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Dominican Republic Capital Gains Tax Guide 2026

The Dominican Republic taxes capital gains on real estate at the standard CIT rate of 27% for non-primary residences. Gains on the sale of a primary residence are tax-exempt. Capital gains on shares, securities, and financial instruments are not taxed, making the Dominican Republic a favourable jurisdiction for investment holding.

Capital Gains on Real Estate — 27%

Capital gains from the sale of real estate that is not the taxpayer's primary residence are subject to tax at 27% on the net gain. The gain is calculated as the difference between the sale price and the indexed acquisition cost, less documented improvements.

  • Primary residence: 0% — fully exempt from capital gains tax
  • Secondary/vacation property: 27% on net gain
  • Investment property: 27% on net gain
  • Land: 27% on net gain

To qualify for the primary residence exemption, the property must have been the seller's principal home for at least two years prior to sale. The exemption applies to one property per household.

No CGT on Shares and Securities

One of the most attractive features of the Dominican tax system is that capital gains on shares, stocks, bonds, and other securities are not subject to tax. This applies to both resident and non-resident investors trading on the Dominican Stock Exchange (Bolsa de Valores de la República Dominicana) or holding shares in Dominican companies.

This exemption makes the Dominican Republic a competitive jurisdiction for holding companies and portfolio investment compared to regional peers.

Transfer Tax (ITP) — 3%

The Impuesto a la Transferencia (ITP) is a separate tax on property transfers, levied at 3% of the higher of the sale price or the assessed value. This is not a capital gains tax but a transfer tax payable by the buyer. See the Property Tax Guide for details.

How Gains Are Calculated

The taxable gain is calculated as follows:

  • Sale price: The amount received from the buyer
  • Minus acquisition cost: Original purchase price, adjusted for inflation using DGII-approved indices
  • Minus improvements: Documented capital improvements (must be supported by invoices and contracts)
  • Equals net gain: Taxable at 27%

If the sale price is lower than the indexed acquisition cost plus improvements, no tax is due, but the loss cannot be offset against other income.

Disclaimer

This guide provides general information about Dominican Republic capital gains tax for the 2026 tax year. Tax laws may change. Always consult with a qualified Dominican tax advisor or the DGII directly for advice specific to your situation. InvestmentKit does not provide tax advice.

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