Property taxes for owners in the DR: IPI, ITBIS and rental income

Owning property in the Dominican Republic involves a handful of taxes that are simple once you know them and easy to miss if you do not. Some apply simply because you own real estate, one applies when you buy, and others apply only if you rent the property out. This guide summarises property taxes in the Dominican Republic as they stand in October 2026, with the figures that change every year clearly dated.

All of these taxes are administered by the Dirección General de Impuestos Internos (DGII).

IPI: the annual property tax

The Impuesto al Patrimonio Inmobiliario (IPI) is an annual tax on real estate owned by individuals.

How it is calculated

Individuals pay 1 % a year on the value of their total real estate above an exempt amount. The key word is total: the DGII adds up the value of all the properties you own in your name, deducts the exempt amount and applies 1 % to the rest.

The value used is the DGII’s own valuation of the property, which is not necessarily the price you paid or the current market price.

The exempt amount changes every year

The DGII adjusts the exempt amount for inflation every year:

• 2026: RD$10,695,494
• 2025: RD$10,190,833

So the threshold for future years will be different. Check the current figure with the DGII each year.

Illustrative example (round numbers): if the DGII values all your property together at RD$12,695,494 in 2026, the amount above the threshold is RD$2,000,000, and the IPI is 1 % of that, RD$20,000 for the year. If your total is below the exempt amount, no IPI is due.

When to pay

IPI is paid in two instalments, by 11 March and by 11 September. If you live abroad, it is worth asking your property manager or accountant to diarise both dates.

Exemptions and relief

Some exemptions exist. In general terms, people over 65 who own a single home can be exempt under certain conditions, and pensioners and rentistas who hold residency under the residency incentive law can receive partial relief. The details and conditions matter, so confirm your own case with the DGII or an accountant.

Trusts

Property held in a trust (fideicomiso) does not get the exempt amount, so the 1 % applies to the full taxable value.

Transfer tax when you buy

When you buy property, a transfer tax of 3 % is payable. It is a one-off cost of the purchase, so budget for it from the start, alongside notary and legal fees, and ask your lawyer which value it will be calculated on.

CONFOTUR exemptions

Ley 158-01 on tourism incentives, known as CONFOTUR and amended by Ley 195-13, allows tourism projects approved under it to offer buyers certain exemptions. Depending on the project, these can include the transfer tax and IPI for a period of up to 15 years.

What applies depends entirely on the specific project’s approval. Do not rely on a sales brochure: ask for a copy of the project’s CONFOTUR resolution and have it checked, including which units it covers and from when the period runs.

ITBIS on rental income

ITBIS is the Dominican value added tax, at 18 %. How it applies to rentals depends on the type of letting:

• Long-term housing: renting a home as a permanent residence (vivienda) is exempt from ITBIS.
• Short-term and tourist rentals: furnished apartments and villas rented to tourists, and aparthotels, are not considered vivienda, so ITBIS at 18 % generally applies.

Hosts of short-term rentals are expected to register with the DGII, obtain an RNC and issue fiscal receipts (comprobantes fiscales, including the electronic e-CF). In May 2026 the DGII announced it was preparing rules for digital platforms such as Airbnb to collect ITBIS; owners should check the current status rather than assume the platform handles it. Our guide to Airbnb and vacation rentals in the DR covers the practical side.

Income tax on rental income

Rental income is taxable in the Dominican Republic whether you live there or not. How it is taxed depends mainly on your tax residence.

Tax residence

You are generally considered tax resident if you spend more than 182 days a year in the DR.

Residents

Residents pay the progressive personal income tax on their net rental income together with their other income, at rates of up to 25 %. Individuals file the annual income tax return (IR-1) by 31 March.

Non-residents

Payments of Dominican-source income, including rent, to non-residents abroad are generally subject to a 27 % withholding, which works as a final tax.

When a company is the tenant

When a company rents from an individual, it usually withholds 10 % of the rent and pays it to the DGII on the owner’s behalf. Keep the withholding certificates for your records and give copies to your accountant.

Your RNC and staying organised

The RNC (Registro Nacional de Contribuyentes) is your taxpayer number with the DGII. You will need one to issue fiscal receipts and to handle most rental-related tax obligations. Practical habits that help:

• keep the DGII valuation notices, IPI receipts and withholding certificates in one folder
• ask your property manager for statements that separate rent, ITBIS and expenses
• diarise 31 March, 11 March and 11 September each year
• review the exempt amount each January, because it changes

A good manager will not do your taxes for you, but should provide the records your accountant needs. See how property management works for what to expect from their statements.

Summary table

Tax	Who it affects	Rate	Key dates and notes
IPI	Individuals owning real estate	1 % above the exempt amount	Exempt amount RD$10,695,494 in 2026 (RD$10,190,833 in 2025); paid by 11 March and 11 September
Transfer tax	Buyers	3 %	One-off, paid on purchase
CONFOTUR	Buyers in approved tourism projects	Possible exemption	Transfer tax and IPI for up to 15 years, per the project’s resolution
ITBIS on rentals	Short-term and tourist rentals	18 %	Long-term housing is exempt; RNC and fiscal receipts expected
Income tax, residents	Residents (more than 182 days)	Progressive, up to 25 %	IR-1 due by 31 March
Income tax, non-residents	Non-residents receiving rent	27 % withholding	Generally a final tax
Withholding by companies	Individuals renting to a company	10 % of the rent	Withheld by the tenant company

This guide is general information, not legal or tax advice: check with a local lawyer or accountant for your situation.