Vacation rental permits and taxes in the DR: what to ask your accountant

Do you know what you will tell your accountant when they ask how much you earned from your rental this year? Many hosts in the Dominican Republic start welcoming guests and leave the paperwork for later. The problem is that when the time comes to put the numbers in order, records, receipts and answers are missing.

This article does not tell you which taxes to pay or which permits you need. That depends on your situation, and only a professional can answer it. What it does is help you arrive prepared: which questions to bring to your accountant or lawyer, which institutions you will hear about and which records to keep from the very first booking.

Important: this article is not legal or tax advice. Always consult a licensed accountant or lawyer in the Dominican Republic before making decisions.

Key Takeaways

• Tax and permit rules depend on your case, and this article is not legal or tax advice.
• You will hear terms like DGII, RNC and ITBIS, plus mentions of the Ministry of Tourism (MITUR). Ask your accountant which ones apply to you.
• Your condo may have its own rules on rentals. Read them before you publish.
• Keep records of every booking, every expense and every payment received from day one.

Table of Contents

• Before your first booking
• Taxes: what to ask
• Permits, tourism and your building
• Organize your records from the start

Before your first booking

The best conversation with your accountant is the one that happens before your first guest arrives. That way you get organized from the start instead of fixing things later.

Individual or company

One of the first questions is whose name the activity will be under. Some owners rent as individuals and others through a company. Each option can have different consequences. Ask your accountant:

• Is it better for me to rent in my own name or through a company?
• What changes if the property is owned by several family members?
• What happens if I live outside the country and the property is in the Dominican Republic?

The RNC and the DGII

The Dirección General de Impuestos Internos (DGII) is the country's tax authority, and the RNC is the Registro Nacional de Contribuyentes, the national taxpayer registry. Your accountant can tell you whether your rental activity requires any registration or update with the DGII, and which documents you need to do it. You can learn about the institution on the official DGII website.

Taxes: what to ask

You will not find rates, amounts or dates here, because they change and depend on each case. What you can bring is a clear list of questions.

Questions for your accountant

Bring them printed or on your phone and write down the answers:

1. How is my rental income classified? Ask whether nightly rentals are treated differently from monthly ones.
2. Does ITBIS apply to my stays? And if it does, how is it calculated and who pays it?
3. Which returns do I have to file, and how often? Ask them to walk you through it on a calendar.
4. Which expenses can I record? Cleaning, maintenance, electricity, condo fees, payment processing fees and similar costs.
5. Which receipts or invoices do I need to issue or keep? Ask what type applies in your case.
6. What if guests pay in dollars and I receive pesos? Ask which exchange rate to use in your records.

If you live outside the country

Many owners of property in the Dominican Republic live in the United States or other countries. In that case the questions double, because there may be obligations in both places. Look for an accountant who understands both systems, or two professionals who can coordinate. Ask how the income is reported in each country and whether any agreement between the two countries keeps you from paying twice on the same income.

Permits, tourism and your building

Beyond taxes, there are questions about permits and rules that are worth asking a lawyer with experience in the sector.

The Ministry of Tourism

The Ministerio de Turismo (MITUR) is the government institution responsible for the tourism sector. Ask your lawyer whether your type of rental requires any registration, license or authorization with MITUR or another body, and whether anything changes depending on the region or the size of your property. If you run a small hotel, the conversation may be different from the one for an apartment.

Your condo rules and your municipality

Many properties in the Dominican Republic are in condominiums with their own rules. Before you publish, read yours and talk to the building management. Ask whether there are rules on short stays, visitor registration, use of shared areas or special fees. Also ask your lawyer whether there are municipal rules you should know about in your area.

Organize your records from the start

Good answers from your accountant are worth little if you do not have the data to apply them. A simple system, kept up every month, saves you many hours at the end of the year.

What to keep for every booking and expense

Create a folder for each year and keep the dates of every stay, the amount charged, the cleaning fee, the payouts received in your bank, expense receipts and condo fees. Also note third-party costs: Stripe processing, bank fees, currency conversion and taxes may apply separately, and your accountant will want to see them. If you manage from the US, a shared folder lets your co-host or a relative add receipts as they happen, instead of you chasing them at year end.

What SimpleStay shows you

If you list on SimpleStay, your host dashboard shows upcoming bookings, recent bookings and your total earnings, which helps you reconcile your records with what reaches your bank. Prices are shown in US dollars, and in the Dominican Republic you can receive payouts in pesos through Stripe Global Payouts once the guest's payment settles. SimpleStay charges US$50 a month per property, with 0% SimpleStay commission. SimpleStay does not give tax advice, so take that information to your accountant. To understand how the money reaches you, read our guide on how to get paid by guests as a Dominican Republic host.

Arrive prepared for your appointment

Permits and taxes do not have to be a headache if you deal with them early. Bring your questions, your records and your doubts to a licensed accountant or lawyer, and let them guide you based on your case. Remember that this article is not legal or tax advice.

When your foundation is in order, publish your property on SimpleStay. Every new listing gets a free trial: 30 days, or 7 days for listings located in the United States. After that, it is US$50 a month per property, and you can cancel anytime.

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Frequently Asked Questions

Do I have to pay taxes on renting out my apartment in the Dominican Republic?

It depends on your situation, and this article is not legal or tax advice. Ask a licensed accountant how your rental income is classified, which returns apply to you and which records you should keep.

Do I need an RNC to rent out my property?

That is a question for your accountant. The RNC is the national taxpayer registry run by the DGII, and a professional can tell you whether your activity requires any registration or update.

Does ITBIS apply to vacation rentals?

Ask your accountant, because the answer depends on the type of rental and your case. Also ask them to explain how it would be calculated and who would pay it if it applies.

Do I need a permit from the Ministry of Tourism?

Consult a lawyer with experience in the sector. Ask whether your type of rental requires any registration or authorization with MITUR or another body, and whether that changes with the region or the size of the property.

Does SimpleStay help me with my taxes?

SimpleStay does not give tax advice. Your host dashboard shows bookings and total earnings, which you can use to organize your records and bring them to your accountant.