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Thread: Property Taxes

  1. #1
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    Default Property Taxes

    Greetings all,
    I am researching hard to see if a vacation rental / eventual residence in Sosua or Cabarete area would be a
    good investment for me. I was reading about property taxes. The price range I am looking at is $USD200,000 -
    250,000. It is my understanding that property taxes are only levied for the excess amounts over DOP$ 6.5 M
    (USD 150,000). However, I also understand these amounts are based on "cadastral" value which is often much less. Can anyone confirm or correct this for me or share any personal experiences? Thanks.

  2. #2
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    correction: "cadastral value is much less than market value.

  3. #3
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    Confirmed.

  4. #4
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    I looked at a place in Arabacoa, and a friend in Moca whose wife is an attorney said taxes are real low compared to
    the US. I do find it strange that most areas appear to be un-zoned in the DR (half million $ homes on one side of the street, andshacks on the other.
    I like the DR, but I don't think the RE market has bottomed yet.
    I plan to look further when I come back this Summer.

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    Quote Originally Posted by Linda A Perez View Post
    If you want to know about property tax related issues prior to buying or selling a property or a house, it would be ideal to consult a real estate lawyer in Toronto.
    Ehhhhh? Did I miss something? What does DR real estate have to do with a lawyer in Toronto?


    With that being said, does anyone know the rate of taxation for properties that are over that 6.5 mil mark?

  6. #6
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    EddieC: I am not sure about the market bottom but I have looked at other Carribean locations and DR seems to be a value.
    Linda and Petey: I am an American in Ohio. There are a lot of Canadians down there, so that is not a bad assumption. And the tax rate as I understand is 1% over the 6.5M.

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    Wow, that is pretty cheap. I wonder how long it will be that way before some politician thinks its a great idea to raise it to "fix" something broken with the country.

    Here's one for all you guys....Is the DR successfully enforcing that property tax?

  9. #8
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    Property Taxes are assessed on the value of the physical land as well as "mejoras".

    Depending on what part of the country the property is in may determine how the valuation is done, but in the house we live in, when it was purchased DGII came out and inspected and put a valuation on it and charged the 4% transfer tax accordingly. That did suck
    yes.


    For personal property, the exemption was RD$5M, there was talk that was to be raised, I can not confirm if it has or not.

    Additional, Realestate owned by a company is taxed for full Valuation at 1 %, no RD$5M or other exemption.

    Yes they successfully enforce property taxes as well as all other taxes and are getting much better and sofisiticated at it every single year.

    g'luck

  10. #9
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    Good point to be made about the tax on company holdings always being charged and at full valuation with no exemption.

  11. #10
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    Mr. AE's cousin was here a couple of weeks ago, he's the owner of a Real Estate company in SD. We got to talking about the fact that houses in the campo are/were exempt from RE taxes. I haven't heard this anywhere else, but he said that DR is now combining RE assets for taxation. In other words, people with homes in SD [which are taxable] and also own a home in the campo somewhere for weekends, have the value of the campo home added to their taxes. Whereas someone like us with just a home in the campo is exempt.

    He says because of this some people are selling their weekend retreats. Probably some good buys out there.




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