Property Tax is coming to our neighborhood

NYerinDR

Member
Jan 9, 2004
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Just got a big surprise from our lawyer that does our annual company tax. This year the tax department have re-evaluated our house value and now we have to pay US $5,000.00 this year.

We been paying only 10,000 Peso per year for the house since we brought the house.

The house is own by a LLC, that is what the lawyer advice us to do at that time. I know the land assessment department had visited our neighborhood this year. Has anyone got any experience like this ?
 

popeye

Bronze
Jan 22, 2016
609
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Just got a big surprise from our lawyer that does our annual company tax. This year the tax department have re-evaluated our house value and now we have to pay US $5,000.00 this year.

We been paying only 10,000 Peso per year for the house since we brought the house.

The house is own by a LLC, that is what the lawyer advice us to do at that time. I know the land assessment department had visited our neighborhood this year. Has anyone got any experience like this ?

5,000 usd? nice place or valued crazy.
 

Derfish

Gold
Jan 7, 2016
4,441
2
0
5,000 usd? nice place or valued crazy.

Maybe some politico wants to buy your place for unpaid taxes. That is the way it was done in several Central American countries, until they wrote it into the constitution that real estate taxes were not allowed.
 

NYerinDR

Member
Jan 9, 2004
134
13
18
Maybe some politico wants to buy your place for unpaid taxes. That is the way it was done in several Central American countries, until they wrote it into the constitution that real estate taxes were not allowed.

My lawyer told me that we are not being single out. It is happening to some other houses that she handles as well.

It is time to move back home. But the property tax is a lot higher at home!! A $5,000.00 per year tax for a vacation home to live a couple months a year is getting a bit expensive......
 

Derfish

Gold
Jan 7, 2016
4,441
2
0
My lawyer told me that we are not being single out. It is happening to some other houses that she handles as well.

It is time to move back home. But the property tax is a lot higher at home!! A $5,000.00 per year tax for a vacation home to live a couple months a year is getting a bit expensive......

You can rent a comfortable apartment for that amount in Puerto Plata.
Der Fish
 

malko

Campesino !! :)
Jan 12, 2013
5,545
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We need a dr1 poll/survey thingy.....

Who pays propety taxes ?
And where ?
And how much ?

My wife used to grudge propety taxes back in france ( and there are 2, propety owner and habitation ), pointing out that in the dr we didnt have any of that.
I pointed out that we had high pressure, potable water, pavements, cycling lanes, lots of flowers, free library, free translortation ( its a small village, and they have an on-demand mini bus pick up ), free biblioteca........ and thats without gettimg into police, education, electricity, fire brigade......( yeah I know, other taxes ).

So if thats anything to go by, I should start paying propety taxes sometime around the year 2147.... :)
 

Kipling333

Bronze
Jan 12, 2010
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I think the property taxes still start when the value is more than 6 million pesos.The level may have risen a small amount in the last year but not by much . The first instaaallment is due in early March and if you are late they charge big interest. I do not use a lawyer for this but simply go to the office of Impuestos Internos and get the assessment . I pay property taxes also but mine has been stable for 5 years . $5000 is nothing . many Dominicans never pay this property tax but prefer to have a negotiation with the Tax department when they sell the house and then the Tax department used to reduce years of outstanding taxes just to get something. All part of this dreadful habit in many latin countries of trying to avoid social obligations such as due tax. No wonder the government has to raise taxes elsewhere .
 

malko

Campesino !! :)
Jan 12, 2013
5,545
1,327
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I think the property taxes still start when the value is more than 6 million pesos.The level may have risen a small amount in the last year but not by much . The first instaaallment is due in early March and if you are late they charge big interest. I do not use a lawyer for this but simply go to the office of Impuestos Internos and get the assessment . I pay property taxes also but mine has been stable for 5 years . $5000 is nothing . many Dominicans never pay this property tax but prefer to have a negotiation with the Tax department when they sell the house and then the Tax department used to reduce years of outstanding taxes just to get something. All part of this dreadful habit in many latin countries of trying to avoid social obligations such as due tax. No wonder the government has to raise taxes elsewhere .

The value of what ? The house ? The land ? The house and the land ?
And who decides the value ? Just wondering cos for insurance they "estimated" the value of mine, at least 5 times higher than the real value.

Thanks.
 

malko

Campesino !! :)
Jan 12, 2013
5,545
1,327
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Yeah thanks dv8, was reading that, but its not very clear.

I get the part about the house >6.8 million pesos. It gets complicated when it says " includes the land where the house is built ". Meaning the superficie of the house ? Or includes gardens, garages, swimming pool...etc ? Includes conuco ? Includes left-to-fend-on-its-own-land ?

It also doesnt stipulate who values the house ? Otherwise, OK, my house is worth 3 million pesos, period. :)

I'd go even futher by saying it smells like a fishy tax. 1 % of the value....independantly of where you live ? ( town, countryside, etc....) Lol.
I am more used too propety taxes being a local tax ( and getting a nice booklet on how they are spent ).
No way I am going to volunteer to pay propety taxes so they can build some uslees ( to me )metro in SD, in the best case, or line the politicoladrones thievieng pockets....thank you very much.

Also, when you buy land and build something on it ( cos there is no constructable/non comstructable lands in my neck of the woods ), you pay a local tax to ayunamento, very cheap, depends on house and other stuff, say a couple of thousand pesos.
So whats that tax ?
 

MpJuly

Member
Apr 30, 2009
467
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The property taxes is on the amount after the 6 million pesos, so imagine 5000 US$, (225,000 pesos) is just 1% on the property value. But the 1% is for "the total amount of real estate assets" of that person. The value is calculed normally with this tool http://www.dgii.gov.do/servicios/consultas/Paginas/ConsultaInmobiliaria.aspx I think

I think the property taxes still start when the value is more than 6 million pesos.The level may have risen a small amount in the last year but not by much . The first instaaallment is due in early March and if you are late they charge big interest. I do not use a lawyer for this but simply go to the office of Impuestos Internos and get the assessment . I pay property taxes also but mine has been stable for 5 years . $5000 is nothing . many Dominicans never pay this property tax but prefer to have a negotiation with the Tax department when they sell the house and then the Tax department used to reduce years of outstanding taxes just to get something. All part of this dreadful habit in many latin countries of trying to avoid social obligations such as due tax. No wonder the government has to raise taxes elsewhere .
 

Kipling333

Bronze
Jan 12, 2010
2,528
829
113
6,858,885.00

Thank you DV8 with the update. I commenced my assessments by giving the office the purchase contracts of the two houses that I own . They seemed more than satisfied with that . I was so happy at what I have to pay compared to property taxes that I paid in England and in Australia and in two other places where I have had homes at various stages in my life, that I made not the slightest objection.
 
Feb 7, 2007
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it does say who values the house, DGII.

you're not the only one with those sentiments. not surprisingly, last year only 28,618 paid this tax.
http://www.listindiario.com/economi...8618-personas-pagan-el-impuesto-al-patrimonio


My understanding is that only 28,618 persons are having to pay tax, not that those persons paid tax.

Para este 2015, solo 28,618 personas estar?n grabadas por el Impuesto a la Propiedad Inmobiliaria (IPI)

... for 2015, only 28,618 will be imposed tax for real estate ...