Dominican Republic · Tax on foreign income
Does the Dominican Republic tax foreign income? A guide for Americans
Short answer
Retirees on US income owe no Dominican income tax in our 2026 examples. New residents' foreign income is taxed only from the third year, but how US pay for remote work is taxed isn't settled.
What you'd pay, by situation
| Retiree on US income $0 in all our 2026 examples; from year 3 without retiree residence, about $2,700 on $20,000 of interest | With retiree residence, your declared pension, dividends and interest are free of Dominican income tax. Without it, foreign investment income is taxed only from your third year. |
|---|---|
| Remote worker paid from the US Not settled on short stays; about $12,700 a year on $60,000 if you live here and it's taxed | Whether US pay for work done here is Dominican income isn't settled. Needs review |
| Working for a local employer Residents 0–25% (tax-free to about $6,870); non-residents 27%, withheld by the payer | Pay for work done in the Dominican Republic is taxed here, and you'll need permission to work. |
Checked against the law The retiree exemptions and the third-year rule for new residents.
Not yet verified The 182-day test and what residents pay on, from the tax office's notices.
How it works
- Tax residence: you become a tax resident once you've spent more than 182 days in the country.
- What's taxed: Dominican income, plus foreign investment income and gains. A new resident's foreign income is taxed only from the third tax year.
- Retiree residence: no income tax on the declared pension, dividends or interest; no transfer tax on a first home. You still file by March 31.
- No US tax treaty: you still file a US return every year. Dominican tax may be credited against US tax; see a tax adviser.
- No Social Security agreement: the US and the Dominican Republic have none, so check what you'd owe on both sides.
Sources (5)
Links
- Código Tributario (Ley 11-92), Título II Impuesto sobre la Renta, DGII consolidated text
- Ley 30-26 de medidas pro-crecimiento económico, simplificación fiscal y mitigación de la crisis internacional (June 2026)
- DGII Aviso 22-25: criterio de territorialidad para personas físicas residentes
- Ley 171-07 sobre Incentivos Especiales a los Pensionados y Rentistas de Fuente Extranjera (13 Jul 2007)
- DGII Consulta 35 (23/09/2024): exenciones Ley 171-07
Taxes in the Dominican Republic, with worked examples → The full Dominican Republic guide →
Questions people ask
Does the Dominican Republic tax US Social Security and pensions?
With retiree residence, your declared pension, dividends and interest are free of Dominican income tax. Without it, foreign investment income is taxed only from your third year.
Remote worker paid from the US in the Dominican Republic: what would I pay?
Whether US pay for work done here is Dominican income isn't settled. (Needs review) Ballpark: Not settled on short stays; about $12,700 a year on $60,000 if you live here and it's taxed.
Working for a local employer in the Dominican Republic: what would I pay?
Pay for work done in the Dominican Republic is taxed here, and you'll need permission to work. Ballpark: Residents 0–25% (tax-free to about $6,870); non-residents 27%, withheld by the payer.