Dominican Republic — Property: Property Taxes

Key facts

• The transfer tax is 3% of the total value of the property acquired, under Art. 7 of Law 173-07, and is a requirement for registering ownership at the Real Estate Registry.
• An additional RD$20 applies under Law 33-91.
• The tax must be paid within 6 months of the date of the transfer deed; after that, late-payment surcharges and compensatory interest apply.
• The owner must be up to date with the Impuesto al Patrimonio Inmobiliario (IPI) or the Asset Tax, as applicable, before a transfer.
• A property cannot be transferred if it has fines or earlier real estate operations with taxes unpaid (transfer, succession, gift, mortgage).
• Transfers of unregistered properties are not subject to the transfer tax.
• Payment is made through authorised banks (internet banking or counter) or DGII local offices. The guide does not state the IPI rate or threshold.

Steps

1. Step 1: Research Property Taxes — Research the municipality where the property is located to determine if property taxes are levied and what the rates may be. However, note that reliable information on this topic is difficult to find.
2. Step 2: Determine the Property's Value — Determine the value of the property in order to calculate any potential property taxes. However, the exact method for determining property value is unclear.
3. Step 3: Pay Property Taxes — Pay any property taxes due to the municipality. However, the exact process and payment methods are unclear.