IPI, property tax

Property tax, also known as IPI, is an annual tax levied on the total amount of taxed property that individuals and companies have registered.


Who is required to pay this tax?

Natural persons and foundations

What is an encumbered estate?

The goods that do not enjoy exemption and at the same time have a combined value of more than (RD $ 7,438,197.0).

In the case of foundations, all properties that, regardless of their value, do not benefit from an exemption.



What properties must the property have?

    All houses
    Urban land
    Real estate for commercial, industrial and professional activities

Tax rate

    Individuals: A rate of 1% is applied to the added value of RD $ 7,438,197 on taxed property.
    Trust companies: 1% on the value of real estate.

This tax is paid in two (2) semi-annual installments, with the first installment being paid on March 11th and the second on September 11th of each year.

 


Transfer of real estate

In order to carry out the transfer of a property, you must have the relevant documents
  submitted to the local administrations of the DGII.

The appraisal department will review the documents on file and approve the payment of the transfer, which the taxpayer can use to contact the treasury of each local government to make the payment within 30 days (no later than December 31 of the current year). In the event that the taxpayer does not make the payment within the specified time, he will have to contact the assessment unit again so that the payment can be re-authorized.


The transfer tax rate is three (3%) of the value of the property or land.

The buyer can make the payment equivalent to the transfer tax without surcharges and interest within a period of 6 months from the date of completion of the transfer of ownership in accordance with the provisions of Law No. 18-88.


For more information on property taxes, appraisal, property transfer, property appraisal or relief, please contact us. We're here to help.