What's changing, when it takes effect, and what's pending regulation. A practical reference for developers, buyers, sellers, agents, and investors
SANTO DOMINGO – Law 30-26, concerning measures to promote economic growth, tax simplification, and mitigate the international crisis, was enacted by President Luis Abinader on June 18, 2026. Its 62 articles amend the Tax Code and several sector-specific laws. This guide extracts and organizes the provisions with a direct impact on the real estate, construction, and tourism sectors, outlining their effective dates and the aspects that remain to be regulated.
Several provisions of this law require implementing regulations from the Executive Branch or general rules from the DGII (General Directorate of Internal Revenue). Until these instruments are issued, some aspects remain without operational definition. This guide identifies each outstanding point.
I. Capital gains from the sale of real estate
What does the law stipulate?
Article 14 of Law 30-26 introduces Article 296-1 to the Tax Code. Capital gains obtained by individuals from the sale of real estate are subject to a 10% tax, payable as a single and final payment.
When is it due?
Within six months from the date the transfer of ownership is perfected, that is, from the date of the notarial act or the registration with the Real Estate Jurisdiction, as applicable.
What is considered a capital gain?
The law does not define the basis on which profit is calculated. The implementing regulations must specify whether the sales price less the acquisition cost adjusted for inflation is used, as established in Article 289 of the Tax Code for the general regime, or some other formula. Until these regulations are issued, this point remains without operational definition.
Exemptions
| Situation | Tax treatment |
| The main residence is sold and the total amount is reinvested in a new main residence within 6 months | Fully exempt |
| Partial reinvestment of the proceeds in a new primary residence | Exemption proportional to the amount reinvested |
| The seller is a natural person over 65 years of age who is transferring their main residence | Fully exempt, with no reinvestment condition |
| Legal entity whose exclusive activity is the ownership of real estate not intended for commercial use | You can take advantage of the 10% as a final payment |
| Property sold by a legal entity with active commercial activity | Taxation under the general regime of corporate income tax |
Since when does it apply?
✓ Since the enactment of the law: June 18, 2026.
II. Transfer tax and mortgages
Real estate transfer tax — Law 173-07
The 3% transfer tax on the value of the property, established in Article 7 of Law 173-07 on Revenue Collection Efficiency, was not expressly modified or repealed by Law 30-26. It remains in force in its current form.
Unified tax on real estate transactions — Art. 59, Law 30-26
Article 59 of Law 30-26 modifies the 2% ad valorem tax on real estate transactions taxed by the laws on Registration and Conservation of Mortgages, according to the following schedule:
| Period | Rate | State |
| Until 2026 | 2% (current) | Apply |
| Exercise 2027 | 1% | Reduction |
| From 2028 | 0% | Deleted |
Article 59 reduces the real estate transaction tax under the Mortgage Registration and Preservation Law, not the 3% direct transfer tax under Law 173-07. The coexistence or substitution of both taxes in a direct purchase and sale transaction must be clarified by the DGII through a general regulation.
III. Income tax — natural persons and legal entities
New income tax scale for individuals — Art. 10
Article 10 modifies Article 296 of the Tax Code. It applies from the 2027 fiscal year and will be adjusted annually for inflation according to figures from the Central Bank.
| Annual net income | Tax |
| Up to RD$480,000.00 | Exempt |
| RD$480,000.01 to RD$685,000.00 | 15% of the surplus of RD$480,000.01 |
| RD$685,000.01 to RD$910,000.00 | RD$30,750.00 plus 20% of the excess of RD$685,000.01 |
| RD$910,000.01 to RD$4,800,000.00 | RD$75,750.00 plus 25% of the excess over RD$910,000.01 |
| Starting at RD$4,800,000.01 | RD$1,048,250.00 plus 27% of the excess of RD$4,800,000.01 |
✓ Effective from fiscal year 2027.
Corporate Income Tax Rate — Art. 15
General rate: 27% on net taxable income. Applies from fiscal year 2026.
Transitional rate: Companies with annual income exceeding RD$1,000,000,000.00 will pay 30% during the fiscal years 2026, 2027 and 2028. From 2029 onwards they will be taxed at the general rate of 27%.
✓ Rate of 27%: effective from fiscal year 2026.
✓ Transitional rate of 30% for large companies: 2026, 2027 and 2028.
Capital gains exemption — main residence for people over 65 — Art. 16
Capital gains from the transfer of a primary residence by individuals over 65 years of age are exempt from income tax. They do not require reinvestment.
✓ Effective from promulgation: June 18, 2026.
Accelerated depreciation of machinery — Art. 24
Legal entities may depreciate new machinery and equipment classified under chapters 84 and 85 of the Customs Tariff, with a useful life of five years or more, intended for industrial use, at double the percentages established in the Tax Code. This does not apply to parts or components.
The DGII will publish the specific list of eligible goods through a general regulation. Until it is issued, the taxpayer cannot determine with certainty whether their equipment qualifies.
✓ Effective from promulgation: June 18, 2026.
IV. Wealth taxes — inheritances and gifts
Inheritance tax — Art. 55
The minimum amounts exempt from inheritance tax are being increased. These amounts will be adjusted annually according to the inflation rate published by the Central Bank.
| Situation | Minimum exempt |
| General transmission | Less than RD$1,000,000.00 |
| Heirs in the direct line of the deceased | Less than RD$2,000,000.00 |
✓ Effective from promulgation: June 18, 2026.
Gift tax — Arts. 56 and 57
Donations that do not reach the minimum amount exempt from income tax (Article 296 of the Tax Code) are exempt. For successive donations from the same person to another, the tax applies when the annual sum exceeds this minimum exemption. The tax rate on donations exceeding the threshold is equivalent to the inheritance tax rate.
✓ Effective from promulgation: June 18, 2026.
Company formation tax — Art. 58
The 1% tax on the incorporation of corporations and capital increases will be repealed as of 2027. Contributions of assets for incorporation or capital increases will be subject to the corresponding transfer taxes, depending on the type of asset contributed.
✓ Effective from fiscal year 2027.
V. Confitur regime and double incentive restriction
Prohibition of double incentive schemes — Art. 1
Article 1 introduces section 2-1 to the Tax Code: taxpayers cannot simultaneously benefit from more than one incentive regime with respect to the same economic activity, investment or operation.
Law 30-26 does not repeal any benefits of Law 158-01 (Confotur), but it establishes a cross-cutting restriction in the Tax Code that could affect developers who combine Confotur with other tax mechanisms. The DGII (General Directorate of Internal Revenue) has not issued a general rule clarifying the scope of this restriction. Projects in the structuring phase should consult with specialized tax advisors before defining their tax structure.
What does Law 158-01 protect?
Article 5 of Law 158-01 prohibits the imposition of new taxes during the tax exemption period. This provision might protect projects already classified by Confotur, but it does not offer the same clear protection to projects under application or with a recent provisional classification.
✓ Effective from promulgation: June 18, 2026.
VI. Tax amnesty
Who is eligible? — Art. 8
Law 30-26 grants a tax amnesty with three modalities:
| Taxpayer status | Conditions for eligibility |
| Debts determined by the DGII with ongoing administrative or judicial appeals | Pay the tax owed plus up to one year of compensatory interest. Formally withdraw all appeals filed. |
| Irrevocably judged overdue debts | Pay the tax owed plus up to one year of late payment surcharges and determined compensatory interest. |
| Declarations omitted in non-prescribed periods | File the returns and pay the corresponding taxes plus up to one year of surcharges and interest. |
General conditions
Application deadline: until December 31, 2026.
Installment payment: the accepted debt can be paid in installments for up to 12 months.
Loss of benefits: Failure to comply with payment conditions results in the automatic loss of benefits.
Exclusion: taxpayers whose non-compliance constitutes tax fraud cannot be included.
The DGII will establish the procedures, requirements, and conditions for application through a general regulation. Verify this regulation before submitting the application.
VII. Other provisions relevant to the sector
Departure tax — Art. 60
The departure tax increases from US$20.00 to US$30.00 per person, or its equivalent in Dominican pesos at the market exchange rate determined by the Central Bank. Airlines and other carriers are designated as collection agents.
✓ Effective from promulgation: June 18, 2026.
Exemption from ITBIS and tariff — ambulances and emergency equipment — Arts. 36 and 37
Ambulances, fire trucks, and garbage trucks with compactors are exempt from VAT and import duties. This applies to vehicles included in the tariff subheadings listed in Article 36. Relevant for housing developments and complexes that acquire emergency fleets.
✓ Effective from promulgation: June 18, 2026.
ITBIS exemption — asphalt materials — Art. 36
The tariff subheading 2715.00.90 is added to the list of goods exempt from ITBIS: manufactures of asphalt for road paving, asphalt cement AC 30, hot asphalt concrete and polymer-modified asphalt PG-76-20.
✓ Effective from promulgation: June 18, 2026.
15% withholding tax on digital services abroad — Arts. 21 and 22
Those who pay for software licenses, online advertising services, or rights to use or store data from individuals or entities not residing in the country must withhold and remit 15% of the gross value to the DGII (Dominican Republic's tax authority) as a single, final payment. This affects all companies in the sector that contract these services with foreign providers.
Payments for software acquisition where the ownership rights are effectively transferred from the developer to the buyer are excluded from this withholding.
✓ Effective from promulgation: June 18, 2026.
Selective tax on life insurance — Art. 48
Relevant for developers and investors with financing structures linked to life insurance. The rate is gradually reduced until it is exempt
| Fiscal year | ISC rate for life insurance | Change |
| Until 2026 | 16% (current rate) | No change |
| 2027 | 11% | Reduction |
| 2028 | 6% | Reduction |
| From 2029 | 0% | Exempt |
VIII. Effective Dates Calendar — Summary
All provisions of the law will come into effect upon promulgation (June 18, 2026), except for those specified in the text itself for later dates. This is the consolidated timeline for the sector:
| Validity | Provision | Article |
| Since 18/6/2026 | 10% tax on capital gains from the sale of real estate by individuals | Art. 14 / new Art. 296-1 |
| Since 18/6/2026 | Capital gains exemption for people over 65 (main residence) | Art. 16 |
| Since 18/6/2026 | Prohibition of double incentive regimes (Art. 2-1 Tax Code) | Art. 1 |
| Since 18/6/2026 | Accelerated depreciation of new industrial machinery (DGII list pending) | Art. 24 |
| Since 18/6/2026 | New minimums exempt from inheritance tax (RD$1M and RD$2M for direct heirs) | Art. 55 |
| Since 18/6/2026 | Gift tax equivalent to inheritance tax | Arts. 56-57 |
| Since 18/6/2026 | Departure fee: US$30.00 | Art. 60 |
| Since 18/6/2026 | ITBIS and tariff exemption: ambulances and emergency equipment | Arts. 36-37 |
| Since 18/6/2026 | ITBIS exemption: asphalt materials for road paving | Art. 36 |
| Since 18/6/2026 | 15% withholding tax on software licenses, digital advertising, and off-site storage | Arts. 21-22 |
| Until 31/12/2026 | Tax amnesty (application period) | Art. 8 |
| Fiscal year 2026 | Corporate income tax: general rate 27% | Art. 15 |
| Fiscal year 2026-2028 | Corporate income tax: transitional rate of 30% for companies with income ≥ RD$1,000 million | Art. 15 |
| Fiscal year 2027 | New income tax scale for individuals (exempt up to RD$480,000 annually) | Art. 10 |
| Fiscal year 2027 | Unified tax on real estate transactions: reduction from 2% to 1% | Art. 59 |
| Fiscal year 2027 | Repeal of the 1% tax on company formation and capital increases | Art. 58 |
| Fiscal year 2027 | ISC life insurance: reduction to 11% | Art. 48 |
| From 2027 | Annual inflation adjustment of the ISR scale for individuals | Art. 10 |
| From 2028 | Complete elimination of the unified tax on real estate transactions | Art. 59 |
| Fiscal year 2028 | ISC life insurance: reduction to 6% | Art. 48 |
| From e.g. 2029 | Corporate income tax: single rate 27% (end of transitional rate 30%) | Art. 15 |
| From e.g. 2029 | ISC life insurance: exempt | Art. 48 |
Sources and legal basis
- Law No. 30-26 on measures to promote economic growth, tax simplification, and mitigation of the international crisis. Promulgated on June 18, 2026, by President Luis Abinader.
- Tax Code of the Dominican Republic, Law No. 11-92 and its amendments. General Directorate of Internal Taxes. dgii.gov.do
- Law No. 173-07 on Revenue Collection Efficiency. General Directorate of Internal Taxes.
- Law No. 158-01 on the Promotion of Tourism Development and its amendments (Laws Nos. 184-02, 318-04 and 195-13).
- Law No. 18-88 on the Real Estate Property Tax and its amendments.
- Law No. 2569-50 on Inheritance and Gift Tax and its amendments.
This guide is for informational purposes only and does not constitute legal or tax advice. The data is based on the official text of Law 30-26, available as of June 20, 2026. Provisions requiring implementing regulations are identified in the document. It is recommended to consult with the DGII (General Directorate of Internal Revenue) or a specialized tax advisor before making any tax decisions.
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