What changed in Dominican Republic

Moving here does not build you a Dominican pension, but your foreign one keeps paying and stays protected

Pension

The 1 percent tax on incorporating a company or raising capital disappears from fiscal year 2027

Moving your company

Unlike Panama, the Dominican Republic does tax inheritance and gifts above modest thresholds

Leaving home: exit tax and ties

Whether the 171-07 exemption reaches crypto gains declared as rentista income is an open question

Crypto tax and legal status

How the three-year foreign investment rule applies to crypto gains has no published DGII guidance yet

Crypto tax and legal status

The June 2026 reform explicitly wrote crypto-assets into the tax code's definition of a capital asset

Crypto tax and legal status

The Banco Central has repeatedly said crypto is not legal tender, and banks are barred from using it

Crypto tax and legal status

A free zone company gets 100 percent exemption from corporate tax, ITBIS and import duties for 15 to 20 years

Moving your company

A Dominican company actually run from a Dutch kitchen table can end up claimed by both countries, with no treaty to sort it out

Permanent establishment risk

A 3:1 debt-to-equity limit and transfer pricing rules apply to related-party dealings

Moving your company

The Dominican Republic has no controlled foreign company rules and no group tax consolidation

Moving your company

The 1 percent tax on company assets was supposed to disappear in 2016, it never actually did

Moving your company

Companies with over RD$1 billion in revenue pay 30 percent, not 27, through fiscal year 2028

Moving your company

Corporate tax is 27 percent and has been since 2015, with a temporary surcharge on the largest companies

Moving your company

Severance and pre-notice payments are exempt from Dominican income tax

Employment law

Genuine local employment falls under the Dominican Codigo de Trabajo, including its severance rules

Employment law

Plan on private healthcare for any visit, there is no public entitlement for tourists or short-stay visitors

Healthcare coverage

Holding a residency permit, including a 171-07 card, does not enroll you in public healthcare

Healthcare coverage

No Netherlands-Dominican Republic social security agreement exists, so continuity is entirely on the Dutch side to arrange

Social security

Local Dominican employment costs 9.97 percent for pension plus 10.13 percent for health, split employer and employee

Social security

A foreign employer has no Dominican social security duty for staff covered by their home system

Social security

Royalty and specific foreign tech payments dropped from 27 to 15 percent withholding on 1 July 2026

Personal income tax

Dividends and interest paid abroad carry a 10 percent final withholding tax

Personal income tax

Non-residents are taxed only on Dominican-source income

Personal income tax

A new flat 10 percent capital gains tax on individual real estate sales took effect immediately with the June 2026 reform

Personal income tax

From fiscal year 2027 the exempt threshold rises to RD$480,000 and a new 27 percent top band appears

Personal income tax

The tax-free threshold was supposed to rise every year with inflation, it has not moved since 2018

Personal income tax

Personal income tax for 2026 is exempt to RD$416,220, then 15, 20 and 25 percent

Personal income tax

171-07 also exempts your first home's transfer tax, halves your mortgage and property tax, and shields dividends and capital gains

Personal income tax

Ley 171-07 was written specifically to cancel the three-year trap for pensionados and rentistas

Personal income tax

Codigo Tributario Article 271: your foreign investment income is only tax-free for your first two years as a resident

Personal income tax

Residents are taxed on Dominican-source income plus foreign investment, financial and technical assistance income, not full worldwide income

Personal income tax

There is no tax treaty tie-breaker if both the Netherlands and the Dominican Republic claim you as resident

Tax residency

Once you are or are about to become a Dominican tax resident, a specific three-year clock starts

Tax residency

Below 182 days in the fiscal year, you are unlikely to become a Dominican tax resident

Tax residency

Outside the fast-track routes, temporary residency needs 5 years before converting to permanent

Residency routes

The investor route needs USD 200,000 in a business, or USD 500,000 in real estate under CONFOTUR

Residency routes

Spouse and dependent children can ride on the same 171-07 application

Residency routes

Approval takes up to 45 business days, the first card lasts a year, renewals last two

Residency routes

Ley 171-07 gives pensionados USD 1,500 a month and rentistas USD 2,000 a month a fast track to residency plus a tax break

Residency routes

Pensionado and rentista status lets you take paid local work, but that income is taxed like anyone else's

Right to work

Remote work for a foreign employer on a tourist entry is tolerated but not formally authorized

Right to work

There is no dedicated remote-work or digital nomad visa, unlike several neighboring countries

Immigration and visa

Past 60 days you are outside any confirmed tourist entry and need a residency route

Immigration and visa

The e-ticket entry form is mandatory, free, and needed for both arrival and departure

Immigration and visa

EU and most Western nationalities enter visa-free, with 30 days the common stamp and 60 the legal ceiling

Immigration and visa