Property Tax

[DavidZ]

What is the annual property tax rate for land and what is it based on...i.e. sale price, bank ordered apparaisal, goverment appraisal, etc. How, when, and to whom is it payed? Is it different for land owned in the name of an individual vs. owned by a Dominican Corporation?

Thanks!

[Fabio J. Guzman]

Real estate properties in the Dominican Republic held in the name of an individual are subject to an annual property tax ("IPI") of 1% of government-appraised market value in excess of RD$5,000,000 pesos, payable every year on or before March 11. The following properties are exempt from this tax:

1. Properties valued at RD$5,000,000 or below.
2. Unbuilt lots or farms outside city limits.
3. Property whose owner is 65 years old or older, who has owned it for more than 15 years and has no other property in his or her name.

If the property is held by a corporation, no property tax is due. Instead, the corporation must pay a 1% tax on corporate assets annually, however, any payment made in this regard becomes a credit toward any income tax due by the corporation.