Renting out a DR property triggers two tax events

Income tax on the profit (your bracket) and 18% ITBIS on the gross rental (the DR equivalent of sales tax). Most hosts know about the first. Many miss the second until DGII sends them a notice.

When ITBIS applies

ITBIS applies to:

• Short-term rentals (under 30 nights per stay)
• Tourist rentals advertised on Airbnb, Vrbo, Booking.com, etc.
• Rentals managed by a property management company (the company collects and remits)

ITBIS does NOT apply to:

• Long-term residential leases (12+ months)
• Rentals to the same tenant for 30+ continuous days (case-by-case)

How much you actually pay

Two options for how ITBIS lands:

Option 1: Add ITBIS to the rate (pass-through to guest) Charge $180/night and add 18% ITBIS = $212.40 total. The guest pays the extra. You remit $32.40 to DGII each booking. Most hosts go this route.

Option 2: Absorb ITBIS in the rate Charge $180/night flat. Inside that, $152.54 is the rate and $27.46 is ITBIS you remit. You eat the cost. Lower bookings revenue, simpler guest-facing pricing.

The Régimen Simplificado: the foreign-host friendly path

If your annual rental income is under RD$11,300,000 (~$190K USD), you can register under the Régimen Simplificado de Tributación (RST). Benefits:

• Quarterly filing instead of monthly
• Simplified accounting (no detailed invoice-by-invoice)
• 6% flat tax on gross instead of the standard ITBIS + income tax structure
• Available to individuals and SRLs alike

The math: 6% RST flat vs. 18% ITBIS + bracketed income tax. For most foreign hosts under the threshold, RST is materially cheaper and dramatically simpler.

What you file and when

Under standard regime:

• ITBIS form (IT-1) monthly, due by the 20th
• Income tax annually (IR-1) by April 15

Under RST:

• One filing per quarter, due 30 days after quarter end
• One annual reconciliation

Where most hosts get audited

• Listing on Airbnb but not registered for ITBIS at all
• Paying through a friend's local account to dodge the tax (DGII sees this in bank statements)
• Inflating expenses on the income tax side
• Claiming CONFOTUR exemption on a building that isn't actually certified

DGII has access to Airbnb host data in DR. Assume they can see your bookings.

What we tell clients

Talk to a DR-licensed accountant before you take your first booking. Setup costs $400-$700. Annual filings cost $1,200-$2,400. Worth every peso vs. the alternative (10% + interest + penalty on missed ITBIS).