The IPI is an annual tax applied to the total value of an individual’s real estate assets. The tax rate is 1%, and the tax is due on December 31st of each year. For example, if you have properties with a combined value of RD$10,000,000.00, your IPI tax would be RD$11,702.37.
What is IPI?
It is an annual tax with a 1% rate applied to the total sum of real estate assets registered by individuals. The purpose of this tax is to finance the national budget and help cover the country’s expenses.
Who has to pay the IPI?
All individuals who own real estate in the Dominican Republic are required to pay the IPI. This includes properties under exclusive ownership, co-ownership, or rental.
What is considered property for IPI purposes?
For IPI purposes, property includes any land or building owned or leased by an individual. This encompasses both residential and commercial properties.
How is IPI calculated?
IPI is calculated based on the total value of an individual’s real estate properties. The tax rate is 1%, and the tax must be paid by December 31st of each year.
For example: If you have properties with a combined value of RD$10,000,000.00. Subtract RD$10,000,000 – RD$8,829,763 = RD$1,170,236 * 1% = RD$11,702 would be the IPI tax to be paid in the year 2022.
If you own property in the Dominican Republic, you are obligated to pay the IPI each year. This annual tax helps finance the national budget and cover expenses such as infrastructure and public services. The tax rate is 1%, and the tax is due on December 31st. You can calculate your IPI fee by taking the total value of your real estate assets and multiplying it by 1%.
