Do I have to pay taxes in the US for the income I am earning in the Dominican Republic?

[Jose8453]

I opened my account in the United States, but since then, I have moved to the Dominican Republic and started managing a property I own, as well as properties owned by others in the same complex. We now manage a total of five units. I'm not sure about the tax situation. I have submitted the tax information to Airbnb. Do I have to pay taxes in the US for the income I am earning in the Dominican Republic?

Please advised.

Thanks! 

[Title updated by Community Manager for relevancy]

[Mike-And-Jane0]

@Jose8453 If you are a US citizen you pay tax in the Dominican Republic. Then you pay tax in the USA but if there is a dual tax treaty between the two you can effectively reduce your US tax liability by the amount of tax paid in the Dominican Republic.

[Helen3]

I would speak to your accountant about the best way to file @Jose8453 

[Rebecca]

Hi @Jose8453 👋

It's been a while since you posted and I'm wondering whether you managed to get a resolution to your question? 

It'd be great to hear from you, so we can understand what the resolution was but also to support other Hosts who may have similar questions in the future. 😊

[Giulio180]

Hello,

income taxes originated from real estate are usually paid in the country where the units are located AND in your country of residence. So you usually need to report this income in both countries. 

If no-double-taxation treaty exists between these 2 countries you will deduct what you already paid in the DR (all or part of it) from your US taxes. 

Hope it helps

G

[Mike-And-Jane0]

@Giulio180 Your reply is somewhat US centric. There are not too many countries in the world that are like the USA and who charge tax on worldwide income.

Also your second paragraph is backward (I think). If there is a double taxation treaty then you can offset tax paid abroad against US taxes but you can't if there isn't a treaty.

[Giulio180]

Hello Mike, 

all countries in EU taxes worldwide income (if your a EU resident). Canada, AUS and NZ do the same.