impuesto sobre la renta republica dominicana

¿Should a foreign national pay income tax for their investments outside the Dominican Republic?

  • By:Vianela Morillo
  • 0 Comment

The answer to the question asked in the title of this article is YES, you must pay Income Tax in relation to your investments abroad. Additionally, as long as you are domiciled in the country, this tax applies whether you are a foreigner or a Dominican national. However, if you are a foreigner, there are exceptions for YOU, which is why we suggest you continue reading below:

  1. What can be done to avoid having to pay Income Tax?
  2. What can I do to avoid having to pay Income Tax in the Dominican Republic as a foreigner, in relation to the income received abroad from investments?

For tax purposes, a person who stays in the Dominican Republic for over one hundred eighty-two (182) days in a year, whether continuously or otherwise, is considered a resident of the Dominican Republic.

It is important to be familiar with income tax, for all foreigners who are planning on doing the following:

  • Changing their legal residence to a different country
  • Changing their residence to the Dominican Republic
  • Retiring to the Dominican Republic 
  • Changing their fiscal residence to the Dominican Republic
  • And for those who already reside in this country

This is because the Dominican Republic has an advantage over other legislations, due to the fact that if you are a Resident or become naturalized, in one of the following categories:

  1. Investor
  2. Retiree / Pensioner
  3. Rentier

You will NOT have to PAY Income Tax in the Dominican Republic, in relation to income you receive abroad.

Our tax legislation is considered territorial, i.e., taxes are paid for income generated in the country; as a result, income generated abroad is not subject to Dominican taxes. However, there is an EXCEPTION for Investment Income and Financial Gains, which establishes that this tax has to be paid, even if it is received abroad.

Nevertheless, if you obtained your residence or nationality as a Rentier, Retiree or Investor, you are exempt from paying Income Tax  in the  Dominican Republic, for all income you receive abroad. Conversely, if you do not fall in one of these categories, are not domiciled or are not a resident in the country, you would be required to pay this tax.

Individuals residing or domiciled in the country will pay based on the net taxable income of the fiscal year, the added amounts that result from applying progressively according to the following scale:


Annual scale Rate


·         ​Income up to RD$416,220.00 Exempt
·         ​Revenue from RD$416,220.01 to RD$624,329.00 15% of the surplus of RD$416,220.01
·         ​Revenue from RD$624,329.01 to RD$867,123.00 ​RD$31,216.00 plus 20% of the surplus of RD$624,329.01
·         ​Revenue from RD$867,123.01 onward ​RD$79,776.00 plus 25% of the surplus of RD$867,123.01


Public information in the General Directorate of Internal Taxes (known in Spanish as DGII).

In order to avoid having to pay Income Tax on profits received from investments abroad, you would only need to present and demonstrate your immigration status at the time of filing your annual tax return.

Having residence or nationality in the Dominican Republic by one of the aforementioned categories, not only qualifies you to be exempt of paying Income Tax (known in Spanish as ISR) but also gives you many other tax benefits, which you can see HERE. 

Application process for Dominican residence, by a) Investment; b) Rentier and c) Retiree:

  1. Apply for a residence visa at the Dominican consulate, corresponding to the country of your legal residence
  2. Residence application in the General Directorate of Migration
  3. Application for Identity Card, in the Central Electoral Board

The requirements will depend on the category that may apply. We invite you to consult with one of our specialized lawyers, to evaluate your profile and thus define the category and requirements that apply to your case.

The Dominican Republic is one of the most attractive islands in the Caribbean for foreigners. Over the years, Tourism and Foreign Investment have made a huge impact on our GDP, which has resulted in convenient and appealing tax policies for foreigners, making them consider retiring to reside legally or invest in the Dominican Republic. Therefore, if you are considering changing your residence, the Dominican Republic is and will always be a safe path, not only due to the tax benefits, but also many other reasons, such as:

  1. Various profitable business options
  2. Cost and quality of life
  3. Its people are known for being entrepreneurs, friendly and respectful
  4. Its cultural diversity
  5. Its weather
  6. Its vegetation
  7. Its natural attractions (Beaches, Rivers, Mountains)
  8. Legal security
  9. Stability and political order
  10. Among thousands of other options

So, if you are considering changing your legal or tax residence, we invite you to consider the Dominican Republic, due to all of its attractions and diversity. In this short video, you can see a brief visual representation of what we are referring to.

In our law firm Morillo Suriel – Attorneys at Law, we have a division specialized in Immigration Law. Through this division, we can assist you with any questions or concerns you may have regarding Applications for Residence or Verification of Tax Payments. Our lawyers are available to assist you anywhere you might be in Santo Domingo, Dominican Republic and the world, through our Online Consultation tool or in person at our offices.  

We are available


Posted in: Foreigners in the Dominican Republic, Tax Law


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