The Dominican government is slowly waking up to the notion that there are many people who desire to relocate or to retire to their country. They are making incentives available to make that move more desirable, following the lead of Panama and other latin american countries.
The Senate gave its approval to a bill that is designed to attract pensioners from overseas. The bill, which was drafted by Deputy Victor Bisono Haza, will allow retirees who come from overseas to obtain Permanent Residency within 45 days. At the same time, they will receive the same benefits and tax exemptions as foreign investors and Dominican citizens who reside outside the country. The law approved by the Senate modifies Article 271 of the Tax Code, and
establishes that the amounts declared as income in order to qualify for the special treatment are not subject to Income Tax. Also, household goods are exempted from duties, as are motor vehicles, although only up to a point.
The bill seeks to better position the DR to attract baby boomers of retiring age that are seeking to purchase property in warm destinations abroad. Several Central American countries offer similar tax conditions to attract the retirees.
As reported in El Dia newspaper, the bill that had been previously approved by
the Chamber of Deputies, exempts foreigners from paying property transfer tax on the first property they acquire in the DR. These will also receive 50% tax deductions on mortgages, real estate property tax and capital gains tax, when the foreigner is the majority shareholder in the company that would be subject to this tax and the company carries out commercial or industrial activities.
The retirees that apply for the program will also be exempt from paying taxes on interest generated by their savings in the country or abroad. The bill now moves to the Presidency for final approval.