Tax benefits for retirees in the Dominican Republic: Law 171-07

The Dominican Republic has implemented a series of tax incentives to attract foreign retirees, making the country an ideal destination for those seeking a comfortable retirement. Law 171-07 grants significant benefits to retirees, such as exemptions on property tax, vehicles, and more.

Who can take advantage of Law 171-07?

This law is aimed at foreign retirees or Dominicans residing abroad who wish to relocate to the Dominican Republic. Requirements include having a minimum pension of US$1,500 per month. If you're a retiree considering moving to the country, you can get more details on the requirements and application process in our retiree residency guide.

Main tax benefits for retirees in the Dominican Republic

Exemption from real estate property tax

Retirees can enjoy a partial or full exemption from property tax. If you'd like to explore housing options in the Dominican Republic with tax benefits, visit our section on properties for retirees.

Exemption from vehicle taxes

Retirees can also enjoy benefits when importing vehicles, with significant tax exemptions. If you're interested in learning more about tax benefits in the Dominican Republic, check out our page dedicated to tax incentives for expatriates.

Flexibility to work while retired

Law 171-07 also allows retirees to work in the country, taxed as any Dominican citizen would be. This offers flexibility to those who want to stay professionally active while enjoying their tax benefits.

To read more about retirement benefits, visit our blog on the rise of retirees in the Dominican Republic.

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By Álvaro Meca Rubio

Deputy Director

CLERHP ESTRUCTURAS S.A.