Who Pays Property Taxes in the Dominican Republic?

As a real estate owner in the Dominican Republic, you may be subject to property taxes depending on the property’s value, the owner’s age, or whether you qualify for tax incentives through specific residency programs.

Under normal circumstances, a property valued at RD$ 7,438,197 (approx.US$132,000) or more is subject to property taxes. The current tax rate is 1% of the value of the property. Therefore, the taxes of a property valued at US$132,000 would be US$1,320 for the year.

There are cases where property owners are exempt from taxes.

For example, property owners aged 65 or older are exempt from property taxes.

Property owners who have Dominican residency through the investment program are not subject to property taxes for three years. Moreover, owners who have purchased a Confotur-certified property have a 15-year tax exemption, including transfer tax or rental income. The Ministry of Tourism created Confotur as an incentive to attract foreigners to the island.

It is important to note that not paying property taxes in the Dominican Republic will result in steep penalties. Immigration lawyer Maria Abreu points out that a considerable portion of property tax payments is penalties for unpaid tax and amounts to more than the original tax owed. So, as a foreigner investing in real estate in DR, this is something that they should keep track of to avoid excessive penalties or issues with the Dominican tax authorities.

It is certainly a good idea to seek personalized advice on property taxes from an attorney specializing in Dominican real estate.

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Maria Abreu is the CEO and Managing Attorney of Abreu & Associates, a law firm practicing exclusively in Dominican Republic Immigration and Nationality law. She is also the founder of Retire and Invest DR. This organization hosts conference events for foreigners interested in living, retiring, and investing in the DR. You can contact Maria at: mabreu@abreuimmigration.com.