annual property taxes

matt77y

Member
Jan 4, 2003
36
2
6
I've owned a piece of land in the hills of Coson close to Las Terrenas for 20 years. I never had to pay any property taxes for it. My understanding was this is because it is in the country side, far outside any urban development.
Last year I took advantage of the Wealth Disclosure Law. Now for the first time I got a bill for "annual property taxes (IPI)". It's about 0.5% of the land value I gave in the Wealth Disclosure Law.
Is this correct? Can someone explain the law behind it?
 

matt77y

Member
Jan 4, 2003
36
2
6
I forgot to mention: the land is currently not used for anything, so there is no construction on the land.
 

Fabio J. Guzman

DR1 Expert
Jan 1, 2002
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The fact that your lot is unbuilt does not mean you are exempt from paying IPI. The only exemptions are: (a) farm properties; (b) homes whose owner is 65 years old or older, and has no other property in his or her name; and (c) properties owned by companies, which pay a separate tax on company assets.
 

chico bill

Silver
May 6, 2016
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The fact that your lot is unbuilt does not mean you are exempt from paying IPI. The only exemptions are: (a) farm properties; (b) homes whose owner is 65 years old or older, and has no other property in his or her name; and (c) properties owned by companies, which pay a separate tax on company assets.
Where is the 65 years old law written? Does that mean it must be single family property and owner occupied - or can it be one commercial property or one apartment building also and be exempt from taxes too?
 

drstock

Silver
Oct 29, 2010
3,607
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Cabarete
Where is the 65 years old law written? Does that mean it must be single family property and owner occupied - or can it be one commercial property or one apartment building also and be exempt from taxes too?
I would like to know that too.
 

Mariahboater

SHIPWRECKED
Aug 7, 2020
189
138
43
Ontario
Property tax is based on the cadastral value of the property as determined by the government, usually at much less than the market value. It is levied annually at a rate of 1% on the property´s cadastral value exceeding DOP6,800,000 (US$144,681). Properties with values below the threshold amount are not taxed.
 

2020

Active member
Apr 10, 2012
350
70
28
Las Terrenas
The fact that your lot is unbuilt does not mean you are exempt from paying IPI. The only exemptions are: (a) farm properties; (b) homes whose owner is 65 years old or older, and has no other property in his or her name; and (c) properties owned by companies, which pay a separate tax on company assets.

is this IPI a new tax?
 

bob saunders

Platinum
Jan 1, 2002
30,578
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Propietario de VHM y/o Motocicleta
Impuesto al Patrimonio Inmobiliario
Deberá ser pagado por las personas físicas que posean bienes inmuebles con un valor en conjunto superior al monto exento de RD$8,138,353.26, según lo establecido en la Ley No. 18-88 y sus modificaciones. perhaps it is only when you buy a new car.
 

bob saunders

Platinum
Jan 1, 2002
30,578
4,004
113
dr1.com
Property tax is based on the cadastral value of the property as determined by the government, usually at much less than the market value. It is levied annually at a rate of 1% on the property´s cadastral value exceeding DOP6,800,000 (US$144,681). Properties with values below the threshold amount are not taxed.
new value is 8,829,763.3 pesos.
 

melphis

Living my Dream
Apr 18, 2013
3,069
1,194
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With respect Fabio Guzmán who is responding is one of the best property lawyers in DR.
There is no question that Fabio Guzman and his firm are exceptional lawyers. I was just stating that if you want detailed legal advice you should hire a lawyer and not use a free forum that has endless opinions
 
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