The IPI is a property tax that applies to all properties in the Dominican Republic. This tax is paid annually and is based on the property’s value. However, there are certain exemptions to this tax. Let’s see who is exempt from paying the IPI.
Individuals exempt from the Real Estate Asset Tax (IPI)
There are two groups of individuals who are exempt from paying the IPI property tax: those whose property or properties do not exceed the amount of RD$8,829,763.30 (2022), and those who have reached the age of 65, as long as the only property they own is a residence.
The first group of individuals includes anyone whose total property value does not exceed the specified amount. This amount is adjusted for inflation each year, so it’s important to check if it is updated. For 2022, the maximum property value for exemption purposes is RD$8,829,763.30. If an individual owns multiple properties, the values of all of them must be combined to see if they exceed the limit. If the total value does not exceed the limit, then that person is exempt from paying the IPI.
The second group of individuals includes those who have reached the age of 65. However, this exemption only applies if the person owns only one residence. If a person owns multiple residences, they are only exempt from paying the IPI on one of them. The exemption applies regardless of whether the house is their primary residence or not.
If you own property in the Dominican Republic, you are required to pay an annual tax called the IPI. However, there are certain exemptions to this tax. Exemptions from paying this tax include individuals whose property or properties do not exceed the amount of RD$8,829,763.30 (2022), and individuals who have reached the age of 65, as long as the only property they own is a single residence. For more information on this topic, consult with a qualified tax professional.
