The Annual Property Tax is locally known as “IPI”. It is an annual tax applied on the total amount of the real estate value of a property registered by natural persons or trusts.
Who is subject to the payment of this tax?
For all the properties (all homes and urban lots) owned by individuals which values are registered below US$150,000 (approximately), these are exempted from annual property taxes.
Individuals: a rate of 1% is applied on the surplus value of RD$7,438,197 (or US$147,387 as of June 2019) of the property. Meaning that a property worth US$200,000 will be taxed on 52,613 at 1%, so US$526 annually.
Trusts: 1% on the value of the real estate property. There are no exceptions.
PS: This tax is paid in two half-yearly installments, with the deadline for payment of the first installment on March 11 and the second on September 11 of each year. You should also know that the amount of taxes that are paid by the company can apply as a credit to its revenues.
They are exempt from the payment of this tax:
The building (and the land on which it is built) belongs to people over 65 years of age, provided that this is the only property of its owner in the Dominican Republic.
Pensioners and rentiers from a foreign source (50%).
Properties of agricultural use are located on rural land.
All properties that can fall under the IPI tax, which total value is equal to or less than (RD$7,438,197 / US$147,387).