Real estate taxes when buying a property in the Dominican Republic

What Is the IPI Property Tax in the Dominican Republic?

Property tax in the Dominican Republic — known locally as IPI (Impuesto al Patrimonio Inmobiliario) — is charged at 1% per year on the value of real estate that exceeds RD$10,695,494.00 in 2026. This guide explains who has to pay, when it’s due, what happens if you’re late, and who qualifies for an exemption.

How Much Property Tax Do You Pay in the Dominican Republic in 2026?

It must be paid every year, and it is calculated based on 1% of the registered value of the property, you can do it in two payments or in just one depending on your convenience. The amount to be paid is calculated on the 1% of the excess value of RD$10,695,494.00 pesos on your properties registered in Internal Taxes.

If the value of your registered properties is less than RD $10,695,494.00 pesos, you are exempt, that means that you do not have to pay this tax.

I’m going to give you an example so that you can understand it in a simple way.

Let’s imagine you own one property registered at RD$7,000,000 and another at RD$6,000,000. Your total real estate assets would be RD$13,000,000. Subtract the 2026 exemption of RD$10,695,494.00, and the taxable surplus is RD$2,304,506.

You pay 1% of this surplus, which comes to approximately RD$23,045.06 pesos.

When Do You Pay the IPI?

As I told you before, you have the possibility of paying this amount in two installments if you are a physical person in March and September and if you have the property registered under the name of a company, in April and October, your deadline for payment of the two installments, Always take into account that if you decide to do it in a single payment, it must be in March or April of each year.

What Happens If You’re Late Paying the IPI?

If you make the payment after the stipulated deadline, a 10% late fee applies on the amount to be paid, in the first month of delay.

If you are more than one month late, a progressive and indefinite 4% is added for each month, together with a cumulative 1.10% of compensatory interest.

Before You Buy or Sell: Request the IPI Certificate

In the event that you want to sell a property, it must have the IPI settled, since otherwise you will not be able to transfer that property to the buyer’s name.

Having said this, I advise you to request the IPI certification before buying the property, so you will know whether or not you have debts and, if you do, you will know how much money the IPI owner owes.

Remember to check the current tax exemption at the General Directorate of Internal Taxes, in this way you will know whether or not your property is exempt from paying the IPI.

If you’re buying a property in the Dominican Republic, it’s also worth reviewing the transfer tax and considering whether a real estate trust is an option to protect your investment.

Who Has to Pay the IPI — and Who Is Exempt?

This tax must be paid by all dwellings, urban plots and Real estate destined for commercial, industrial and professional activities.

If you do not want to pay this IPI for 15 years, I invite you to watch the video about the Confotur Law where you are exempt from this tax.

There are also some cases that should not pay this tax such as:

1. The home (and the lot on which it is built) belonging to people over 65 years of age, as long as it constitutes the only real estate assets of its owner.

2. Pensioners and rentiers from foreign sources by 50%.

3. and other cases that you can consult in the link that I leave below …

Web

DGII – IPI property tax page

Frequently Asked Questions About Property Tax in the Dominican Republic (IPI)

How much is the IPI exemption in 2026?

The IPI exemption for 2026 is RD$10,695,494.00 per individual owner. If the total registered value of your properties doesn’t exceed that amount, you don’t pay this tax.

Is the IPI paid per property or on your total real estate assets?

The IPI is calculated on the sum of all your registered properties, not on each property separately. You only pay 1% on the amount that exceeds the current exemption.

What happens if I don’t pay the IPI on time?

If you’re late, a 10% surcharge applies in the first month, plus a progressive 4% for each additional month and 1.10% in cumulative compensatory interest.

Can I sell my property if I owe the IPI?

No. To transfer a property into a buyer’s name, the IPI must be up to date. That’s why it’s best to request the IPI certification before signing any purchase agreement.

Do foreigners pay the IPI in the Dominican Republic?

Yes, any owner of registered real estate in the country — Dominican or foreign — is subject to the IPI if the value of their properties exceeds the current exemption.

How do I know if my property is exempt from the IPI?

Compare the registered value of your properties with the current year’s exemption amount at the DGII. If you’re under that amount, you’re exempt; if you’re over it, you pay 1% on the difference.