The General Directorate of Internal Taxes (DGII) announced the update of the exempt amounts applicable to the real estate tax (IPI) and the new limit to classify the low cost housingreflecting the inflation adjustment corresponding to 2025.
According to an official statement, the maximum sale price of homes developed by low-cost trusts, including those from the Ciudad Juan Bosch project acquired through mortgage loans, will be 5,193,655.47 pesos. This value will allow purchasers to opt for the housing voucher and be exempt from the transfer tax.
As for the IPIproperties intended for housing and unbuilt urban plots belonging to natural persons will be exempt from the tax if their value does not exceed 10,190,833 pesos, indicates the collecting entity.
According to the first tax resolution of the year DDG-AR1-2025-00001, issued by the DGII On January 14, 2025, the new values for 2025 They are established as follows:
- IPI exemption: properties with a value equal to or less than 10,190,833 pesos
- low cost housing: limit of 5,193,655.47 pesos
This adjustment explains the DGIIits purpose is to maintain the balance in fiscal policyensuring that the exempt amounts reflect inflationary variations in the real estate market. This benefits property owners by updating the limits for tax exemptions.
The historical evolution of the price of low-cost housing
In 2024, the cap for low cost housing or economic was 5,025,380.75 pesos. The new limit (5,193,655.47 pesos) represents an increase of 168,274.72 pesos, equivalent to 3.34%.
Since 2011, when the maximum price for this type of housing was 2 million pesos, the value has increased 159.68% in 14 years, reaching an absolute difference of 3,193,655.47 pesos.
The Law 338-21which modified several articles of Law 189-11, establishes that buyers of their first home, through low-cost trusts accredited by the National Housing Institute (INVI), may receive a bonus equivalent to the value of the tax on transfers of industrialized goods and services (Itbis) paid for the materials and services used in the construction of the property.
With the resolution now in force, taxpayers must consider these values when calculating their taxes for 2025. In addition, these adjustments will be decisive in the mortgage loan application processes to acquire low-cost homes.
This value will be determined by the INVI, in coordination with the DGII. To benefit, the purchaser must request this bonus through the fiduciary that manages the corresponding low-cost housing trust. This amount will serve as a complement to your initial payment for the purchase of the home.
The DGII will finance the compensation for the Itbis, paid in the process of construction of the home, from the Special Tax Refund Fund established. To this end, the Ministry of Finance, through the General Directorate of Budget, will include in the budget allocations granted for said fund, the estimated annual amount, indicates the law.
