Retire in the Dominican Republic
How to retire, relocate or moving to the Dominican Republic
Relocating… to make this huge step, to relocate to another location or country takes thought and proper planning. Relocating can be done in whatever age… not only to retire!
I made this step and i am living in the Dominican Republic, coming from Europe, from the Netherlands.
Why the Dominican Republic… Well, everybody has his own preferences. Here is my story: i was fed up in my own country (laws, regulations, taxes, etc) so started sailing in the Caribbean. I think i can say that i know almost all the islands in the Caribbean and ended up here in the Dominican Republic, at Samana. The DR has good to very good international flight connections, its a huge island with large cities like Santo Domingo and Santiago, i was looking for nature, mountains and beaches and for decent prices for land and living and friendly people.
Important: Get your financial situation in order. Know what you can spent. Interest rates here in the Dominican Republic are now (aug 2012) around 6-7% and paid every month. So if you want to live of our savings… its still not bad. And tax-free.
Retire Dominican Republic
In the USA, or in whatever country at this moment… live off your current interest is impossible and taxed. In the DR its possible. How much you need…? Well, that depends totally on you, your family and the lifestyle you choose. The fun here in the DR starts at i think around 1.200 use per month.
Residency in the DR is easy to get. The Dominican Republic department of immigration asks that clients provide a number of things: letter of good conduct from local police department, a local medical exam.
Illegal drugs: the Dominican Government has 0 tolerance for drugs.
The Dominican Republic, and especially Samana is until The Caribbean’s Best Kept Secret. I came here 8 years ago when that secret was REALLY a secret…
The Dominican Republic in the Caribbean is a good option for retire, relocating or moving to the sun. There are incentives for pensioners and rentees.
For opting to retire in the Dominican Republic, Pensioners Rentees from foreign countries can count on the New Law 171-07, Special Incentives law for Pensioners and Rentees that would give them ample benefits in the Dominican Republic of low taxes and peaceful living.
Approved July 13th, 2007 Special Incentives law 171-07 for Pensioners and Rentees of foreign source. This law is for retiring in the Dominican Republic by granting to people interested in retreat in Dominican republic legally attractive incentives to these purposes.
The Dominican Republic offers its natural resources, cultural, technological and human resources projected as a place suitable and attractive to retired seniors interested in the country as a destination for retirement, and in turn is placed at the forefront with other countries in the region that have already implemented similar programs. The Dominican Republic is a retirement destination.
Who Can Apply for retirement in the Dominican Republic
PENSIONERS: Foreign or Dominican citizens who are receiving a monthly income for a pension or retirement from a government, agency or private company of foreign origin, who are interested in moving his residence to the country and ultimately receiving the benefits of their pension or retirement in the Dominican Republic.
RENTEES: Rentees may also benefit from this law provided they receive an income that is stable, permanent, which is principally generated from:
1 – Deposits and / or investment banks established abroad
2 – Remittances from banking or financial institutions.
3 – Investing in companies established abroad
4 – Income originated on real estate
5 – Profits earned by investing in securities issued in foreign currency
6 – Interest, dividends or income securities or real estate investments made in the Dominican Republic, whose principal has been generated or accrued mainly abroad.
On the other hand, such as pensioners and annuitants interested to retire in Dominican republic, may qualify for the same benefits and exemptions granted to foreign investors and citizens living abroad. Among these we note the following:
1 – Waiver of 50% of the estate tax.
2 – Exemption of taxes on real estate transfers.
3 – Partial Exemption from taxes of Motor Vehicles. Law No.168.
4 – Obtaining Residency final document within 45 days. Decree No.950
5 – 50% exemption of taxes on mortgages, when the creditor institutions are financial institutions properly regulated by the Monetary and Financial Law of Dominican Republic;
6 – Exemption from taxes on Household and Personal Property; Act No.14-93
7 – Exemption of taxes charged to the payment of dividends and interest generated in the country or abroad;
8 – Waiver of 50% Tax Gain Capital, as long as the rentee is the majority shareholder of the company which is subject to the payment of this tax and that the company not be devoted to commercial or industrial activities.
Requirements by Law for the Pensioners and Rentees
For Retirement in Dominican Republic, the Pensioners and Rentees interested in benefiting from the facilities that confer this law should receive a monthly income of not less than ONE THOUSAND FIVE HUNDRED dollars, American currency ($ 1,500.00) and the rentee shall receive a monthly fee corresponding to TWO THOUSAND dollars ($ 2,000.00) or its equivalent in local currency plus the amount of two hundred and fifty American dollars ($ 250.00) for each dependant.
To be eligible for this program, the main applicant is not subject to a minimum age.
Under this Act, may apply to the Residence Permit Program for Investment, pensioners and rentees, as well as their spouses and unmarried children under 18 years of age, or older children who can verify attendance to a college career; seniors disabled, and other dependants of the applicant. They may also include minors on whom main applicant or spouse is exercising fully recognized guardianship.
Possibility of Working in Dominican Republic
The pensioners and rentees covered by the Incentives Law may have a remunerative work. Benefits of exemption from tax tariff on imports of personal effects and household, as well as professional effects and equipment used, remain exempt the payment of taxes and may also benefit from the regime of Tax Exemption Part of Motor Vehicles , which was established by Act No. 168, amended by Law No.146-00, on Tariff and Fiscal Reform.