Countries › Dominican Republic › Guide › 11. Real estate and land › Rental income tax

Rental income tax

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

Rent is taxable income from a Dominican source. A company or sole proprietor paying rent to an individual now withholds 15% as a final tax, up from a 10% advance, under Ley 30-26. Rent paid to a non resident carries a final 27% on the gross amount. A company landlord includes rent in its income at the general rate, and commercial rent adds 18% ITBIS.

USD figures use the Banco Central de la República Dominicana reference selling rate of RD$60.9007 per US dollar for 29 October 2026, the latest row in its published rate file on the verification date, rounded to the cent.

Key facts

Withholding on rent paid to resident individuals	15 %Código Tributario art. 309 paragraph literal a, as of 2026-10-30 · in force
Withholding on rent paid to non residents	27 %Código Tributario art. 305 and art. 297, as of 2026-10-30 · in force

The rule

1. Income from leasing is part of gross income, and income from Dominican property is Dominican source income.Ley 11-92, Código Tributario, Title II, art. 272 literal i and art. 283 numeral 5, 1992-05-16 official text · verified 2026-10-30

2. Companies and sole proprietors act as withholding agents when paying individuals and undivided estates.Ley 11-92, Código Tributario, Title II, art. 309, 1992-05-16 official text · verified 2026-10-30

3. Withholding on rent of movable or immovable property provided by individuals is 15% of gross, as a sole and final payment, with or without accessory furniture.
Example: RD$100,000 monthly rent, RD$15,000 withheld / US$1,642.02 monthly rent, US$246.30 withheldLey 30-26, art. 17, replacing art. 309 paragraph literal a, 2026-06-18 official text · verified 2026-10-30 · changed: Ley 30-26 moved rent from a 10% advance to a 15% final tax, effective 1 July 2026 under DGII Aviso 10-26.

4. Whoever pays Dominican source income to a non resident withholds the art. 297 rate, 27%, as a final tax, and gross counts as net unless a presumption applies.
Example: RD$100,000 monthly rent, RD$27,000 withheld / US$1,642.02 monthly rent, US$443.34 withheldLey 30-26, art. 20, restating art. 305 and art. 297, 2026-06-18 official text · verified 2026-10-30

5. Domiciled companies pay 27% on taxable income from fiscal year 2026. For fiscal periods 2026 to 2028, taxpayers with income from RD$1,000,000,000 pay 30%.Ley 30-26, art. 15, restating art. 297 and paragraph II, 2026-06-18 official text · verified 2026-10-30

6. Gross rent in a commercial lease adds ITBIS at 18%, while housing rent is exempt.DGII Comunidad de Ayuda answer on commercial and housing rent, DGII answer, 2026 official text · verified 2026-10-30

7. DRAFT, NOT IN FORCE. The draft regulation limits the 15% rent withholding to a tenant company or entity paying an individual who owns the property directly.Draft regulation of Ley 30-26, art. 16, 2026-10-30 official text · verified 2026-10-30

Landlord	Tenant	Tax treatment
Resident individual	Company, housing	15% final withheld, RD$15,000 (US$246.30)
Resident individual	Individual, housing	No withholding agent; landlord reports the income
Non resident	Any payer of Dominican source income	27% final, RD$27,000 (US$443.34)
Domiciled company	Any	Income at 27% on net; ITBIS 18% if not housing

Who pays what on RD$100,000 of monthly rent

Worked example

A non resident owns an office let to a company at RD$200,000 (about US$3,284.03) a month. The tenant withholds RD$54,000 (about US$886.69), and ITBIS of RD$36,000 (about US$591.13) applies to the invoice. On RD$2,400,000 (about US$39,408.41) of yearly rent, net of withholding, the owner keeps RD$1,752,000 (about US$28,768.14) before costs, which do not reduce the withholding base.

Step by step

Fix in the lease who withholds and who issues the fiscal receipt.
Tenant files and pays withholdings by the DGII calendar.
A landlord who stays an individual should check whether the final 15% or the return route applies.
Keep bank proof of each payment.

Common traps

The DGII help answer cited still mentions 10% because it predates Ley 30-26. Law prevails.
A non resident gets no deduction under art. 305, because gross counts as net, so a local company may suit a leveraged property.
An individual tenant is not a withholding agent, so the landlord must report.
Rent paid abroad also has an FX side. See fx/dividends-and-profit-repatriation.

Sources

← Selling property: tax on gainsITBIS on real estate →

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