Property Taxes in Dominican Republic

Nonresidents are taxed on their income from Dominican Republic sources. Married individuals are assessed and taxed separately from their partners.

Income Tax

Taxable Income (DOP) Tax Rate
Up to 416,220 ($7,130) 0%
416,220 - 624,329 ($10,695) 15%
624,329 - 867,123 ($14,854) 20%
Over 867,123 ($14,854) 25%

Rental Income

Rental income is subject to a flat rate of 12% up to DOP 1.5 million. For rental income between DOP 1.5 million and 6 million, the tax rate is 24.2%. For rental income between DOP 6 million and 12 million, the tax rate is 24.6%. Expenses related to earning rental income can be deducted from the gross rental income.

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 to determine the taxable capital gain.

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.

Buying and Selling Costs/Taxes

Cost Type Rate/Amount
Property Transfer Tax 3.00%
Agent Fee (Seller) 2.00-3.00%
Legal Fees 1.00%
Notary Fees 0.25-1.00%
Roundtrip Costs 6.25% - 8.00%
Source: Global Property Guide, KPMG

Property Holding 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 DOP 7,710,158.20 (US$140,623). Properties with values below the threshold amount are not taxed. 

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