Dominican Republic Introduces New Tax Law 30-26: What It Means for Real Estate Buyers and Investors

Jul 30, 2026, 11:48 AM

The Dominican Republic has officially introduced Law 30-26, bringing one of the country’s biggest tax reforms in recent years. The new legislation updates several tax rules affecting real estate, inheritance, businesses and foreign investment.

If you’re planning to buy, sell or invest in property in the Dominican Republic, here are the most important changes.

Lower Property Transfer Tax

One of the biggest changes for real estate buyers is the reduction of the property transfer tax.

2026: 2%
2027: 1%
From 2028: 0%

This means purchasing property will become significantly less expensive over the next two years, making the Dominican Republic even more attractive for investors.

New Capital Gains Tax

Until now, capital gains on real estate were generally taxed under the standard income tax rules. Law 30-26 introduces a dedicated 10% capital gains tax for individuals selling real estate.

There are important exceptions:

If you sell your primary residence and buy another primary residence within six months, the capital gains tax may not apply.
Homeowners aged 65 or older may also qualify for an exemption when selling their primary residence.

Changes to Inheritance Tax

The law also makes inheritance rules more favorable for many families.

Transfers below:

RD$1 million are generally exempt.
RD$2 million are exempt when inherited by direct family members.

These changes simplify smaller inheritances and reduce the tax burden for many Dominican families.

What About CONFOTUR?

Many international buyers wonder whether the popular CONFOTUR incentives are affected.

The good news is that CONFOTUR remains available. Projects approved under CONFOTUR continue to benefit from the well-known tax incentives, including exemptions from property transfer tax and property taxes for the approved period. Law 30-26 does not eliminate these benefits.

Good News for Real Estate Investors

Overall, the reform contains several measures that may encourage investment:

Lower property transfer taxes over time.
A simpler capital gains system.
More favorable inheritance rules.
Continued availability of CONFOTUR incentives for qualifying developments.

Final Thoughts

Law 30-26 is one of the most significant tax reforms in the Dominican Republic in years. While some provisions mainly affect large businesses and corporate taxation, several changes are directly relevant to anyone buying, selling or inheriting property.

As always, tax rules can vary depending on your personal situation, residency and ownership structure. If you’re planning a purchase or sale, it’s a good idea to speak with a qualified tax advisor or attorney before making any decisions.