Property Tax in Dominican Republic (Impuesto al Patrimonio Inmobiliario - IPI
Publicado por Lic. Joel Collado
Understanding Property Tax in the Dominican Republic (IPI)
A Quick Guide for International Investors
If you're planning to buy real estate in the Dominican Republic, it's essential to understand how property taxes work. The country offers an attractive tax system for both locals and foreigners, making it one of the most investment-friendly destinations in the Caribbean.
🏡 What is the IPI (Impuesto sobre la Propiedad Inmobiliaria)?
The IPI is an annual property tax applied to real estate in the Dominican Republic. It only affects properties above a certain value threshold and offers several exemptions that benefit investors.
💸 How Much is the Property Tax?
Exemption Threshold:
Properties valued under RD$10,190,833 (around US$166,000) are exempt from property tax.
(This threshold adjusts yearly based on inflation.)
Tax Rate:
If your property value exceeds the exemption limit, you’ll pay 1% annually on the amount above that threshold.
Example:
If your property is worth RD$12,000,000:
Exempt amount: RD$10,190,833
Taxable amount: RD$1,809,167
Annual tax: RD$18,091.67
✅ Who is Exempt from Paying IPI?
Foreign and Local Buyers Under the Threshold
Retirees Over 65 who own only one home used as their primary residence
Properties under CONFOTUR Law, which enjoy up to 15 years of tax exemption (including IPI and transfer taxes)
📆 When and How Do You Pay It?
Payment Deadline:
The IPI is due before March 11 each year.
You can also pay in two equal installments:
50% by March 11
50% by September 11
Tax Assessment:
Based on the government-assessed value, not necessarily the market price.
🚫 Avoid Penalties!
Failing to pay your IPI on time may result in fines and interest. Always consult with your real estate advisor or legal representative to ensure compliance.
🎯 Thinking of Buying Property in the Dominican Republic?
At Ultra Propiedades, we guide you through every step of the buying process — including tax planning, legal paperwork, and finding the perfect property for your needs. Whether you're looking in Punta Cana, Santo Domingo, Santiago, or any other growing area, we've got your back.
📩 Contact us today for a free consultation and personalized property options:
👉 WhatsApp: [+1 809-715-5745]
👉 Follow us on Instagram: [@ultrapropiedadesrd]