Property taxes

How does the government communicate to property owners the yearly amount of property taxes? I have lived in Sosua for 2 years and recently sold my condo. I knew about the $150,000 threshold on property value so since I never received a bill, I thought there were no taxes due. What a surprise at closing - I actually owed $2200 for 2 years taxes plus interest and penalties of $1800!! Just want to understand what I did wrong so it doesn't happen again when I buy a property.
Sadly nothing is as we think it should be here!   I have never seen anyone get notified so I am not sure how its done.  Someone else will chime in and we will all learn!
Sadly you don't get notified by the goverment. I tend to guide my clients that purchase properties on their yearly taxes (especially if it's in the name of a corporation).

I recommend soliciting a IPI certificate from the DGII on the properties on a yearly basis to not get this surprise.

@Titus Krause thanks, can u be more specific. I don't know what these initials stand for.

@markrosenbaum51 the DGII is the tax department (Dirección General de Impuestos Internos).

And Impuesto Patrimonio Inmobiliario, known as IPI. It is an annual tax that is applied to the total sum of the encumbered real estate assets registered by individuals and Trusts (corporations).

@Titus Krause thanks much for the explanation

@Titus Krause Do you know the process when building a home? We purchased the undeveloped land in early 2020 and then started building our home in 2021. It's still not quite finished, but I'm assuming at some point we need to report to DGII had we now have a home on the previously empty lot? Or will they know that because of the permits obtained prior to construction?

They know nothing, presume nothing...lol  Then when you sell...BAM
@ddmcghee In case of building on a empty lot, once the building is completed the construction plans should be submitted at the tax office. Soliciting an appraisal to up date the property value.

The reason many get "surprises" in the DR once they sell, is that property values get up dated (more frequently lately, especially in areas with many transactions). The DGII uses a Google Earth system, and update properties via satellite, so if you add a pool to your property and don't declare it; they may have already up date the values in the system.

kind regards,
Titus Krause
Can the situation of exemptions on rural property taxation and owners over 65 be explained? And current value threshold?

@lennoxnev What is the property tax?

It is an annual tax that is applied to the total sum of the encumbered real estate assets registered by individuals and Trusts.

Who is subject to the payment of this tax?


     Individuals and Trusts


Fees to pay


     Individuals: a rate of 1% is applied on the excess value of (RD$8,829,763.30) of the encumbered assets.
     Trusts: 1% of the total value of the taxed estate.

This tax is paid in two (2) semi-annual installments, with the deadline for the payment of the first installment being March 11 and the second on September 11 of each year.



What is an encumbered estate?

     Properties that do not enjoy any exemption and at the same time have a joint value greater than (RD$8,829,763.30).
     For trusts, any property that does not enjoy an exemption regardless of its value.


Filing and Payment Date

The Real Estate Tax Affidavit (IPI) must be submitted during the first sixty (60) days of the year.

Payment must be made in two installments (Or paid all together):

     The first installment must be paid on March 11.
     The second installment must be paid on September 11.


What properties can be reached by this tax?

     All homes.
     Urban lots.
     Properties intended for commercial, industrial and professional activities.


Exemptions

They are exempt from paying this tax:

     People over 65 years of age with a single real estate property intended for housing are exempt from paying the Property Tax (IPI).      Legal basis: Law 18-88, Arts.  2 and 6;  Law 171-07, Article 2.
     Pensioners and rentiers from foreign sources by 50%.
     Rural land.
     Improvements for agricultural use located on rural land.
     Properties exempted by special laws (eg Law 158-01).
     All properties reached, whose joint value is equal to or less than RD$8,829,763.30​.​

Thank you for these answers!
Great post thanks for the information
Thanks a lot for the information, very valuable.
You are very welcome! If you wish more in-depth information on taxes in the DR; don't hesitate to message me.
Thank you Titus!