The Dominican Republic levies an annual tax on real estate holdings within its borders, known locally as the Impuesto al Patrimonio Inmobiliario (IPI). This levy applies to the assessed value of land, buildings, and other improvements, with certain exemptions and varying rates depending on the property’s worth. For instance, primary residences valued below a certain threshold are typically exempt. This system generates revenue crucial for funding public services and infrastructure projects across the nation.
This real estate levy plays a vital role in supporting local governments and municipalities, enabling them to provide essential services such as education, healthcare, and public safety. Historically, the system has undergone reforms to improve efficiency and transparency. A stable and predictable system of real estate taxation not only ensures consistent revenue streams for the government but also contributes to a healthy real estate market by promoting responsible property ownership.
