2
Feb

In other articles, we have explored the different benefits of the Incentives and Tax Exemptions available for holders of Residence Visa in the Dominican Republic by Investment through Law 171-07  in the category of:

1. Retiree ; and
2. Rentier

One of the most important reasons is the different Tax Exemptions granted to beneficiaries of these categories. IMPORTANT TO REMEMBER: the tax levied on INCOME GENERATED ABROAD applicable to persons domiciled or residing in the Dominican Republic, on:

• Investment income; and
• Financial earnings

If you have a Residence Visa by Investment in the Dominican Republic under the category of Renters or Retirees, you would be exempt from being taxed for these incomes in the legislation that has said investment (if applicable). Additionally, beneficiaries of a residence for RENTERS and RETIREES are granted the following exemption benefits in the Dominican Republic:

• Exemption of the Customs Tariff of the Dominican Republic, from the payment of taxes on household goods and personal property.
• Partial exemption from motor vehicle taxes.
• Tax exemption on real estate transfers for the first property acquired.
• 50% tax exemption on mortgages, when the creditors are financial institutions regulated by Monetary and Financial Law.
• 50% Property Tax Exemption when applicable.
• Exemption from taxes that levy the payment of dividends and interest, generated in the country or abroad.
• Exemption of 50% of the Capital Gain Tax, as long as the rentier is the majority shareholder of the company that is subject to the payment of this tax. Additionally, said company cannot be engaged in commercial or industrial activities.

Requirements to obtain a Residence Visa for Investment in the Dominican Republic under the category of Rentier or Retiree

Obtaining this type of residence is very easy, if you can prove that you meet the requirements. The criteria in question is the following:

1. Rentier: Receive no less than Two Thousand Dollars (USD$2,000.00) monthly, through any of the following means:

A) Real Estate Income: Rental of a property which generates this monthly amount.

B) Dividends: Investments in companies abroad, which generate this amount.

C) Real estate purchases in the Dominican Republic of a value of no less than Two Hundred Thousand Dollars USD$200,000.00 (this only applies to the immigration process).

D) Utility Profits on Financial Investments such as Investment Certificates, Stock Exchange Investments, and Trusts, among others.

You may qualify by way of any of these options, simply by providing documentation as proof.

2. Retired: Receive no less than One Thousand Five Hundred Dollars (USD$1,500.00) monthly.

For each dependent defined in Article 5 of this law who applies jointly with the main applicant, an additional monthly income corresponding to the sum of two hundred and fifty US dollars (US$250.00 ) will be required.

Example of Tax Exemption

If you already have a Dominican Republic Residence by Investment for Retirees and Rentiers, and you are interested in buying your first house, the Transfer Tax for acquiring that Property is three (3%) of the value of said purchase or appraisal by the DGII. However, with this type of residency, you would be exempt from paying this tax, as long as the request is made correctly through the General Directorate of Internal Taxes and the Ministry of Finance.

Important note:

• To apply for this type of Residence by Investment there is no minimum or maximum age requirement, you simply need to prove that you do have eligibility.
• If you have a criminal record, it is imperative to document the situation and demonstrate that you have integrated into society appropriately, so in the end, a criminal record should not be a limitation.
• If you have a special health condition or any disease that may affect national security, you must present proof to demonstrate that you have the appropriate treatment and awareness of said illness.

In any of these cases, the right path to follow is to have a legal consultation with an attorney specialized in Immigration Law for foreigners in the Dominican Republic, to avoid a potential denial of your application for a Residence Visa and Permanent Residency.