For decades, Dominican law has imposed a municipal tax on the daily room rate at motels, apart-hotels, inns, and hotel condominiums. Short-term digital rentals have reached a scale that allows them to compete directly with the formal hotel industry. Yet almost no one collects what the law has already required for nearly thirty years.

I. THE TEXT THAT OBLIGATES

Law No. 10-96, dated September 9, 1996, amended Articles 1 and 2 of Law No. 116-75. It does not create a municipal levy: it is a tax established by the National Congress whose proceeds belong to the municipalities. Therefore, no municipal ordinance is required for its existence. The text is straightforward:

“A 10% tax is established daily on room charges at motels, hotels, apart-hotels, inns, and hotel condominiums; and a 2% daily tax for dormitories and boarding houses.”

The taxable entity is the municipality where the service is provided. The taxpayer is the operator of the establishment. There is a categorical exemption for establishments with a valid CONFOTUR classification, but it applies on a project basis, not per platform.

II. THE GAP THAT THE TAX CODE ALREADY RESOLVES

Airbnb was founded in 2008. Law 10-96 does not mention it, but the absence of express mention does not equal tax immunity. Article 2 of Law 11-92 allows looking beyond the legal form and focusing on economic reality. The relevant question is not whether the operation is presented as a “rental,” but whether in fact there is an organized exploitation of short-term tourist accommodation.

“The digital channel is not the taxable event. What determines liability is the economic function: compensated short-term lodging offered at scale and with regularity.”

III. THREE PROFILES. THREE REGIMES

Multi-property operator: manages several properties with continuity and commercial scale → high exposure to the 10% tax.
Occasional host: rents out their primary residence sporadically → reasonable arguments, but they weaken if it becomes a regular source of income.
Units within a CONFOTUR complex: verify the specific resolution: scope, beneficiary, completion date of construction.

IV. WHAT MUNICIPALITIES ALREADY HAVE

Article 199 of the Constitution recognizes municipal autonomy. Law 176-07 grants municipalities the power to collect taxes assigned to them by national law. Law 10-96 is precisely that. The real challenge is not normative but institutional: identifying operators, separating the occasional host from the professional operator, and coordinating with the DGII.

V. WHAT THE INSTITUTIONS SAY

DGII: its criterion on ITBIS distinguishes between residential rental and rental for commercial purposes. Airbnb has not assumed the role of collector in the DR, but it has in 17 countries.
ASONAHORES: documents the regulatory asymmetry: formal hotels comply with registration, standards, taxes, and labor laws, while short-term rentals operate without those burdens.
Airbnb: has proposed guiding hosts on tax matters and sharing information, but the impasse continues.

VI. WHAT IS MISSING AND WHAT IS AT STAKE

Law 10-96 will turn thirty in September 2026. It was enacted to fund municipalities when tourism was taking off. Today, tourism is booked on mobile phones and managed from apartments without front desks. The law has survived all these changes. It just needs someone to enforce it.

Municipality, hotelier, developer, or host?

At LegalHubRD, we analyze your situation under Law 10-96, CONFOTUR regimes, and DGII regulations. Consult with our team to assess risks, opportunities, and compliance strategies.