Law 30-26 — What It Means for Real-Estate Investors
The Dominican Republic passed Law 30-26 on June 18, 2026.
Here are the biggest real-estate changes, using actual numbers.
1. Capital gains when you sell a property
BEFORE: An individual could face the previous general income-tax treatment on the gain.
NOW: The new real-estate capital-gains rate for individuals is 10%. This change is already in effect.
Example:
You buy a property for US$500,000.
You later sell it and, after the allowable tax calculations, you have a US$200,000 taxable gain.
Under the new 10% rate:
US$200,000 × 10% = US$20,000 in capital-gains tax.
That 10% is charged on the taxable gain — not on the full US$700,000 sale price.
2. Reinvesting your money
The new law also allows qualifying investors to reinvest the proceeds from a sale within 6 months and potentially receive an exemption from capital-gains tax.
Example:
You sell a property and receive US$600,000.
Instead of simply taking the money out, you reinvest the qualifying amount into another investment within 6 months.
Depending on the conditions of the law, the capital gain may qualify for an exemption.
3. Mortgage taxes
Starting in 2027, the mortgage tax drops to 1%.
Starting in 2028, it goes to 0%.
Example:
On a US$500,000 mortgage:
At 1%, that is US$5,000.
From 2028, that particular mortgage tax becomes US$0.
So on a US$500,000 mortgage, the eventual saving compared with a 1% charge is US$5,000.
4. Creating a company to hold investments
There is currently a 1% tax on the incorporation of companies and increases in corporate capital.
Starting in 2027, that 1% tax is eliminated.
Example:
You capitalize a company with RD$20 million.
At 1%, the tax is:
RD$200,000.
From 2027, that tax becomes:
RD$0.
5. Small real-estate businesses and anticipos
Microbusinesses with annual income of up to RD$11,985,137.42 will be exempt from income-tax anticipos under the new rules.
That means a qualifying small property-management company, rental business or other real-estate-related company below that threshold may no longer have to advance income tax before the final annual tax calculation.
6. Property owners over 65
The law provides an exemption for qualifying people over 65 years old selling their residence.
So instead of paying the new 10% capital-gains rate on a qualifying gain, the tax could be:
US$0.
The bottom line
For real-estate investors, the major numbers to remember are:
- 10% — new individual real-estate capital-gains rate.
- 6 months — potential reinvestment window.
- 1% in 2027 → 0% in 2028 — mortgage tax.
- 1% → 0% in 2027 — company incorporation and capital-increase tax.
- RD$11,985,137.42 — microbusiness income threshold for exemption from anticipos.
And importantly, Law 30-26 is already law today.
It was promulgated on June 18, 2026.
Some provisions, such as the 10% capital-gains rate, are already active, while other benefits phase in during 2027 and 2028.
