Property Taxes

jr46812000

New member
Feb 25, 2014
4
0
0
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.
 

EddieC

New member
May 8, 2003
85
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0
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.
 

jr46812000

New member
Feb 25, 2014
4
0
0
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.
 

PeteyPablo

Bronze
Apr 30, 2011
726
1
0
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?
 

donluis99

Bronze
Jul 12, 2004
721
16
0
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
 

windeguy

Platinum
Jul 10, 2004
42,211
5,966
113
Good point to be made about the tax on company holdings always being charged and at full valuation with no exemption.
 

AlterEgo

Administrator
Staff member
Jan 9, 2009
23,097
6,247
113
South Coast
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.
 

EddieC

New member
May 8, 2003
85
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0
Good information.
If this is real, it may well be time to look around for a deal.


Sent from my iPad using Tapatalk HD
 

drescape24

Bronze
Nov 2, 2011
1,918
0
36
Confirmed also. I don't pay property taxes on either of my properties. I hope it stays that way. Haha
 

bob saunders

Platinum
Jan 1, 2002
32,503
5,932
113
dr1.com
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.

which is why you divide your assets between family members, if you can each other.
 

Expat13

Silver
Jun 7, 2008
3,255
50
48
correction: "cadastral value is much less than market value.

I saw this comment as well but is still subject to Dominicanisms. I paid what was considered a little less than market value based on comparables etc.
The no tax limit i believe now is 6.5m pesos, at that time it was 5m pesos I believe. I paid about 8ish plua invested a fair bit as terminations were not complete.
The "cadastral value" was somewhere in the 10+ million area. So maybe they maid a typo and they actually grease you far above the 'cadastral or market value". Just another screw the gringo event i guess.
 

LTSteve

Gold
Jul 9, 2010
5,449
23
38
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.

Yes you are correct. There will be no annual property taxes at this value. I believe you pay some tax down the road if you decide to sell. When looking an investment property just make sure security is sufficient in the neighborhood you are in. If you will not be in the DR then make sure you have a property manager who you can rely on to take car of any problems that come up. Good luck and good travels.
 

Lissa

Member
Aug 7, 2003
111
2
18
www.lldesigndr.com
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.
I have a property valued at USD$200k located in Santo Domingo, and I pay for it around USD$260 twice a year (This tax is called IPI). If I don't pay the tax twice a year or yearly when I decide to sell it I have to pay all the accumulated taxes plus interest...