Dominican Republic tax
Tax residence: More than 182 days in fiscal year. 2 special regimes for new residents: Foreign-source income and Foreign-source pensioners and rentiers: declared income exempt and property tax relief.
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Tax residence
- More than 182 days in fiscal year · Individuals present in the country for more than 182 days, continuous or not, in the fiscal year are residents for tax.
- Residence for tax is more than 182 days in the fiscal year, not the type of residence permit.
Special regimes for new residents
Special regime
New residents: foreign-source income taxed only from the third year
Tax relief
Details
- Who: The person is a national or a foreigner who starts to reside in the Dominican Republic
A person who becomes a resident is taxed on foreign-source income only from the third tax year counted from the year they became resident. 2
Taxed on
Foreign-source income of individuals who become resident. For residents the charge on foreign-source income covers investment income and financial gains; foreign-source salary and business income are outside it (see the ordinary income tax record).
Who it applies to
- The person is a national or a foreigner who starts to reside in the Dominican Republic.
- Foreign-source income is taxed only from the third tax year after the year in which residence began.
Exclusions
- Dominican-source income is taxed from the start.
Tax residence
Applies from the year the person becomes resident under the 182-day test.
Visas
Applies to any residence category.
Other taxes
Pensioners and rentiers have a separate exemption under Law 171-07. The Tax Code text on the tax authority's site could not be opened on 12 October 2026, so the three-year rule was not re-read.
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Special regime
Foreign-source pensioners and rentiers: declared income exempt and property tax relief
Tax relief
Details
- On: Pension or rental income declared to qualify for residence under Law 171-07
- Who: The holder has a pensioner or rentier residence under Law 171-07
- Limit: $1,500/mo
Declared pension or rental income that qualifies a person for Law 171-07 is exempt from Dominican income tax, with reductions in some property taxes. 5
Taxed on
Pension or rental income declared to qualify for residence under Law 171-07.
Who it applies to
- The holder has a pensioner or rentier residence under Law 171-07.
- The income declared to obtain the residence is exempt from income tax.
- Exemption from real estate transfer taxes on the first property purchased, and 50% off document tax and property tax while the residence is valid.
- 50% off the tax on mortgages and on capital gains when selling property bought under the law.
Exclusions
- Salary from work in the Dominican Republic is taxed like any other employee's pay.
Limits
- $1,500 a month · Minimum pension to qualify
- $2,000 a month · Minimum rental or other income to qualify
Tax residence
Linked to the pensioner and rentier residence.
Visas
Tied to the pensioner and rentier residence routes.
Other taxes
Law 171-07 also gives duty exemption on household goods and a partial exemption on vehicle taxes.
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Which visas the regimes apply to
- Foreign-source pensioners and rentiers: declared income exempt and property tax relief: Rentista residence, Pensioner residence. Tied to the pensioner and rentier residence routes.
Standard rules and foreign-source income
Standard rules
Income tax: residents taxed on Dominican-source income and foreign-source investment income
Details
- On: Dominican-source income of residents and non-residents
- Limit: DOP 416k/yr ≈ $6,840
Residents of the Dominican Republic pay income tax on Dominican-source income and on foreign-source investment and financial gains; the 2026 scale is exempt to RD$416,220 and then 15%, 20% and 25%, with a 27% top rate planned from 2027. 1 2 3 4
Taxed on
Dominican-source income of residents and non-residents, and foreign-source income of residents from investments and financial gains; foreign-source salary and business income are outside the charge.
Who it applies to
- A person is resident if present in the country for more than 182 days, continuous or not, in the fiscal year.
- Residents pay tax on Dominican-source income and on foreign-source income from investments and financial gains.
- 2026 scale: exempt up to RD$416,220; 15% on the excess up to RD$624,329; RD$31,216 plus 20% up to RD$867,123; RD$79,776 plus 25% above that.
- From fiscal year 2027, Law 30-26 raises the exemption to RD$480,000 and sets a 27% rate for annual income above RD$4,800,000.
Exclusions
- Non-residents are taxed only on Dominican-source income.
Limits
- DOP 416,220 a year (≈ $6,840) · Exempt income in 2026
- DOP 624,329 a year (≈ $10,300) · Upper limit of the 15% band in 2026
- DOP 867,123 a year (≈ $14,200) · Lower limit of the 25% band in 2026
- DOP 480,000 a year (≈ $7,890) · Exempt income announced from fiscal year 2027
- DOP 4,800,000 a year (≈ $78,900) · Income above which a 27% rate is set from fiscal year 2027
Days in the country
- More than 182 days in fiscal year · Individuals present in the country for more than 182 days, continuous or not, in the fiscal year are residents for tax.
Tax residence
Residence for tax is more than 182 days in the fiscal year, not the type of residence permit.
Visas
Immigration status does not decide tax residence.
Other taxes
ITBIS (VAT), property and real estate transfer taxes are separate; some are reduced for pensioners and rentiers.
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VAT, social security and other taxes
- ITBIS (VAT), property and real estate transfer taxes are separate; some are reduced for pensioners and rentiers.
- Pensioners and rentiers have a separate exemption under Law 171-07. The Tax Code text on the tax authority's site could not be opened on 12 October 2026, so the three-year rule was not re-read.
- Law 171-07 also gives duty exemption on household goods and a partial exemption on vehicle taxes.
Questions people ask
When do you become a tax resident in Dominican Republic?
More than 182 days in fiscal year (Individuals present in the country for more than 182 days, continuous or not, in the fiscal year are residents for tax). Residence for tax is more than 182 days in the fiscal year, not the type of residence permit.
Who qualifies for Foreign-source income?
The person is a national or a foreigner who starts to reside in the Dominican Republic. Applies to any residence category.
Who qualifies for Foreign-source pensioners and rentiers: declared income exempt and property tax relief?
The holder has a pensioner or rentier residence under Law 171-07. Tied to the pensioner and rentier residence routes.
Is there a tax break for Rentista residence holders in Dominican Republic?
Foreign-source pensioners and rentiers: declared income exempt and property tax relief: Declared pension or rental income that qualifies a person for Law 171-07 is exempt from Dominican income tax, with reductions in some property taxes. It's separate from the visa and has its own conditions.
≈ USD figures are approximate: daily reference rates from ExchangeRate-API, dated 12 Oct 2026, refreshed when the site is updated.
Sources (5)
Official sources
- Tax Code, Title I: general provisions (article 12, domicile and residence) · Dirección General de Impuestos Internos, Dominican Republic · checked 2026-10-11
- Tax Code, Title II: income tax (articles 267 to 272) · Dirección General de Impuestos Internos, Dominican Republic · checked 2026-10-11
- Resolution DDG-AR1-2026-00001: income tax scale for fiscal year 2026 · Dirección General de Impuestos Internos, Dominican Republic · checked 2026-10-11
- Notice: implementation calendar of Law No. 30-26 of 18 June 2026 · Dirección General de Impuestos Internos, Dominican Republic · checked 2026-10-11 · published 2026-06-18
- Law No. 171-07 on special incentives for foreign-source pensioners and rentiers · Dirección General de Impuestos Internos, Dominican Republic · checked 2026-10-11 · published 2007-07-13