Dominican Republic vs Bahamas
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
๐ฐ Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country โ side by side.
๐ฉ๐ด Dominican Republic โ Municipal Taxes
The Dominican Republic's 32 provinces and 158 municipalities levy the impuesto a la propiedad inmobiliaria (IPI) on properties above DOP 9.5M at 1%, commercial licences, and local service fees. The DGII (Direcciรณn General de Impuestos Internos) administers national taxes. The DR has been one of the fastest-growing economies in Latin America, with tourism, manufacturing (free trade zones), and remittances as key pillars. Tax reform has been ongoing to improve collection and reduce evasion.
๐ง๐ธ Bahamas โ Local Government Rates & Fees
The Bahamas' islands have local government bodies collecting fees for services, building permits, and business licences. The Bahamas famously has no income tax, no capital gains tax, no corporate income tax, and no withholding tax โ making it one of the world's purest zero-tax jurisdictions. Revenue comes through VAT (introduced 2015), real property tax, customs duties, and stamp duty. As a major offshore financial centre and tourism destination, the Bahamas has faced OECD/FATF pressure on transparency and has made significant reforms.
Dominican Republic vs Bahamas: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ฉ๐ด Dominican Republic has a higher top income tax rate (0โ25% vs 0%). ๐ง๐ธ Bahamas is more favourable for high earners.
๐ VAT/Sales Tax: Dominican Republic has a higher consumption tax (18% vs 10%).
๐ข Corporate Tax: ๐ง๐ธ Bahamas offers a lower corporate rate (0% vs 27%), which can influence business location decisions.
๐ Capital Gains: ๐ง๐ธ Bahamas taxes investment gains at a lower rate (0% vs 27%), benefiting investors.