Dominican Republic Law 30-26: What Real Estate Buyers and Sellers Need to Know
On June 18, 2026, the Dominican Republic enacted Law 30-26, the most significant tax reform to touch the country’s real estate sector in years. Headlines have called it everything from a game-changer to a new burden on homeowners.
The truth, as always, is in the details — and the details are genuinely good news for most buyers, sellers, and investors.
Some measures are already in effect. Others roll out over the next two years, and a few practical points are still being clarified by the Dominican tax authority (DGII). Here is a clear breakdown of what changed, what stayed the same, and what it means for your next move.
At a glance
| Item | Before Law 30-26 | Under Law 30-26 |
|---|---|---|
| Capital gains — individuals | Up to 25% | 10% flat |
| Capital gains — companies | 27% | 27% (unchanged) |
| Unified ad valorem tax | 2% | 1% in 2027 → 0% from 2028 |
| Transfer tax (buyer, at closing) | 3% | 3% — unchanged |
A Capital Gains Tax Cut — Not a New Tax
The single biggest change for property owners is the reduction of the capital gains tax on real estate sold by individuals from 25% to a flat 10%.
This is not a new tax being introduced. It is a substantial cut. Under the previous rules, the gain on a property sale was generally taxed at the individual’s marginal income tax rate, which could reach 25%. Law 30-26 replaces that with a single, final 10% rate on the gain for qualifying sales by individuals.
The tax applies only to the gain — the difference between the sale price and the inflation-adjusted acquisition cost — not to the full sale price.
For a seller realizing a US$100,000 inflation-adjusted gain, the tax drops from roughly US$25,000 under the old rules to US$10,000 under the new ones.
That is real money staying in the seller’s pocket, and it changes the math for anyone who has been holding off on listing.
Who benefits — and who doesn’t
The 10% rate applies to real estate sold by individuals. Property held through a company continues to be taxed at the corporate rate of 27%, which remains unchanged.
For owners weighing whether to hold a property personally or through a corporate structure, this reform sharpens the case for personal ownership — at least for the portion of your portfolio you may sell in the coming years.
Two important exemptions
Law 30-26 also introduces two exemptions that can eliminate the capital gains tax entirely in specific situations:
- Reinvestment in a primary residence. Homeowners who sell their primary residence and reinvest the full proceeds into another qualifying primary residence within the period established by law. Done correctly, the gain can be sheltered from tax altogether.
- Sellers over 65. Individuals over the age of 65 selling their primary residence, subject to the requirements set out in the law and its regulations.
Both exemptions depend on meeting specific conditions, so they should be reviewed case by case with a qualified advisor before any transaction is structured around them.
Lower Transaction Taxes on the Horizon
Law 30-26 phases out the 2% unified ad valorem tax on certain real estate transactions:
- 2026: 2%
- 2027: 1%
- 2028 onward: eliminated
For buyers and sellers, the cost of transacting in Dominican real estate is on a clear downward path over the next two years.
What Did Not Change: The 3% Transfer Tax
This is where social media has caused real confusion.
The 3% property transfer tax paid by the buyer at closing remains fully in force. Law 30-26 does not touch it.
The tax being phased out is a separate 2% levy on certain transactions — not the standard 3% transfer tax every buyer should still budget for. If you have read that “the transfer tax is being eliminated,” that is not accurate. Plan for the 3% as you always have.
What Foreign Buyers Should Know
For most foreign buyers purchasing vacation homes or investment property, the acquisition process itself does not change under Law 30-26. The familiar steps — due diligence, purchase agreement, transfer tax, title registration — remain the same.
What does change is the environment around your investment. Lower capital gains on exit and a transaction tax heading to zero by 2028 both improve the long-term return profile of owning property in the Dominican Republic. That is relevant whether you are buying a condo to rent or a villa to enjoy for years before selling.
What Is Still Being Clarified
Law 30-26 is enacted, but not every practical detail is settled. The DGII is expected to issue implementing regulations defining how certain provisions are calculated and applied in specific situations.
Until those regulations are published, the responsible approach is to treat each transaction individually. Review the structure, the costs, and the timing with a Dominican attorney or tax advisor before you commit. This is not a caveat to worry you — it is standard practice in any market undergoing reform, and it protects you.
What This Means for Las Terrenas
For the Las Terrenas market specifically, the reform lands at a useful moment. A seller who once faced a 25% tax on their gain now faces 10%. A buyer watching acquisition costs sees the transaction tax on a clear path to zero.
Together, that means more owners willing to list — and more favorable math for investors weighing entry.
Frequently Asked Questions
Does Law 30-26 eliminate the 3% transfer tax? No. The 3% transfer tax paid by the buyer at closing is unchanged. The tax being phased out is a separate 2% unified ad valorem tax.
What is the capital gains tax on property in the Dominican Republic now? For qualifying sales by individuals, 10% of the inflation-adjusted gain. Property sold by a company is still taxed at the 27% corporate rate.
When does the 2% tax disappear completely? It drops to 1% in 2027 and is eliminated from 2028.
Do foreign buyers face different rules under Law 30-26? The purchase process is unchanged. The improvements to capital gains and transaction taxes apply to the market as a whole.
Can I avoid capital gains tax entirely? Possibly — if you reinvest the proceeds of a primary residence sale into another qualifying primary residence, or if you are over 65 and selling your primary residence. Both require specific conditions to be met, so confirm with an advisor first.
Talk to Us Before You Decide
At AMAVI Real Estate, we watch every regulatory update closely so our clients move with accurate, current information — whether you are buying your first apartment in Las Terrenas, selling a villa in El Limón, or planning a longer-term investment near Playa Cosón.
If you are weighing a move and want to understand how Law 30-26 applies to your specific situation, get in touch — we will walk you through it.
This article is general information, not legal or tax advice. Law 30-26 is subject to implementing regulations from the DGII that may affect how specific provisions apply. Consult a licensed Dominican attorney or tax advisor before structuring any transaction.
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