Tax residency
Territorial tax system
Dominican tax law is primarily territorial: taxes are levied on income from Dominican sources. Income from work performed abroad is generally not taxable even if received by Dominican nationals or residents.
For tax purposes, anyone present in the country for 182+ days in a 12-month period is considered a tax resident. All taxpayers must register with the Internal Revenue Agency and obtain a tax number RNC.
Property ownership
Real Estate Taxes & Fees
3% of the higher of the contract price or the government appraisal (DGII) when title is transferred.
Typically around US$ 1,000 or ~1% depending on scope.
1%, calculated on the cumulative appraised value of owned properties.
Developed lots
The 1% applies only to the portion exceeding the indexed threshold (≈ US$ 170,000 equivalent in DOP; updated annually).
Undeveloped land
The 1% is calculated on the full appraised value, with no exemption.
Annually by March 11 or in two equal instalments: 50% by March 11 and 50% by September 11.
Exemptions: farm properties; a single home owned by a person aged 65+ who owns no other property; properties held by companies (see Corporate Assets Tax).
Ownership structure
Registration scenarios
| Scenario | Tax due |
|---|---|
| Title transferred to an individual | 3% Transfer Tax on sale/appraised value |
| Title transferred to a company (SRL) | 3% Transfer Tax applies on transfer to the company |
| Property already held by a company; you buy the company shares | No title transfer → no 3% transfer tax at that moment (ongoing company taxes still apply) |
Companies
Tax on Corporate Assets
Companies pay an annual 1% tax on company assets. If a property is registered under a company, this 1% company-assets tax applies and is creditable against corporate income tax liabilities.
For companies, IPI does not apply to the property itself; instead, the corporate assets tax regime applies.
Property Tax (IPI) quick view
| Who pays | Rate | Base | When |
|---|---|---|---|
| Individuals | 1% annually | Cumulative appraised value above indexed threshold | By Mar 11 (or half Mar 11 / half Sep 11) |
| Companies | — | — | Company Assets Tax 1% applies instead |
Threshold is indexed annually by DGII; furniture and equipment are excluded from appraisals.