property tax

[philly]

So what is the deal with property tax in the DR? I have conflicting information....what else is new....


Is there any uniform tax law on land, homes, farms?

Who collects it? do you get a bill in the mail? any school tax or the like?

Thanks in advance.

[Peter & Alex]

Don't know what others pay but for my property in Cabarete .....
Pay a "land tax" (?) every 6 months in Sosua at the Municipal offices. Sometimes RD$1,300 and recently RD$ 1,016??? Bill goes direct to my lawyer, he calls me and either arranges for it to be paid or I go collect the bill and go pay myself. It's peanuts so I don't rock the boat.
We have the property set up as a company and do an annual tax return but declare the company as non-functioning and to date, touch wood, have had DR IRS nil tax stamped on the papers? Again, I do not rock the boat!
That's just my experiences - right or wrong it's all that we've come up against so far!!!
I'm sure that someone else has different experiences and that some clever poster will give you a much more formal response and lay out all the taxes due?

[Ken]

Generally speaking, property taxes are not the big source of revenue in the DR like they are for state and local governments in the US. One reason is that property is not a measure of wealth here. There are lots of Dominicans who own property who don't have the money to pay taxes.

[Escott]

Ken, do you pay taxes like Peter and Alex?

Wonder if I should be but thought that there wasn't any taxes due if value is under a certain amount.

[philly]

thanks for the info that is interesting that they actually mail you a bill

I own two properties in the DR one solar in Santiago (about 5 years now) and a home in Santiago that I just purchased ( haven't paid the 36000RD yet to switch to my name)

I was wondering though what others were experiencing...when I bought the solar the lawyer told me there were no taxes on it...so far I haven't heard from anyone about taxes on it so was just wondering....like wise on the home recently purchased the only tax I have encountered so far is the transfer tax (not sure if that is what it is called) but they say I owe them like 36KRD to get my title....

Will I continue to be responsible for taxes on that home? It is tierra propio.

anyone familiar with the IRS in the US will understand my concern...

thanks for any clarification or sharing any of your personal info

[Fabio J. Guzman]

A new law was enacted this year amending the previous property tax (IVSS) statute. Beginning in 2004, all unbuilt urban lots will be taxed 1% per annum. Dwellings valued at more than RD$3,000,000 will also be subject to a 1% annual tax but only on the amount in excess of RD$3,000,000. For example, a RD$5,000,000 house will be taxed RD$20,000 pesos annually (1% of RD$2,000,000).

By the way, I have obtained details of the new law from a secondary source. The government’s official gazette is months behind.

Fabio,

I understand the concept of taxing all vacant lots. I have paid them yearly in POP for vacant lots I own. (It is better to have a small house on a lot, then you don't have to pay at all).

What I don't understand is the tax on the value of dwellings over $3,000,000. peso value. (It was lower before).

Who decides what the house is worth and when?????? How would someone know whether they need to pay the tax???? What if you haven't paid taxes in the past since you didn't meet the "threshold" but now do and still don't pay. When and how will they find out and how will they know how far back to go????

Thanks