Starting a business in
🇩🇴Dominican Republic
Checked November 9, 2026 · How we score
Corporate tax
27%
Top income tax
25%
Setup from
$1,500
all-in, first year
Time to form
20 days
can be done remotely
What is the corporate tax rate in DR?
The headline corporate tax rate in DR is 27% in 2026, and individuals pay up to 25%. 27% flat on net income; a transitional 30% applies to groups with income of DOP 1 billion or more in 2026–2028. Territorial: only Dominican-source income is taxed. Companies pay a 1% assets tax as a minimum tax when it exceeds income tax. Free-zone and tourism-incentive companies can be exempt for years.
| Corporate income tax | 27% 27% flat on net income; a transitional 30% applies to groups with income of DOP 1 billion or more in 2026–2028. Territorial: only Dominican-source income is taxed. Companies pay a 1% assets tax as a minimum tax when it exceeds income tax. Free-zone and tourism-incentive companies can be exempt for years. |
|---|---|
| Personal income tax (top) | 25% Progressive scale of 15%, 20% and 25% above about DOP 867,000 a year for 2026, with a 27% top bracket on income above DOP 4.8 million from 2027. First DOP 416,220 is exempt for 2026. Foreign-source income is generally not taxed. |
| Tax system | Territorial (foreign income untaxed) |
| Capital gains tax | 27%Capital gains are treated as ordinary income: 27% on property gains for individuals, with the seller also paying transfer tax of 3% on the buyer's side. |
| Dividend withholding (non-residents) | 10% |
| VAT / GST | 18% |
| Social security | ITBIS (VAT) is 18% standard, with 16% on some processed foods. Employers contribute around 7% to social security and employees around 5%, with salary ceilings. A 3% property transfer tax and a 1% annual property tax on value above a threshold apply to real estate. |
Forming a company in DR
| Usual entity | SRL (limited liability company) |
|---|---|
| Minimum capital | None |
| Setup cost (all-in) | $1,500–$4,000 |
| Annual running cost | $2,000–$5,000 |
| Time to incorporate | 20 days |
| Form remotely as a foreigner | Yes |
| Local director required | No |
| Local address required | Yes |
| Owners on public register | Yes |
| Statutory audit for small companies | No |
| Business banking for non-residents | Moderate |
Residency and visas
The digital nomad visa (launched 2024) requires proof of remote income of about US$3,000 a month and allows up to a year, renewable. Investor residency starts from around US$200,000 in real estate, and there are retiree and rentier routes. Residents can apply for naturalisation after the required years of residence.
| Digital nomad visa | Digital Nomad Visa, $3,000/month income |
|---|---|
| Golden visa | Yes, from $200k |
| Ease of residency for founders | 2/5 (1 = easiest) |
Taxes for individuals living in DR
The Dominican Republic is territorial for individuals: foreign-source income is generally not taxed, though residents are taxed on foreign investment and financial gains. People who become residents get a three-year window before foreign investment income is taxed.
| Foreign income of residents | Partly taxed |
|---|---|
| Income tax structure | Progressive rates |
| Inheritance / estate tax | 3%A 3% inheritance tax on the net estate, payable by heirs, with spouse and children receiving the same treatment and certain deductions available. |
| Wealth tax | No |
| Annual property tax on your home | Yes |
| Exit tax when you leave | No |
| When you become tax resident | Resident if you spend 183 days or more in the Dominican Republic in a tax year or if your centre of economic interests is there. |
Special tax regimes
Free Trade Zones (Law 8-90)
Exporting companies in approved free zones are exempt from income tax and most local taxes on export income, subject to a final 10% dividend withholding tax.
Digital Nomad Visa
Remote workers earning at least about US$3,000 a month from foreign employers can live in the Dominican Republic and remain outside the local income tax net while on the visa.
Tourism incentive (Law 158-01 / CONFOTUR)
Approved tourism developments receive long exemptions from income tax, transfer tax and property tax.
Pros and cons
Why founders pick DR
- Territorial taxation: foreign-source income generally untaxed
- Digital nomad and investor residency routes
- Free-zone regime gives income tax exemption on export income
- Large, growing economy with the US dollar widely used
Watch out for
- 27% corporate tax and rising personal tax in 2027
- Bureaucracy and Spanish-language paperwork
- Inheritance tax of 3% and 10% dividend withholding
- Residents' foreign investment income is taxed after three years
Best for: Remote workers who want territorial taxation and Caribbean lifestyle · Exporters and tourism developers using free-zone or CONFOTUR incentives · Retirees and investors seeking cheap residency by property
DR: common questions
What is the Dominican Republic corporate tax rate?
27% on net income, with a transitional 30% for groups with income of DOP 1 billion or more in 2026–2028. The country is territorial, so only Dominican-source income is taxed, and free-zone exporters are exempt from income tax.
How much is income tax in the Dominican Republic?
Individuals pay 0% on the first DOP 416,220 in 2026, then 15%, 20% and a top rate of 25%. From 2027 the top rate is 27% above DOP 4.8 million. Foreign-source income is generally not taxed.
Does the Dominican Republic tax foreign income?
Generally no. The system is territorial, so Dominican-source income is taxed and foreign-source income is not, although residents are taxed on foreign investment and financial gains after a three-year window for new residents.
Does the Dominican Republic have a digital nomad visa?
Yes. The Digital Nomad Visa, launched in 2024, requires proof of remote employment or business income of about US$3,000 a month and is granted for up to a year, renewable.
Is the Dominican Republic a tax haven?
Not in the classic sense. It has real taxes (27% corporate, 18% ITBIS) but a territorial regime and free-zone exemptions. It is not on the EU's tax blacklist.
Sources
- DGII: Dirección General de Impuestos Internos
- PwC Worldwide Tax Summaries: Dominican Republic
- Dominican Republic Ministry of Tourism / CONFOTUR
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Not tax or legal advice. Rates and rules change; we check official sources and update every page, but verify with a licensed adviser in the country before acting. Spotted something out of date? Use the correction form below.