Dominican Republic property tax for foreigners: on the way in, every year, on the rent, on the way out.

What taxes do you pay when buying property in the Dominican Republic?

The real estate transfer tax: 3% of the property value, land plus construction, under Law 173-07, according to Siempre al Día. It is due within 6 months of the transfer, and the property cannot be registered in the buyer's name until it is paid. The registry requires proof of payment.

DR Listings reports that the 3% is charged on the higher of the DGII appraisal and the declared price; this was not confirmed from the DGII. None of the Law 30-26 summaries reviewed lists a change to the transfer tax. A mortgage also attracts a registration tax, commonly 2% of the registered mortgage, which Law 30-26 cuts to 1% in 2027 and removes from 2028, according to Ulises Cabrera and Siempre al Día. All one-off costs: Dominican Republic property buying costs.

What is the annual property tax (IPI) in the Dominican Republic?

The Impuesto al Patrimonio Inmobiliario is 1% of the total value of an individual's real estate holdings above an exempt threshold. For 2026 the DGII threshold is RD$10,695,494.00, up from RD$10,190,833 in 2025. It is adjusted every year for inflation, so check the new figure each January.

• Legal basis: Law 253-12, which amended Law 18-88. The 2026 figure was set by DGII resolution DDG-AR1-2026-00001 of 15 January 2026, as reported by Listín Diario.
• Payment: two instalments; a secondary source gives 11 March and 11 September.
• Fideicomiso: property held in a fideicomiso is taxed at 1% on its total value with no exempt threshold, according to El Inmobiliario.

Some older guides, including Global Property Guide's September 2025 page, still show a threshold of about DOP 7.7M. Use the DGII's current figure.

How is rental income taxed for a non-resident owner in the Dominican Republic?

The most-cited treatment is 27% withheld from the gross rent as a single, final tax, under Article 305 of the Tax Code, which covers Dominican-source income paid to non-residents. The tenant or property manager withholds and pays it to the DGII. Global Property Guide, DR Listings and a 2024 law-firm guide published by Airbnb all state it.

This is not settled beyond doubt. One 2026 source describes progressive rates with 10% withheld by the property manager and an annual March filing, and does not mention 27%. DGII confirmation for rent specifically was not found. Tax treaties can lower the rate: the same 2024 guide gives 18% for Canada-resident owners. Ask a Dominican tax adviser before you set a rent.

What did Law 30-26 change for landlords in 2026?

It raised the withholding on rent paid to individual landlords from 10% to 15% from 1 July 2026, according to Siempre al Día and Ulises Cabrera. That is the regime for residents. It does not replace the Article 305 withholding that applies to rent paid to non-residents.

Law 30-26 also cut the donations tax between direct descendants, spouses and close relatives from 27% to 3%, per Ulises Cabrera. This point is a secondary summary; the capital gains rules on this page are taken from the law text itself.

What is capital gains tax on Dominican property?

A 10% flat, final tax on gains from selling real estate owned by individuals, payable within 6 months of the transfer (Law 30-26, article 14, new Tax Code article 296-1). The law is in force from its promulgation in June 2026 (article 62). What is still open is the rate for a non-resident seller, under the Tax Code's non-resident rule (article 305, amended by article 20).

Two exemptions are in the law text. Selling your habitual residence is exempt if the whole proceeds are reinvested in a new habitual residence within 6 months, and partly exempt in proportion if only part is reinvested; selling the habitual residence after 65 is fully exempt (articles 14 and 16). An heir's cost is the value received in the succession, adjusted for inflation (DGII Consulta 23 of May 2024). Confirm the non-resident rate with a Dominican tax adviser before you sell.

The exit in full: selling property in the Dominican Republic as a foreigner.

When does a foreign owner become a Dominican tax resident?

After more than 182 days in the Dominican Republic in a year, per the 2024 law-firm guide. A resident pays income tax on a progressive scale. For fiscal 2026 PwC lists an exempt band to RD$416,220, then 15%, 20% and a top rate of 25% above RD$867,123.

From fiscal 2027 Law 30-26 raises the exempt band to RD$480,000 and sets a top rate of 27% above RD$4,800,000, per PwC and Melo, Martínez & Contín. A resident operating rentals registers in the RNC with the DGII and files the IR-1 annual return by 31 March.

What tax exemptions does CONFOTUR give property buyers?

First purchasers of units in projects classified under Law 158-01 are exempt from the 3% transfer tax and from IPI. The exemption is processed through the Ministry of Finance, which refers it to the DGII, and the project needs a CONFOTUR classification resolution. A later resale to a third party does not carry the exemption.

The IPI exemption period is widely quoted as 15 years, following Law 195-13, but DGII help-community answers still quote 10 years, and whether the clock starts at the project's completion or at the purchase is unclear. Law 30-26 bars stacking more than one incentive regime for the same activity, which trade press says creates uncertainty for condo-hotel projects. A 2024 draft reform would have repealed key CONFOTUR articles; it was withdrawn on 19 October 2024. Status as of September 2026: confirm the exemption for your specific project in writing.

Header photo: https://www.flickr.com/photos/uira/, CC BY-SA 2.0, via Wikimedia Commons. All credits: image credits.