If you’ve been considering moving to the Dominican Republic (DR) or buying an investment property on the island, you should understand the basics of the DR’s property tax. Luckily, Casa Linda is here to help! With decades of experience assisting expats in moving to the DR, we understand some of the questions and complexities our future residents may face when it comes to their villa’s property tax.

Below is a quick overview of the property tax in the Dominican Republic. Keep reading to find out more. 

Overview of Property Tax in the DR

Property tax in the Dominican Republic, or “Impuesto Sobre Bienes Inmuebles” (ISBI), is based on the value of your property, with the tax rate varying depending on the municipality. However, the tax rate in the DR is typically around 1% of your property’s value. Your property’s value is based solely on the building and land, not your furniture or equipment. 

When determining how much you’ll pay in property taxes, it’s important to note that the 1% is calculated only for values exceeding 6,858,885.00 DOP (about $150,000. This amount is adjusted annually for inflation). Anything under that amount is essentially free of charge. This means most Casa Linda villa owners only pay between $1-2K yearly in property taxes. 

In the Dominican Republic, real estate taxes are payable yearly on or before March 11. Still, even this is flexible as you also have the option to pay in two equal installments (50% on or before March 11. The remaining on or before September 11). However, these are a few circumstances in which property are exempt from paying real estate taxes. For instance, farm properties, homes whose owner is 65+ years old and has no other property in their name, and properties owned by companies (they pay a separate tax on company assets) are all exempt. 

If you have any questions regarding your potential property tax when moving to the Dominican Republic, Casa Linda can help you connect with a trustworthy and experienced accountant who can walk you through the details. 

Consequences of Non-Compliance

One thing to remember regarding property taxes in the Dominican Republic is that avoiding paying for them can result in steep penalties. A considerable amount of many residents’ property tax payments come from unpaid taxes. So, as an expat looking to invest in real estate in the DR, it is essential that you keep track of your taxes to avoid costly penalties or issues with the Dominican Republic tax authorities. And if you need assistance, working with a qualified accountant is always a good idea! 

Customizable Luxury Villas at Casa Linda

If you want to invest in a property to call home, Casa Linda’s luxury villas are an incredible option! Our villas are entirely customizable to your lifestyle, tastes, and needs. With our in-house design team, we can work with you to craft the luxury villa of your dreams. Our villas have a stunning view of the DR, a pool, terraces, large windows, and high ceilings. With options to add additional bedrooms or a guest house, Casa Linda’s villas are a beautiful home away from home! 

Making Your Dream Home a Reality

If you’ve been considering moving abroad and living a life of luxury in an island paradise, then the Dominican Republic is calling your name! Let Casa Linda help you design your dream home today! 

Contact Casa Linda today to find out more about our customizable villas!

Casa Linda is home to a large community of expat retirees who live full-time in the Dominican Republic! If you are packing up your whole life and moving to another country, your new home should be suited for full-time living rather than a vacation home.

Continue reading to learn about the top five villa customizations Casa Linda recommends to any retiree considering buying a villa in Sosua, Dominican Republic, for full-time living.

Walk-In Closet

For Casa Linda’s snowbird owners, a regular closet is okay because they are only on the island for the winter. However, if you and your partner consider permanently relocating to the Dominican Republic, you’ll want all the space you can get!

The first customization we highly recommend to our full-time owners is expanding the master bedroom’s closet into a walk-in closet. Your wardrobe will undoubtedly expand as you establish a life in the Dominican. It’s better to have more storage, even if you don’t need it right now. After all, when has extra storage space ever been a bad thing?

Kitchen Island

A universal truth is that the kitchen is the heart of the home. Whether that’s back in your home country or a new friend’s kitchen in the Dominican, the kitchen is a gathering place! Food is an integral part of Dominican culture, and that comes with the responsibility to host gatherings and barbecues where everyone comes together to eat, drink and be merry.

Trust us– you’ll want a kitchen island if you live full-time at Casa Linda! It adds extra seating, storage and counter space for meal preparation. Casa Linda’s team of in-house architects will guide you through the customization process. Whatever your specifications are, our team will do everything to make your vision come to life!

From the island’s layout to the countertop material, owners have complete stylistic control!

Additional Storage Room

Every Casa Linda floor plan includes a detached service building for the pool equipment and extra storage space. But, as we said earlier, additional storage is always good, especially for full-time residents and retirees. If you love decorating your home with the seasons, you will need a place to keep your decorations!

Adjustments can be made to the service building to increase the amount of storage space, like increasing the overall square footage and adding built-in shelving.

Jacuzzi

What paradise would be complete without a jacuzzi to soak in after a long day of surfing or hiking through the mountain trails? Jacuzzis are a very popular villa addition amongst our retirees, for a good reason! Retirement is all about kicking your feet up, being stress-free and living the good life.

Imagine going for a late-night soak in your jacuzzi: the jets massaging your aches and pains away, a cool tropical breeze blowing through your hair, the twinkling night sky, and an ice-cold cerveza in your hand. Life is good, especially at Casa Linda.

Your Villa, Your Way

Over the last 40 years, Casa Linda has been home to a growing community of expats from all over the world. Casa Linda’s gated community is located between the lovely beach towns of Sosúa and Cabarete on the north coast of the Dominican Republic.

You can choose between 15 different villa models that are customizable to your taste. Outside of your budget, the only limit is your imagination!

Ready to take the plunge? Contact Casa Linda today to learn more about buying a villa in Sosúa, Dominican Republic.