Country topic
Tax in Dominican Republic
DGII's notice 22-25 says the Dominican system is not a worldwide-income system. It taxes income of Dominican source (Tax Code, article 272) and foreign-source investments and financial gains (article 269). PwC, a private adviser, puts it the same way: Dominican-source income is taxed and foreign-source income generally is not, apart from residents' foreign investments and financial gains. [T1] [T2] [T3] You are a tax resident if you spend more than 182 days in the Dominican Republic in a year, consecutive or not (DGII's notice; PwC says calendar year). Residents declare Dominican-source income and foreign-source investment and financial income (DGII ruling of January 2022). For a foreigner who becomes resident, tax on that foreign-source income starts from the third year as a resident (article 271, as the notice describes it). A news report of a DGII letter of October 2025 says article 316 of the Tax Code allows a credit for tax paid abroad. [T1] [T4] [T5] [T3] [T6]
What we found
The research, with its sources.
Research information, not advice. Rules change, so check the source before you act on one.
- DGII's notice 22-25 says the Dominican system is not a worldwide-income system. It taxes income of Dominican source (Tax Code, article 272) and foreign-source investments and financial gains (article 269). PwC, a private adviser, puts it the same way: Dominican-source income is taxed and foreign-source income generally is not, apart from residents' foreign investments and financial gains. [T1] [T2] [T3]
- You are a tax resident if you spend more than 182 days in the Dominican Republic in a year, consecutive or not (DGII's notice; PwC says calendar year). Residents declare Dominican-source income and foreign-source investment and financial income (DGII ruling of January 2022). For a foreigner who becomes resident, tax on that foreign-source income starts from the third year as a resident (article 271, as the notice describes it). A news report of a DGII letter of October 2025 says article 316 of the Tax Code allows a credit for tax paid abroad. [T1] [T4] [T5] [T3] [T6]
- The Tax Code lists income from personal work and professions among Dominican-source rents without saying where the payer is. We found no DGII text on pay from a foreign employer, or fees from foreign clients, for work done while living in the country, so whether that is taxable is unknown: settle it with a Dominican adviser before you arrive. Pensioners and rentistas who take paid work are taxed like any Dominican employee (Law 171-07, article 15). [T2] [T1] [T7]
- For 2026, PwC lists personal income tax of 0% up to RD$416,220 a year, 15% up to RD$624,329, 20% up to RD$867,123 and 25% above that. From 2027 it lists 0% up to RD$480,000, then 15% up to RD$685,000, 20% up to RD$910,000, 25% up to RD$4,800,000 and 27% above. What you owe depends on your situation, and PwC is a private adviser, not an official source. [T3]
- Law 171-07 (article 10) exempts from income tax the pension or rent declared to qualify as a pensioner or rentista. DGII's September 2024 ruling says it must still be declared on the IR-1 return by 31 March of the following year, and that exemptions are processed through the Ministry of Finance first. The law also exempts transfer tax on a first property and takes 50% off property tax, and DGII's April 2025 ruling exempts interest paid to a permanent resident by investment from the 10% withholding. [T7] [T8] [T9]
- Other taxes, per PwC: ITBIS, a value-added tax, is 18% with exemptions set by law; there is no net wealth tax; inheritance tax is 3%, charged to the heirs; gifts to individuals carry a 27% withholding. A Dominican employer withholds 2.87% of salary for pensions and 3.04% for family health. PwC says a certificate from your home country's social security ministry can avoid double pension contribution; whether one is available to someone paid from abroad is unknown. [T10]
- No treaty settles a double claim for US, Australian or New Zealand citizens: the IRS, Australian Treasury and Inland Revenue lists do not include the Dominican Republic. Canada has a convention with it, signed on 6 August 1976 and in force; to use it in the Dominican Republic you file a formal request with DGII, within 30 working days of the return or payment. None of the four countries' social security agreement lists includes the Dominican Republic. [T11] [T12] [T13] [T14] [T15] [T16] [T17] [T18] [T19] [T20]
- Your home country may keep its claim. US citizens abroad generally file on worldwide income: the 2026 foreign earned income exclusion is up to $132,900, the physical presence test needs 330 full days abroad within 12 months, and foreign accounts that together exceed $10,000 go on an FBAR. Canada, Australia and New Zealand look at residential ties, not days alone, so a year away does not by itself end residence. [T21] [T22] [T23] [T24] [T25] [T26] [T27]
The country
More on Dominican Republic.
Topics
More about Dominican Republic.
Questions about Tax in Dominican Republic.
Is foreign income taxed in the Dominican Republic?
Mostly not. DGII says the system is not worldwide: it taxes Dominican-source income, plus residents' foreign-source investments and financial gains, which for a new foreign resident start from the third year. Pay for work done in the country is unknown; ask a Dominican adviser. Not tax advice.
How many days make me a tax resident of the Dominican Republic?
More than 182 days in a year, consecutive or not (DGII's notice 22-25; PwC says calendar year). Tax residence is separate from your visa, and your home country applies its own rules, so check both.
What are the income tax rates in the Dominican Republic?
For 2026, PwC lists 0% up to RD$416,220 a year, 15% to RD$624,329, 20% to RD$867,123 and 25% above. From 2027 it lists 0% up to RD$480,000, then 15%, 20% and 25% in bands and 27% above RD$4,800,000. PwC is a private adviser; what you owe depends on your situation.
Is pension or rentista income taxed in the Dominican Republic?
Under Law 171-07 (article 10), the pension or rent declared to qualify is exempt from income tax, but DGII says it must still be declared on the IR-1 return by 31 March of the following year. Pay for work done by pensioners and rentistas is taxed like any Dominican employee's (article 15).
Do I still owe tax at home if I live in the Dominican Republic?
It depends on your passport and ties. US citizens generally file on worldwide income (2026 foreign earned income exclusion up to $132,900). Canada, Australia and New Zealand look at residential ties. Only Canada has a tax convention with the Dominican Republic, signed in 1976.
Sources
Where each figure comes from.
Every figure on this page links to the page we read, with the date we checked it.
- [T1] DGII notice 22-25: territoriality of income tax for resident individuals, Dirección General de Impuestos Internos (DGII). Checked 15 October 2026.
- [T2] Tax Code (Law 11-92), title II on income tax: articles 269, 271 and 272, Dirección General de Impuestos Internos (DGII), official code text. Checked 15 October 2026.
- [T3] Dominican Republic individual tax summary: taxes on personal income, PwC Worldwide Tax Summaries (private adviser, not official). Checked 15 October 2026.
- [T4] Technical consultation 3 (25 January 2022): income tax of a foreign resident, Dirección General de Impuestos Internos (DGII). Checked 15 October 2026.
- [T5] Dominican Republic individual tax summary: residence, PwC Worldwide Tax Summaries (private adviser, not official). Checked 15 October 2026.
- [T6] DGII reaffirms its rules on foreign-source income (reports a DGII letter of October 2025), Acento (news site, not official). Checked 15 October 2026.
- [T7] Law 171-07: special incentives for foreign-source pensioners and rentistas (full text), Dirección General de Impuestos Internos (DGII), official law text. Checked 15 October 2026.
- [T8] Technical consultation 35 (23 September 2024): income tax exemption for rentistas and pensioners under Law 171-07, Dirección General de Impuestos Internos (DGII). Checked 15 October 2026.
- [T9] Technical consultation 18 (3 April 2025): interest paid to residents under Law 171-07, Dirección General de Impuestos Internos (DGII). Checked 15 October 2026.
- [T10] Dominican Republic individual tax summary: other taxes (social security, VAT), PwC Worldwide Tax Summaries (private adviser, not official). Checked 15 October 2026.
- [T11] United States income tax treaties, A to Z, Internal Revenue Service. Checked 15 October 2026.
- [T12] Income tax treaties in force, Australian Treasury. Checked 15 October 2026.
- [T13] Tax treaties: double tax agreements and tax information exchange agreements, Inland Revenue (New Zealand), Tax Policy. Checked 15 October 2026.
- [T14] Tax treaties in force, Department of Finance Canada. Checked 15 October 2026.
- [T15] General Norm 11-2022: granting the benefits of conventions to avoid double taxation, Dirección General de Impuestos Internos (DGII). Checked 15 October 2026.
- [T16] Convention between Canada and the Dominican Republic for the avoidance of double taxation (CTS 1977 No. 4), full text, Global Affairs Canada, Treaty Information (treaty-accord.gc.ca). Checked 15 October 2026.
- [T17] US international Social Security agreements, US Social Security Administration, Internet Archive copy. Checked 15 October 2026.
- [T18] Social security agreements, Government of Canada. Checked 15 October 2026.
- [T19] International social security agreements (archived copy), Australian Government, Department of Social Services (Internet Archive copy). Checked 15 October 2026.
- [T20] Social security agreements, Work and Income (Ministry of Social Development, New Zealand). Checked 15 October 2026.
- [T21] US citizens and residents abroad: filing requirements, Internal Revenue Service. Checked 15 October 2026.
- [T22] Figuring the foreign earned income exclusion, Internal Revenue Service. Checked 15 October 2026.
- [T23] Foreign earned income exclusion: physical presence test, Internal Revenue Service. Checked 15 October 2026.
- [T24] Report of Foreign Bank and Financial Accounts (FBAR), Financial Crimes Enforcement Network (FinCEN). Checked 15 October 2026.
- [T25] Determining your residency status, Canada Revenue Agency. Checked 15 October 2026.
- [T26] Australian resident for tax purposes (archived copy), Australian Taxation Office (Internet Archive copy). Checked 15 October 2026.
- [T27] Tax residency status for individuals, Inland Revenue (New Zealand). Checked 15 October 2026.