advance payment and will be credited against the taxpayer’s income tax liability.

CAPITAL GAINS
Capital gains arising from the sale or transfer of property are considered ordinary income and taxed at the standard income tax rate. Non-residents are liable to tax at the corporate rate of 25%. The taxable gain is computed by deducting the acquisition cost as adjusted for inflation from the gross selling price or the market value.

PROPERTY TAX

Property Tax

Property tax is based on the cadastral value of the property as determined by the government, usually at much less than the market value. It is levied annually at a rate of 1% on the property’s cadastral value exceeding DOP5 million (US$138,474). Properties with values below the threshold amount are not taxed.

Dominican Republic - more data and information

• Guide to buying houses and registering property sales in Dominican Republic

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