← Guides / Dominican Republic

Dominican Republic Rental Income Tax Guide 2026

Rental income in the Dominican Republic is taxed as part of personal income under the progressive ISR rates (15-25%). Landlords can deduct property-related expenses including a 5% annual depreciation allowance on buildings, mortgage interest, maintenance, and property taxes. Rental losses cannot offset other income.

How Rental Income Is Taxed

Rental income from real estate is classified as ordinary income and aggregated with other personal income for ISR purposes. The progressive brackets apply: 0% up to DOP 416,220, 15% on DOP 416,221–624,329, 20% on DOP 624,330–867,123, and 25% above DOP 867,123.

If you earn DOP 300,000 in rental income and have a salary of DOP 700,000 (total DOP 1,000,000), the rental component is not taxed separately — the total is taxed as one pool under the progressive brackets.

Allowable Deductions

Landlords may deduct the following expenses from rental income before calculating tax:

  • Depreciation: 5% per year on the building value (not land) — straight-line method
  • Mortgage interest: Interest paid on loans used to acquire or improve the rental property
  • Property taxes: IPI (annual property tax) and ITP (transfer tax amortised over the holding period)
  • Maintenance and repairs: Ordinary repair costs, painting, plumbing, electrical work
  • Management fees: Fees paid to property management companies
  • Insurance premiums: Property and liability insurance costs
  • Utilities: If paid by the landlord (water, electricity, gas)
  • Legal and professional fees: Costs related to lease contracts and tax compliance

Short-Term Rentals (Airbnb)

Income from short-term rentals (Airbnb, Booking.com, Vrbo) is also treated as rental income and taxed at ISR rates. Hosts must register with the DGII and obtain an RNC if the activity is regular. The platform may provide reporting to the DGII under information-sharing agreements. Hosts can deduct the same expenses as long-term landlords, plus platform commissions and cleaning fees.

ITBIS on Rentals

Residential rentals: Exempt from ITBIS (VAT). Commercial rentals: Subject to ITBIS at 18% if the landlord is an ITBIS-registered taxpayer. Landlords of commercial property should include ITBIS on invoices and remit it monthly via Form C612. Input ITBIS on expenses related to commercial property (repairs, utilities) can be credited.

Filing Requirements

Rental income is reported on the annual ISR return (Formulario IR-1). If rental income is your only source, you must file if gross rental income exceeds DOP 416,220 per year. Tax is paid annually by March 31 of the following year.

Disclaimer

This guide provides general information about Dominican Republic rental income 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.

Related Guides

Panama Rental Income Tax Guide 2026 — PAYE RatesPanama rental income taxation: rental income taxed at PAYE progressive rates, allowable deductions, territorial scope, DGI filing.Niger Rental Income Guide 2026 — Rental Income Under IRPP, Deductions, RegistrationNigerien rental income taxation. Rental income is taxed under IRPP at progressive rates 0–45% after the 20% professional deduction. Allowable deductions, registration, and compliance for 2026.Real Estate Options: How to Control Property Without Buying ItLearn how real estate options work — option agreements to buy property at a fixed price within a timeframe, how option fees work, lease options, and how...Uganda Rental Income Tax Guide 2026 — 6% Withholding Tax, Allowable Expensesrental income taxation in Uganda. 6% final withholding tax on gross rent for resident landlords. Allowable expenses for maintenance, insurance, and mortgage interest. Non-resident WHT at 15%.REITs: Real Estate Investment Trusts — How to Invest in Property Without Buying PropertyLearn how REITs work — what they are, different types (equity, mortgage, hybrid), how to invest, and whether they belong in your portfolio.Burundi Rental Income Guide 2026 — Rental WHT 15%, Deductions, Annual Property TaxBurundian rental income taxation. 15% withholding tax on gross rental income for individuals, allowable deductions for expenses, annual property tax obligations, and compliance for 2026.
Browse all guides →