Annual Property Taxes

[matt77y]

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]

I forgot to mention: the land is currently not used for anything, so there is no construction on the land.

 

[Fabio J. Guzman]

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]

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]

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.

 

[Fabio J. Guzman]

Article 2, Paragraph II, of Law 18-88, as amended by Law 288-01.

 

[Fabio J. Guzman]

The exemption applies only to a residential property inhabited by the owner.

 

[Fabio J. Guzman]

Sorry... as amended by Law 288-04.

 

[Mariahboater]

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.

 

[bob saunders]

The exemption applies only to a residential property inhabited by the owner.

Why does a new cars value get added to your property values for tax purposes?

 

[2020]

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?

 

[melphis]

Why does a new cars value get added to your property values for tax purposes?

Maybe start a thread on car taxes Bob. This one is on property tax. In my 15 years here car tax and property tax are 2 separate issues

 

[melphis]

Or hire a lawyer and trust his or her opinion and not a free forum where everyone is an expert on everything

 

[MariaRubia]

Or hire a lawyer and trust his or her opinion and not a free forum where everyone is an expert on everything

With respect Fabio Guzmán who is responding is one of the best property lawyers in DR.

 

[frenchfamilly]

Hello
Where did you get this : rate of 1% on the property´s cadastral value exceeding DOP6,800,000 ? Regarding the value of the property, I read something different for 2022, they say above RD$ 8,829,763.30 in this file.

https://dgii.gov.do/publicacionesOficiales/bibliotecaVirtual/registrados/impuestos/Documents/1-Guia%2017%20-%20Impuesto%20al%20Patrimonio%20Inmobiliario%20(IPI).pdf

Thanks for your comments.

 

[bob saunders]

Maybe start a thread on car taxes Bob. This one is on property tax. In my 15 years here car tax and property tax are 2 separate issues

Well you would be wrong. I am the one that received the email from the government.

 

[bob saunders]

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.

 

[cavok]

Don't you love how the laws here are crystal clear?

 

[bob saunders]

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]

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