“Discover the investment rules to invest in the Dominican Republic”
Foreigners receiving a monthly pension (bank investments, income, etc.) or a pension in their country of origin; or who invest more than USD 200,000.00 in the Dominican Republic, and who intend to settle permanently in the Dominican Republic, can since 2007 opt for the Special Residence Program (Residence Permit) for investment: there is no minimum age, since as long as conditions are met. Apart from the permanent residence permit; precious sesame these days, and that allows you to apply for Dominican nationality 2 years later, the tax advantages are numerous:
• 1) Exemption from real estate registration fees (3% -> 0%) for the acquisition of the first property;
• 2) Exemption of 50% of Income Tax (ISR) on profits from the sale of real estate (Note that if it is the main residence for more than 3 years, a provision of RD$2,536,080.00 remains to be made);
• 3) Exemption of 50% of mortgage installments (2% -> 1%), if the lender is a financial institution authorized for such purposes;
• 4) 50% exemption from Real Estate Property Tax (1% -> 0.5%), applicable to the portion of real estate assets that exceeds RD$ 7,710,158.20 (Note that owners over 65 years of age whose main residence is their only real estate are in any case exempt from this tax);
• 5) Exemption from ISR on such life annuities or pensions: in fact, it should be noted that normally, after 3 years of residence, resident foreigners must pay ISR on their income of foreign origin from investments or financial gains;
• 6) Exemption of 50% of the ISR of the utility derived from the alienation of the shares of a company of which the rentier is the majority shareholder, for not being dedicated to commerce or industry;
• 7) Exemption from customs duties on the import of personal effects and household furniture, as well as used office and professional furniture and from 20% to 60% of the customs duties on the import of the personal vehicle, subject to its possession for more than one year in the country of origin; or acquisition in the Dominican Republic of a car exempt from ITBIS (IVA) and ISC (Selective Consumption Tax).
In the case of retirees, those interested must present a certificate from the organization that paid them said amounts, translated into Spanish by a sworn translator before the Supreme Court of Justice of the Dominican Republic and duly apostilled. If they are rentiers, they must demonstrate that their income is stable, providing proof of their existence during the five years prior to the application, such as contracts and account statements.
The process is normally fast: the law provides for a maximum period of 45 business days from the request. But we all know that these deadlines are often exceeded. Once the residence permit has been obtained, it can be easily renewed after one year (in 8 days), providing proof that the funds are, as promised, regularly in the Dominican Republic.