How much is property tax in the Dominican Republic?

It is 1% per year, charged only on the assessed value above the exemption threshold (RD$10,695,494, about $182,000 USD, for 2026). A property assessed at or below the threshold owes no IPI.

Do foreigners pay property tax in the Dominican Republic?

Yes, at the same rate as Dominican citizens. There is no higher rate for foreign owners — the 1% IPI and the ~$182,000 threshold apply equally.

Is Dominican property tax 1% of the full value?

No, and this is the most common misconception. The 1% applies only to the portion of assessed value that exceeds ~$182,000, not the whole property.

Annually, in two equal installments, typically due in March and September. Payment is filed through the DGII.

How do I avoid IPI legally?

The main routes are owning below the threshold, qualifying for the 65-and-over primary-residence exemption, or buying a CONFOTUR-certified property, which is exempt for up to 15 years.

Is property tax based on purchase price or assessed value?

On the assessed (cadastral) value set by the government, which is usually lower than market price — so your real bill is often less than 1% of what you paid.

Legal & TaxJune 24, 20267 min readby Evalua Editorial Team

Property Tax in the Dominican Republic (IPI): The 2026 Foreign Buyer's Guide

How the Dominican Republic's annual property tax (IPI) works in 2026 — the 1% rate, the ~$182,000 exemption threshold, who pays nothing, payment deadlines, and how CONFOTUR eliminates it.

Stone villa with pool at sunset in the Dominican Republic

Last reviewed: 2026. Tax law, thresholds, and deadlines can change, and the IPI threshold is adjusted annually for inflation. This page is for informational purposes only and does not constitute legal or tax advice. Verify all figures with a licensed Dominican attorney or tax advisor before any property transaction.

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