TYPES OF INVESTMENT IN MIGRATION PROGRAMS IN THE DOMINICAN REPUBLIC
Residency by investment:
An investment of US$200,000 must be made, which will be registered as the company’s capital stock, said investment can be used in various ways, for a corporate investment fund and thus start a new business, also to acquire real estate, as well as invest in public securities or certificates of deposit in local banks, which in some cases will pay up to 7%.
From a Due Diligence process, Compass Financial Advisors will be able to know what the sector should be and the type of company where the capital investment is made, as well as accompanying it in its registration before the Export Center of the Republic Dominican.
Steps and stipulated times
1. Investment Registration: between 30 to 45 days.
2. Go to the consulate of the Dominican Republic on the country of origin to request the Residence by Investment. The answer takes between 2 to 3 months.
3. Submit the formalized application to the General Directorate of Migration of the Dominican Republic.
4. Medical exams.
5. Appear again before the General Directorate of Migration of the Dominican Republic to withdraw the document.
*Steps 3, 4 and 5 take 45 calendar days.
What are the benefits of an investment residency?
• Remit abroad, in freely convertible currencies, without the need for prior authorization, the total amount of capital invested and dividends declared during each fiscal year, up to the total amount of current net profits for the period, prior payment of Income Tax, including realized and recorded capital gains.
• Repatriate, under the same conditions, the obligations resulting from Technical Services Contracts where fees are established for reasons of technology transfer and/or contracts for the local manufacture of foreign brands where they include royalty payment clauses, provided that said contracts and the amounts or payment procedures involved have been previously approved by the Export and Investment Center of the Dominican Republic (CEI-RD).
• Exemption from paying taxes on household savings and personal assets
• Partial exemption from motor vehicle taxes.
• Visa for rentiers
People who want to reside in the Dominican Republic have other options such as the rentier visa, in order to apply for this they must have a company incorporated in their country of origin that represents monthly income for a value equal to or greater than US$2,000 dollars and evidence that the applicant has the desire to use that income in the Dominican Republic.
Steps and stipulated times
1. Go to the consulate of the Dominican Republic in your country of origin and apply for the rentier visa. The answer takes between 2 to 3 months.
2. Submit the formalized application to the General Directorate of Migration of the Dominican Republic.
3. Medical exams
4. Appear again before the General Directorate of Migration of the Dominican Republic to withdraw the document. *Steps 3, 4 and 5 take 45 calendar days.
Profits
Exemption from taxes on real estate transfers, for the first property acquired.
Exemption of 50% of taxes on mortgages, when the creditors are financial institutions duly regulated by the Monetary and Financial Law;
Exemption of 50% of the Real Estate Property Tax, when applicable.
Exemption from taxes levied on the payment of dividends and interest, generated in the country or abroad.
Exemption of 50% of the Capital Gains Tax, as long as the annuitant is the majority shareholder of the company that is subject to the payment of this tax and that said company is not engaged in commercial or industrial activities.
Citizenship by Investment
In the event that you choose to obtain Dominican citizenship, you will only be subject to paying taxes on income obtained in the Dominican Republic. This is because, just like people, companies in the Dominican Republic only pay taxes on corporate income generated in the country.
Indeed, if the applicant obtains benefits for the services provided to clients, for example, from the United States, the Dominican Republic would not charge taxes on that income. In addition, you can report all of that income on your tax return using the out-of-country income amount exclusion. depending on the jurisdiction in which the income is reported, this nationality will manifest different benefits similar to the preceding example. Also, with a passport, you will have the option to renounce the citizenship of your country of origin, for example, to eliminate tax purposes.
Steps and stipulated times
1. The applicant must have residence by investment for a period of two (2) years. Sometimes, depending on the type of investment, Compass Financial Advisors can assist you in an expedited application for citizenship.
2. This procedure is carried out before the Ministry of the Interior and Police and can last from six (6) to twelve (12) months.