Tax on property income in Dominican Republic
Taxation Researcher | March 21, 2023
Tax Rate on Rental Income |
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| Monthly Income | US$1,500 | US$6,000 | US$12,000 |
| Tax Rate | |||
| Click here to see a worked example | |||
| Source: Global Property Guide |
Disclaimer | ||
INDIVIDUAL TAXATION
Nonresidents are taxed on their income from Dominican Republic sources. Married individuals are assessed and taxed separately from their partners.
INCOME TAX
Income of individuals is taxed at progressive rates.
Income Tax |
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| TAXABLE INCOME, DOP ($USD) | TAX RATE |
| Up to DOP416,220 ($7,591) | 0% |
| DOP416,220 - 624,329 ($11,387) | 15% |
| DOP624,329 - 867,123 ($15,815) | 20% |
| Over DOP867,123 ($15,815) | 25% |
CAPITAL GAINS TAX
Capital gains arising from the sale or transfer of property are subject to regular income tax rates. The purchase price of the property can be deducted from the tax base.
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 DOP7,710,158.20 (US$140,623). Properties with values below the threshold amount are not taxed.
CORPORATE TAXATION
INCOME TAX
Income and capital gains earned by companies are subject to corporate income tax at a flat rate of 27%. Income-generating expenses are deductible when calculating taxable income.