Property tax in the Dominican Republic
See what the Dominican Republic's tax rules do to your property portfolio.
What Freeholt models for property, income and retirement in the Dominican Republic, and what it does not.
Free to start. No card. Rules reviewed 2 July 2026.
Modelled here
- Tax on rental income
- Capital gains on a sale
- Duty on purchase
- Annual property or land tax
DOP · Rates as at 2 July 2026 · Estimates, not advice
Residents pay progressive tax (to 25%) on net rent, but NON RESIDENTS face a 27% withholding on GROSS rent with no deductions. CGT is 27% on the net gain. CONFOTUR tourism projects can be tax exempt for 15 years.
How rental income is taxed in the Dominican Republic
For a resident owner: A flat 25% on net rent after costs. For an owner living abroad and renting this out: Tax is withheld at source at 27% of the gross rent, before any costs.
Interest and losses
Mortgage interest is deductible against the rent. A rental loss is ring fenced: it carries forward against future rental income rather than reducing other income now.
Capital gains on a sale
Gains are taxed at a flat 27%.
Annual property tax while holding
About 1% a year on the property value.
What it costs to buy
About 3% of the price on purchase. 3% transfer tax on the DGII appraised value; no foreign buyer surcharge or licence.
How Freeholt models the Dominican Republic
Every rate above is priced from Freeholt's own table for the Dominican Republic and runs through the whole projection: rental income, a modelled sale and the annual holding costs all use the same figures. They cannot be edited yet, so a position that differs from the defaults has to be read with that in mind. The estimate assumes an individual owner rather than a company or trust, and where a rule is not modelled it is listed below rather than quietly priced at zero.
What running this property costs
In the DR this covers the IPI property tax (1% above ~RD$10.7m for individuals), condo fees, insurance, maintenance and ~10% management; short term rentals add 18% ITBIS.
How borrowing works here
Peso mortgages carry high rates (~10%+); USD financing is limited, so many foreign purchases are cash.
What actually happened here
This country's own record, one year at a time. Nothing on this page is borrowed from another country. Move across a chart to read a year.
What Freeholt models here
- ModelledTax on rental income
- Resident and non resident rates, with interest and losses treated under the local rule.
- ModelledCapital gains on a sale
- Priced in the year of the sale under the rules of that year.
- ModelledDuty on purchase
- One off, on the way in, at the scale in force.
- ModelledAnnual property or land tax
- Charged every year the property is held.
- Not yetIncome tax beyond the rent
- Not modelled for this country yet.
- Not yetDividends, interest and share sales
- Not modelled for this country yet.
- Not yetRetirement savings
- Not modelled for this country yet.
- Not yetInheritance and what happens on death
- Not modelled for this country yet.
What Freeholt does not model here
- Inheritance and estate tax
- Treaty relief between this country and the owner's country of residence
Coverage deepens country by country. Every figure is an estimate, not advice.
Compare with another country
Each page is built from the same table the app runs on, so the figures line up side by side.
Compare the Dominican Republic with another country — rent, gains, annual tax and duty, side by side.
Questions people ask
- Does Freeholt model Dominican Republic property tax?
- Yes. Rental income tax, capital gains on a sale, duty on purchase and annual property or land tax are priced from Freeholt's own rate table for the Dominican Republic. The rates are not editable yet, so one that differs in a particular case cannot be overridden. Every figure is an estimate, not advice.
- How is rental income from the Dominican Republic taxed if I live somewhere else?
- Tax is withheld at source at 27% of the gross rent, before any costs. Tax may also be due in the country of residence, with credit for what was paid here. Estimates only, not advice.
- What are the Dominican Republic figures as at?
- The rate table for the Dominican Republic was last reviewed on 2 July 2026. Freeholt date stamps every country rather than implying all of them were checked on the same day. Estimates only, not advice.
Model a property in the Dominican Republic alongside everything else you own: see the year your portfolio starts paying you back.