Real Estate Property Taxes in the Dominican Republic (IPI) Real estate property taxes in the Dominican Republic, officially known as the Real Estate Tax (IPI), constitute an annual levy on the total value of properties held by individuals and trusts. This tax is subject to annual adjustments to account for inflation, ensuring that the amount you pay may vary from year to year. The Dominican General Directorate of Internal Revenue (DGII) announces changes in these amounts at the start of each year through official information notifications.
The IPI tax rate is set at 1% per year, calculated on the total value of an individual’s real estate holdings. This tax, however, applies only to the excess value of properties registered under your name that surpass approximately $165,000 USD (a specific figure denominated in Dominican pesos, subject to exchange rate fluctuations).
Properties Subject to IPI Payment:
– All residential properties
– Urban land plots
– Real estate designated for commercial, industrial, and professional purposes
Exemptions from IPI Taxation Include:
– Single residential property (along with its land) owned by individuals aged 65 and above, provided it is their sole real estate holding.
– Real estate granted tax-exempt status by special legislation, such as the CONFOTUR Law.
– Individuals receiving 50% of their income in the form of foreign pensions.
– Rural land holdings.
– Agricultural structures located in rural areas.
– All real estate transactions with a total value less than RD$8,829,763.30.
Crucial Note: All residents, whether Dominican nationals or foreign individuals, obligated to pay taxes within the Dominican Republic must acquire a unique and permanent tax identification number known as the RNC number (National Register of Taxpayers). The registration process and issuance of this number are provided free of charge and can be initiated online or by visiting the nearest office.
Payment of the IPI tax is divided into two semi-annual installments. The first installment is due on March 11, while the second installment must be settled by September 11 each year. Conveniently, payments can be made remotely via a personal virtual account, which can be easily set up on the General Tax Administration’s official website: https://www.dgii.gov.do/ofv/login.aspx
Instructions for Registering Access to the Virtual Office: To acquire an access key to the DGII virtual office, designed to facilitate taxpayer responsibilities efficiently and cost-effectively, follow these steps:
– Access the virtual office portal.
– Choose the “Request a key” option and complete the necessary details, including your RNC/Identity Card and Taxpayer Type.
– Click “Continue” and provide the requested information on the ensuing form before clicking “Send Request.”
– Print the receipt protocol.
– You can expect to receive an access key in your email within approximately 24 business hours.
