President sends bill to favor retirees

nyjcr

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Feb 25, 2005
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President Leonel Fernandez sent to Congress yesterday a bill with incentives to those who choose the Dominican Republic to retire. Dominican expatriates who have lived abroad permanently for at least 10 years would also be eligible for the benefits. According to the bill, retirees who have predetermined source of income would have access to fast track their residence documentation procedures and would receive their permanent residence papers in 45 days. Those who qualify would be exempt from taxes on their household goods and personal items, as well as a partial tax exemption on a vehicle. To qualify, the legislation establishes a minimum monthly income of US$1,500 for those receiving pensions from companies or foreign governments, and US$2,000 for those having a monthly income on foreign savings. As written, the bill establishes that foreigners that are already residents in the country and that have the same qualifications as required in the law for new residents, could also receive the same benefits of the law.​


Pretty enticing for those looking to retire to a warm climate "place" kudos for the President, good job...;)
 

FORD

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Nov 12, 2004
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Its about time that the DR made a concerted effort to lure retirees. The pensionado program started in Costa Rica in the 1980's was most successful.
Currently the retirement program in Panama is working great and Nicaragua's is working fair.

Its pretty exciting, at least its a start. I especially like the part about reducing the tax on imported vehicles!

cheers............
 

Danny W

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Mar 1, 2003
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A very important element in enticing retirees would be the quality and attitude and presence of the police in areas with concentrations of elderly foreigners. Retiring to the DR could be like retiring to Miami at half the price, but security remains an issue. It could be a tremendous boon to the country in supporting restaurants, the medical infrastructure, the travel industry etc., but the elderly need to feel safe.
 

Criss Colon

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Jan 2, 2002
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Don't Open That "Presidente" Just Yet!!!!!!!!!!!!!!!!!

You are showing your lack of knowledge of the DR if you think that making it a "LAW" makes it SO!
From "Leonel's" lips to God's ears"! But don't count on it!
I would hate to be the first "Retiree" to show up at "Haina" with two 30 ft.containers containing my "Household Goods",and a new "Toyota Land Cruiser" and say "Wave me thru,I'm "Exonerated" by law OU812!"
It would go "something" like this:...."Yes,but you have to pay the "Un-Docking" fee,plus the "Dis-Embarking fee,plus the, "Make A Payment On My House" fee."PLUS-PLUS-PLUS!!!!!
As with "ALL" things Dominican,adapt a "Wait-And-See" attitude,and it will serve you well!!!
ccccccccccc
 

BushBaby

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Jan 1, 2002
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Might I also suggest a "SLOW DOWN" process. What exactly is NEW here?? Doesn't the Government ALREADY allow retirees to bring in a 40ft container without IMPORT tax? I understand that there are Sales Taxes, ITBIS etc still to pay & this might be continued into the 'NEW' law.
RD $5,000 is a partial allowance off RD $55,000 tax for importing a car - all the Government has to do is up the tax by x% to then give x% off & not lose anything!!! Sinical? ..... Me????? ..... You Betcha!!

the 45 days 'Fast Track Residencia is the only NEW thing being offered as far as I can see & not many need their Residencia that quick - heck, most people who arrive here don't KNOW if it a country they will be able to aclamatise to, whether the cutural differences might be a little too great for them ....... so why the rush?? Did anyone note that the type of Residencia being offered is now called 'Definitivo' as opposed to the previously accepted 'Permanante'? Is this a new catergory or are the Government changing the Permanante catergory to 'Definitivo' in the future. What has happend (or will be happening) to the 'Temporano' Residencia?

The BROADER picture seems to indicate this is one way of capturing more of the influx of retirees into the INCOME TAX levels - you tell us you earn US $1,500 per month & well tax you on at least 50% of that Tell us that you are earning US $2,000 per month & we'll tax you on 2/3rds of that!! The laws about taxes due payable on income brought into the country ARE on the statute books right now, but they are not enforced - maybe this is a way of enforcing some of them whilst appearing to give something away? How many Ex-Pats pay any form of income tax on investments/income earned OUTSIDE this country right now?? Not too many I would suggest as it is not enforced policy!!

CCCC CC & I do not see eye to eye on many things on DR1, but I am right behind him on this. WAIT for the law details to be published, STUDY them closely to determin they do in fact offer you some advantage & then only apply if you feel the allowances/discounts are likely to be able to be given by the departments responsible.

How will DR-CAFTA (due to be introduced if passed by Congress in Jan of 2006) affect the rights of people importing container loads? I thought DR-CAFTA abolished import taxes anyway??

Look at the broader picture folks. Learn the existing laws & offers already on the table (the Official ones AND the un-official ones) before jumping on this bandwagon. Methinks BIG Brother is after a bigger slice of your pie!! ~ Grahame.
 

HOWMAR

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Jan 28, 2004
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I believe the present inport rax exemption for retirees is for returning Dominican nationals.
One advantage of residencia, whether permanent or temporary, is the ability to get a DR driver's license. As you are well aware, a foreign driver's license is only valid for 90 days after entry into the DR. If you are here driving on your US driver's license you had better have a passport stamped or visa dated in the last 90 days if you expect to have any insurance coverage.
 

FORD

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Nov 12, 2004
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To Criss Colon and BushBaby,

You've both offered some inciteful and interesting comments. Thank you. Yes, I too am well aware of the fact that one has to be pragmatic when talking about rules and regulations in the DR. Laws and rules and that often make sense on paper never quite work out the way they're supposed to in practice. ;)

I think its a start, but yes, if the government uses the information collected to generate a new source of income from enforcing the laws already on the books to collect taxes on foreign earned income - then it is a lightly veiled ploy to scam retirees.

The only real protection we have is from the competition offered by competing countries. Costa Rica, Panama and Nicaragua are still competing aggresively for a larger share of U.S. retirees $$ - we all have options I'm happy to say. If the DR can't offer this new program with the requisite organization needed to insure its implementation than you are both correct - its all just "so much paper"

I have a lawyer in Costa Rica who can arrange my residency there in 90 days. This should really be quick enough when you think about it! :cool:

cheers,
FORD