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Trusts (fideicomiso) and guarantee trusts in the Dominican Republic

Last verified: 2026-10-30 · Status: Stable

A fideicomiso moves assets to a corporate trustee as a separate estate, out of reach of creditors of the settlor, trustee and beneficiary. Only exclusive object companies and authorized financial entities may be trustees. Acts of creation are tax exempt, but a transfer of assets generally pays transfer tax unless it is a public offering trust.

USD figures use the Banco Central de la República Dominicana reference selling rate of RD$60.9007 per US dollar for 29 October 2026, rounded to the cent.

Key facts

Who may be trusteeExclusive object companies and authorized financial entities textLey 189-11 art. 25, as of 2026-10-30 · in force
Tax on act of creating a trustExempt, fixed registry fee applies textLey 189-11 art. 45, as of 2026-10-30 · in force
Reference selling rate used for USD conversions60.9007 DOP per USDBanco Central reference rate, as of 2026-10-29 · in force

The rule

1. A fideicomiso is the act by which settlors transfer property or other rights to a legal entity trustee to create a separate estate for beneficiaries, with an obligation to return at the end.Ley 189-11 Mercado Hipotecario y Fideicomiso, art. 3, 2011-07-16 official text · verified 2026-10-30
2. It may be created for any lawful purpose.Ley 189-11 Mercado Hipotecario y Fideicomiso, art. 4, 2011-07-16 official text · verified 2026-10-30
3. It is presumed irrevocable unless the deed says otherwise. Once accepted, it can be changed only with unanimous consent of trustees and beneficiaries.Ley 189-11 Mercado Hipotecario y Fideicomiso, art. 5 and paragraph I, 2011-07-16 official text · verified 2026-10-30
4. The estate is autonomous and separate from the assets of the settlor, trustee, beneficiary and other trusts.Ley 189-11 Mercado Hipotecario y Fideicomiso, art. 7, 2011-07-16 official text · verified 2026-10-30
5. Trust assets are outside the common pledge of creditors. Prior creditors of the settlor with a legal charge disclosed in the deed remain protected, and beneficiaries' creditors may reach income due to them.Ley 189-11 Mercado Hipotecario y Fideicomiso, art. 9, 2011-07-16 official text · verified 2026-10-30
6. Trustees may be only companies with the exclusive purpose of acting as such, multiple banks, savings and loan associations and other entities authorized by the Junta Monetaria.Ley 189-11 Mercado Hipotecario y Fideicomiso, art. 25, as amended by Ley 249-17 art. 361, 2011-07-16 official text · verified 2026-10-30
7. An exclusive object trustee must be an S.A. and files with DGII for inscription, including manuals and anti money laundering policy.Decreto 95-12, Reglamento sobre Fideicomiso, art. 9, 2012-03-02 official text · verified 2026-10-30
8. A trust linked to public offerings is supervised by the Superintendencia del Mercado de Valores.Ley 189-11 Mercado Hipotecario y Fideicomiso, art. 25 paragraph II, 2011-07-16 official text · verified 2026-10-30
9. The deed and changes are registered at the Registro Mercantil of the trustee's domicile, and take effect against third parties from registration in the public registers that apply.Ley 189-11 Mercado Hipotecario y Fideicomiso, art. 17 and art. 18, 2011-07-16 official text · verified 2026-10-30
10. Acts of creation, change, revocation or end of a trust are exempt from taxes and duties, apart from the fixed Registro Mercantil fees.Ley 189-11 Mercado Hipotecario y Fideicomiso, art. 45, 2011-07-16 official text · verified 2026-10-30
11. Moving assets into a trust pays transfer or registration tax according to the asset, but public offering trusts are exempt. The settlor is exempt from income and capital gains tax on the transfer.Ley 189-11 Mercado Hipotecario y Fideicomiso, art. 46, 2011-07-16 official text · verified 2026-10-30
12. Later transfer on change of trustee, return to the settlor or delivery to beneficiaries is exempt from all taxes, subject to succession rules for estate planning trusts.Ley 189-11 Mercado Hipotecario y Fideicomiso, art. 46 paragraphs I and II, 2011-07-16 official text · verified 2026-10-30
13. Income from running or disposing of the estate is exempt from direct taxes, including income tax and asset tax, except the tax on real estate in the estate and capital gains tax.Ley 189-11 Mercado Hipotecario y Fideicomiso, art. 47, 2011-07-16 official text · verified 2026-10-30
14. A guarantee trust secures obligations of the settlor or a third party, and the creditor beneficiary can require sale under the deed procedure. It gets public offering tax benefits only if it backs a public offering.Ley 189-11 Mercado Hipotecario y Fideicomiso, art. 61, 2011-07-16 official text · verified 2026-10-30
15. Prohibited are secret trusts, trusts where the trustee keeps the assets for good, trustee as beneficiary unless art. 31 paragraph I allows, and trusts in fraud of creditors or tax authority.Ley 189-11 Mercado Hipotecario y Fideicomiso, art. 51, 2011-07-16 official text · verified 2026-10-30
16. Ley 28-23 and its regulation provide a separate regime for public trusts.Ley 28-23 sobre Fideicomiso Público, whole law, 2023-03-17 official text · verified 2026-10-30

Worked example

  • A developer moves land worth RD$10,000,000 (US$164,201.73) into a private trust. The deed is exempt, but the transfer pays the real estate transfer tax on that value, at the 3% rate on the tax page, so RD$300,000 (US$4,926.05). In a public offering trust that tax does not apply.

Step by step

  1. Choose the trust type and a licensed trustee.
  2. Draft the deed with the content in art. 13, including disclosure of prior charges.
  3. Register at the Registro Mercantil and the relevant asset registry.
  4. Obtain the special RNC for the trust from DGII.
  5. Keep accounts and account to the settlor and beneficiaries as agreed.

Common traps

  • A trust does not defeat creditors with prior charges; deeds must disclose them.
  • The income exemption does not cover the property tax or capital gains on disposals of assets (art. 47), so model those.

Sources

Related pages

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