KenDP or others

Re: your cost of living (NY sucks)post, could you give a very general idea of what type of lifestyle a single older male, let's say 60 or so, could have on 50, 100, or 150 K per year? Is US income taxed in any way? It might be simpler to compare what 100k lifestyle in NY is like compared to 100k in SD etc. Just curious, if it's not too much trouble. - Thanks - DW

Is US income taxed in any way?
Any way they can get it!

There is absolutely no way to compare an income of US$100,000 a year in the USA to one of $100,000 pesos a year in DR. The USA income would be a middle income family budget. While the Dominican 100K in pesos would be a very low income family. However, if you are talking about $US 100,000 in both countries, now that is a big difference. You certainly would be in the category of almost millionaire status in Santo Domingo with that kind of income, while far outpacing in disposable income a person of equal value in the USA. And your income in the USA would be taxed at a 40% rate, while in DR it would be less, and perhaps not at all depending on how that income is earned here. For instance, if it is earned from Investment Certificates, you pay no taxes.

Thanks - I did mean US$ both in US and DR. Income would be from interest and Social Security. How about 50 & 75 K? - DW

On 50K US you could live comfortably. That is more than my income.

The trick if you don't have unlimited income is to live on the economy. By that I mean forget about the exchange rate. Tourists are always saying, "that's only $2 US", or something like that. Instead, think about whether you want to spend 35 pesos. I don't mean you have to squeeze every peso, but when spending RD$100, keep in mind you are spending 100.

If you do work here, or anywhere outside of US, for a national company (rather than a branch of a US company) you can earn up to approx US$70,000 tax free. You have to report income, but there are special tax forms for this.

I get social security and it is subject to tax. Annuity payments or similar from investments in US are reported by payer and subject to tax.

We live better here on our income than I could in the US. And certainly our condo is far beyond our price range there. One reason I stay here is that I couldn't afford to live there. (But that is only one of the reasons.)

DW: You will not be taxed, by the US IRS that is, on anything you make under US$74,000 (as of 2001 tax year).

Anything you make above that will be taxed at the appropriate rate, but reduced by the level of taxes you can prove you paid (if any) to a foreign government. The IRS does not make distinctions between money earned overseas and that earned 'at home'.

so if you move to DR what would be a sufficent amount of money you should have, for say a three month time span? of course to live comfortably?

Cost to live for three months

I say about $1000USD per month will do you well on the north coast in the Sosua/Cabarete area. This totally depends on what you plan on doing for extra-curricular. $500US will get you a very nice place to stay, with backup power, security, pool, possibly on the beach, possibly a/c...A/C is not a must in the winter, but depends on you.

You can definitely make due with less...just like anywhere in the world, you have such a wide range of living conditions. It is a very broad question, so I have to throw all of these disclaimers in here!!

Being from Canada, I am guessing you want to come down, enjoy the sun, get away from the snow, hang out under some palm trees, learn spanish...close? $1000USD will leave you pretty comfortable in this area for this type of vacation. Hopefully someone from the capital can help with the cost of living down there (the dark side ), but I am pretty sure cost of living in SD is higher than up here.

marc

Re: Cost to live for three months

hi marc, thanks for the info, i went to SD and sure it's beautiful but i think i would like PP, sosua, in that area, as far as getting away from it all, you hit the nail on the head(canadian lingo) actually the price really doesn't differ too much from here, when you are speaking in us dollars...know of any good places to stay? thanks again........

Re: Cost to live for three months

Drop us an email at home with some more info about what you are looking for and we can give you some ideas around Sosua/Cabarete.

marc