Alquilar en República Dominicana puede salirte caro

Are you thinking about buying a property in the Dominican Republic to rent it out? Then this video can save you from a costly mistake: believing that all investors pay the same amount for the same apartment. In the Dominican Republic, renting a property can have very different tax outcomes depending on one key variable: your tax residency. It's not the same to rent as a Dominican tax resident, a non-resident, or through a Dominican company. The property may be exactly the same, but the tax bill can change completely. In this video, we lay out the numbers. First, we'll look at what happens when you buy. In the Dominican Republic, buying a property typically involves a 3% transfer tax on the property's value. At this stage, the difference between an individual, a company, a resident, or a non-resident isn't the core issue. The real difference arises later, when the property starts generating income. Next, we'll analyze the cost of owning the property. Individuals may be subject to the IPI, the property tax, which is levied at 1% annually on the value exceeding the minimum exemption. Companies, on the other hand, do not pay the IPI as such, but they may be subject to an asset tax. Therefore, starting a business doesn't mean the tax disappears; often it simply changes form. The most important part of the video addresses renting. If you are a Dominican tax resident, you can pay taxes on a progressive scale based on net income, meaning after deducting expenses. In certain cases, this can be very efficient. If you are not a tax resident in the Dominican Republic, the scenario changes radically: a 27% withholding tax may be applied to the gross payment. Gross means before deducting community fees, repairs, management fees, maintenance, or other expenses. You receive $1,000 in rent, and the withholding tax is calculated on that $1,000, not on what you actually keep. And if you buy through a Dominican company, the company also pays 27% tax, but on the net taxable income. In this case, you can deduct expenses, although other fees apply: asset tax and possible withholding tax on dividends when you want to withdraw money from the company. We also discuss ITBIS, the Dominican equivalent of VAT, which can significantly impact rentals for tourism. The same apartment can be taxed differently depending on whether it's rented as a primary residence or as an Airbnb, villa, or tourist apartment. In this video, you'll learn: What taxes you can pay when buying property in the Dominican Republic. How the IBI (Property Tax) works for individuals. Why a company doesn't always eliminate taxes. What happens if you rent as a non-resident. Why the 27% tax on gross income can completely change profitability. When a Dominican company might make sense. How ITBIS affects tourist rentals. Why tax residency matters more than the business structure. This content is especially useful if you're considering investing in real estate in the Dominican Republic, buying to let, operating a vacation rental, using Airbnb, or comparing whether it's better to operate as an individual or through a company. At XpatNomad, we don't sell shortcuts or magic solutions. We explain how international taxation works so you can make informed decisions before investing outside your country. 🌍 Learn more: https://xpatnomad.com/ https://linktr.ee/xpatnomad ⚠️ Legal Notice: This content is for educational and informational purposes only. It does not constitute personalized tax, legal, accounting, or financial advice. International real estate taxation depends on current regulations, your tax residency, the property's use, the purchase structure, and your personal circumstances. #DominicanRepublic #InternationalTaxation #TaxResidency #Taxes #RealEstateInvestment #Airbnb #XpatNomad