Buying a car under retirement residency rules

Buzzard

Active member
Feb 28, 2004
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Costambar
Receiving a residency under the retirement rules state that a (new?) car can be purchased here without paying either the ITIBIS or the ISC (Selective Consumption Tax), according to Web-based translations of the law.
Is this borne out by anyone's experience? Any info on this matter is greatly appreciated.
 

william webster

Platinum
Jan 16, 2009
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A new resident can IMPORT their car at a lesser rate than normal....

Never heard of a 'tax free' purchase
 
Jan 9, 2004
9,115
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Receiving a residency under the retirement rules state that a (new?) car can be purchased here without paying either the ITIBIS or the ISC (Selective Consumption Tax), according to Web-based translations of the law.
Is this borne out by anyone's experience? Any info on this matter is greatly appreciated.
It is a bit of wordsmithing on the part of Adana......but it is something the new car dealers have fought hard to get.

To explain, the dealers have already paid a dealer ITBIS tax to import the vehicle, so in essence that tax has been paid and is reflected in the higher price you will pay for a vehicle here versus elsewhere. So the actual break you receive as a new resident is on Selective Consumption.

That having been said, it is my understanding you are still required to pay the 17% tax for first placa....so the savings, if any, over buying it elsewhere and then shippping it in....is pretty much negated. Buying a new vehicle under DR/Cafta will also yield an additional slight savings.

In the end, it is pretty much buyers choice.....but there is no significant savings, if any.

Note also that many new models sold here may not be an apples to apples comparison with models sold elsewhere.

Good luck, whichever route you take.


Respectfully,
Playacaribe2
 

Buzzard

Active member
Feb 28, 2004
463
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Costambar
Law 171-07 describes tax exemption for autos

Partial tax exemption on used motor vehicles. The law allows each applicant to import a vehicle. In addition, vehicles purchased in the country will be exempt from tax transfer of industrialized
goods and services (ITBIS) and excise tax (ISC);
 

RockyM

New member
Jul 16, 2018
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We will be importing a vehicle to DR shortly and the "laws" are driving us insane. It's even a challenge to get a simple answer out of the attorney. I put laws in quotes because it seems they are open to interpretation, and are elastic for lack of a better word.
 

Cdn_Gringo

Gold
Apr 29, 2014
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That pretty much sums it up. If the tax people even suspect that you are not absolutely sure of the rules, their attitudes and policies change. If you stand in front of them with supporting documentation and a frothing lawyer on a choke chain, they will either refuse to do anything, forcing you to try again with someone else or relent and actually do their job as they are supposed to.

It all depends on how much blood they detect in the water at the time and whether or not they feel that they can save face in the presence of overwhelming evidence that they are wrong.
 

AlterEgo

Administrator
Staff member
Jan 9, 2009
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Playa Najayo & South Jersey
That pretty much sums it up. If the tax people even suspect that you are not absolutely sure of the rules, their attitudes and policies change. If you stand in front of them with supporting documentation and a frothing lawyer on a choke chain, they will either refuse to do anything, forcing you to try again with someone else or relent and actually do their job as they are supposed to.

It all depends on how much blood they detect in the water at the time and whether or not they feel that they can save face in the presence of overwhelming evidence that they are wrong.
That’s why you hire a person to handle everything from arrival to you driving away with your car. Wasn’t expensive and no hiccups.
 

william webster

Platinum
Jan 16, 2009
24,236
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Odd how the system works -

I saw a car the other day and the manufacturer's stickers had been removed
This car ceased to be produced in 2009....
But it was here...

A new game might be afoot.