The Dominican Republic has introduced significant tax changes that could make buying, owning and selling real estate more attractive for individuals and investors.
Law No. 30-26 on Pro-Growth Economic Measures, Tax Simplification and Mitigation of the International Crisis, enacted in June 2026, introduces several changes affecting real estate transactions, capital gains, mortgages and the incorporation of companies.
Here are some of the most relevant changes for property owners and investors.
1. Capital gains tax on real estate reduced to 10%
One of the most significant changes concerns the taxation of capital gains when an individual sells real estate.
Article 14 of Law 30-26 introduces Article 296-1 into the Dominican Tax Code, establishing a 10% tax on capital gains generated by individuals from the sale of real estate, as a single and final payment.
This is particularly important for foreign property owners, since legal entities remain subject to their applicable corporate tax regime.
It is also important to understand that the 10% applies to the taxable capital gain, not simply to the property's total selling price.
The Dominican tax authority, the Dirección General de Impuestos Internos (DGII), has confirmed that the 10% rate applies from the entry into force of Law 30-26.
2. An important exemption when selling your primary residence
The new legislation also provides favorable treatment for individuals selling their primary residence.
When an individual sells a property that qualifies as their habitual residence and reinvests the total amount received into the acquisition of another habitual residence within six months of the transfer, the capital gain may be exempt from tax.
If only part of the proceeds is reinvested, the exemption applies proportionally to the amount actually reinvested.
For homeowners considering moving from one primary residence to another in the Dominican Republic, this represents an important change to consider when planning the transaction.
3. Special exemption for homeowners over 65
Law 30-26 also provides an additional benefit for individuals over the age of 65.
Capital gains resulting from the sale of an individual's habitual residence when the seller is over 65 years old are exempt from income tax.
Unlike the reinvestment provision described above, the DGII presents this as a separate exemption, without requiring the seller to purchase another primary residence within six months.
This could be particularly relevant for retirees who have established their primary residence in the Dominican Republic and later decide to sell.
4. Mortgage registration tax will decrease — and eventually disappear
The legislation also reduces the cost associated with registering mortgages.
The unified Registration and Conservation of Mortgages tax, currently 2%, will be:
1% beginning in 2027, and
eliminated beginning in 2028.
This should not be confused with the Dominican Republic's real estate transfer tax. The change specifically concerns the tax applicable to mortgage registration and related operations covered by the legislation.
For financed real estate purchases, the gradual elimination of this tax can reduce transaction costs associated with obtaining mortgage financing.
5. The 1% company incorporation tax will disappear in 2027
Law 30-26 also changes the cost of establishing certain corporate structures in the Dominican Republic.
Previously, the applicable legislation imposed a 1% tax on the incorporation of companies and increases in capital.
Article 58 of Law 30-26 repeals this 1% tax beginning in 2027.
This may be relevant to investors considering holding Dominican assets or conducting business through a Dominican company.
However, investors should obtain appropriate legal and tax advice before deciding whether to purchase real estate personally or through a corporate structure. The elimination of the incorporation tax does not automatically mean that owning property through a company is the most tax-efficient structure for every investor.
What does Law 30-26 mean for real estate investors?
Taken together, these changes reduce several tax and transaction costs associated with real estate ownership, financing and investment in the Dominican Republic.
For international buyers, some of the most relevant changes are:
a 10% capital gains tax on real estate sales by individuals;
an exemption associated with the sale and qualifying reinvestment of a primary residence;
an exemption on the sale of a habitual residence by individuals over 65;
the reduction of the mortgage registration tax to 1% in 2027 and its elimination in 2028; and
the elimination of the 1% company incorporation and capital-increase tax beginning in 2027.
The changes come at a time when the Dominican Republic continues to attract international interest in vacation homes, retirement properties and investment real estate.
For Canadians and other international investors considering markets such as Punta Cana, Cap Cana, Bayahibe, Las Terrenas or Santo Domingo, understanding the tax structure is an important part of evaluating an investment—not only when buying, but also when planning the eventual sale.
Planning before you buy matters
Tax rules are only one part of a real estate investment decision.
Before purchasing property in the Dominican Republic, international buyers should consider how the property will be owned, how it will be financed, whether it will be used personally or rented, and what the eventual exit strategy may be.
Working with experienced real estate, legal and tax professionals in both your country of residence and the Dominican Republic can help you structure the transaction appropriately from the beginning.
Legal references: Law No. 30-26, including Article 14 (new Article 296-1 of the Dominican Tax Code), Article 58 and Article 59.
This article is provided for general informational purposes only and does not constitute legal, tax or accounting advice. Tax treatment depends on the circumstances of each taxpayer and transaction. Buyers and sellers should obtain advice from qualified Dominican legal and tax professionals.
©️ 2026 Monika Texier. All rights reserved.
Law No. 30-26 on Pro-Growth Economic Measures, Tax Simplification and Mitigation of the International Crisis, enacted in June 2026, introduces several changes affecting real estate transactions, capital gains, mortgages and the incorporation of companies.
Here are some of the most relevant changes for property owners and investors.
1. Capital gains tax on real estate reduced to 10%
One of the most significant changes concerns the taxation of capital gains when an individual sells real estate.
Article 14 of Law 30-26 introduces Article 296-1 into the Dominican Tax Code, establishing a 10% tax on capital gains generated by individuals from the sale of real estate, as a single and final payment.
This is particularly important for foreign property owners, since legal entities remain subject to their applicable corporate tax regime.
It is also important to understand that the 10% applies to the taxable capital gain, not simply to the property's total selling price.
The Dominican tax authority, the Dirección General de Impuestos Internos (DGII), has confirmed that the 10% rate applies from the entry into force of Law 30-26.
2. An important exemption when selling your primary residence
The new legislation also provides favorable treatment for individuals selling their primary residence.
When an individual sells a property that qualifies as their habitual residence and reinvests the total amount received into the acquisition of another habitual residence within six months of the transfer, the capital gain may be exempt from tax.
If only part of the proceeds is reinvested, the exemption applies proportionally to the amount actually reinvested.
For homeowners considering moving from one primary residence to another in the Dominican Republic, this represents an important change to consider when planning the transaction.
3. Special exemption for homeowners over 65
Law 30-26 also provides an additional benefit for individuals over the age of 65.
Capital gains resulting from the sale of an individual's habitual residence when the seller is over 65 years old are exempt from income tax.
Unlike the reinvestment provision described above, the DGII presents this as a separate exemption, without requiring the seller to purchase another primary residence within six months.
This could be particularly relevant for retirees who have established their primary residence in the Dominican Republic and later decide to sell.
4. Mortgage registration tax will decrease — and eventually disappear
The legislation also reduces the cost associated with registering mortgages.
The unified Registration and Conservation of Mortgages tax, currently 2%, will be:
1% beginning in 2027, and
eliminated beginning in 2028.
This should not be confused with the Dominican Republic's real estate transfer tax. The change specifically concerns the tax applicable to mortgage registration and related operations covered by the legislation.
For financed real estate purchases, the gradual elimination of this tax can reduce transaction costs associated with obtaining mortgage financing.
5. The 1% company incorporation tax will disappear in 2027
Law 30-26 also changes the cost of establishing certain corporate structures in the Dominican Republic.
Previously, the applicable legislation imposed a 1% tax on the incorporation of companies and increases in capital.
Article 58 of Law 30-26 repeals this 1% tax beginning in 2027.
This may be relevant to investors considering holding Dominican assets or conducting business through a Dominican company.
However, investors should obtain appropriate legal and tax advice before deciding whether to purchase real estate personally or through a corporate structure. The elimination of the incorporation tax does not automatically mean that owning property through a company is the most tax-efficient structure for every investor.
What does Law 30-26 mean for real estate investors?
Taken together, these changes reduce several tax and transaction costs associated with real estate ownership, financing and investment in the Dominican Republic.
For international buyers, some of the most relevant changes are:
a 10% capital gains tax on real estate sales by individuals;
an exemption associated with the sale and qualifying reinvestment of a primary residence;
an exemption on the sale of a habitual residence by individuals over 65;
the reduction of the mortgage registration tax to 1% in 2027 and its elimination in 2028; and
the elimination of the 1% company incorporation and capital-increase tax beginning in 2027.
The changes come at a time when the Dominican Republic continues to attract international interest in vacation homes, retirement properties and investment real estate.
For Canadians and other international investors considering markets such as Punta Cana, Cap Cana, Bayahibe, Las Terrenas or Santo Domingo, understanding the tax structure is an important part of evaluating an investment—not only when buying, but also when planning the eventual sale.
Planning before you buy matters
Tax rules are only one part of a real estate investment decision.
Before purchasing property in the Dominican Republic, international buyers should consider how the property will be owned, how it will be financed, whether it will be used personally or rented, and what the eventual exit strategy may be.
Working with experienced real estate, legal and tax professionals in both your country of residence and the Dominican Republic can help you structure the transaction appropriately from the beginning.
Legal references: Law No. 30-26, including Article 14 (new Article 296-1 of the Dominican Tax Code), Article 58 and Article 59.
This article is provided for general informational purposes only and does not constitute legal, tax or accounting advice. Tax treatment depends on the circumstances of each taxpayer and transaction. Buyers and sellers should obtain advice from qualified Dominican legal and tax professionals.
©️ 2026 Monika Texier. All rights reserved.