20
Feb

In this article we will talk about the following: 

• What is a Residency for Property Owners?
• Who can apply for a Rentier Residency in the Dominican Republic?
• What are the requirements to apply for Property Owner Residency in the Dominican Republic and how can I apply?
• Benefits of obtaining a Rentier Residence in the Dominican Republic. 

The Rentier Residence category originated from Law No. 171 of the year 2007 and is designed to grant special incentives to foreign Pensioners and Property Owners. One of these benefits is the provision of Rentier Residence, as long as it can be demonstrated that this income is coming from a foreign source.

What makes a person a Rentier in the Dominican Republic for the purpose of this topic?

Individuals who consistently receive income from abroad.

There are many types of earnings that can be considered as rental income, through which you may apply for a Residence for Property Owners in the Dominican Republic. You would need to provide documentation supporting that you receive income of that nature. Some examples of those earnings are:

• Deposits or investments in banks established abroad.

• Remittances from foreign banks or financial institutions.

• Investments in companies established abroad.

• Remittances originated from real estate.

• Interest earned on securities issued in foreign currency generated abroad, which are in financial institutions legally authorized to operate in the Dominican Republic.

• Benefits obtained by investments in securities issued in foreign or national currency, with the State or its institutions; as long as the capital has been generated abroad and the currency exchange is made in any of the country’s financial institutions.

• Interest, income or dividends on property or real estate investments made in the Dominican Republic, which has been generated or accrued mainly abroad.

Benefits of obtaining Residence for Property Owners:

• Law No.14-93, of August 26, 1993, on the customs tariff of the Dominican Republic, exempts payment of taxes on household goods and personal property.

• Law No.168, of May 27, 1967, on Partial Exemption of 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.

Who can apply for this immigration category?

Any foreign national who receives a monthly income of Two Thousand US Dollars (US$ 2,000.00) or its equivalent in national currency can qualify for this category.

In the event, your application for Residence includes a dependent, an additional monthly income of two hundred fifty US Dollars (US$ 250.00) will be required.

If you would like more information as to who is eligible to be dependent, you can click here.

Property owners will have to demonstrate that they receive a permanent and stable income from abroad, for no less than five years, through:

• A copy of the rental agreement. In addition, you would need to present a foreign remittance receipt, by a copy of the check(s) or notice(s) of the transaction from a financial entity(s) established abroad.

The steps to obtain this category are the following:

STEP 1 Apply for a Residence Visa for Property Owners in the Dominican consulate of your country of origin or in the country where you have legal status. You can see how to obtain it here.

STEP 2 Apply for a Residence for Property Owners through the General Directorate of Dominican Migration. For more information, you may access their website here.

Requirements:

• Passport with eighteen (18) minimum months of validity.

• Residence Visa (RS) with which you entered the country, granted by the Ministry of Foreign Affairs (known in Spanish as MIREX).

• Full-length birth certificate.

• In the event that the foreign national has acquired a nationality other than his nationality of origin and wishes to become a resident with this nationality, they would need to submit a copy of the naturalization. Said copy would need to be apostilled or legalized and certified by the Department of Naturalization who issued it.

• Criminal Record Clearance Certificate, issued by the competent authority of the country where they have resided in the last five (5) years, duly legalized or apostilled. This must be a Federal certification.

• Four (4) recent front view photos, size 2 x 2 and four (4) right profile photos.

• Marriage Certificate as applicable.

• Guarantee Policy.

All this documentation is to be submitted along with the corresponding documentation that demonstrates income abroad.

In this office, they proceed to:

• Authorize and perform medical examinations.
• Take photos and prints.

RESPONSE TIME:

The same law that regulates this type of residence states that the response time is Forty-five (45) days. However, this process can be delayed depending on the number of applications being handled.

STEP 3.  Request your Dominican Identity Card (known in Spanish as Cédula) at the Central Electoral Board. To learn more about that office, you can access their website: Here.

RESPONSE TIME:

One (1) hour.

That would be all you need to finish the process.

Recommendations:

The common recommendation for this process is to ensure you are properly advised by a professional in the field before you travel. You may seek those services through a law firm or a specialized lawyer, in order to avoid the following:

1. Loss of time
2. Loss of money.