The Dominican Republic offers a number of tax incentives to attract foreigners and foreign investment.
(For detailed information about tax incentives, visit our online guide.)
Many of these are available once you get your residency status.
- When you purchase property in the Dominican, you don’t have to pay capital gains, property or housing taxes.
- Property taxes: You only pay an annual real estate tax of 1%, and only if the value of your property exceeds approximately $150,000 USD.
- Exemption from the taxes on dividends and interest generated in the DR or abroad.
If you qualify as a retiree or investor, you’re exempt from:
- Real property transfer taxes for the first property acquired
- 50% of the Mortgage Registration Tax, if the secured creditor is a financial institution subject to the regulations enacted pursuant to the Monetary and Financial Law
- 50% of the Real Estate Property Tax
- Taxes on dividends and interest payments, whether from a Dominican or non-Dominican source
- 50% of the capital gains tax, provided you’re the majority shareholder of the company and the main corporate purpose of the company is not commercial or industrial
- Import duty on home furnishings, office and professional equipment
- Import duty on motor vehicles (for 1 vehicle)