Dominican Republic: Changes to tax code concerning income tax, real estate, inheritance and gift tax; other tax developments
Law No. 30-26 introduces significant tax code amendments
july 16, 2026
The government of the Dominican Republic enacted Law No. 30-26 on Economic Growth Measures, Tax Simplification and Mitigation of the International Crisis. Key provisions of the tax reform include:
- Subjecting capital gains from the disposal of real estate by individuals to a final tax rate of 10%, with exemptions when the proceeds from the sale of a primary residence are reinvested in a new primary residence within six months of the transfer, or when individuals over the age of 65 transfer their primary residence (which may also apply to certain real estate holding companies)
- Increasing the income tax rate from 27% to 30% for the 2026, 2027, and 2028 tax years for taxpayers with annual income equal to or exceeding DOP$1 billion
- Expanding inheritance tax exemptions for transfers with a total value below DOP$1 million, or below DOP$2 million when transfers occur between direct-line relatives, and updating exemptions under Law No. 2569-50 on inheritance and gifts
- Strengthening tax administration by suspending the statute of limitations under Article 24 of the Dominican Tax Code for failure to pay tax liabilities, introducing a new payment agreement regime, and establishing a temporary tax amnesty through December 31, 2026
- Increasing the withholding tax rate on rental payments made to individuals from 10% to 15%, and introducing a 15% withholding tax on outbound payments for royalties, software licenses, online advertising services, and data storage services
- Reducing the unified ad valorem tax on real estate transactions from 2% to 1% in 2027, with full elimination starting in 2028
Read a June 2026 report (English and Spanish) prepared by the KPMG member firm in the Dominican Republic, which also covers the following:
- Special contribution for solid waste management
- Indexation of excise tax amounts
- Proposed withholding exemption for electronic invoice issuers
- Proposed regulation of temporary transit license plates
- Implementation schedule of Law No. 30-26
- Administrative Superior Court decision on clerical errors in tax returns
- Administrative Superior Court decision on verification of tax credits before offset