Cost of Living Advantage in Dominican Republic

Compared to Europe and North America, the cost of living in the Dominican Republic is considerably lower. According to this website, it is about 20% and 45% cheaper than Belgium and London respectively.

Rent

Compared to US: approximately 70% cheaper

Since the demand for rental accommodations in the Dominican Republic is quite high, foreign nationals looking for a flat or apartment are recommended to do their research in advance to compare prices and reserve the chosen accommodation the soonest possible time. 

Average rental prices:

Utilities

Compared to US: 50% higher in telecommunications, but way cheaper for basic utilities and the Internet

You'll find that you'll have the highest quality service for only a fraction of what you spend in your home country.

Average utility prices:

• Water, Gas, Electricity, Heating & Garbage - USD$54
• Internet (10Mbps DSL) - USD$43
• 1 minute prepaid mobile local call - USD$0.18

Food & Beverage

Compared to US: approximately 30-60% cheaper

Groceries are generally affordable in the Dominican Republic. Even high-standard restaurants are cheaper than they would be in other countries.

Average food prices:

Transportation

Compared to US: 70% cheaper for public transport, but double for taxi and gasoline

Average transport costs:

• Taxi flag-down rate - USD$3.85
• Taxi rate every 1km - USD$3.25
• One litre of gasoline - USD$1.40
• Monthly public transport ticket - USD$28
• One-way local transport ticket - USD$0.55

Taxation

• Income tax

Based on a progressive scale, it starts from 15% up to 25%. The first $9,500 earned in a year is free of tax, but the subsequent $5,000 after that will be subject to tax already.

• Value-added tax (VAT) / “Impuestos de transferenciasbienesindustrializados y servicios” (ITBIS)

It is currently set at 16%. Consumers should take note that when purchasing items, the VAT is not yet included in the total price and must be paid on top of it.

Our estimates are based on Numbeo.com. You may view the full price comparison against the US here.