What are closing costs in Dominican Republic?

Typically 4.2–5.0% of the price on a $300,000 purchase.

Buying property in Dominican Republic as an American

Q: How is rental income taxed in Dominican Republic?

Withholding on rent paid to non-residents: Rent paid to non-residents is subject to a final 27% withholding on the gross amount (unchanged by Law 30-26 of June 2026). Residents are taxed at progressive rates of 0–27%, and withholding on rent paid to resident individuals rose from 10% to 15% under Law 30-26. IPI is 1% of an individual's total Dominican real estate above RD$10,695,494 for 2026 (DGII Res. DDG-AR1-2026-00001). There is no rule in force yet requiring Airbnb or other platforms to collect 18% ITBIS: Decree 30-25 was repealed, and the DGII announced a new proposal in May 2026. No US–Dominican Republic income tax treaty; Dominican income tax is generally creditable against US tax.

The Dominican Republic is a short flight from the East Coast, with a booming holiday-rental market around Punta Cana. Foreigners can own outright, but titles need careful checking and rent paid to non-residents is taxed on the gross amount.

Data last verified on October 19, 2026 · AbroadYield research desk – public sources cited in each section

Key numbers

Gross rental yield

6.0–9.0%

Closing costs

4.2–5.0%

On a $300,000 purchase

Tax on rent (gross basis)

27%

Withholding on rent paid to non-residents

Entry prices from

$100,000

6–12 weeks to close

Can Americans buy?

Allowed

Foreigners can own property outright. Insist on a definitive Certificate of Title registered at the Title Registry.

Residency is available through investment, pension or rental income; owning property supports but does not by itself grant residency.

Data last verified on October 19, 2026 · AbroadYield research desk – public sources cited in each section

Sources: DGII (Dominican Republic tax authority); US Department of State – country information

How rent is taxed

Rent paid to non-residents is subject to a final 27% withholding on the gross amount (unchanged by Law 30-26 of June 2026). Residents are taxed at progressive rates of 0–27%, and withholding on rent paid to resident individuals rose from 10% to 15% under Law 30-26. IPI is 1% of an individual's total Dominican real estate above RD$10,695,494 for 2026 (DGII Res. DDG-AR1-2026-00001). There is no rule in force yet requiring Airbnb or other platforms to collect 18% ITBIS: Decree 30-25 was repealed, and the DGII announced a new proposal in May 2026.

No US–Dominican Republic income tax treaty; Dominican income tax is generally creditable against US tax.

As a US taxpayer you also report the rent on Schedule E. Your free ranking estimates the combined effect for your state and income.

Data last verified on October 19, 2026 · AbroadYield research desk – public sources cited in each section

Sources: DGII (Dominican Republic tax authority); PwC Worldwide Tax Summaries

Main risk

Rent paid to non-residents is subject to 27% withholding on the gross amount.

Short-term rentals are broadly allowed and there is no national registration in force yet. In May 2026 MITUR put out a draft resolution for a mandatory registry (RENATUR), then withdrew it on 20 July 2026 for talks with the sector. Platforms do not yet collect 18% ITBIS, though the DGII is preparing a mechanism. Condo bylaws may restrict rentals.

Data last verified on October 19, 2026 · AbroadYield research desk – public sources cited in each section

Sources: US Department of State – country information; Global Property Guide (yields, transaction costs)

Cities we cover

Punta Cana$2,106/m² · gross 9.5%
Santo Domingo$1,782/m² · gross 7.9%
Las TerrenasTo be verified$2,268/m² · gross 6.4%
Sosúa & CabareteTo be verified$2,187/m² · gross 6.1%

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