Taxes may be a topic of interest for you. No doubt, tax obligations are lower in the Dominican Republic.

The highest regular income tax rate is 25%, but the vast majority of people don’t have to pay tax on their income.  The country collects most of its tax revenue through consumption tax (ie. sales tax) and import tax, but not through income tax on the public.

The Dominican Republic does have a treaty with Canada based upon the OECD model. This may be difficult to interpret. You should talk to a Canadian and a Dominican accountant for full clarification. We can provide you with a reputable referral.

Some specific tips:

There is no property tax on most residential properties. Some properties above a certain threshold may be required to pay property tax.

You may be subject to corporate income tax if you register your home as a protected asset inside of a corporation. In that case, corporation tax is 1% of the book value of the home, per year. There are strategic reasons why you might want to do this.

There does exist a land-transfer tax worth 3% of the appraised value of your home (which is typically less than the purchase price). But land-transfer tax is waived on your first home purchase for new Dominican residents.

You will need to engage a Dominican lawyer to take care of your purchase.

You may qualify to purchase your first car without paying the local 18% consumption tax, if you become a new resident.

Want to know more? Request a consultation.