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In 2007 a formal law was created incorporating a new incentive for Investors.  This law stipulates that foreign nationals meeting certain criteria can obtain permanent residency through Immigration’s Investment Department and enjoy the incentives afforded by this category of residency.

Who qualifies for the fast track residency?

• Retirees – Earn a minimum of US$1500 per month, (US$1,750.00 per couple)
• Foreign Investors (rentista)- Earn passive income of US$2,000.00 per month from investments abroad such as privately owned companies, rental income, stock/bonds, annuities etc. for the last five years.
• Domestic Investors – Invest a minimum of US$200k in the Dominican Republic (company registered in the DR, Bond Market, long term banking products, Confotur certified properties etc.)

What incentives does Fast Track Residency provide?

• Exemption of 3% transfer tax on the first property purchased (after obtaining residency)
• Exemption of the annual 1% real estate tax that must be paid on property worth over a certain amount (amount varies, contact our office for an up-to-date figure)
• Partial tax exemption on the purchase or importation of a vehicle
• Importation of household goods duty free
• Exemption of taxes on income earned in the DR (ex rental income from Airbnb)
• Partial tax exemption on the purchase of furniture
• Fastest route to citizenship and passport

Requirements for the Fast Track Residency

• Copy of residence visa issued by Dominican Consulate
• Entry stamp issued by airport Immigration
• Copy of passport book, valid for one year from expiration date
• Birth certificate translated and authenticated by apostille
• Marriage certificate or Sworn Statement of Common Law Marriage (if applicable) translated and authenticated by apostille
• Police clearance translated and authenticated by apostille
• Proof of solvency translated and authenticated by apostille
• Repatriation Insurance
• Medical exam performed by an authorized facility

The residency process takes approximately 45 business days to complete once the medical exam has been performed. This category of residency is renewable after the first year and every two years thereafter.

The foreign national must initiate the process to extend their stay in the country 15 days prior to the expiration date that appears on the tourist card. You will be required to provide:

• Biometric page of passport
• Entry stamp (placed on passport by DR immigration at airport)
• Medical certificate
• Proof of solvency
• Reservation of return flight

The cost of the extension is RD$2,500.00. To complete the process, visit this link.

Expats considering investing or relocating abroad often inquire about the banking system and investments in the Dominican Republic. Below is a list of frequently asked questions and answers that we hope you will find useful. For specific inquiries, Click Here to contact us directly, and we will be happy to address any questions you may have. 

Can Foreigners Open a Bank Account in The Dominican Republic?

YES. Most banks in the Dominican Republic will allow foreigners to open an account with a valid passport, a secondary ID (ex. driver’s license), a reference letter from the bank abroad where they hold accounts and documents indicating source of income. There may be banks that require foreigners setting up accounts to hold legal residency status, but most will allow foreigners with just a passport and the documents listed above. The exception to this rule applies to foreigners that are in the country illegally or in irregular status (ex those who overstay)

How Safe are Dominican Banks?

In our opinion, they are much safer than many of the banks in the U.S. or Europe.  There is, of course, a government-run banking depositor insurance fund but unlike the U.S. FDIC bank insurance fund, the Dominican Bank Insurance fund is solvent, and ALL banks pay into it.  Also, Dominican banks are required to set aside a reserve with the central bank for liabilities and assets, which are reviewed periodically.  That percentage or reserve can range up to 6% for things like unsecured loans or outstanding credit card debt, so they are much more secure than their counterparts in other parts of the world.  But that is not the only reason we tend to have more confidence in the Dominican Banking System.

As many of you already know, banks in other parts of the world like (Europe and the U.S.) have become heavily involved with nontraditional banking activities, such as derivatives.  Also, the European banks especially were duped into buying U.S. mortgage-backed securities which as we know by now were not exactly AAA rated as was promoted.  Dominican Banks are very conservative with their activities and have not gotten involved in such things.  Also, banking spreads are quite wide in the Dominican Republic, and that is a good thing. 

So, while Dominican Banks might pay out 4% on savings accounts or maybe 7% on time deposits (certificates of deposit) they also charge up to about 18% for things like car loans and mortgages.  In short, the Dominican Republic is not a very good place to borrow money; it is a perfect place to deposit or invest.  The bottom line here is that banking is profitable, interest rates are the market rate (not contrived zero percent interest as we know is the case elsewhere) and higher borrowing costs deter excessive and untenable debt by the local consumers.  Those factors, in our opinion, are even more important than the existence of banking insurance regarding the long-term health of the local banking system.

Is There Online Banking, Internet Banking?

Yes, Yes and Yes.  Most of the Dominican Banks now offer online banking or at least the ability to view accounts online.  Some of the smaller savings and loan types of institutions may not all have an Internet or online system in place, but all of the larger banks certainly do.  However, each bank has their own comfort level regarding what they allow clients to do on their online system.  Almost all of them have some form of local bill paying option and the ability to transfer funds between accounts within the bank.  Most of the Dominican Banks are very concerned about fraud, and for that reason, they do not allow outbound wire transfers done via their online system they prefer these transactions be made in person.

ATMs, Credit Cards and Money Transfers

ATMs can be found all over the country, inside and outside banks, at gas stations, in supermarkets and shopping malls. Expats must be aware of the transaction limits as well. The maximum is usually 10,000 pesos, which is around $180 USD. Because of the presence of ATM fraud, it is best to withdraw money at the bank, where it’s always possible to talk to the staff when some problems occur. ATMs usually accept all sorts of cards, not just Dominican, but also foreign ones. However, charges for using the cards of some overseas banks oscillate from 190 to 300 pesos.

Visa and MasterCard are widely accepted in this country, but American Express is not an option in some of the country’s major outlets. Even though there are many ATMs in the country, expats rarely use credit cards, but instead deal with cash, considering it much safer.

Transferring money from abroad can take up to 5 business days, and any sum over USD 10,000 can be held by the bank until the recipient proves the source of the funds.

Banks in the Dominican Republic

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There are several banks that operate in the Dominican Republic, both retail and commercial.  The only foreign retail bank in the country is Scotiabank.  Other major retail banks in the Dominican Republic include the following:

• Central Bank
• Banco Popular
• Banco Leon
• Banco Reservas
• Scotiabank

Dominican Republic Currency

The official currency in the Dominican Republic is the peso (RD$). One peso is divided into 100 centavos. The pesos come in $20, $50, $100, $200, $500, $1000 and $2000 notes, while centavos come in $1, $5, $10 and $25 coins. Even though the peso is the official currency in the country, US dollars and Euros are accepted everywhere, because tourism is one of the country’s biggest industries. The use of other currencies is sanctioned by the government, and the Dominican peso is currently quite stable after a huge value drop in 2004.

Working Hours

Hours of operation vary by bank, but in general, banks are open from 9 am to 4 pm and until noon on Saturdays. You may find some banks that open at 8 am, while some close at 5 pm. Very long queues can be expected on work days, especially near the beginning and end of the month.  There are also several banks in supermarkets that have the same opening hours as the supermarkets. These are good because they are usually open until 8 pm when the shopping complex closes. Many of them are also open on Sunday.

Are There Any Currency Controls or Transfer Restrictions in The Dominican Republic?

NO, there are no restrictions.  Clients can remit any amount they wish to their Dominican Bank Account, they can retrieve or wire any amount of funds out they wish and there are no restrictions to exchange between the various currencies and the Dominican Peso.

Many banks of course may ask for additional documentation about inbound wire transfers, especially if it is a large sum, but that is only for due diligence purposes and has nothing to do with any restrictions.

Where Can You Exchange Money in The Dominican Republic?

Most of the larger banks in the country offer the ability to exchange US Dollars or Euros into Dominican Pesos using your passport or cedula for ID.  Many of the smaller savings and loan type institutions will only offer exchange services for US Dollars.  In addition, there are many private money exchange services, known as a Casa De Cambio or house of exchange that can exchange foreign currency into Dominican Pesos. 

While the banks are usually limited to only exchanging US Dollars or Euros, many of these casas de Cambio establishments will offer exchange for other additional currencies as well although usually more common in the tourist or resort areas (the casa de Cambio in Santo Domino and other non-tourist areas will usually only do USD and Euro exchanges).  A casa de Cambio will usually offer a slightly better exchange rate than the banks.  As of April 2016, the exchange for US$1 is about 45 Dominican Pesos and for One Euro about 49 Dominican Pesos. 

Can I Get Direct Deposit to My Dominican Bank Savings Account?

Yes, all depending if the paying party is willing to process the payment for you.  In essence, this would work the very same way as any other direct deposit with the exception being an extra subset of instructions for the recipient correspondent bank to know how to apply and report the credit to your Dominican Republic Bank.

Am I Required to Keep All of My Funds in Dominican Pesos?

No, clients can open either a Dominican Peso Account, a U.S. Dollar Account, A Euro Account, or combination of these.  There is no requirement that foreigners or legal residency open or hold any one particular kind of currency account.  However, as we mentioned previously, since most of the banks will only issue a Visa Debit Card that is connected to a Peso Savings Account, if you want to have a debit card, then you will need to open a Dominican Peso Savings Account.

Aside from Performing a Wire Transfer in US Dollars or Euros, Can I Get a Bank Check in These Currencies Payable to Myself or A Third Party?

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YES. Any bank that offers US Dollar or Euro Accounts can issue a bank check drawn off their foreign bank correspondent account (which means a US bank for US Dollars and a European Bank for Euros).  This can be convenient for clients that have a business and would prefer to pay suppliers by check in these respective countries and currencies.  The recipient of such checks will have no problem clearing them because they will be issued off the Dominican Bank’s local correspondent bank located in that other country or jurisdiction.

Mortgages and loans

Mortgages and loans are available in the Dominican Republic, but expats must be aware that interest rates are very high. When it comes to mortgages, the penalties for late payment are very high. Due to the high level of interest rates for loans, there are also high levels for savings. The Central Bank offers Certificates of Deposits for different periods of time, with interest paid monthly into the retail bank account. The levels of interest depend on the amount that was invested and the duration. Many expats actually live off this income.

Income Tax

Income tax is established by the law 11-92 and governed by the Dirección General de Impuestos Internos, or DGII. All work which is carried out in the Dominican Republic is taxable, while any type of work from outside the country is not taxable. However, once expats have had residency status for more than three years, their income from overseas – both financial and investing – is the subject of taxation. When expats work for a company, their taxes are automatically deducted, while in the case of self-employed people, it’s necessary to register with the DGII. Tax is paid monthly, but the DGII usually demands more money at the end of the year, especially from foreigners.

The tax is based on a sliding scale, which rises each year along with inflation. In reality, only 8% of people pay tax in this country, as all the others earn below the minimum level. Those who work on a freelance basis must know that it’s a common practice for the client to deduct 10% of the agreed fee for taxation. There is no double taxation agreement with the United Kingdom and the United States, but there is one with Canada.

The Great American Dream is that each future generation has the opportunity for a better life than their parents and grandparents.  And part of that upward climb to increased prosperity has included the attainment of higher education for your children and grandchildren.  But what if higher education suddenly became so costly that only the wealthy were able to afford it?  Most of you may think: in today’s day and age, there are many programs available to allow anyone that wants to attend a university to do so.  But aside from an outright scholarship the only real option open to many families is the utilization of debt to fund higher education.  But this was not always the case in the United States; it used to be that college-bound students could often pay their way by working part-time to pay for education expenses.  However, things have changed.

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Lizzie O’Leary and Eliza Mills, “How the Deck Is Stacked,” Marketplace.org, report that Forty-two million people in the United States have student loan debt, a total of about $1.3 trillion worth of outstanding debt. It’s a big number, even considering the fact that the biggest reason there’s so much student loan debt is because more and more people — and not just those whose families can afford it upfront — are going to college.  The average amount of debt on student loans is about $37,000, but whether someone owes $5,000 or $100,000, debt can cast a shadow over their entire life.

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So, what is the solution?  To obtain a college education debt free or at a price that makes sense.  You can achieve this by taking full advantage of the educational system offered abroad.  The Dominican Republic has a list of top quality academically competitive ivy league equivalents universities both private and public, with the UASD being the oldest university in the Americas (now public).  It was founded around 500 years ago (give or take a decade or so) in Santo Domingo by Papal Decree, and it still stands today.  There are also a large number of private universities in the country with at least 3 or 4 in the top tier category. Also, consider that job growth and individual opportunities are not going to be exclusive to the United States or even Europe for that matter going forward.  Obtaining knowledge, experience and also a second language will help up and coming university graduates to be better prepared for a world that will be very different than what their parents and grandparents experienced. (yet another reason to consider expatriation).

You are probably thinking: you cannot get a good education outside of the United States, and that any Diploma earned from a university or college in another country will not have merit in the U.S. this is not the case.  India has produced some of the best computer programmers in the world over the past few years.  But while we cannot offer in-depth insight into every other country on the planet, we can tell you about our own experience in the Dominican Republic. 

What Are the Benefits of a University Education in The Dominican Republic? 

1. The opportunity to obtain a quality education debt free (and many universities in Europe will gladly accept credits for transfer).
2. The opportunity to become fluent in another language (Spanish speakers are one of the fastest growing percentages of the population in North America).
3. The chance for mom and dad to save on boarding costs and have a real estate Investment/retirement property (by buying a new condo for possibly almost the same costs as four-year room and board at many American Universities) Take a look at some of the condos here
4. The opportunity to obtain another citizenship, thus expanding employment options in the future (and if the student has residency in the island, they pay half the tuition charged to foreigners).

In order to apply for a residency visa, the following documents are required:

• Passport valid for travel to the U.S. – Your passport must be valid for at least six months beyond your period of stay in the U. S. (unless exempt by country-specific agreements). If more than one person is included in your passport, each person who needs a visa must submit a separate application.
• Nonimmigrant Visa Application, Form DS-160 needs to be filled out and applied for online
• Application fee payment receipt, if you are required to pay before your interview
• Documents establishing ties to the petitioner – marriage certificate, birth certificate
• Identity documents of petitioner – birth certificate, passport, driver’s license
• Photo – You will upload your photo while completing the online Form DS-160. If the photo upload fails, you must bring one printed photo in the format explained in the Photograph Requirements.

Additional documentation may be required once the file advances in stages.

To apply for a tourist visa :

• The purpose of your trip;
• Your intent to depart the U.S. after your trip; and/or
• Your ability to pay all costs of the trip.

Evidence of your employment and/or your family ties may be sufficient to show the purpose of your trip and your intent to return to your home country. If you cannot cover all the costs for your trip, you may show evidence that another person will cover some or all costs for your trip.

Please contact us for a free consultation.

In light of the changes that have come about with the new immigration regulation, some have sought to establish citizenship in the Dominican Republic.  However, the changes in the regulation affect the time frame that makes citizenship possible.  In order to qualify for citizenship, the foreign national must meet one of the following qualifications or categories:

Permanent Resident

Foreign nationals who hold permanent residency status for two consecutive years qualify for naturalization.  The process must be initiated 6–8 months prior to the expiration date that appears on the residency card. Foreign nationals must speak and read Spanish. Applicants under this category must take the Dominican Nationality Test. The process takes eight to twelve months.

 

Married to a Dominican Citizen

Foreign nationals married to Dominican citizens must have residency status and be married for a minimum of two years prior to applying for citizenship. Those who apply under this category do not require the Dominican Nationality Test. The process takes eight to twelve months.

 

Child of Dominican Citizens

In order to apply under this category, the birth certificate/death certificate of the Dominican parent must be provided.  If the Dominican parent is alive, a copy of their Dominican cedula and a copy of the ID/passport of the other parent will also be required. This process takes approximately ninety days.

Things We Need From You

1. Valid passport
2. Birth certificate of applicant with apostille
3. Police clearance from country of origin apostilled
4. Permanent residency card
5. Dominican cedula (Dominican I.D.)
6. Title to property (if applicable)
7. Title to vehicle (if applicable)
8. Bank reference letter from a Dominican bank

  * All other aspects of the process is handled by our firm

When the process is finished, the applicant will obtain a naturalization certificate, which will allow for him/her to obtain a Dominican cedula and passport.  Please ask us about the benefit and the legal effects of obtaining a Dominican passport in detail.

Download Document You May Need for Dominican Citizenship

Naturalization Requirements (Spanish, PDF file)

Interview for Dominican Citizenship What you need to know Click Here…

Residency renewal under the investment program also known as fast track residency must be done after the first year and every two years thereafter. The process should be initiated forty-five days prior to the expiration date that appears on the residency card.

REQUIREMENTS:

• Biometric page of passport (must be valid one year prior to expiration)
• Copy of residency card (front and back)
• Copy of cedula (front and back)
• Photos – 2×2 frontal digital pictures without glasses or jewelry on white background (ears and forehead should be visible)
• Documents proving financial solvency (six month bank statements from DR bank and bank reference letter)
• Certificate of good Conduct from DR (firm will obtain)

Immigration is requiring to show sufficient movement in your Dominican bank account or a specific balance. It may be necessary to deposit funds into your account in order to meet their criteria.