Dominican Republic Taxes Simply Explained
This page describes the Dominican Republic Real Estate Taxes which include: Transfer Taxes, Property Taxes and Income Taxes for Non-Residents investing in the Dominican Republic. The sections below give descriptions of each tax category and examples with practical applications of the information.
Property Taxes
1% per Year
Cadastral Value *
+ $144,681 usd **
Income Taxes
27% Tax Rate
On DR Rental Income
Non-Residents
Examples
Cadastral Value: $170,000 usd
Property Tax: 1%
Tax Rate: 27%
(See Examples Below)
* Property Tax is based on the “Cadastral Value” of the property as determined by the government (usually at much less than the market value).
** Property Tax is levied annually at a rate of 1% on the property´s Cadastral Value exceeding DOP6,800,000 (US$144,681).
*** Properties with values below the threshold amount (RD$6.8 Million or US$144,681) are NOT TAXED.
Transfer Tax – If a property you want to purchase has a value of US$100,000.00, for example, you would have to pay a single payment of 3% of the property value (US$3,000) upon the transfer of title.
Property Tax – This tax is an annual payment of 1% of the property value over and above RD$ 7,438,197.00, which is about $148,000 USD. For example a property valued at US$200,000 would pay an annual tax of $520 USD.
Income Tax – This tax is an annual payment of 20% of Rental Income Earned from renting out the real estate investment.
