The annual levy imposed on real estate holdings within the Dominican Republic is based on the assessed value of the property. This assessment, typically lower than market value, considers factors such as location, size, and improvements. For example, a beachfront villa in Punta Cana will likely have a higher assessment than a similar-sized property inland. The revenue generated supports municipal services and infrastructure development.
This system plays a vital role in funding local governments and ensuring the continued development of the nation’s infrastructure. Stable and predictable revenue streams from these levies enable municipalities to invest in essential services such as road maintenance, sanitation, and public safety. Historically, these funds have also contributed significantly to broader national development goals. A well-functioning system fosters transparency and accountability, attracting foreign investment and contributing to a healthy real estate market.
