Guide to Property Taxes in Dominican Republic
Tax Rate on Rental Income |
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| Monthly Income | US$1,500 | US$6,000 | US$12,000 |
| Tax Rate | |||
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 | 0% |
| 16,220 - 624,329 | 15% |
| 624,329 - 867,123 | 20% |
| Over 867,123 | 25% |
Rental Income
Rental income is subject to a flat rate of 15% for local residents and a flat rate of 27% for foreigners.
| Rental Income Tax - Foreigners | Rental Income Tax - Locals |
| 27% | 15% |
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% |
| Costs Paid By Buyer | 4.25% - 5.00% |
| Costs Paid By Seller | 2.00% - 3.00% |
| 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.
