Immigration Law

Immigration Law and Benefits of Dominican Residency

The Dominican Republic offers a robust, modern, and highly favorable immigration framework for foreigners seeking to reside, invest, work, retire, or establish businesses in the country. The immigration system—governed by the General Immigration Law, Law 171-07 (Residency for Pensioners and Rentiers), Residency by Investment regulations, and special programs—provides significant advantages for individuals, investors, and families seeking stability, legal protection, tax optimization, and full access to the Dominican financial and economic system.

Our firm advises foreign nationals through all immigration processes, including Ordinary Residency, Residency by Investment, VIP Residency for Pensioners and Rentiers, Naturalization, Business Visas, work permits, and the repatriation of household goods, ensuring compliance, efficiency, and legal certainty.

Benefits of Ordinary Dominican Residency

(Also applicable to Residency by Investment)

1. Legal requirement to work or establish a business:
   Any foreigner who resides, works, or intends to establish a business in the country must possess legal residency, as required by the Immigration Law.
2. Tax exemption for importing personal belongings:
   Residents may bring household furniture and personal effects free of taxes and customs duties. This benefit applies once per family.
3. Elimination of the judicial bond (Judicatum Solvi):
   Residents are exempt from the substantial judicial bond required from non-resident foreigners to litigate before Dominican courts.
4. No taxes on foreign-sourced income:
   Foreign income earned outside the resident’s country of origin is not taxed in the Dominican Republic.
5. Inheritance tax benefit:
   A 50% reduction applies to inheritance tax when the beneficiary is a legal resident.
6. Entry without a tourist card:
   Residents do not need to purchase a tourist card nor pay overstay fines for extended stays.
7. Equal treatment in public and private institutions:
   Residents pay the same rates as Dominican nationals in hospitals, universities, banks, insurance companies, restaurants, and other institutions.
   Without residency, foreigners are charged higher “non-resident” rates.
8. Driver’s license and vehicle insurance:
   Residents may obtain a Dominican driver’s license and insure their vehicles locally.
9. International tax optimization:
   For foreigners seeking to avoid taxation on foreign-source income in their home country, holding legal residency in another state is essential.

VIP Residency for Pensioners, Rentiers, and Investors (Law 171-07)

Additional Exclusive Benefits

1. Expedited process:
   Investors may obtain permanent residency within 45 days.
2. Exemption from Motor Vehicle Tax:
   Applies to vehicles owned and used for more than one year by the applicant.
3. Customs tax exemptions:
   • Household furniture and personal effects (Law 1493).
   • Importation of motor vehicles (Law 168-67).
4. Real estate transfer tax exemption:
   Applicable to the first property acquired.
5. 50% exemption on mortgage taxes:
   When loans are issued by institutions regulated under the Monetary and Financial Law.
6. 50% exemption on the Property Tax (IPI).
7. Exemption from taxes on dividends, interest, and investment returns:
   Whether generated in the Dominican Republic or abroad.
8. 50% exemption on capital gains tax:
   Provided the beneficiary is the majority shareholder and the company does not engage in commercial or industrial activities.

Financial Requirements under Law 171-07

• Pensioner: Minimum monthly income of US$1,500.
• Rentier: Minimum monthly income of US$2,000.

Individual or corporate investor: Minimum accredited investment of US$200,000.