Real Estate Wealth Tax (IPI)

The Real Estate Tax (IPI) is an annual tax levied on the value of real estate owned by individuals and trusts in the Dominican Republic. Below, I'll detail the most important aspects:

Who should pay the IPI?

• Natural persons: Owners of real estate whose total value exceeds the exempt amount established by the General Directorate of Internal Revenue (DGII).

• Trusts: Trusts are subject to paying the IPI regardless of the value of their properties.

How is the IPI calculated?

• The IPI rate is 1% of the value of the taxed real estate assets.

  • For individuals, it applies to the value that exceeds the exempt amount established by the DGII.

  • For Trusts, 1% of the total value of all their properties applies.

• The value of real estate is determined by the National Cadastre Directorate.

When and how is the IPI paid?

• The IPI is paid in two semi-annual installments:

  • The first installment must be paid no later than March 11.

  • The second installment must be paid no later than September 11.

• The Real Estate Tax Declaration (IPI) must be submitted during the first sixty (60) days of the year.

• Payment can be made through the DGII Virtual Office, at DGII offices, or at authorized banks.  

Which properties are subject to the IPI?

• Housing.

• Urban plots.

• Properties intended for commercial, industrial and professional activities.

Exemptions:

• The home (and the land on which it is built) belonging to persons over 65 years of age, provided that it constitutes the owner's sole real estate asset.  

• Pensioners and foreign-source annuitants (50% exemption).

• Rural lands and improvements for agricultural use thereon.

• Properties exempt by special laws (such as Law 158-01 on Tourism Promotion).

• All properties affected, whose combined value is equal to or less than the exempt amount established by the DGII.

Additional information:

• It's important to stay up-to-date on exempt amounts and current regulations, as they may change.

• The General Directorate of Internal Revenue (DGII) is the agency responsible for administering and collecting this tax.

Navetta Properties