The Central Bank of the Dominican Republic has announced a historic milestone for the nation’s economy, reporting that remittances reached a record US$11.86 billion in 2025. According to the report, 80% of these funds originated from the United States.
The remittance total is 10.3% more than that of the previous year, further solidifying remittances as one of the three vital pillars of the Dominican economy, alongside tourism and exports. The Central Bank expects more than US$46.8 billion in hard currency to enter the economy in 2026.
However, the Central Bank has adjusted its 2026 forecast to a more modest growth of 3.5%, projecting total remittances of US$12.2 billion. This deceleration is attributed in part to a new 1% tax on cash remittances implemented by the Trump administration.
The Central Bank highlights, nevertheless, that the impact of the tax will be less because a majority of Dominicans in the US hold legal status through residency, work visas, or dual citizenship.
Dominicans with legal status will be able to take advantage of the digital loophole in the tax as it applies specifically to cash transactions. Bank transfers and digital operations remain exempt, offering a legal pathway for the Dominican diaspora to bypass the tariff.
Data from the Migration Policy Institute (MPI) indicates that approximately 56% of Dominicans in the US are naturalized citizens. Under current law, these individuals may also be eligible for a refund of the tax paid.
Despite the new tax, the outlook for 2026 remains optimistic. Steady growth in the US service sector, a primary employer for overseas Dominicans, is expected to sustain the flow of funds.
While the US remains the dominant source, Dominicans living in Spain accounted for around US$65 million, or 7% of the monthly total.
The impact of these funds is concentrated heavily in urban centers. Nearly two-thirds of all recipients reside in metropolitan areas. The National District leads with 48% of recipients, followed by Santiago (10.9%) and the province of Santo Domingo (7.5%).
Overall, the outlook for 2026 is positive. Remittances are expected to increase to US$12.2 billion, up 3.5% compared to 2025. Exports are expected to be above US$14.9 billion, and tourism receipts are forecast to be more than US$11.2 billion. Add to this exports of services for more than US$3.5 billion and Foreign Direct Investment expected to surpass US$4.8 billion.
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Central Bank
12 January 2026