Dominican Republic: what changed in 2026 for agencies

Buyers ask agents about tax and residence before they ask about price. This briefing collects what reports say about 2026 in the Dominican Republic: the capital gains tax introduced by the tax reform, the annual property tax, the residence route for investors and the tourism incentives. Some points are new and some sources disagree, so each is marked as reported.

Capital gains tax on real estate

A tax-information site reports that the tax reform, Law 30-26, was enacted on 18 June 2026. As reported, Article 14 sets a single, final tax of 10 percent on the capital gain an individual makes when selling real estate. The tax is due within six months of the transfer, counted from the notarial act or the registration. Two exemptions are described: reinvesting the whole proceeds of a primary residence in another primary residence within six months, applied proportionally for a partial reinvestment, and the sale of a primary residence by a person over 65.

The same reports say that the law does not define the base on which the gain is calculated. A draft regulation was published on 7 September 2026 and is open for comment until 11 November 2026. A July 2026 agency guide to real estate taxes did not mention the change at all, so treat it as reported and ask a tax adviser before you quote it. The practical advice is to tell sellers and investors that the base is still being settled, and to keep purchase documents and renovation invoices.

Annual property tax

The agency guides give the following for 2026: the annual tax on real estate assets, the IPI, applies at 1 percent a year to the part of an individual's property value above RD$10,695,494, a threshold that rose by about 5 percent from 2025. Payment is described as due in March and September. Exemptions are listed for properties below the threshold, for a person over 65 who owns only the home they live in, for rural agricultural land and for properties exempt under special laws, including the tourism incentive law described below. Check the threshold with the tax authority at the date of your offer.

Transfer tax

The transfer tax is described as 3 percent of the higher of the agreed price and the tax authority's valuation, normally paid by the buyer, and it must be paid before the title can be registered. Tell buyers to budget on the valuation if it is higher than the price.

Residence for investors

Agency and immigration summaries say that a foreigner who invests at least USD 200,000 in real estate or another productive project can apply for investor residence, in two stages: a consular filing, then a filing with the immigration directorate. One summary gives 45 working days for the directorate once the file is complete, a first-year budget in the range of a few thousand dollars apart from the investment, and a permanent status without yearly renewals. We could not confirm these figures on an official page. Do not present a purchase as a route to residence in your marketing. Say that the route exists, describe the threshold as reported, and refer buyers to an immigration lawyer.

Tourism incentives

Law 158-01, known as the CONFOTUR law, offers tax incentives to approved tourism projects. Summaries describe a 15-year exemption from income tax and sales tax for the project, and an exemption for the buyer of a unit from the 3 percent transfer tax during the period. One agency compares closing costs of about 1.5 to 2.5 percent for such projects against about 4.5 to 5.5 percent for standard purchases. The incentive belongs to the approved project and the approved unit. Before you advertise it, ask the developer for the certificate that covers the specific unit and for the remaining term, and keep a copy.

Questions buyers now ask, and honest answers

• Will I pay capital gains tax when I sell? Reports say a 10 percent tax on individuals' gains was introduced in 2026, with the base still to be defined; check the regulation.
• Do I pay the annual property tax? Only on value above the threshold, as described; confirm the current figure.
• Do I pay the 3 percent transfer tax? Normally yes, unless the unit is in an approved tourism project that gives the exemption.
• Does buying give me residence? Only through the investor route, with the threshold and procedure to be confirmed with a lawyer.
• Can I rely on the incentive in the brochure? Only if the project and unit hold the certificate.

What to do with this

• keep a one-page sheet of the figures your sales team quotes, with the source and date
• re-check the capital gains point after the regulation is final
• ask developers for incentive certificates before you advertise any exemption
• send residence questions to an immigration lawyer, in writing

Working with D.H. Realting

D.H. Realting is a trilingual (Russian, English, Polish) overseas-property platform. We introduce buyers, including expats and cross-border buyers, and support the process. Agencies that handle the deal locally and want to be introduced to such buyers can contact us through our partners page.

This briefing is informational only and is not legal, tax or investment advice. Facts were checked on 12 October 2026 from the sources named in the text; rules change, so confirm with a local lawyer before relying on any point.