Can someone explain further on how the Gvt. figures property taxes on homes in DR? I understand that there is an exemption on the first RD$5 Million, however, it appears that the laws are set on the amount of metros/solar/zona vs. the actual appraised market value of the home. So let's say a home sales for RD$11 million, but it could well be declared at under RD$5 million on solely its metro/solar configuration and its zona....Anybody extrapolate on this?...Gracias.
- Thread starter jimmythegreek
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Property Taxes In DR...
To the best of my knowledge, there is no specific formula. The agency charged with setting the property tax rate has no published metric.
Looks like Castellamonte is correct, but I'm, sure some formula exists in a draw some place 
Property Taxes
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 asset. 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.
Dominican Republic Real Estate - Buying Property
Property Taxes
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 asset. 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.
Dominican Republic Real Estate - Buying Property
The exemption is based on the Gvt. appraised value, which is conducted by the Dominican Tax Agency ("Direcci?n General de Impuestos Internos"). This appraised value has nothing to do with the property's real market value or the value obtained upon its appraisal by an independent appraiser.
For more info feel free to go over the Real Estate Property Tax section of Guzman Ariza's Dominican Tax Overview at An Overview on Dominican Tax Law.
Looks like Castellamonte is correct, but I'm, sure some formula exists in a draw some place
I suspect there is a Dominican random number generator someplace. The basis of a property tax needs to be the independently appraised value of the property. This is something that does not exist, or exist reliably, in the Dominican Republic.
When a property I know was asked to finally pay a property tax, they negotiated a different value and therefore a different rate. They have done this for the past four years and I don't see it changing. So maybe the metric has more to do with the size of the propina than the value of the land?
Real estate property taxes (1%) are paid yearly at the local IRS office ("Direcci?n General de Impuestos Internos"-DGII). You have the option of either paying it in full on or before March 11th or paying it in two 50/50 installments (March 11th and September 11th).
As explained in previous posts, the basis for this tax is the government appraised value of the property, not its actual market value or independently appraised value. You do not get a "bill"; a filing needs to be made at the local IRS office. If you don't speak Spanish and don't have experience dealing with tax matters in the DR I suggest that you contact an attorney or an accountant here who'll have the filing and payment made on your behalf.