If you’re buying in Punta Cana, one of the first questions worth answering is simple: will I owe an annual property tax, and how much? The short answer is that the Dominican Republic does have a property tax — the IPI — but it works differently from what most foreign buyers expect, and in many cases a CONFOTUR property pays nothing for years. This guide explains the rate, the threshold, how it’s calculated, who’s exempt, and the details that quietly affect what you actually pay.
We are not selling property. The goal is to give you an accurate, plain-English picture so you can budget honestly.
What the IPI is
IPI stands for Impuesto al Patrimonio Inmobiliario — the tax on real-estate patrimony. It is an annual tax administered by the Dominican tax authority, the DGII, and it applies to individuals who own real estate whose total value exceeds an exempt threshold set each year.
The single most important thing to understand is that the IPI is charged on your total Dominican real estate above a threshold — not on every property from the first dollar. If the combined value of what you own sits under the threshold, you owe nothing.
The two numbers that matter (2026)
- The rate is 1% per year, charged only on the value above the threshold.
- The 2026 exempt threshold is RD$10,695,494 — roughly US$182,000, depending on the exchange rate. The DGII raises this figure every year for inflation; for 2026 it rose about 5% from the prior year.
So the IPI is not 1% of your property’s whole value. It’s 1% of the portion that exceeds the threshold.
How it’s actually calculated
Take a single property worth US$300,000, owned by an individual with no other Dominican real estate:
| Step | Calculation | Result |
| Property value | — | $300,000 |
| Less exempt threshold | − $182,000 (approx.) | $118,000 |
| IPI due (1% of the excess) | 1% × $118,000 | ~$1,180 per year |
If that same property were CONFOTUR-certified, the IPI would be $0 for up to 15 years. You can see that difference instantly in our [CONFOTUR Calculator].
A property worth less than the threshold — and held by someone with no other Dominican real estate — owes no IPI at all.
The detail most buyers miss: it’s aggregate, not per-property
The threshold applies to the combined value of all your Dominican real estate, and the exemption is subtracted only once. Two apartments worth US$150,000 each are not “two properties under the threshold” — they’re US$300,000 of patrimony, and the IPI is calculated on the total above the exemption. Plan around your whole DR portfolio, not each unit in isolation.
When and how it’s paid
- A sworn declaration is filed within the first 60 days of the year.
- The tax is paid in two equal installments: the first by March 11, the second by September 11.
- Payment is made through the DGII platform or authorized banks. Late payment triggers surcharges and interest, so the dates matter.
- Note: a certificate showing your IPI is current is typically required to sell the property later — staying paid keeps a future sale clean.
Who is exempt
- CONFOTUR properties — exempt from IPI for up to 15 years (the cornerstone benefit covered in our CONFOTUR guide).
- Property below the threshold — no IPI owed.
- A primary residence of someone over 65, when it is their only property.
- Foreign-source pensioners and rentistas — a 50% reduction, subject to conditions.
- Rural agricultural land.
What about buying through a company?
This is where a common assumption misleads buyers. Companies don’t pay IPI — but that’s not a loophole, because a company instead pays the Impuesto sobre Activos (assets tax). Holding property through a corporation changes which tax applies, not whether you’re taxed. Whether personal or corporate ownership is better depends on your situation; confirm it with a Dominican accountant rather than assuming the company route is automatically cheaper.
What foreign buyers should watch
- The DGII values the property, not your purchase price. The IPI is based on the tax authority’s cadastral valuation, which can differ from what you paid. You can check a property’s assessed value through the DGII before you buy.
- The threshold moves every year. A figure that exempts you today may not in a few years as values and thresholds change. Budget with a margin.
- CONFOTUR exemption is time-bound. The up-to-15-year clock runs from the project’s approval — so confirm how many years remain, not just that the project “has CONFOTUR.”
- Keep it current. Unpaid IPI accrues penalties and can complicate a future sale.
Frequently asked questions
Do foreigners pay property tax in the Dominican Republic? Yes, the same as nationals. If your Dominican real estate exceeds the exempt threshold, you owe IPI at 1% on the excess — unless an exemption such as CONFOTUR applies.
How much is the IPI? 1% per year on the value of your Dominican real estate above the exempt threshold (RD$10,695,494, roughly US$182,000, in 2026). Below the threshold, nothing.
Is the 1% charged on the whole property value? No. Only on the portion above the threshold, and across your total DR real estate, with the exemption applied once.
Does CONFOTUR remove the IPI? Yes — a CONFOTUR-certified property is exempt from IPI for up to 15 years from the project’s approval.
When is it due? In two installments each year: March 11 and September 11, after filing the annual declaration within the first 60 days.
Do I pay IPI if I buy through a company? No IPI — but the company pays the assets tax (Impuesto sobre Activos) instead. It’s a different tax, not an exemption.
See your IPI and CONFOTUR savings on any price → [Open the CONFOTUR Calculator]
This guide is educational and does not constitute legal or tax advice. The IPI threshold and rules are set by the DGII and change annually. Valuations are determined by the DGII and may differ from purchase price. Verify your situation and any exemption with a qualified Dominican attorney or accountant before deciding.
