Can I buy a CD in pesos as a non resident?

[giga]

as far i remember ou have to file for income tax if your income reaches a certain min amount;

ad also i wonder, if i open my account with my italian passport, how would the IRS would know
i have an account in DR.....?




tax. Take a look at the thread that was running a few weeks ago reporting on the agreement between the DR and IRS to report the bank accounts of US citizens living in the DR.

The penalty, especially if you have control of US$10,000 or more in bank accounts or CDs is quite seriousl

http://www.dr1.com/forums/legal/119305-dominican-banks-required-report-us-citizens-holding-10.html[/QUOTE]

 

[Tamborista]

if i open my account with my italian passport, how would the IRS would know
i have an account in DR.....?

Do you file US taxes?
If you answer no to Form 1040 Schedule B line 7a you are a bad boy!
Technically if it does not ever exceed $10,000, you DO NOT have to file a FBAR IRS TD F 90-22.1

Uncle Sam has a pretty good idea what you are up to!

 

[AtomicPhil]

open an account in dominica, panama, singapore or my all time favorite hong kong its tax havens and hong kong especially is hard core about not telling anyone where u got ur stash from. open a cd in dominican republic each profit u make send it away gaining more interest and **** uncle sam

 

[Criss Colon]

The interest rate in US Dollars is LOOOOOW,unless you go out many years with your CDs.
You ain't gonna make anything there.
Dominicans ain't THAT stupid,then again???
CC
I remember when there were not enough US dollars in the banks to pay those with Dollar accounts.
Buy a house in Florida,huge "up side" there, you can live in your investment,and get a nice tax break."WIN,WIN"!

 

[frank12]

Ken, Chris, Windeguy, and Tamborista all give good, sound, financial advise, and i would heed their advise about waiting until after the elections. However, for those of us living off the interest rate down here (myself included), i don't have the liberty of making dollars from a retirement pension back in the USA.

As it stands now, i make most of my money from Dominican CD's...as do quite a few people. However, the best of both worlds would be to have some of your money in dominican CD's (but after the election as Ken, Windeguy, and Tamborista has pointed out) and some of it from American CD's in dollars.

If your money is in a good, reputable (Not easy to find) Finance bank on the island, you do not have to worry about Uncle Sam finding out about your money, and you don't have to report your earnings on your income tax form, since, these finance banks do absolutely no business whatsoever with US banks, I.E--they do no wire transfers, no credit card withdrawl, no ATM's, etc. What they do, however, is deposit your monthly interest rate into a seperate bank account from where you can withdrawal your monthly interest with an ATM card or however you choose. You will need to open a Dominican bank account to where you want your interest deposited. Or, if you do not want to have any paper trail whatsoever, you can simply go and pick up your interest every month, quarterly, or yearly if you so choose. The decision and choice is entirely up to you. However, you do need to provide a letter from your US or european bank as well as references from where the initial investment money came from, because, a reputable Finance bank will not take the chance of recieving any drug or illicit money.

My family has quite big Finance banks here on the island and i've had the luxury of collecting interest now for over 10 years here, which has enabled me to live comfortably, but modestly. If you choose to go this route (Finance banks) you need to do your homework, a lot of research, and make sure they have been in business for at least 15 to 20 years. You need to visit the bank, speak to the owner in person, ask lots of questions, go back home and do your research, and be very, very weary and suspicious of anyone offering an unusually high interest rate--much more than other banks. This should immediately initiate large red flags in your head. Be very cautious and do your homework. Banco Central and Banco Popular are recognized national banks that can handle wire transfers, etc. this would probably be your best route since you're not from here. the only disadvantage with them is that they won't allow your interest to compound monthly, and unfortunately, this is where i've made most of my money. For this reason, and this reason only, i have not put my money into the bigger banks like Banco Central or Banco Popular.

But again, i would heed the advise of people here and wait until after the elections becuase, as we've seen in the past, things can change dramatically in a very short time.

Frank

 

[frank12]

The interest rate in US Dollars is LOOOOOW,unless you go out many years with your CDs.
You ain't gonna make anything there.
Dominicans ain't THAT stupid,then again???
CC
I remember when there were not enough US dollars in the banks to pay those with Dollar accounts.
Buy a house in Florida,huge "up side" there, you can live in your investment,and get a nice tax break."WIN,WIN"!

I like this advise, except, who and the hell wants to live in Florida? it's flat as a pancake, it's boring, the traffic is horrid, the laws and rules are draconian, the women are hard to please, and the lack of mountains makes the terrain boring as fck and the heat unbearable.

Frank

 

[Bronxboy]

I like this advise, except, who and the hell wants to live in Florida? it's flat as a pancake, it's boring, the traffic is horrid, the laws and rules are draconian, the women are hard to please, and the lack of mountains makes the terrain boring as fck and the heat unbearable.

Frank

Yep, that is why I left in 2004. I moved there in 2002.

You forgot to mention toooo hot but, then again, so is DR!!!! lol

 

[windeguy]

I like this advise, except, who and the hell wants to live in Florida? it's flat as a pancake, it's boring, the traffic is horrid, the laws and rules are draconian, the women are hard to please, and the lack of mountains makes the terrain boring as fck and the heat unbearable.

Frank

You nailed it.

 

[giga]

hi Frank,

i like your point, im glad to hear you made a living in DR with CD interests,
however i would like to understand this:

- what you mean by "...If your money is in a good, reputable (Not easy to find) Finance bank on the island...." :: you mean a private bank in the capital? (I doubt you can find such a bank in Sosua or Boca Chica, Cabarete..etc)


- and also whan you say " they won't allow your interest to compound monthly, and unfortunately, this is where i've made most of my money. For this reason, and this reason only, i have not put my money into the bigger banks like Banco Central or Banco Popular.""

You mean automatic re-deposit of the earned interests in the same CD?
I thouhgt you meant you lived in DR with the interests produced by your CD, now you say
you coumpounded them?

can you pls clarify?


Thank you ;-)

Rob.

Ken, Chris, Windeguy, and Tamborista all give good, sound, financial advise, and i would heed their advise about waiting until after the elections. However, for those of us living off the interest rate down here (myself included), i don't have the liberty of making dollars from a retirement pension back in the USA.

As it stands now, i make most of my money from Dominican CD's...as do quite a few people. However, the best of both worlds would be to have some of your money in dominican CD's (but after the election as Ken, Windeguy, and Tamborista has pointed out) and some of it from American CD's in dollars.

If your money is in a good, reputable (Not easy to find) Finance bank on the island, you do not have to worry about Uncle Sam finding out about your money, and you don't have to report your earnings on your income tax form, since, these finance banks do absolutely no business whatsoever with US banks, I.E--they do no wire transfers, no credit card withdrawl, no ATM's, etc. What they do, however, is deposit your monthly interest rate into a seperate bank account from where you can withdrawal your monthly interest with an ATM card or however you choose. You will need to open a Dominican bank account to where you want your interest deposited. Or, if you do not want to have any paper trail whatsoever, you can simply go and pick up your interest every month, quarterly, or yearly if you so choose. The decision and choice is entirely up to you. However, you do need to provide a letter from your US or european bank as well as references from where the initial investment money came from, because, a reputable Finance bank will not take the chance of recieving any drug or illicit money.

My family has quite big Finance banks here on the island and i've had the luxury of collecting interest now for over 10 years here, which has enabled me to live comfortably, but modestly. If you choose to go this route (Finance banks) you need to do your homework, a lot of research, and make sure they have been in business for at least 15 to 20 years. You need to visit the bank, speak to the owner in person, ask lots of questions, go back home and do your research, and be very, very weary and suspicious of anyone offering an unusually high interest rate--much more than other banks. This should immediately initiate large red flags in your head. Be very cautious and do your homework. Banco Central and Banco Popular are recognized national banks that can handle wire transfers, etc. this would probably be your best route since you're not from here. the only disadvantage with them is that they won't allow your interest to compound monthly, and unfortunately, this is where i've made most of my money. For this reason, and this reason only, i have not put my money into the bigger banks like Banco Central or Banco Popular.

But again, i would heed the advise of people here and wait until after the elections becuase, as we've seen in the past, things can change dramatically in a very short time.

Frank

 

[frank12]

Hey Gigi or Rob,

To answer your first question, "Finance banks" have a very loose definition--to the point that some are nothing more than a glorified Pawn shop. You'll have to do your homework and ask people here for some suggestions about which finance banks they use or reccommend--where they have their "own" money inside. do not take one persons advice or reccommendation, that's why i suggest you go with one of the bigger banks like Banco Central or Banco Popular. otherwise, you could get steered into a pyramid scheme which promises of unrealistic interest rates, but is nothing more than a a glorified shell game.

You're other question about compound interest rates and living off the interest...i make enough money where i can live off most of the interest but not needall of it. So, by not touching all of the interest, it is able to "compound monthly" Other months, like the summertime, i work in Europe and so i don't touch the interest and it continues to compound while i'm away. in this way, i've been fortunate enough to not need all of my interest and i've allowed it to grow.

Hope that answers your question?

Frank

 

[Criss Colon]

The guy is DETERMINED to put his money at big risk here in the DR!
The best "Financero" I know is on the North Shore.
I actually knew him for quite a while before I found out he was a "Financero",and it was not him who told me.I know of two "Gringos' who are invested with him,one $50,000 US,the other a lot more.They have more than 15 years with him,he rolls their interest into Dollar accounts.He gives them clear title to some properties as his collateral.They are VERY Happy!
I still wouldn't invest with him.Not because I have any doubts,but "Things" can always go wrong.I know of two "Financeros" who dropped dead.The money is tied up in "Court Battles" here in the DR,and you know what THAT means!
Many people,much smarter than us,have lost some,or all of their saving by investing in something "To Good To Be True"!
Followed closely by a "Sure Thing"!
Can you spell,"Bernie Madoff"??????
Cris Colon

 

[Rattus_Rattus]

Dont spend more money in this little experiment then you are willing to loose. And please keep us updated on how it works out for you.

 

[frank12]

Chris brought up an example that i have never heard of, but one i would be very, very weary of. Giving people, or showing people property deeds is unreliable, and would not work for me in any way, shape, or form. First, because property deeds are very, very easy to forge--and if you want examples--i'll be more than happy to describe exactly how it works here in this country. Secondly, a proper Finance bank--one that's been in business for a long time (15 to 20 years) operates exactly like a bank--with bank tellers, deposit slips, quarterly reports, annual statements, contracts, etc. This is the kind of Finance bank i'm referring too.

I've never heard of a Finance bank giving someone part of property deed in order to "assure" them that everything is on the up and up. But hey, if its working for them, and their interest is paid on time--on the 1st of every month--and they've never been late, and they never had to call the bank to find out where their money is, or why it's late...then more power to them.

However, a proper Finance bank or national bank (banco Popular, Santa Cruz, BHD, etc.) operates quite differently than this: they require proof of where the money is coming from, a letter from your bank, they send out quarterly statements, they make CD contracts with the depositor, they have annual statements, and they're never, ever late in paying your interest. Period.

Plenty of people down here are making a living off interest. it can be done. it has been done. it's currently being done. I'm just one of many who has been doing it for over 10 years.

Frank

 

[giga]

hi frank,

sure you answered my question, I hope, if you
dont mind, send me pm message with
the name of the bank you are referring to,

so Frank did you experience any capital
loss during these 10 years due to the exchange rate?

it would be nice to know that
as many people
here adviced against buy DR cd

bye



QUOTE=frank12;1059301]Hey Gigi or Rob,

To answer your first question, "Finance banks" have a very loose definition--to the point that some are nothing more than a glorified Pawn shop. You'll have to do your homework and ask people here for some suggestions about which finance banks they use or reccommend--where they have their "own" money inside. do not take one persons advice or reccommendation, that's why i suggest you go with one of the bigger banks like Banco Central or Banco Popular. otherwise, you could get steered into a pyramid scheme which promises of unrealistic interest rates, but is nothing more than a a glorified shell game.

You're other question about compound interest rates and living off the interest...i make enough money where i can live off most of the interest but not needall of it. So, by not touching all of the interest, it is able to "compound monthly" Other months, like the summertime, i work in Europe and so i don't touch the interest and it continues to compound while i'm away. in this way, i've been fortunate enough to not need all of my interest and i've allowed it to grow.

Hope that answers your question?

Frank[/QUOTE]

 

[frank12]

hi frank,

sure you answered my question, I hope, if you
dont mind, send me pm message with
the name of the bank you are referring to,

so Frank did you experience any capital
loss during these 10 years due to the exchange rate?

it would be nice to know that
as many people
here adviced against buy DR cd

bye


Rob, Giga,

No, i have not experienced a capitol loss here, ever. However, just as Criss and others have quite accurately pointed out, that could change overnight--right after the elections. There are plenty of past of examples where things did take a dramatic turn. however, my advice to you is this: since you do not live here, why not put your money in with the big banks: Banco Central, Banco Popular, Banco Santa Cruz. Your money will be safer there and, in the future, once you've lived here long enough, you'll have a better idea and more information of where to either put your money or just leave it be.

But please, wait until after the election.

Frank

 

[frank12]

I want to address something that Criss brought up earlier regarding property rights or what's known as "property deeds" or "Land Titles." If one of the moderators wants me to start a new thread about this and explain it there, then feel free to copy and paste this explanation.

Ok, forging of a property deed is a common theme down here, so much so that it has been going on for as long as i can remember. it was going on pretty consistently in the 80's, picked up steem in the 90's, then went nuclear after 2001. basically, there are a lot of way to forge Titles, but i'm going to explain in laymans terms the most common and most efficient way that the thieves here like to utilize the most:

Say you, John Smith, owns a clear title to a piece of property somewhere on this island. A copy of that deed is sitting in a government office (sorry, can't remember the name for the office right now). In your Title/Deed/property file is a copy of your Cedula and/or passport--but always a copy of both (passport and cedula) if you are a foreigner.

I can walk into this office, pay someone to look into your file, give me all the details--i.e passport number, cedula number, etc. i can then go down to the cedual office and get another cedula with your name and same details on it, but with my picture on the new photo id. Now i can go back to the Title/Deed office and ask for a copy of everything in your file by claiming, quite clearly, that i am John Smith, and i have lost the original title of my land. I don't care if you got a 1000 acre property, a 50,000 acre property or a 1,00000 acre property, i now have a clear copy of your ID with my picture on it. I can request anything i want out of your file. Now, i will have the office make me a copy of everything in that file--becuase i will explain to them that i've lost the original Title/Deed to the property. Now, with copies in hand, i can now legally go down to a lawyers office (usually someone in on the deal, but not always), and get the Title/Deed/notarized, and then sell your property to anyone i want--place name here______. Why? because legally, i have your ID (Cedula) in my hand, only with my picture on it instead of yours.

As far as the law is concerned, i fullfilled every legal obligation neccessary in order to prove that i am who i say i am. and since i have declared that the original title has been lost, i can pay to have the government office re-issue me a new "Original" Title/Deed. Now i can legally sell your land to anyone i want.

There's other modifications to this, but they all work in a similar fashion. the goal is to get a copy of your ID (Cedula), a copy of the land/deed/title, then apply for another "Original Title/Deed, then turn around and sell it to some unsuspecting Joe.

It happens everyday, everywhere, all around this island. How do i know? Becuase it happened last year to my cousin who lives in Florida and is a Doctor in West Palm Beach. she came here to take a family vacation and was showing her husband (Non-Dominican) and son some of the land she inherited when our uncle died. When she got to the property, there was a "For Sale" sign on it. she called the number and said she was interested in seeing the property. They said "Sure, we can meet you tomorrow wherever you like." She then contacted some family members, who contacted some higher ups and then met up with them (The new owners) the next day.

It all ended fine, and she got the property back, but if had she waited another year before visiting, they would have sold her land right from underneath her feet and they would never get caught becuase we don't know who was the original person who cloned her ID? We only have a copy of her ID but with someone else's picture on it. And who knows who is on the picture??? Unless they decide to broadcast that picture on National TV and ask for help, there is no way to know who it is on her picture ID.

Frank

 

[frank12]

Oh yeah, i forgot to add...if her (my cousin) property would have gotten sold to some unsuspecting Joe, she would have to spend a lot of money, time, and energy fighting to get her land back and prove to the court that it was not her who actually sold the property to Joe whoever. These cases can drag on for years because now, the new owner, did nothing wrong, and he or she doesn't want to lose their lifetime savings for something that wasn't their fault. Ultimately, she would win, and she would get the land back, but not without a big fight and a lot of court dates.

It goes on everyday, everywhere in third world countries i would imagine.
Frank

 

[Criss Colon]

"Trust",but Verify!
If "Uncle Sam" goes broke,I'm in a world of $hit"!
CC

 

[giga]

omg!.....


QUOTE=frank12;1059422]I want to address something that Criss brought up earlier regarding property rights or what's known as "property deeds" or "Land Titles." If one of the moderators wants me to start a new thread about this and explain it there, then feel free to copy and paste this explanation.

Ok, forging of a property deed is a common theme down here, so much so that it has been going on for as long as i can remember. it was going on pretty consistently in the 80's, picked up steem in the 90's, then went nuclear after 2001. basically, there are a lot of way to forge Titles, but i'm going to explain in laymans terms the most common and most efficient way that the thieves here like to utilize the most:

Say you, John Smith, owns a clear title to a piece of property somewhere on this island. A copy of that deed is sitting in a government office (sorry, can't remember the name for the office right now). In your Title/Deed/property file is a copy of your Cedula and/or passport--but always a copy of both (passport and cedula) if you are a foreigner.

I can walk into this office, pay someone to look into your file, give me all the details--i.e passport number, cedula number, etc. i can then go down to the cedual office and get another cedula with your name and same details on it, but with my picture on the new photo id. Now i can go back to the Title/Deed office and ask for a copy of everything in your file by claiming, quite clearly, that i am John Smith, and i have lost the original title of my land. I don't care if you got a 1000 acre property, a 50,000 acre property or a 1,00000 acre property, i now have a clear copy of your ID with my picture on it. I can request anything i want out of your file. Now, i will have the office make me a copy of everything in that file--becuase i will explain to them that i've lost the original Title/Deed to the property. Now, with copies in hand, i can now legally go down to a lawyers office (usually someone in on the deal, but not always), and get the Title/Deed/notarized, and then sell your property to anyone i want--place name here______. Why? because legally, i have your ID (Cedula) in my hand, only with my picture on it instead of yours.

As far as the law is concerned, i fullfilled every legal obligation neccessary in order to prove that i am who i say i am. and since i have declared that the original title has been lost, i can pay to have the government office re-issue me a new "Original" Title/Deed. Now i can legally sell your land to anyone i want.

There's other modifications to this, but they all work in a similar fashion. the goal is to get a copy of your ID (Cedula), a copy of the land/deed/title, then apply for another "Original Title/Deed, then turn around and sell it to some unsuspecting Joe.

It happens everyday, everywhere, all around this island. How do i know? Becuase it happened last year to my cousin who lives in Florida and is a Doctor in West Palm Beach. she came here to take a family vacation and was showing her husband (Non-Dominican) and son some of the land she inherited when our uncle died. When she got to the property, there was a "For Sale" sign on it. she called the number and said she was interested in seeing the property. They said "Sure, we can meet you tomorrow wherever you like." She then contacted some family members, who contacted some higher ups and then met up with them (The new owners) the next day.

It all ended fine, and she got the property back, but if had she waited another year before visiting, they would have sold her land right from underneath her feet and they would never get caught becuase we don't know who was the original person who cloned her ID? We only have a copy of her ID but with someone else's picture on it. And who knows who is on the picture??? Unless they decide to broadcast that picture on National TV and ask for help, there is no way to know who it is on her picture ID.

Frank[/QUOTE]

 

[Criss Colon]

I think our "Weight-of-Evidence" is FINALLY getting sunk in!
CC