# IPI, the Dominican property tax

> IPI is the annual Dominican property tax: 1% above an exempt threshold, paid twice a year, waived under a valid CONFOTUR resolution. Plain-English definition.

Source: https://canakeys.com/glossary/ipi
Publisher: Cana Keys (A&M Caribbean Group SRL), Punta Cana, Dominican Republic
Last reviewed: 2026-08-27
Language: en
Licence: quote and cite with attribution and a link.

IPI (Impuesto al Patrimonio Inmobiliario) is the Dominican annual property tax on individuals: 1% per year on the portion of assessed value above an inflation-adjusted exempt threshold, payable in two instalments. Units covered by a valid CONFOTUR resolution are exempt for the project's exemption period. Company-held property is taxed under a different regime.

## Why a Punta Cana buyer should care
IPI is a holding cost, not a closing cost, so it hits net yield every single year. A brochure that quotes gross rental income and ignores IPI, HOA and management is not describing your return. Budget it alongside the HOA fee when you model the unit, and confirm the current threshold with your lawyer or accountant in the year you buy — it is adjusted for inflation.

## Common mix-up
Buyers confuse IPI with the transfer tax paid once at closing. They are separate: transfer tax is a one-off at roughly 3% of the registry value, IPI is annual. Buyers also assume the exempt threshold applies per property; for individuals it applies to the taxpayer's aggregate holdings.

## FAQ

### Do foreigners pay IPI?
Answer: Yes. IPI follows the property and the owner, not nationality. Ownership through a Dominican company is taxed under a separate corporate-assets regime.
Permalink: https://canakeys.com/glossary/ipi#do-foreigners-pay-ipi

### Does CONFOTUR remove IPI?
Answer: For units under a valid resolution, yes — for the exemption period stated in that resolution, not forever.
Permalink: https://canakeys.com/glossary/ipi#does-confotur-remove-ipi

## Related

- [IPI: the full page](https://canakeys.com/costs/property-tax-ipi)
- [All ownership costs](https://canakeys.com/costs)
- [CONFOTUR](https://canakeys.com/glossary/confotur)