Caribbean & Atlantic
Dominican Republic tax rates 2026
The system is largely territorial. Residents pay tax of up to 25%, mainly on income sourced locally, alongside an 18% ITBIS (VAT) and a 27% corporate rate (30% on a transitional basis for large firms).
Territorial
Last verified
The taxes
| Personal income (top) | 25%Rates rise progressively to 25%. Foreign-source income of residents is generally exempt, though foreign financial income becomes taxable from the third year of residence. |
|---|---|
| Corporate income | 27%, rising to 30% for firms with revenue above RD$1bn in tax years 2026–2028. |
| Capital gains | 27%, taxed at the ordinary corporate rate. |
| VAT / ITBIS | 18% |
| Dividends (WHT) | 10% |
| Interest (WHT) | 10% |
| Royalties (WHT) | 27% |
| Social security (employee) | ~5.9% |
| Social security (employer) | ~10.3% |
| Wealth tax | None. The only property-related tax is the IPI. |
| Inheritance / estate | 3% on the estate. |
| Property tax | The IPI applies at roughly 1% on property value above about RD$9.5m. |
| Other | Confotur tourism incentives. |
How the system works
- Tax system
- Territorial
- Foreign income
- Largely outside scope (territorial)
- Taxes by citizenship
- No
- Exit tax
- No
- CFC rules
- No
- CRS
- Participating
- Special regime
- New residents get an exemption on foreign-source income, alongside the Confotur regime.
Rates checked July 2026: the top marginal income tax rate, the standard VAT rate and the main corporate rate.