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Dominican Republic vs Barbados
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

🇩🇴 Dominican Republic
vs
🇧🇧 Barbados
Tax Year:

💰 Personal Income Tax Calculator

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Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
0–25%
25% top; strong economic fundamentals
No change
12.5–28.5%
28.5% top; competitive Caribbean jurisdiction
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
18%
ITBIS 18% maintained
No change
17.5%
17.5% stable
No change

Corporate Tax Rate

Corporate Tax Rate
27%
27%; Pillar Two considerations for MNCs in FTZs
No change
5.5–9%
Tiered rate; Pillar Two compliance for large groups
No change

Capital Gains Tax

Capital Gains Tax
27%
27% as income
No change
0%
No CGT — sustained advantage
No change

Social Security & Payroll

Social Security / Payroll
~23.55%
TSS reform for pension adequacy
No change
~18.1%
NIS contributions; pension reform needed
No change
State, Regional & Local Taxes

🇩🇴 Dominican RepublicMunicipal 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 (Dirección 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.

🇧🇧 BarbadosParish Councils & Land Tax

Barbados's 11 parishes have parish councils that levy land tax at 0.1%–0.7% of site value. Barbados has long been a significant international business and financial centre, particularly for Canadian companies. Major tax reform in 2019 aligned Barbados with OECD BEPS standards. A tiered corporate tax rate structure was introduced. Barbados was removed from the EU tax haven blacklist following these reforms and maintains competitiveness as an IFC.

⚠️ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025–2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Dominican Republic vs Barbados: Key Tax Differences (2026)

💰 Income Tax: 🇧🇧 Barbados has a higher top income tax rate (0–25% vs 12.5–28.5%). 🇩🇴 Dominican Republic is more favourable for high earners.

🛒 VAT/Sales Tax: Both countries have comparable consumption tax rates (18% vs 17.5%).

🏢 Corporate Tax: 🇧🇧 Barbados offers a lower corporate rate (9% vs 27%), which can influence business location decisions.

📈 Capital Gains: 🇧🇧 Barbados taxes investment gains at a lower rate (0% vs 27%), benefiting investors.

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All 🇩🇴 Dominican Republic comparisons →All 🇧🇧 Barbados comparisons →