Individuals from any country may obtain a permanent residence in the Dominican Republic provided that they receive a monthly pension of at least UDS1,500 or rents (passive income) of at least USD2,000.

The Dominican special residency program for rentiers and retirees provides multiple and broad tax exemptions including: Customs tariffs for household goods and personal items from import taxes, partial tax exemption on motor vehicles, exemption from property transfer taxes on the first home purchase, 50% reduction in mortgage taxes if the lender is a regulated financial institution, 50% reduction in property taxes where applicable, exemption from taxes on dividends and interest earned locally or abroad, and 50% reduction in capital gains tax, provided the rentier is the majority shareholder of a company not engaged in commercial or industrial activities.

After obtaining permanent residence status, the permanent resident may apply for Dominican citizenship and obtain a Dominican Passport. To become a Dominican citizen there is no need to waive your previous nationality.

How do you know if you qualify for this Dominican residency incentive program? Here are some key definitions:

• Pensioner or retiree: Foreign or Dominican individuals who receive a monthly pension or retirement income from a foreign government, official body, or private company and wish to relocate to the Dominican Republic.
• Pension: Income from foreign sources derived from any earnings that constitute profit or benefit, produced by an asset or activity, as well as all benefits or profits received or accrued from assets, not justified by the taxpayer, regardless of their nature, origin, or designation.
• Rentiers: Individuals with stable foreign income from: Bank deposits or investments abroad, Remittances from foreign banking or financial institutions, Investments in foreign businesses, Rental income from foreign real estate, Interest received from securities issued in foreign currency and generated abroad, held in financial institutions legally authorized to operate in the Dominican Republic; Profits obtained from investments in securities issued in foreign and/or national currency, with the State or its institutions, provided that the capital was generated abroad and the currency exchange is carried out through any of the country’s financial institutions; Interest, income, or dividends from movable or immovable investments made in the Dominican Republic, where the principal was generated or earned primarily abroad.

The tax benefits indicated above also apply to Dominicans retired from foreign institutions or governments and to Dominicans perceiving said monthly rents, who have lived abroad for at least 10 years.

There is no minimum age requirement since applicants simply need to meet the financial and legal criteria.

Our lawyers at Arthur & Castillo have successfully requested and completed Dominican residency definite status for our clients, including immigration consulting assistance, gathering of documents and visa processes. Our Immigration professionals can provide Dominican residency application assistance, tax exemption processing, real estate legal support, investment structuring and compliance.

Do you want more information about Residence for Retirees & Rentists in Dominican Republic? Contact Us.

ABOUT THE AUTHOR: Dra. Maria Arthur Rodger is a Partner leading the Tax & Private Client areas at Arthur & Castillo Law Firm and Attorneys in the Dominican Republic. She specializes in tax and real estate advisory (Tax LLMs in Georgetown Law Center in Washington, D.C. & Universitat Pompeu Fabra in Barcelona) with more than 20 years of experience. Dra. Maria Arthur is also a CPA, Certified Bankruptcy Liquidator and Legal Interpreter.

Email: [email protected]

Disclaimer: This publication is not intended to provide legal advice or suggest a guaranteed outcome as individual situations will differ and the law may have changed since publication. For specific technical or legal advice on the information provided and related topics, please contact the author.

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