Dominican Residence for Retirees and Rentists
Applying for a special residency by investing the Dominican Republic, or a special residency for pensioners or rentiers of foreign source income, constitutes a legal privilege that exempts its beneficiary from the procedure of previously applying for a temporary residence in the Dominican Republic. This implies a series of administrative facilities for the solicitant, such as a more expedite process and the waiver of guarantor and witnesses confirming solvency in the event that the foreign resident in the Dominican Republic is repatriated.
In addition to the administrative facilities mentioned above, Law 171-07, dated April 10th of 2007, provides for a series of tax incentives for pensioners and rentiers that have the intention of permanently residing in the Dominican Republic. Such tax exemptions include the tax on the transfer of the first real estate purchased, as well as partial exemptions on annual real estate property tax, registration of a mortgage, and on the potential capital gains tax derived from the sale of such real estate.
On the other hand, and after the residency request for pensioners or rentiers has been approved, the same may benefit from the exemption of customs duties on the import of personal effects, home furniture and equipment used in professional activities, as well as from partial or total tax exemption on the importation of a vehicle or first local purchase, respectively.
Among the requirements to apply for residency as pensioners or rentiers, applicants must receive a minimum monthly income from foreign source of USD1,500 and 2,000, respectively. Such requirement should not be complied with whenever a minimum of USD200,000 is invested in the Dominican Republic, and registration of the same is made before the Center of Export and Investment (unless such investment falls under the umbrella of a special incentives regime).
In conclusion, the Dominican Republic has the legal framework to propel and facilitate investment flow to the country. Its cultural diversity, natural and technological resources make of it an ideal place for retreat and retirement.
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