Incentives offered by the Dominican Republic to foreign investors

Law 171-07 on Special Incentives for Pensioners and Rentiers foreign source provides in Article 2 that both pensioners and annuitants who meet the requirements and conditions set out in the Act, will enjoy the following benefits and exemptions:

1. Investment Residence Program, created by Decree No.950 of September 20, 2001, which allows foreign investors to obtain permanent residence within 45 days;
2. Law 14-93 of August 26, 1993, on Customs Tariff of the Dominican Republic, which exempts from taxes on home furnishings and personal property;
3. Law No.168 of May 27, 1967, on Partial Tax Exemption for Motor Vehicles. If vehicles are purchased on the local market will be exempt from tax Transfer of Industrialized Goods and Services (ITBIS) and the Selective Tax on Consumption. (Art.12, Paragraph III Foreign Investment Law).
4. Exemption from taxes on real estate transfers, for the first property acquired;
5. 50% exemption of taxes on mortgages, when the creditors are financial institutions duly regulated by the Monetary and Financial Law;
6. 50% exemption from tax on real estate, when applicable, while having his residence permit valid for Investment (Art.13 Foreign Investment Law);
7. Exemption from taxes on the payment of dividends and interest generated in the country or abroad;
8. 50% exemption from tax on capital gain, provided the annuitant is the majority shareholder of the company that is subject to the payment of this tax and that the company is not engaged in commercial or industrial activities.
9. The Foreign Investment Law also states, in its art. 14, all properties acquired by pensioners and annuitants under the protection of the law, at the time of its sale to third parties, shall be exempt from paying 50% tax on capital gains.
10. Exemption from payment of income tax (ISR) to amounts reported as income to be eligible for the benefits of this law. Art.10 Foreign Investment Law.