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Dominican Republic

Taxes, residence and daily life for people moving to Dominican Republic: for a wealthy family, an expat employee and a remote worker. Researched .

Open Dominican Republic in the interactive guide

At a glance

For an EU-citizen family of five living off a €30M portfolio, the guide's default reader. The interactive guide recomputes everything for other passports and situations.

Score for a wealthy family
58 / 100
Tax on a €30M portfolio
€250,925 a year · New resident: foreign investment income untaxed until the third tax year
Wealth tax
none
Children inherit
low tax
Living costs, family of five
€180,323 a year
EU member
no
Currency
DOP
Capital
Santo Domingo

Tax on investments, inheritance and wealth

The Dominican Republic is territorial except that residents are taxed on foreign investment income and financial gains (dividends, interest, gains on shares and securities) at up to 25% (27% top band from 2027 under Law 30-26). Foreigners who become resident pay this only from their third tax year. Dominican dividends bear a final 10% withholding. Inheritance tax is 3% for heirs; gifts are taxed at 25%-27%. No wealth tax for passive individuals (real estate holdings above a threshold pay the 1% IPI).

Income tax for employees and remote workers

The Dominican Republic taxes on a territorial basis: Dominican-source income is taxed at 0% up to DOP 416,220, then 15%, 20% and 25%; foreign-source income is generally not taxed, except foreign investments and financial gains, and new residents are taxed on these after the third year. Employees withhold 2.87% pension and 3.04% health.

Inheritance law and trusts

The Dominican Republic has forced heirship: children are guaranteed a share of the estate, and a will cannot reduce it. Law 544-14 applies the law of the deceased's last domicile, so a foreigner who lives there is generally under Dominican rules. The Hague Trusts Convention is not in force.

Daily life, scored out of 100

From public indicators (World Bank, UNDP, Transparency International and others); higher is better.

MeasureScore
Safety and personal security38
Political and institutional stability56
Corruption and government integrity42
Legal system and property rights50
Healthcare quality and access59
Education quality5
Human development and quality of life55
Infrastructure and connectivity65
Cost of living and housing89
Business opportunities and economy59
Cultural fit and lifestyle31

Research notes

Dominican Republic — family-office tax dossier

Last reviewed: 2026-10-15 Tax year: 2026 Reviewer: research agent (Claude), unreviewed by a tax adviser

Summary

The Dominican Republic is territorial except that residents are taxed on foreign investment income and financial gains (dividends, interest, gains on shares and securities) at up to 25% (27% top band from 2027 under Law 30-26). Foreigners who become resident pay this only from their third tax year. Dominican dividends bear a final 10% withholding. Inheritance tax is 3% for heirs; gifts are taxed at 25%-27%. No wealth tax for passive individuals (real estate holdings above a threshold pay the 1% IPI).

US citizens: No US-DR income tax treaty. US citizens remain subject to US federal tax.

Residence and eligibility

More than 182 days in a calendar year (PwC Residence).

Capital gains

Standard regime

Capital gains are taxed as ordinary income (top 25% in 2026). Residents are taxed on foreign financial gains (gains on shares and securities). Law 30-26 (June 2026) cut the tax on individuals' gains from Dominican real estate to a single 10% (exempt if reinvested in a main residence within 6 months), effective immediately.

New resident: foreign investment income untaxed until the third tax year (special regime)

Foreign financial gains untaxed in the first two resident years.

Open points for this tax: Whether gains on foreign real estate are 'financial gains' within the foreign-income rule is unclear; null. | Law 30-26 text not opened. | PwC words it as 'taxed only after the third year' (possibly three exempt years); Deloitte's 'from the third taxable year' (two exempt years) is used.

Dividends

Standard regime

Cash dividends from Dominican companies are exempt in the hands of individuals once the 10% withholding has been applied (final). Foreign dividends are foreign investment income taxed at up to 25% (2026) with a credit for foreign tax up to the Dominican tax on that income.

New resident: foreign investment income untaxed until the third tax year (special regime)

Foreign dividends untaxed in the first two resident years.

Inheritance and gifts to children

Standard regime

Inheritance tax of 3% of the inherited estate is charged to the heirs. It covers personal and real property in the estate, Dominican-situs gifts, and foreign-situs personal property of a deceased who had Dominican nationality or whose last domicile was in the DR (Deloitte 2026). Gifts to individuals are taxed at 25% (Deloitte) or 27% (PwC).

Open points for this tax: Gift tax rate 25% (Deloitte) vs 27% (PwC) conflict; probably 27% following the general rate. | Whether foreign real estate of a domiciled deceased is included (Deloitte mentions foreign personal property only).

Wealth tax

Standard regime

No general wealth tax for individuals. A 1% net worth tax applies only as a minimum tax for individuals carrying on a trade or business in the DR (Deloitte).

Special regimes

Company taxation (kept separate from personal tax)

Headline CIT rate: 27% (0.27). 27% CIT (30% for 2026-2028 for taxpayers with income of DOP 1 billion or more, Law 30-26); 1% asset tax as minimum; 10% dividend WHT. Free-zone regimes.

Cost of living notes

City: Santo Domingo (Los Cacicazgos / Arroyo Hondo / Bella Vista / Piantini).

Open questions

Sources

Change log

Residence and succession sources

Tax sources are cited in the research notes above.