Residency for Investors

[daisypolanco]

If you have a business in the Dominican Republic registered with a capital of RD$100,000.-, or are interested in registering one, you may be eligible to qualify as a 'Direct Investment' Resident.

The Export and Investment Center of the Dominican Republic (ProDominicana) has implemented new requirements for obtaining Direct Investor status, and the corresponding Investment Certificate. This certificate, along with the other Residency requirements, may provide access to a favorable tax structure, as well.

Investment residency grants foreigners a legal status in the country, giving them the right to move freely within the territory, providing them with a personal identity card (cédula). This category allow you to apply for citizenship after having completed at least 6 months as legal residents.

 

[Big]

so for 1600 U.S one can get residency, sound like a sweet deal

 

[daisypolanco]

so for 1600 U.S one can get residency, sound like a sweet deal

There are additional steps that would require increasing the investment; but registering the company for RD$100,000.- would be the first step of the process

 

[FF1]

Are you sure it's 100.000 pesos and not USD?

 

[daisypolanco]

Are you sure it's 100.000 pesos and not USD?

Initially, the company must be registered for RD$100,000.-; then, you must increase the capital to USD$200,000.-, through the company's corporate account.

 

[johne]

1. This is not new news, is it?
2. "May provide tax advantage" you stated. What is that "tax advantage" if investor is holding a US passport?

 

[daisypolanco]

1. This is not new news, is it?
2. "May provide tax advantage" you stated. What is that "tax advantage" if investor is holding a US passport?

1. There has been an update with the process to obtain the Investment Certificate at ProDominicana
2. Tax benefits include (for investment residents):

• 0% Transfer Tax on the first property purchase.
• 50% exemption on the Real Estate Property Tax.
• 50% exemption on the Capital Gains Tax (generated within the country).
• Total exemption on the payment of dividends and interests (generated within the country).
• Partial exemption on vehicle import taxes.
• Tax exemptions on the import of household goods.
• Partial exemptions on the import of motor vehicles.
• Bonus: you will be able to apply for citizenship after 6 months

 

[johne]

1. There has been an update with the process to obtain the Investment Certificate at ProDominicana
2. Tax benefits include (for investment residents):

• 0% Transfer Tax on the first property purchase.
• 50% exemption on the Real Estate Property Tax.
• 50% exemption on the Capital Gains Tax (generated within the country).
• Total exemption on the payment of dividends and interests (generated within the country).
• Partial exemption on vehicle import taxes.
• Tax exemptions on the import of household goods.
• Partial exemptions on the import of motor vehicles.
• Bonus: you will be able to apply for citizenship after 6 months

And do you get ANY of the above benefits before you pay up the $200,000??

 

[johne]

I down loaded the investment guide but will read at another time. Upon a quick glance I see that Bank of America rates the DR very highly in the book. Has BOA opened any branches in the DR? If not, could you tell me why it hasn't?

 

[daisypolanco]

And do you get ANY of the above benefits before you pay up the $200,000??

These benefits are accesible for investment residents only; you would have to complete the residency process. There are other residency categories that include these benefits; these also require completing the residency process in order to access these exemptions.

 

[johne]

These benefits are accesible for investment residents only; you would have to complete the residency process. There are other residency categories that include these benefits; these also require completing the residency process in order to access these exemptions.

Honestly, I don't see this as a big deal or an incentive. Thanks.

 

[daisypolanco]

Honestly, I don't see this as a big deal or an incentive. Thanks.

Would depend on your long-term goals in the DR

 

[johne]

Would depend on your long-term goals in the DR

I guess? To have an advantage on "capital gains" you need to sell something first. And if a US citizen, report that gain, right. And if you are over 65 you can get that exemption on purchase of house w/o this program (I believe).

Are you a real estate agent by any chance??

 

[AlterEgo]

I guess? To have an advantage on "capital gains" you need to sell something first. And if a US citizen, report that gain, right. And if you are over 65 you can get that exemption on purchase of house w/o this program (I believe).

Are you a real estate agent by any chance??

I believe she works for Sr Guzman.

 

[Seamonkey]

If you have a business in the Dominican Republic registered with a capital of RD$100,000.-, or are interested in registering one, you may be eligible to qualify as a 'Direct Investment' Resident.

The Export and Investment Center of the Dominican Republic (ProDominicana) has implemented new requirements for obtaining Direct Investor status, and the corresponding Investment Certificate. This certificate, along with the other Residency requirements, may provide access to a favorable tax structure, as well.

Investment residency grants foreigners a legal status in the country, giving them the right to move freely within the territory, providing them with a personal identity card (cédula). This category allow you to apply for citizenship after having completed at least 6 months as legal residents.

I did this process fifteen years ago because of the ownership of a business. It's not anything new. It was just a fast track to getting legal.

 

[daisypolanco]

I guess? To have an advantage on "capital gains" you need to sell something first. And if a US citizen, report that gain, right. And if you are over 65 you can get that exemption on purchase of house w/o this program (I believe).

Are you a real estate agent by any chance??

Attorney

 

[daisypolanco]

I did this process fifteen years ago because of the ownership of a business. It's not anything new. It was just a fast track to getting legal.

Correct; this is not a new residency application process; ProDominicana has updated requirements for the Investment Certificate

 

[cavok]

Correct; this is not a new residency application process; ProDominicana has updated requirements for the Investment Certificate

Are residents over 65 exempt from the transfer tax on the purchase of a house, or is that only available to investors?

 

[franco1111]

Just a short note. None of the benefits are delivered automatically if one has this residency. It is a pain to get them. For example, to get the property tax execmption, you have to apply to Ministerio de Hacienda to show you have residency and are entitled to the exemption. Hacienda does not communicate with Migracion. This takes time and money. To the point that one may find it is not worthwhile to apply. (This was true about five years ago when I was doing it.)

And, with investment residency, you have to renew it every two years. Not four years, like the other residency. Another pain. More time and money. Especially if you use a lawyer.

Of course, daisypolanco knows more about this than I. ( I do recommend Guzman Ariza )

 

[AlterEgo]

Just a short note. None of the benefits are delivered automatically if one has this residency. It is a pain to get them. For example, to get the property tax execmption, you have to apply to Ministerio de Hacienda to show you have residency and are entitled to the exemption. Hacienda does not communicate with Migracion. This takes time and money. To the point that one may find it is not worthwhile to apply. (This was true about five years ago when I was doing it.)

And, with investment residency, you have to renew it every two years. Not four years, like the other residency. Another pain. More time and money. Especially if you use a lawyer.

Of course, daisypolanco knows more about this than I. ( I do recommend Guzman Ariza )

Post #7 says you can apply for citizenship after 6 months? Did you consider that?