The Dominican Republic’s Tax Authority clarified that estates of deceased foreign pensioners and rentiers remained subject to inheritance tax, while certain Law 171-07 incentives could continue for eligible spouses and dependants.
The Dominican Republic’s Tax Authority (DGII) clarified the inheritance tax treatment of estates of foreign pensioners or rentiers covered by Law 171-07 on Special Incentives for Pensioners and Rentiers of Foreign Source. The ruling, G.L. Núm. 5017XXX, was issued on 23 February 2026 and published online on 3 September 2026.
Under Law 2569 on Successions and Donations, the taxable base of the inheritance tax (impuesto sobre sucesiones) is the total estate left by the deceased, including movable and immovable property and duly documented rights and obligations. The tax is charged at 3% of the net hereditary mass after permitted deductions under articles 4 and 6.
The DGII confirmed that Law 171-07 benefits apply during the lifetime of the principal pensioner or rentier. These include an exemption from transfer tax on the first property acquired, 50% relief from mortgage tax and real estate property tax (IPI) where applicable, an exemption from tax on dividends and interest of any source, and 50% capital gains relief subject to specified conditions.
The benefits do not exempt the deceased’s estate from inheritance tax. However, certain incentives may continue after the death of the principal beneficiary for the spouse and dependants defined in article 5 of Law 171-07, provided they also meet the qualifying conditions under article 17.
The eligible dependants can include unmarried minor children, disabled adult children, university-enrolled adult children who remain economically dependent on the deceased, and qualifying minors under legal guardianship. The DGII stated that beneficiaries seeking continued incentives must satisfy the documentation and compliance requirements applicable under Law 171-07.
