The full list of property taxes in Puerto Plata in 2025

Authored by the expert who managed and guided the team behind the Dominican Republic Property Pack

Yes, the analysis of Puerto Plata's property market is included in our pack

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THE LATINVESTOR

A team specialized in real estate investing in LATAM countries

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Puerto Plata. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At TheLatinvestor, we explore the Dominican Republic real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Puerto Plata, Santo Domingo, and Punta Cana. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

Fact-checked and reviewed by our local expert

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Gigi Tea 🇩🇴

Realtor, at RealtorDR

Her extensive knowledge of Puerto Plata's diverse neighborhoods and investment opportunities sets her apart as an expert. Gigi will guide you to the best properties while ensuring the buying process is stress-free and enjoyable. Our conversation with her led us to revisit and improve the blog post, correcting details, expanding sections, and including her personal insights.

What are all the property taxes you can encounter in Puerto Plata in 2025?

Puerto Plata property owners face seven main taxes and fees charged by either national or municipal authorities in 2025.

The national tax authority (DGII) charges a 1% annual property tax (IPI) on residential values above RD$10,190,833 ($166,000), payable in two installments on March 11 and September 11. Companies and trusts pay 1% on the full property value with no exemption threshold.

Property buyers pay a 3% transfer tax calculated on the official cadastral value (not purchase price) at closing, also collected by DGII. Property sellers face capital gains tax at regular income rates up to 27% on any profit from the sale.

For inheritance situations, DGII charges a 3% inheritance tax on the total estate value, due within 90 days of death. Gift taxes apply at 25% for non-family transfers, though close family members receive exemptions.

Municipal authorities in Puerto Plata collect a US$1 tourism fee per visitor (mainly affecting short-term rentals) and various garbage collection fees that are typically included in utility bills.

How does the annual property tax (IPI) work in Puerto Plata for 2025?

The annual property tax (IPI) in Puerto Plata applies a 1% rate only on property values exceeding RD$10,190,833 (approximately $166,000) for individual owners in 2025.

Individual property owners combine the total cadastral value of all real estate they own in the Dominican Republic, then subtract the RD$10,190,833 exemption threshold. The 1% tax applies only to the amount above this threshold, creating significant savings for properties under this value.

Companies, trusts, and LLCs receive no exemption and pay 1% on the full cadastral value of all properties they own. The taxable value includes both land and building components as determined by the official cadastral assessment, with no deductions allowed for mortgages, improvements, or maintenance costs.

The cadastral value combines the assessed worth of the land parcel plus the replacement cost of any buildings, updated annually by DGII using inflation data, exchange rate changes, and local market conditions.

Property owners must file and pay this tax in two equal installments: 50% by March 11 and 50% by September 11 each year.

How often are official property values updated in Puerto Plata?

The Dominican Republic's tax authority (DGII) updates official cadastral property values annually, typically announcing new rates and thresholds in January for the current tax year.

DGII sets these values using data from the Central Bank, Cadastre Office, and local inflation statistics to adjust both the exemption threshold and individual property assessments. The RD$10,190,833 exemption threshold for 2025 reflects this annual adjustment process.

No published caps exist limiting how much cadastral values can increase each year, meaning properties may see significant assessment changes based on market conditions, infrastructure improvements, or currency fluctuations.

Property owners receive updated tax bills each year reflecting these new values, but the government doesn't provide advance notice of specific increases. The adjustment formula follows national inflation rates and may include additional market-based modifications through new DGII resolutions.

This annual update system means property taxes can vary substantially from year to year, particularly for properties in rapidly developing areas like Puerto Plata's coastal zones.

What exemptions and reductions can homeowners claim in Puerto Plata for 2025?

Exemption Type	Qualifying Amount/Criteria	Duration/Time Limit
General Individual Exemption	Up to RD$10,190,833 (~$166,000)	Annual, automatic
Primary Residence (65+ only)	Full exemption if sole property	As long as criteria met
CONFOTUR Tourism Projects	Full IPI and transfer tax exemption	10-15 years from approval
Low-Cost Housing	Properties under RD$5,193,655 (~$85,000)	Permanent
Agricultural Use	Officially classified rural/agricultural land	While maintaining agricultural use
Foreign Pensioners	50% IPI reduction with proper documentation	Annual renewal required
Family Gift Transfers	No gift tax between close family members	Per transaction

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When are the payment deadlines for property taxes in Puerto Plata in 2025?

Puerto Plata property owners must pay their annual IPI tax in two equal installments: March 11, 2025 and September 11, 2025, with no early payment discounts available.

Property transfer taxes must be paid before the title can be transferred at closing, requiring payment through your notary or attorney to DGII as part of the purchase process. This payment cannot be delayed or installmented.

Inheritance taxes require filing and payment within 90 days of the property owner's death, with forms available at DGII offices. Capital gains taxes from property sales must be reported during the annual income tax filing period following the sale.

Municipal tourism fees for short-term rentals are due ongoing throughout the year, while garbage collection fees are typically included in monthly utility bills when applicable.

Property owners can pay IPI taxes online through the DGII portal, at authorized banks, or at designated payment centers, but must first generate proper authorization codes through the official system.

What happens if you pay property taxes late in Puerto Plata?

Late payment of property taxes in Puerto Plata triggers automatic penalty interest at 11.1% per year (approximately 0.925% per month) compounding monthly until full payment.

Property owners who miss the March 11 or September 11 deadlines for IPI payments begin accumulating this penalty interest immediately, with no grace period provided. The 11.1% annual rate compounds monthly, meaning a RD$50,000 tax bill grows by approximately RD$4,625 after one month and continues accelerating.

Additional fixed fines may be assessed depending on the specific tax type and duration of delay, though DGII doesn't publish exact fixed penalty amounts for 2025. These penalties add to the monthly interest charges.

The government doesn't send automatic reminder notices, making it entirely the property owner's responsibility to track payment deadlines and avoid these rapidly accumulating charges.

Late payment penalties also prevent property owners from obtaining tax compliance certificates needed for selling, refinancing, or transferring property until all outstanding amounts are paid in full.

Which taxes apply when buying property in Puerto Plata in 2025?

Property buyers in Puerto Plata face a 3% transfer tax calculated on the official cadastral value (not the purchase price) that must be paid before title transfer at closing.

This transfer tax goes to the national tax authority (DGII) and typically represents the largest closing cost for buyers. For example, a property with a cadastral value of RD$15,000,000 ($244,000) requires RD$450,000 ($7,300) in transfer tax regardless of the actual purchase price.

Legal and notary fees add another 1-2% of the transaction price, varying by attorney and complexity. Property registration with the government requires additional fixed fees ranging from RD$10,000-15,000 ($160-245) depending on the specific documentation required.

Properties approved under CONFOTUR tourism incentives receive complete exemption from transfer taxes for 10-15 years, providing substantial savings for qualifying projects. Buyers must verify CONFOTUR status and ensure proper documentation at closing to claim this exemption.

All closing taxes and fees must be paid before title transfer can occur, with payments made through the closing attorney or notary to ensure proper governmental processing.

What taxes apply when selling, gifting, or inheriting property in Puerto Plata?

Property sellers in Puerto Plata pay capital gains tax at regular income tax rates up to 27% on any profit from the sale, calculated as the difference between sale price and original purchase cost plus allowable improvements.

Sellers can deduct their original purchase price, documented improvement costs, and certain transaction expenses from the sale price to determine taxable gains. This capital gains tax must be reported during the annual income tax filing period following the sale.

Property gifts between non-family members trigger a 25% gift tax on the property's full value, while transfers between close family members (spouse, children, parents) receive complete exemption from gift taxes.

Inherited property carries a 3% inheritance tax on the total estate value, due within 90 days of the original owner's death. Heirs must file the proper inheritance tax forms at DGII offices and pay this tax before gaining clear title to inherited property.

All these transactions require proper documentation and filing with DGII, with penalties applying for late filing or payment of any required taxes.

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Do foreigners face different property tax rates in Puerto Plata?

Foreign property owners in Puerto Plata pay exactly the same property tax rates as Dominican citizens, with no nationality-based surcharges or additional fees applied to ownership or annual taxes.

The 1% IPI rate, 3% transfer tax, and all other property-related taxes apply equally to foreign and domestic buyers. Foreign buyers face no restrictions on property ownership in Puerto Plata and follow the same closing process as local buyers.

Companies, trusts, and LLCs (whether foreign or domestic) pay 1% IPI on the full property value without the RD$10,190,833 exemption that individual owners receive. Foreign corporate entities must provide additional documentation for anti-money laundering compliance and proper company registration.

Foreign pensioners or annuitants may qualify for a 50% reduction in IPI taxes with proper documentation proving their pension status, though policies may vary and require annual renewal.

The main difference for foreign buyers involves additional paperwork requirements during closing for compliance checks, but tax rates and payment deadlines remain identical to those for Dominican citizens.

What municipal fees apply to property owners in Puerto Plata?

Puerto Plata municipal authorities charge a US$1 tourism fee per visitor, primarily affecting short-term rental operators and hotels rather than regular homeowners in 2025.

Garbage collection and sanitation fees are typically modest and included in monthly utility bills for most residential properties, though specific amounts vary by neighborhood and aren't published as fixed universal rates for 2025.

Short-term rental operators may require business permits and tourism operation licenses with variable fees depending on the specific project, property size, and rental frequency. These permits help fund municipal infrastructure improvements and tourism development.

Larger developments or commercial properties may face additional municipal charges for waste collection, street maintenance, or special assessments, but standard residential properties typically see minimal separate municipal fees beyond utilities.

Property owners planning to operate vacation rentals should consult with Puerto Plata municipal offices to understand specific permit requirements and fees for their property type and intended use.

What documents do you need for property registration and tax payments in Puerto Plata?

1. **Property registration and ownership transfers require:** - Property title certificate (Certificado de Titulo) - Copies of buyer and seller identification (cedula or passport) - Signed sales contract (Contrato de Venta) - IPI tax compliance certificate from DGII - Taxpayer identification number (RNC for companies, cedula for individuals)2. **Tax payment documentation includes:** - Evidence of transfer tax payment - Property registration fee receipts - Municipal clearance certificates when applicable - CONFOTUR approval documents for tourism incentives - Bank payment confirmations or DGII portal receipts3. **Exemption claims require specific documentation:** - Proof of age and primary residence status for senior exemptions - Agricultural land classification certificates for farm exemptions - CONFOTUR approval documentation for tourism incentives - Pension documentation for foreign retiree benefits4. **Government fees for processing:** - DGII filing and registration fees approximately 1-2% of transaction value - Fixed processing fees ranging from RD$10,000-15,000 for standard transactions - Notary fees varying by attorney and complexity5. **Municipal permit documentation:** - Business licenses for short-term rental operations - Tourism operation permits for vacation rental properties

No additional government fees apply for most primary residence exemptions, though proper documentation must be maintained annually to continue receiving benefits.

Can you show exact tax calculations for different property scenarios in Puerto Plata?

These worked examples use a mid-2025 exchange rate of US$1 = RD$61.5 for calculation purposes, though actual rates at transaction time should be used for compliance.

**Example A: Owning a Condo Valued at RD$15,000,000 ($243,900)**

Annual IPI calculation: 1% × (RD$15,000,000 - RD$10,190,833) = RD$48,091.67 ($782.78) total annual tax. Payment schedule: RD$24,045.83 ($391.39) due March 11 and RD$24,045.83 ($391.39) due September 11. This property would be exempt from IPI if it qualifies as a primary residence for owners over 65, CONFOTUR tourism project, or agricultural land designation.

**Example B: Buying a Villa for RD$20,000,000 ($325,200)**

Transfer tax at closing: 3% × RD$20,000,000 = RD$600,000 ($9,756). Legal and notary fees (estimated 1.5%): RD$300,000 ($4,878). Annual IPI for following year: 1% × (RD$20,000,000 - RD$10,190,833) = RD$98,091.67 ($1,595). Total first-year costs: RD$998,091.67 ($16,229). CONFOTUR-approved properties would eliminate both transfer tax and ongoing IPI, saving RD$698,091.67 ($11,351) in the first year alone.

**Example C: Inheriting a House Worth RD$12,000,000 ($195,100)**

Inheritance tax: 3% × RD$12,000,000 = RD$360,000 ($5,854). This tax must be paid within 90 days of inheritance. Future annual IPI: 1% × (RD$12,000,000 - RD$10,190,833) = RD$18,091.67 ($294) per year. The inheritance tax applies to the full property value regardless of the IPI exemption threshold.

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Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

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Sources

1. Linda Bahar - Comprehensive Overview of Property Taxes in Dominican Republic
2. Punta Cana Villa - IPI Property Tax Exemptions and Benefits
3. RealtorDR - Dominican Republic Property Tax Guide
4. Ulises Cabrera - DGII Tax Changes for 2025 Fiscal Year
5. FormaLaw - Real Estate Property Tax Guide
6. TheLatinvestor - Dominican Property Taxes Overview
7. PwC Tax Summaries - Dominican Republic Corporate Taxes
8. Dominican Today - Puerto Plata Tourism Fee Implementation
9. ICLG - Understanding CONFOTUR Law Benefits
10. Chambers Practice Guides - Dominican Republic Real Estate 2025