IPI, Property Tax
The Property Tax, also called IPI, is an annual tax that is applied to the total amount of the taxed real estate that individuals and Trusts have registered.
Who is subject to the payment of this tax?
- Natural persons and Trusts
What is an encumbered estate?
The properties that do not enjoy any exemption and at the same time have a joint value greater than (RD $ 8,138,353).
For trusts any property that does not enjoy an exemption regardless of its value.
What properties can be reached by this tax?
- All the houses
- Urban plots
- Properties for commercial, industrial and professional activities
Tax – Rate
- Natural persons: a 1% rate is applied on the surplus value of RD $ 8,138,353 of the taxed assets.
- Trusts: 1% on the value of real estate.
This tax is paid in two (2) semiannual installments, with the deadline for the payment of the first installment on March 11 and the second on September 11 of each year.
Among the exempt properties and therefore excluded from taxed assets, are:
- The house (and the plot on which it is built) belonging to people over 65 years of age, provided that this is the only real estate property of its owner.
- Pensioners and rentiers from foreign sources by 50%.
- The rural lands.
- Agricultural properties located on rural land.
- All properties that can still be reached by the tax, its joint value is equal to or less than RD $ 8,138,353
Real estate transfer
To carry out the transfer of a property, you must present documents as appropriate in the Appraisal Unit of the Local Administrations of the DGII.
The Appraisal Unit will verify the deposited documentation and authorize the payment of the transfer, with which the taxpayer may approach the cash unit of any local administration to make the payment within 30 days (not exceeding December 31 of the current year). In the event that the taxpayer does not make the payment during the indicated time, he must approach the Appraisal Unit again so that the payment is authorized once again.
The transfer tax rate is three (3%) of the value of the property or property.
The buyer may make the payment corresponding to the real estate transfer tax without surcharges and interest, within a period of 6 months from the date the transfer of the property was perfected, in accordance with the provisions of Law No. 18- 88.
For more information on real estate taxes, appraisal, real estate transfer, appraisal or discharge of real estate, please contact us. With great pleasure we will help you.