The Dominican Republic as the best destination for retirees' residence!
Since last June a law has been in force which creates special incentives
to attract retirees and rentiers who receive income abroad, fostering them
to set up their residence in the Dominican Republic!
Such legislation, which entails special interest for the tourism sector,
is Law 171-07 on Special Insentives to Retirees with foreign-sourse income,
which offers them the same benefits and exemptions granted to citizens
living abroad, pursuant to the following legal provisions:
- Investment residence program, created through Decree 950, dated September 20th 2001, which enables foreign investors to obtain their definite residence within a period of 45 days.
- Law 1493, dated August 26th 1993, regarding Customs tariffs of the Dominican Republic, which exempts household furnishing and personal goods from paying taxes.
- Law 168, dated May 27th 1967, on partial exemption from motor vehicle taxes.
Moreover, retirees and renties who adhere to this law will be granted the following
benefits:
- Exemption for Real Estate transference taxes, for the first acquired property.
50% exemption from mortgage taxes, whenever the creditors are financial institutions
duly regulated by the Monetary and Financial Law.
- 50% exemption from Real Estate tax, whenever it applies.
- Exemption from taxes on the payment of dividends and interest, generated either
within the country or abroad.
- 50% exemption from Capital gains tax, as long as the rentier is the majority
shareholder of the company subject to paying this tax, and as long as such corporation
is not devoted to commercial or industrial activities.
Those who benefit from this are retirees receiving a monthly income of more than
US$1,500 and rentiers with a monthly income of over US$2,000. These concessions are applicable to the spouse and unmarried minor children, disabled children of legal age, or chidren of legal age attending university and economically dependent on their parents, and minors over whom they have acknowledged quardianship. An additional monthly income of US$250 is required for each one of these dependents.
The benefits of this Law also reach Dominican citizens who have retired from other countries' governments or institutions, as well as those citizens who enjoy an income coming from abroad.
Retirees must submit a certificate from the foreign government, official agency or private company that has granted their retirement, translated into Spanish by a judicial interpreter into Spanish by a judicial interpreter, and authenticated by the Dominican Consulate of the document's origin country.
Rentiers must prove that they enjoy permanent and stable income coming from or generated abroad, for a minimum period of 5 years. Likewise, they must submit the income agreement translated into Spanish a judicial interpreter, and authenticated by the Dominican Consulate of the document's origin country.
Furthermore, they must submit the supporting document which proves the entry of the foreign currency that generates such income to the DR.
Those people interested in adhering to this Law must register in the foreign investment sector at the General Direction of Migrations.
