Taxes & Law

• Core idea: Dominican-source income is taxed. Foreign investment/financial gains of new foreign tax residents are commonly described as taxable from the third tax year (orientation around Art. 271 / DGII practice) — verify current Code and rulings
• ITBIS (VAT): generally 18% (reduced rates/exemptions exist for specific goods)
• IPI (property wealth tax): 1% on the value of real estate above the annual exempt threshold
• Authority: DGII (Dirección General de Impuestos Internos)

Tax residency follows Dominican rules (presence of roughly 182 days is a common orientation; confirm exact criteria). Immigration status is not automatically tax status. Law 171-07 may grant incentives to qualifying pensionados/rentistas — many benefits need prior Hacienda/DGII authorisation.

For individuals, DGII Resolution DDG-AR1-2026-00001 sets 2026 annual ISR bands: exempt up to RD$416,220; then 15% on the excess up to RD$624,329; then 20% up to RD$867,123; then 25% above. ITBIS is generally 18%. Corporate rates and withholding rules differ — use a contador and primary sources.

IPI generally taxes 1% of the cadastral/registered value of real estate belonging to individuals above an inflation-adjusted exempt amount. For 2026, DGII published an exempt threshold of about RD$10,695,494. Payment is typically in instalments — confirm deadlines on dgii.gov.do. Law 171-07 may offer partial relief for qualifying pensionados/rentistas (soft: verify authorisation).

Registration (Mercantile Registry, RNC) and ongoing DGII filings depend on the form. Clarify formation and compliance with local professionals.

• Major banks include Banreservas, Banco Popular, BHD León; strict KYC
• DOP and USD accounts possible; transfers have fees and timelines
• Cards and digital wallets are common in cities
• Without residency/cédula, opening an account can be harder

Whether and how double taxation is relieved depends on the tax law and any treaties between your home or residence country and the Dominican Republic. There is no single rule for all nationalities. Check your tax authority and any DTA/information-exchange agreement; professional advice is recommended.