Property Tax

There is annual property tax if your house is valued at more than a certain amount (I think this is now at RD$5,000,000 but Mr Guzman knows for sure), or in the case when the property is in a metropolitan area and the building does not occupy at least 30% of the land.

Real estate in the Dominican Republic is subject to an annual property tax (?IVSS?) of 1% of appraised market value in excess of RD$5,000,000 pesos, payable every year on or before March 11. For example, a home or building appraised at RD$8,000,000 pesos will pay RD$30,000 pesos annually (RD$8,000,000 - RD$5,000,000 x 1%). It is possible to make two payments instead of one. In that case, 50% should be paid before March 11 and the balance before September 11.

The following properties are exempt from this tax:

(1) Properties valued at RD$5,000,000 or below.
(2) Unbuilt lots or farms outside city limits.
(3) Property whose owner is 65 years old or older, who has owned it for more than 15 years and has no other property in his or her name.

A.J. said:

How is valued determined? Our house was originally purchased for under 40,000 US. Even at estimated current value it is not worth 5 million pesos.

Could this be a sham?

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What did the notice say?