What is the capital gains tax rate in the Dominican Republic?

27%, applied to the adjusted gain — the sale price minus your inflation-indexed acquisition cost and allowable expenses — not the full difference between purchase and sale price.

Who pays capital gains tax in the DR, buyer or seller?

The seller. The buyer pays the separate 3% transfer tax. Capital gains tax is the seller's obligation on their profit from the sale.

How is the taxable gain calculated?

Sale price minus your acquisition cost (indexed for inflation using the official factor) minus documented allowable expenses such as capital improvements. Good records lower the taxable base.

Can I reduce or avoid capital gains tax in the DR?

Yes, in some cases. CONFOTUR-certified properties receive exemptions during the incentive period, and Law 171-07 investor residents get a 50% reduction on certain property and capital-gains taxes. Inflation indexing and documented expenses also reduce the taxable gain.

Do foreigners pay a higher capital gains rate?

No. The 27% rate is the same for foreign and Dominican sellers. There is no foreigner surcharge.

Does holding through a company change the tax?

Yes. A Dominican company pays the gain as part of its income at the flat 27% ISR rate, and the structure interacts with your home-country taxes. Decide on the ownership structure before buying, with professional advice.

Legal & TaxJune 24, 20265 min readby Evalua Editorial Team

Capital Gains Tax When Selling Property in the Dominican Republic

How capital gains tax works when you sell Dominican property — the 27% rate, how the taxable gain is calculated (with inflation adjustment), a worked example, who pays, and how CONFOTUR and Law 171-07 reduce it.

Oceanfront peninsula estate in the Dominican Republic

Last reviewed: 2026. Tax law, rates, and inflation-adjustment factors can change, and your result depends on your records and structure. This page is for informational purposes only and does not constitute legal or tax advice. Consult a licensed Dominican attorney or accountant before selling.

Capital GainsSellingTaxesDominican RepublicCONFOTURForeign Owners

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