Homepage  Sales  Rentals   Vacation Rentals   Property Management   Sell Your Property   Our Team

Home►Buyer's Guide Directory►Buyer's Guide Benefits and Exemptions

Buyer's Guide: Living in the Dominican Republic, Benefits and Exemptions

The Dominican Republic with its numerous resources, is well positioned as an ideal place for foreigners wishing to purchase property, work, invest, and retirement destination. Whether you are looking to invest or just relocate, the Dominican Republic offers different types of residency options to meet your needs.

Once you obtain your Dominican Residency, whether it is temporary or permanent, you immediately acquire a number of benefits granted by the Dominican Republic, which include major incentives which include the following:

• Customs tax exemption  on home furnishings and personal property  that includes appliances, furniture, etc… if owned at least one (1) year previous to importing these items;
• No longer required to pay for a tourist card upon entering the country;
• You are able to work legally in any company in the country;
• You will have completed the first step to obtain your Dominican citizenship, if interested.

One of the best and recent developments in the Dominican Republic in foreign investment has been the creation and publication of the Law on Special Incentives for Foreign Pensioners and Annuitants (Law 171-07).  Foreign retirees and annuitants, who wish to reside in the Dominican Republic and enjoy their pension from abroad, can apply for benefits and incentives granted by the law indicated. To do this, pensioners must receive a monthly income of not less than One Thousand Five Hundred U.S. Dollars (U.S. $ 1,500.00), and the Annuitant shall receive a monthly sum for Two Thousand Dollars (U.S. $ 2,000.00) or its equivalent in local currency .-

The exemptions and benefits in the legislation referred to above include:

• Exemption from taxes on home furnishings and personal property (Law 143-93) .
• Partial Tax Exemption of motor vehicles (Act 168, amended by Law 146-00) .
• Exemption from transfer taxes on real estate transfers for the first property acquired;
• Exemption from taxes on the payment of dividends and interest generated in the country or abroad;
• 50% exemption of taxes on mortgages, financial institutions regulated by the Monetary and Financial Law, acting as creditor;
• 50% exemption of tax on property, where it applies, and
• 50% exemption of capital gains tax when the Pensioner or Annuitant is the senior partner in the society.

Information submitted by: Lic. Angel David Lebron Santos  |  LEBRON & JIMÉNEZ
Phone:  (829) 875-9878  |  Email: alebron@lebronjimenez.com  |    Web: www.lebronjimenez.com

*Courtesy translation provided by Punta Cana Lifestyles Real Estate.

For more information about this or any legal issues pertaining to Real Estate Purchasing, contact us using the form below.