Investing In Banco Central

You are required by US law to pay taxes on earned income if you are an American citizen. But there is a 70K exemption if you are a foreign resident. So I think the solution is to form a corporation and invest in the corporate name. Then withdraw the interest as earned income. It would appear to be totally legal to me..More research would be necessary. I don't know what, if any, the Dominican tax rate would be.

slug said:

You are required by US law to pay taxes on earned income if you are an American citizen. But there is a 70K exemption if you are a foreign resident. So I think the solution is to form a corporation and invest in the corporate name. Then withdraw the interest as earned income. It would appear to be totally legal to me..More research would be necessary. I don't know what, if any, the Dominican tax rate would be.

Click to expand...

I think that the corporate shield is needed because interest is passive and the 80k exemption must not be passive.

I don't think that there is currently a tax on interest income in the DR.

Just in case someone needed the web site address...and by the looks of it, seems as though they do not offer US Dollar denominated certificates.

http://www.bancentral.gov.do/index.asp

purchasing CDs from the central bank??

Hi,

Is there somebody who is familiar with the process of buying investment notes from the central bank? I've sent a couple of emails to the addresses located on the central bank's website but haven't seen a reply yet...

Just wondered if somebody who has done this before could offer up some info. Thank you in advance.

Investing in CD's at banco central

It's really not a hard process-a little time consuming unless you live in the capital or Santiago. You need to go to the bank early to get a ticket- the last time we went we were there a total of 90 minutes. The tickets are dispersed starting at 8:00 AM. Take your cedula or passport along with the money to be deposited- either in certified bank check(cheque de administracion) or cash up to $RD300,000. You also have to have a savings account at a local bank where the interest will be deposited monthly. There is no way to "compound" the interest-it has to be deposited in a savings account in the DR.

If you have joint holders of the cd make sure the cd states "y/o" when it refers to who can cash the cd- if it just says "y" then you both have to sign to cash it in.


Works very well and the monthly interest payments are almost always deposited by the 3rd of the month, depending on whether or not it's a weekend or holiday.

Take care.
Rick

thank you, good info...

Thanks for the info Rick.

Can the bank check used to deposit funds be drawn on a foreign bank--or does it have to be from a Dominican institution?

Thanks again

foreign bank

Don't know that- if you have an account at banreservas they don't charge you anything for a bank check made out to Banco Central. If you have another bank do it they charge .15 of one per cent of the value of the check.

certificate of deposit

Does anyone know the current interest rates for a cd- $3000 or $5000??

One more question

I went to BC about 2 years ago to open a CD, I was told that I could not open one because I am a foreigner (U.S). Is this still going on at BC or can anyone open a CD?

Banking through the Net

First time here DR 1 that is ,, quick question , does any one of a bank in the DR that you can access your account on the Internet WWEB :

CD questions

Any extranjero can open a CD- all you need is a passport and savings account in a DR bank. I deal with Banreservas and everything is available on line- transactions are immediately available. Very easy.
Good luck