Country Report: Dollars Continue Flowing to the Dominican Republic
Remittances are surviving the new U.S. tax—at least for now. The post Country Report: Dollars Continue Flowing to the Dominican Republic appeared first on Global Finance Magazine .
The Dominican Republic continues to attract foreign remittances, with four in ten households receiving money from overseas. Last year, Dominicans abroad sent a record $11.87 billion, a 10.3% increase from 2024, according to the Central Bank of the Dominican Republic (BCRD). However, the U.S. has levied a 1% tax on remittances paid in cash, money orders, or cashier’s checks under the One Big Beautiful Bill Act, signed by President Trump last year.
The tax has raised concerns in migrant communities, but the BCRD predicts only a mild impact, with remittance growth slowing to 3.5% in 2026, or about $12.2 billion. Manuel Orozco, a director at the Inter-American Dialogue, forecasts a 4% growth this year, attributing it more to precautionary fear than the tax itself. Patricia Krause, an economist at Coface, notes that the levy has yet to impact remittance figures, with April seeing an 11% increase year over year.
Most Dominicans in the U.S. hold bank accounts, allowing them to avoid the tax, with only about 40% sending cash. Cash remains the primary method for 70% of transfers, collected mostly through home-delivery networks. The Dominican economy is not overly reliant on remittances, which account for nearly 10% of GDP, but the country benefits from a more dynamic export-manufacturing sector.
The 1% tax amounts to a loss of $230.7 million in 2026, according to the Migration and Displacement Program at the Center for Global Development.
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