Vacation rental taxes and rules in the Dominican Republic (2026)
3 min read.
Renting by the night in the Dominican Republic doesn't require any registration today: the Ministry of Tourism proposed a registry in 2026 and withdrew it to open talks with the industry. There are taxes, though. The DGII charges 18% ITBIS on tourist villa and apartment rentals, and Airbnb doesn't collect it for you. What you earn is also subject to income tax: 27% if you don't live in the country. And first of all, your condo's bylaws have to allow it.
Do you need a permit?
There's no mandatory registry for nightly rentals today. The Ministry of Tourism put a short-term rental registry up for public comment from May 20 to July 22, 2026, then withdrew it to open talks with the industry. It may come back, so it's worth keeping an eye on.
What does apply is the condo: its bylaws can allow, limit or ban nightly rentals. If you're buying to rent, ask for them before you sign.
Rental taxes
| Tax | How much | Who it applies to |
|---|---|---|
| ITBIS (sales tax) | 18% of the rent | Tourist villas and apartments; regular residential rent is exempt |
| Income tax, owner who doesn't live in the country | 27% of what they collect, as a single, final payment | Non-residents of the Dominican Republic |
| Income tax withholding, owner who lives in the country | 15% since July 1, 2026 | Residents |
Residential rent is exempt from ITBIS, but the DGII treats villas and apartments rented to tourists as tourist rentals, and those pay 18%. Airbnb doesn't collect ITBIS in the Dominican Republic: that's on the host, who according to the platform's own tax guide must register with the RNC, the taxpayer registry.
If you live in the United States
On top of what you pay in the Dominican Republic, the IRS taxes your income from every country. Rental income goes on Schedule E. We cover it in how to buy from the US.
If you sell one day
Since June 18, 2026, an individual's capital gain on a property sale is taxed at 10%, as a single payment. Many English-language guides still say 27%, the figure from before the reform (closing costs and taxes).
Before buying to rent
- Read the condo bylaws and ask about the maintenance fee.
- Run the numbers with the taxes above, not just with what you collect.
- Look at the area: in Punta Cana, tourism grows every year (buying in Punta Cana).
- Be wary of anyone promising a fixed return: it depends on occupancy, the season and management.
Digger AI Agent helps you choose the project and run the numbers, and it doesn't promise returns.
Frequently asked questions
Do I need a permit to rent on Airbnb in the Dominican Republic?
There's no mandatory registry today. The Ministry of Tourism proposed one in 2026 and withdrew it to talk with the industry. What you do have to follow are your condo's bylaws.
What taxes do vacation rentals pay in the Dominican Republic?
18% ITBIS on tourist villa and apartment rentals, and income tax: 27% if the owner doesn't live in the country, or a 15% withholding if they do.
Does Airbnb collect ITBIS for me?
No. In the Dominican Republic that's on the host, who must register with the RNC taxpayer registry.
How much tax does a foreign owner pay on rental income?
If they don't live in the country, income tax is 27% of what they collect, as a single, final payment. ITBIS is added if the rental is a tourist rental.
How much can I earn renting in Punta Cana?
There's no fixed figure: it depends on occupancy, the season, expenses and taxes. Be wary of anyone promising a guaranteed return.
Sources
- Diario Libre, proposed registry for short-term rentals (July 21, 2026, Spanish)
- Acento, short-term rentals invited to talks on regulation (Spanish)
- DGII, services exempt from ITBIS (Spanish)
- Airbnb, tax guide for hosts in the Dominican Republic (2024, Spanish)
- Law 30-26, official text, Ministry of Finance (Spanish)
- DGII, Notice 10-26, Law 30-26 timeline (Spanish)
- IRS, Topic 414, rental income and expenses
- KPMG, Dominican Republic tax code changes (July 16, 2026)
This guide explains how buying works in general. Rates and requirements are set by law, by each bank and by each developer, and they can change: the date above is when it was last reviewed.