Rentista Residency - a good choice if you have property income from abroad

[drdirectional]

"There are quite a lot of advantages of this type of residency over "standard" residency, especially if you have assets abroad. With normal residency, you can be taxed here in DR on foreign investment income, but with the Rentista visa you are only taxed on Dominican income. And there are additional tax breaks on properties you purchase here. So I'd thoroughly recommend this type of residency as something to think about if you think you qualify."

I didn't think the DR govt taxed any foreign income. Is this new? What about applying for the naturalization do the same tax laws apply? I was considering to apply for citizenship but if they are going to tax my foreign income the rentista visa sounds like the only viable option to avoid taxation.

 

[PlantaFULL]

I'm looking into changing to this rentista category from a regular temporary residency first issued last year. I was at the DGM SD office with a lawyer a while back to inquire about this and it appears this has advantages as far as how often it needs renewing as well as the requirements (no xrays and blood every year).

The overall experience of dealing with this rentista residency is like a VIP service compared to the way things normally are at DGM. There is a air-conditioned office in the back where they handle this, without waiting in lines etc. The requirements are $ 2500 monthly income. I was told that it doesn't matter what this income is from and your age doesn't matter either. I'm barely 40 y/old and not really a "rentista", but have this income. To change from a regular temp-residency into this rentista category appears to involve a R$ 20.000 one time fee tho.

 

[gicamuci]

I know this is an old thread, but the information I am adding will be worth it... I think. It will just stop the plans of many of those younger dreamers about the fast track residency through retiree or rentista programs.
The applicant must have proof that he/she received the said income for the past 5 (five) years in order to qualify. This is not stated in the law 171-07. It is though stipulated in article 64 of Reglamento 631-11 of the Immigration Law.

 

[artistdani]

... Quote:
The applicant must have proof that he/she received the said income for the past 5 (five) years in order to qualify. This is not stated in the law 171-07. It is though stipulated in article 64 of Reglamento 631-11 of the Immigration Law.....end quote

I am considering the retiree fast track program and in my initial conversations with the Guzman firm there were no mention of 5 years. I have been retired 3 years in fact. I could also qualify for the naturalization through marrying a Dominicano if indeed I do that. Naturalization avoids having to renew the permanent residency every 2 yrs and the lawyer cost is lower than (about half) the fast track program.

 

[TropicalPaul]

I have this visa. If anyone thinks they qualify, I strongly advise them to go down to Immigration in Santo Domingo, ask to see someone in the Inversionista section and ask what they require. In my experience, the process is extremely simple, the staff are very helpful, there is no waiting, and they always say that you really don't need to spend money on a lawyer. And, most importantly, they will tell you exactly what papers you need to provide and in what format.

 

[TropicalPaul]

I didn't think the DR govt taxed any foreign income. Is this new? What about applying for the naturalization do the same tax laws apply? I was considering to apply for citizenship but if they are going to tax my foreign income the rentista visa sounds like the only viable option to avoid taxation.

The DR has always taxed income from foreign financial investments under a standard residency. Other types of foreign income are not taxable, so if you get a pension or income from renting a property at home, these would not be taxable. If you have money invested in the stock market, this would be. If you have the Rentista visa, foreign financial investment income is also not taxed.

 

[Cdn_Gringo]

To qualify for the retiree "program" I just had to prove that I was actually receiving said pension amount either by way of bank statements or pension deposit notices. I have not been receiving a pension for 5 years.

 

[gicamuci]

I am considering the retiree fast track program and in my initial conversations with the Guzman firm there were no mention of 5 years.

My bad. I apologize, forgot to add that this for whoever wants to qualify as a rentista (not retiree). I actually have this information from one of the Guzman's lawyers. I am not retired, nor is my wife, but we were thinking of relocating in DR and take advantage of law 171-07 and also the treaty Canada is having with Dominican Republic in regards to taxes.

 

[DRH]

Rentista visas

I haven't found a lot of information on here about Rentista visas, so I thought I'd share my experience.

This visa comes under the Investor Residency category - there are other sub-classes within Investor including an Investor who is setting up a business, and Pensioner with retirement income from abroad. To get the Rentista, you need to show that you get a monthly income from abroad for renting out property. In my case I have a few buy-to-let properties in the UK, so this visa made sense.

There is a team of really helpful (yes seriously) staff in immigration who look after you if you're interested in this visa. I would recommend that you go and see them for advice. You just go to immigration, hand in your ID to get an entry card, turn right and head for the glass doors. tell the security guard you are going to see Inversionistas and he waves you through, then its the second door on the right. Very comfortable office, never anyone waiting, nothing like the mayhem in the rest of the building.

To get the visa initially, I had to supply a copy of a rental agreement for a property, a statement showing that I had received the rent from the letting agent, and a bank statement. The first two had to be notarised and then apostilled in the UK before they could be used - this just involved going to a notary with the original of these documents, getting them notarised and then sending them to the apostille service to have them legalised. The first time you get this visa you need a medical - at least I did, but this may have changed.

Renewing this visa is extremely easy. All you need is a standard letter from your bank (here) saying you have an account, no information on balances or income required. You need a buena conducta from the Procuraderia which I got from their office on Gomez and Bolivar. This is literally all you need to renew. There is a very basic form you fill in, you stay in your seat and they go backwards and forwards to the Caja to handle the payments. Then they take your photos and you're renewed for 2 years. The whole renewal took one single visit and I was there for exactly one hour and walked out with my residency. I paid RD$7,500 for the renewal. Best of all there is no medical for renewals of these visas. I had been quoted US$1400 by a lawyer to handle the renewal, but I'm pleased I went myself, the process was very very easy and certainly nothing that you need to pay someone to help you with.

There are quite a lot of advantages of this type of residency over "standard" residency, especially if you have assets abroad. With normal residency, you can be taxed here in DR on foreign investment income, but with the Rentista visa you are only taxed on Dominican income. And there are additional tax breaks on properties you purchase here. So I'd thoroughly recommend this type of residency as something to think about if you think you qualify.

Can we apply for this if we have an income from our hotel we purchased in the DR?

 

[Cdn_Gringo]

The requirements for pension and rentista residencies require the income to be derived from a foreign source. Ie property you rent outside the DR. The end result that the govt prefers is foreign capital coming into and being spend here in the DR.

Your property/business here in the DR might be applicable to a residency application as an investor.

 

[TropicalPaul]

Can we apply for this if we have an income from our hotel we purchased in the DR?

No, the whole point of this residency is that you are supposed to be making money abroad and then bringing it into DR and spending it here. The Pension version is for people who are getting pension income from abroad, and the Rentista version is for people renting properties.

If you do get this residency, you are then able to work in DR. Note that you cannot legally work in DR without a cedula but you can own property, so unless or until you have a cedula, you can own your hotel but cannot work in it.

 

[lifeisgreat]

Can we apply for this if we have an income from our hotel we purchased in the DR?

You can go for investors visa...

 

[TropicalPaul]

Here is the page with the qualifications to get an Investor Visa. Looks like you need to invest US$200,000 and provide various supporting documents (and for these I would definitely advise using a solicitor like Guzman Ariza). I hadn't realised that you can get this visa if you invest US$ 200,000 in Dominican financial investments - things like Government Bonds. The interest rate on these is very good normally so if anyone has $200,000 lying around, this could be a consideration.

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