Countries › Dominican Republic › Guide › 5. FX and capital controls › FX and capital controls in the Dominican Republic: free convertibility, no prior approval and what still gets reported

FX and capital controls in the Dominican Republic: free convertibility, no prior approval and what still gets reported

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

The peso is freely convertible by law and there is no surrender rule or prior approval for dividends, capital or loans. Every exchange must go through a bank or licensed exchange agent, and foreign investors should register with ProDominicana. The only statutory control is a temporary limit on short term inflows, capped at one year.

USD figures use the Banco Central de la República Dominicana reference selling rate of RD$60.9007 per US dollar for 29 October 2026, as shown on its home page on the verification date, rounded to the cent.

Key facts

Exchange regime	Free convertibility, de jure managed floating, de facto floating per IMF textLey 183-02 art. 28; IMF CR 25/305, as of 2026-10-30 · in force
Capital controls in force	None found. Power to limit short term inflows for up to one year textLey 183-02 art. 28, as of 2026-10-30 · in force
Access to FX to pay dividends abroad	Free, no prior authorization, after income tax textLey 16-95 art. 7, as of 2026-10-30 · in force
Capital repatriation	Free, no prior authorization, for registered investment textLey 16-95 art. 7; Decreto 214-04 art. 5, as of 2026-10-30 · in force
Export proceeds surrender to the central bank	No general rule. Banco Central cannot require exclusive operations textLey 183-02 art. 28, as of 2026-10-30 · in force
Maximum term of short term inflow limits	1 yearsLey 183-02 art. 28, as of 2026-10-30 · in force
IMF Article VIII status	Accepted textIMF CR 25/305, as of 2026-10-30 · in force

The rule

1. The exchange regime rests on free convertibility of the peso. Economic agents may transact in foreign currency on the terms they freely agree under general contract rules.Ley 183-02 Monetaria y Financiera, art. 28, 2002-11-21 official text · verified 2026-10-30

2. The Banco Central may never require that particular international exchange operations be done only with it, or on terms that do not secure free price setting in the market.Ley 183-02 Monetaria y Financiera, art. 28, 2002-11-21 official text · verified 2026-10-30

3. The Junta Monetaria may set temporary limits on inflows of short term foreign currency capital, by a two thirds vote and for a preset term of no more than one year. Limits must follow international standards and be equitable, non discriminatory and in good faith. No resolution using this power was found in this review.Ley 183-02 Monetaria y Financiera, art. 28, 2002-11-21 official text · verified 2026-10-30

4. Free convertibility is defined as the absence of administrative restrictions on exchanging the peso for any foreign currency at the rate the market freely sets, and the regulation aims at a regime of free floating.Reglamento Cambiario, Primera Resolución JM 250911-01, art. 2 and art. 4 literals p and ff, 2025-09-11 official text · verified 2026-10-30 · changed: The 2025 text replaced the regulation of 8 August 2019 (art. 75). It was published on 7 October 2025 and added market conduct rules, wider platform access and stronger suspension powers.

5. Only authorized financial intermediaries and exchange agents may buy and sell foreign currency habitually, and all exchange operations must be channelled through them.Ley 183-02 Monetaria y Financiera; Reglamento Cambiario, Primera Resolución JM 250911-01, art. 29; art. 72 literal c, 2025-09-11 official text · verified 2026-10-30

6. Ley 251 of 11 May 1964 on international fund transfers and its amendments were repealed, and any impediment to free convertibility in place when Ley 183-02 took effect had one year to be removed.Ley 183-02 Monetaria y Financiera, art. 85 and art. 91, 2002-11-21 official text · verified 2026-10-30

7. Foreign investors may remit abroad, in freely convertible currency and without prior authorization, the full capital invested and declared dividends, after income tax.Ley 16-95 sobre Inversión Extranjera, art. 7, 1995-11-20 official text · verified 2026-10-30

8. Natural or legal persons taking on commitments in foreign currency must inform the Banco Central for statistical purposes, on the form in the public services section of its website, within the terms of the relevant instructivo. Failure carries the sanctions in Ley 183-02.Reglamento Cambiario, Primera Resolución JM 250911-01, art. 70, 2025-09-11 official text · verified 2026-10-30

9. The IMF records that the Dominican Republic has accepted Article VIII, Sections 2, 3 and 4, and maintains an exchange system free of multiple currency practices and of restrictions on payments and transfers for current international transactions.IMF Country Report 25/305, Informational Annex, Exchange Rate Arrangement, 2025-11-19 official text · verified 2026-10-30

Flow	Prior approval	Filing or report	Tax at the border
New equity from abroad	None	ProDominicana registration	None found on entry
Dividends out	None	Follow up filing with ProDominicana within 60 days	10% withholding
Capital back on sale or liquidation	None	Surrender of certificate, notice within 60 days	Tax on any gain
Foreign loan in	None	Banco Central statistical form	None found on entry
Interest out	None	IR-17 withholding return	10% withholding
Royalties out	ProDominicana registered contract, for Ley 16-95 access	Follow up within 60 days	See royalties page
Import payments	None	Bank exchange records	Customs and ITBIS at entry
Cash at the border	None	Customs declaration from US$10,000	None

What each cross border flow needs on the Dominican side

Worked example

A foreign parent funds a Dominican S.R.L. with US$500,000, about RD$30,450,350 at the reference rate. It sells the dollars through a bank, keeps the wire and exchange documents and registers with ProDominicana. Dividends and later capital return need no Banco Central approval, only tax compliance and the follow up filings.

Step by step

Use a bank or licensed agent for every exchange, and keep the exchange receipt.
Register the investment with ProDominicana as soon as it is made.
File the Banco Central statistical form for foreign currency commitments.
Withhold tax before remitting, then complete the follow up filing.

Common traps

Free convertibility does not mean no paperwork. Banks selling foreign currency for remittances under Ley 16-95 are told to ask for the certificate and a sworn statement.
Ley 16-95 still reads in places as if the Banco Central kept the registry. Ley 98-03 moved it to CEI-RD, now ProDominicana.
The free zone law still contains old exchange language that sits badly with Ley 183-02. See the export proceeds page.

Sources

Related: Dominican Republic country profile · live dashboard · central bank and release calendar · our posts on X · where Argentina is involved, see The Argentine Thread guide

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