- Thread starter lisagauss
- Start date
Is there property taxes for houses?
I "Heard" that you are "Supposed" to pay,if,the value is over 1.5 million pesos.
That said,I don't know anyone who pays real estate taxes on their home.
NOW, when you go to sell,that's when they will get you!
Ask "HillBilly" he know "EVERYTHING"!!!!!!
CC
That said,I don't know anyone who pays real estate taxes on their home.
NOW, when you go to sell,that's when they will get you!
Ask "HillBilly" he know "EVERYTHING"!!!!!!
CC
you guys trying to scare me? What if the house just appreciated in a rapid fashion such that it was worth nearly nothing when you bought and you got a great deal. Now that a few years have passed and you made a fortune in improvements such that when you go to sell you get a high price? Sounds good? They have not heard of capital gains down here have they?
Property tax is based on the cadastral value of the property as determined by the government, usually at much less than the market value. It is levied annually at a rate of 1% on the property’s cadastral value exceeding DOP5 million (US$130,039). Properties with values below the threshold amount are not taxed.
unless owned by a business or corporation then you pay the 1% on the full value of the appraised value.
Any problem with the evaluation or assed value by DGII, do not worry they are always willing to come out and re-value it for you especially after a sale/purchase. By the way will indicate the transfer tax you will pay, 4% on full value.
The DGII guys are Dominican too you know and are on to thier Dominican Brothers tricks as well as us guests in country.
g'luck!
So basically to sum it up, ...
If the Government values your house at $5M Pesos or more than you have to pay 1% of that every year.
If the Government values your house at less than $5M Pesos then you don't have to pay any taxes.
Correct?
one percent on the value OVER 5M pesos. i.e. if they value at 6M you pay one percent of the difference -- 1M = 10,000pesos
correct, not taxes on properties valued at not greater the 5M pesos or $150K.
A few months ago, I read there was some legislation to try to raise this cap it 6M pesos. This was about the same time when the Gov was trying to make banks charge its customers (business) when withdrawing money... or something like that..
Any ideas about this?
I also understand that there is no taxes on farm land. Please let this be true
A few months ago, I read there was some legislation to try to raise this cap it 6M pesos. This was about the same time when the Gov was trying to make banks charge its customers (business) when withdrawing money... or something like that..
Any ideas about this?
I also understand that there is no taxes on farm land. Please let this be true
I am told that 'farm land' is defined as anything outside a municipal jurisdiction.
It doesn't need to be a 'farm' per se as in animals, crops , etc.
It doesn't need to be a 'farm' per se as in animals, crops , etc.
Gracias Senor..... no tax man in my neighborhood!!!
This is important to remember when people ask about buying property..... buy on the outskirts if possible.
This is important to remember when people ask about buying property..... buy on the outskirts if possible.
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I have to pay taxes on my big house because it's so obvious but I have many other properties in which taxes have never been requested...and I don't feel like volunteering!
Ok, I have this friend and when he bought his house the lawyers under valued the propery such that he did not have to pay taxes. My friend is close to selling his house. What happens to him when the house sells for a great deal more than he declared he paid at time of purchase? Will my friend be subject to capital gains tax? Or as cc said "when you go to sell thats when they will get you". How?
Properties held in the name of an individual are subject to an annual property tax ("IPI") of 1% of government-appraised value in excess of RD$5,000,000 pesos except for unbuilt lots or farms outside city limits and properties whose owner is 65 years old or older, who has registered it in his or her name for more than 15 years and has no other property.
If the property is held by a corporation, no property tax is due. Instead, the corporation must pay a 1% tax on corporate assets. However, any income tax paid by the corporation will constitute a credit toward the tax on assets, so that if corporate income taxes paid are equal to or higher than the taxes on assets due, the corporation will have no obligation to pay taxes on its assets.
If the property is held by a corporation, no property tax is due. Instead, the corporation must pay a 1% tax on corporate assets. However, any income tax paid by the corporation will constitute a credit toward the tax on assets, so that if corporate income taxes paid are equal to or higher than the taxes on assets due, the corporation will have no obligation to pay taxes on its assets.
Article 289 of the Tax Code established a capital gains tax in the Dominican Republic. Contrary to the US, adquisition prices are adjusted for inflation. For example, if you bought an apartment 4 years ago for $3 million pesos and you sold it this year for $4 million pesos, while inflation during the last four years has been a cumulative 20%, the basis for the capital gains would be:
4 million pesos - 3.6 million pesos ($3 million pesos x 20%) = 400,000 pesos
Every January, the Dominican Internal Revenue Service publishes a table with the multipliers.
The current capital gains tax rate is 29%.
4 million pesos - 3.6 million pesos ($3 million pesos x 20%) = 400,000 pesos
Every January, the Dominican Internal Revenue Service publishes a table with the multipliers.
The current capital gains tax rate is 29%.