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Start here: the legal gateways every foreign investor crosses in the Dominican Republic

Argentina. For full detail on Argentina, go to The Argentine Thread.

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

The Constitution and Ley 16-95 give foreign and national investors equal treatment, the peso is freely convertible, and registered investors remit dividends and capital with no prior approval. Most investors form an S.R.L. or S.A.S., register the investment with ProDominicana and then run monthly tax and payroll filings. The 27% income tax and 10% dividend tax give a combined 34.3% burden, and 2026 brought a major tax reform and, from 5 November, company criminal liability.

USD figures use the Banco Central de la República Dominicana spot 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. Conversions are for orientation only.

Key facts

Corporate income tax	27 %Ley 11-92 art. 297, as of 2026-10-30 · in force
Temporary rate for income above RD$1,000 million	30 %DGII notice 10-26, as of 2026-10-30 · in force
ITBIS standard rate	18 %DGII ITBIS page, as of 2026-10-30 · in force
Dividend withholding	10 %Ley 11-92 art. 308, as of 2026-10-30 · in force
Interest paid abroad	10 %Ley 11-92 art. 306, as of 2026-10-30 · in force
Royalties paid abroad	15 %DGII notice 10-26, Ley 30-26 art. 21, as of 2026-07-01 · in force
Asset tax	1 %Ley 11-92 Title V, as of 2026-10-30 · in force
Peso convertibility	Free convertibility, no prior approval for trades textLey 183-02 art. 28, as of 2026-10-30 · in force
Remitting dividends	No prior authorization, after income tax textLey 16-95 art. 7, as of 2026-10-30 · in force
Foreign investment registration	180 calendar daysDecreto 214-04 art. 3, as of 2026-10-30 · in force
Minimum capital, S.R.L.	None DOPLey 68-19 art. 3, as of 2026-10-30 · in force
Beneficial ownership threshold	20 %Ley 155-17 art. 104, as of 2026-10-30 · in force
Employer pension contribution	7.10 %Ley 87-01 art. 56, as of 2026-10-30 · in force
Employer health contribution	7.09 %Ley 87-01 art. 140, as of 2026-10-30 · in force
Income tax treaties in force named by DGII	2 treatiesNorma General 05-2023, as of 2026-10-30 · in force
Rate used for USD conversions	60.9007 DOP per USDBanco Central spot reference selling rate, 29 October 2026, as of 2026-10-29 · in force

The rule

1. Foreigners have the same rights and duties as nationals, except for the limits set by the Constitution and the laws (art. 25). Everyone may freely take up the economic activity of their choice (art. 50). National and foreign investment receive equal conditions, within the limits of the Constitution and the laws, and the law may give special treatment to investment in less developed areas or activities of national interest, in particular the border provinces (art. 221).Constitución de la República Dominicana, Gaceta Oficial 11170, art. 25, art. 50 and art. 221, 2024-10-27 official text · verified 2026-10-30

2. Foreign investors and the companies they own have the same rights and duties as national investors, save exceptions in Ley 16-95 or special laws (art. 6). Foreign investment is barred in disposal of toxic, hazardous or radioactive waste not produced in the country, in activities that harm public health or the environment, and in defence materials without express Executive authorization (art. 5). Each sector is also subject to its own laws (art. 5 paragraph III).Ley 16-95 sobre Inversión Extranjera, art. 5 and art. 6, 1995-11-20 official text · verified 2026-10-30

3. The exchange system rests on free convertibility of the peso. Parties may transact in foreign currency on the terms they freely agree, and the Banco Central cannot require that given operations go only through it. The Junta Monetaria, by a two thirds vote and for no more than one year, may set temporary limits on short term capital inflows.Ley 183-02 Monetaria y Financiera, art. 28, 2002-11-21 official text · verified 2026-10-30

4. Registered foreign investors may remit abroad, in freely convertible currency and with no prior authorization, the full capital invested and declared dividends up to the net current profit of the period, after income tax.Ley 16-95 sobre Inversión Extranjera, art. 7, 1995-11-20 official text · verified 2026-10-30

5. A foreign investor registers each investment as soon as it is made with the agency created as CEI-RD, now ProDominicana (Ley 98-03). The regulation gives 180 calendar days from the investment, and the agency has 15 working days to issue the certificate once the file is complete.Ley 98-03, restating art. 4 of Ley 16-95; Decreto 214-04, Ley 98-03 art. 9 and art. 12; Decreto 214-04 art. 3, 2004-03-11 official text · verified 2026-10-30

6. A company has full legal personality from registration in the Registro Mercantil (art. 5). People who take on obligations for a company in formation are jointly and without limit liable unless the company later assumes them (art. 8). The application is due within one month of signing the constitutive act or holding the meeting (art. 15).
Cost to do it: S.R.L. with RD$500,000 capital in Santo Domingo: official costs of RD$15,355 (US$252.13) in 2026 and RD$10,355 (US$170.03) from 2027; see start/first-90-days.Ley 479-08, General de las Sociedades Comerciales y Empresas Individuales de Responsabilidad Limitada, as amended by Ley 31-11, art. 5, art. 8 and art. 15, 2011-02-08 official text · verified 2026-10-30

7. A foreign company is recognized once its legal existence is shown, and registers in the Registro Mercantil if it sets up a branch or permanent establishment or trades habitually.Ley 479-08, as amended by Ley 31-11, art. 11, 2011-02-08 official text · verified 2026-10-30

8. Every resident legal person must keep updated data on its beneficial owners, meaning the natural persons with ultimate ownership or control, and control through ownership or voting starts at 20%.Ley 155-17, amending art. 50(c) of the Código Tributario, art. 104, 2017-06-01 official text · verified 2026-10-30

9. Domiciled companies pay income tax of 27% on net taxable income. DGII lists a temporary 30% for taxpayers with income above RD$1,000 million from fiscal year 2026, starting with closes at 30 June 2026.
Example: Profit RD$10,000,000: tax RD$2,700,000. / Profit US$164,201.73: tax US$44,334.47.Ley 30-26, restating art. 297 of the Código Tributario; DGII notice 10-26, Ley 30-26 art. 15, 2026-06-18 official text · verified 2026-10-30 · changed: Ley 30-26 of 18 June 2026 restated art. 297 and added the temporary higher rate.

10. Dividends paid to residents or non residents bear a withholding of 10% as a single and final payment.Ley 11-92, Código Tributario, as amended by Ley 253-12, art. 308, 2012-11-09 official text · verified 2026-10-30

11. ITBIS, the value added tax, applies at 18% and is declared in the first 20 days of the month, even with no tax to pay.Ley 11-92, Código Tributario; DGII ITBIS page, art. 353 literal c; DGII page, 2026-10-30 official text · verified 2026-10-30

12. Employers pay social security within the first three working days of each month. Employers pay 7.10% for pensions and 7.09% for health, and workers pay 2.87% and 3.04%.Ley 87-01, Sistema Dominicano de Seguridad Social, as amended, art. 16, art. 56 and art. 140, 2001-05-09 official text · verified 2026-10-30

13. Companies become criminally liable for offences by their organs, representatives or subordinates acting on their behalf where the act also results from a failure of the company's duties of direction, control or supervision. Verifiable compliance programmes can mitigate that liability. These articles start three months after 5 August 2026, meaning 5 November 2026.Ley 74-25, Código Penal; Ley 44-26, Ley 74-25 art. 8 to art. 11; Ley 44-26 art. 31, 2026-07-27 official text · verified 2026-10-30 · changed: Ley 44-26 of 27 July 2026 deferred these articles. A bill to delay them 24 months passed the Senate in October 2026 but is not law in the sources checked; see start/reform-tracker.

14. DGII states that the country has double tax treaties in force with Canada and Spain, without prejudice to any others that may be signed.Norma General 05-2023, Recitals, 2023-09-25 official text · verified 2026-10-30

Item	Figure	Page
Corporate income tax	27%; 30% temporary above RD$1,000 million	taxes/corporate-income-tax
Asset tax	1%, with income tax as a credit	taxes/asset-tax
ITBIS	18%	taxes/vat
Dividends	10% final	taxes/dividend-withholding
Interest paid abroad	10% final	taxes/interest-withholding
Royalties paid abroad	15% since 1 July 2026	taxes/royalties-and-software-withholding
Tax on checks and transfers	0.20% since 3 July 2026	taxes/bank-payment-tax
Employer social security	7.10% pension, 7.09% health, plus occupational risk	labor/social-security-contributions
Top general minimum wage	RD$29,988 a month, large companies	labor/minimum-wage
Income tax treaties	Canada and Spain	taxes/tax-treaties
Tax on incorporation	1% in 2026, repealed from 2027	entities/setup-costs-and-timeline
Exchange rate	RD$60.9007 per US$, 29 October 2026	start/minimum-wage-social-security-caps-and-exchange-rate

The numbers most investors ask for first, October 2026

Worked example

A US$100 profit, or RD$6,090.07, pays 27% income tax of RD$1,644.32 (US$27.00). The RD$4,445.75 left, paid as a dividend, bears 10% withholding of RD$444.58 (US$7.30). The foreign shareholder receives RD$4,001.18 (US$65.70), a combined burden of 34.3%, before any tax in the home country. At the temporary 30% rate the shareholder would receive US$63.00, a burden of 37%.

Step by step

Read this page, then start/first-90-days for the order of the steps.
Choose a vehicle with entities/choosing-an-entity.
Check whether a sector law limits your activity.
Plan the foreign investment registration before moving money, using fx/foreign-investment-registration.
Put the dates in start/tax-and-compliance-calendar on your calendar.
Check start/reform-tracker before relying on any 2026 rule, since Ley 30-26 is still being regulated.
Take local advice before signing. This guide is an information summary, not legal advice.

Common traps

Signing contracts before registration makes the signers personally liable (Ley 479-08 art. 8).
The S.R.L., S.A.S. and S.A. need two owners at formation, so a sole foreign parent needs a second holder (see entities/choosing-an-entity).
The compliance date for company criminal liability is 5 November 2026 unless a new law is published first. A vote in one chamber changes nothing.
Older copies of Ley 16-95 show 90 days and the Banco Central for registration. Ley 98-03 moved it and changed the term.
The Ley 30-26 regulation is still a draft, and DGII pages lag the law in places, so read the law first.
For an Argentine parent there is no income tax treaty, so domestic rates apply. The Argentine side of tax, FX and trade is covered in The Argentine Thread guide.

Sources

Minimum wage, social security caps and the exchange rate: the reference values behind Dominican rules →

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