The purpose of this law is to grant the foreign retirees and investors who decide to settle in the Dominican Republic the same benefits and the exemptions granted by Dominican law to foreign citizen investors resident abroad.
The beneficiaries of this law are:
-- Rentiers: People who enjoy stable and permanent income, not less than the sum of US$2,000.00 or its equivalent in Dominican pesos, coming from abroad.
-- National or foreign seniors or retirees who benefit from a monthly income, not less than US$1,500.00, from a pension or retirement from a government, official body or private company of foreign origin, who have decided to transfer their permanent residence to the Dominican Republic.
-- Foreigners who reside in the Dominican Republic and acquire the status of rentiers.
-- Dominicans pensioned by institutions abroad who prove to receive the income listed above, provided they have permanently lived abroad for a period of not less than ten (10) years.
-The benefits granted by this Law:
-Residence by Investment: this program allows foreign investors, pensioners and rentiers to obtain Dominican residence within a period of 45 working days;
-Tax exemption for household goods and personal goods, which allows foreigners who enter the country, with the purpose of establishing their residence, to bring their household goods tax-free;
-Partial exemption from taxes applicable to the importation of used motor vehicles, as long as their owner has at least one year of use;
-Exemption from the payment of real estate transfer taxes, on the first property acquired
-Exemption from the payment of Income Tax with respect to the amounts that have been declared as income to avail themselves of the benefits of the Law;
-Exemption of 50% of taxes on mortgages, as long as the creditor is a financial institution regulated by the Monetary and Financial Law;
-Exemption of 50% of the tax levied on the payment of dividends;
-Exemption from capital gains tax, as long as the renter is the majority shareholder of the company that must pay this tax and that it does not carry out commercial or industrial activities.
-Exemption from the payment of the Transfer Tax on Industrialized Goods and Services (VAT) and Excise Tax for the acquisition of motor vehicles in the Dominican Republic.
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