Whether you want the casual lifestyle on the beach, the cooler temperatures of the mountains, or the nightlife of a modern, cosmopolitan capital city, the Dominican Republic has something for everyone. Located on the second largest island in the Caribbean, just a short flight from Miami, it also has more undeveloped and pristine beachfront properties than anywhere else you can imagine.
Are there other beautiful places in the Caribbean? Of course there are, but not as cheap or offer both for the investor and for the retiree. Multi-currency banking for your investments in US dollars, euros or pesos, a pleasant climate all year round, the opportunity for a tax-free business and state-of-the-art healthcare facilities are only part of the attraction. .
There is a growing number of Americans who find their lifestyle and dollar value rapidly diminishing in atmosphere and value.
There is certainly a way out and many are finding it, and a better lifestyle, by moving to a less expensive country.
For many, a country that is arousing interest is the Dominican Republic. Compared to other well-known and well-worn Caribbean destinations, the Dominican Republic remains a place where real estate is extremely affordable.
For the price of a studio apartment in the Bahamas or the Caymans, you can have a beautiful big house in the Dominican Republic and living is easy in the Dominican Republic is a wonderfully diverse island with a wide range of climate zones. DR is very popular with Europeans, and now Americans are starting to discover it too.
The Government of the Dominican Republic is debating, beginning in mid-2007, a bill to offer more incentives to retirees and foreign investors, such as those available in Costa Rica and Panama. That bill is reported to offer:
- A residency program linked to investment in the country
- Home and personal property tax exemption
- Partial exemption from taxes on motor vehicles
- Exemption from the property transfer tax for the first property acquired.
- 50% Exemption from mortgage taxes if the creditor is a financial institution authorized and regulated by the local Monetary and Financial Law
- Exemption of 50% of the Tax on Real Estate.
- Exemption from taxes levied on the payment of dividends and interest accrued in the country or abroad
- 50% Exemption from capital gains tax
There are no restrictions for foreigners on owning real estate in the Dominican Republic. New homes in residential sections of Santo Domingo, the nation’s capital, can be found starting at around $65,000, with beachfront condos in the $95,000 area. If you prefer a very exclusive home located within a beachfront golf course gated community, you can find it in the US$275,000 range. Five or more acres of farmland in the lush mountains start at around US$55,000, while home-building lots range from US$20,000 to US$100,000 or more, depending on your location.
Additionally, in the Dominican Republic, bank accounts and fixed income investment returns provide up to 10% on US dollar accounts and up to 18% interest in Dominican pesos (the local currency). Said income is 100% free of local taxes. , which means that the possibility of living on the interest on your savings is a different reality.
It should be noted that the mountains have cool, cozy temperatures and stunning views; while the beaches in the DR are predominantly white sand beaches with water so clear you can see the shadow of a boat 30 feet away. Due to the immense size of the island, there really is something for everyone. And don’t forget the old world charm of the colonial zone of Santo Domingo, the capital.
Many clients have chosen the Dominican Republic because bank account interest is 100% tax-free locally and because interest rates for US dollar deposits tend to be higher than elsewhere, including interest rates. current in Panama. So if having the ability to live off your savings is a consideration, the Dominican Republic might be a good place to look, even if you decide to live elsewhere.
US Dollar Bank time deposits (CDs) pay up to 10% right now, and if you’re going to live in the country, then deposits that pay 16% or more in Dominican pesos can also be worth it. Put more bluntly, while it is nearly impossible to live off current interest earned on US bank accounts (which are also taxed) at this time; it is quite possible to do it in the Dominican Republic. How much do you need? That really depends on what kind of lifestyle you want, but it’s safe to say that you can pay monthly rent, monthly utility bills, and cover things like grocery shopping with the equivalent of US$1,200 to $1,500 per month.
All information necessary for a complete understanding of residency requirements or programs offered in the DR. Like any country looking to attract good new residents (and citizens), the Dominican Republic’s immigration department requires clients to provide a number of documents, including a letter from the local police department stating that they have no criminal record , who are in reasonably good health, and are financially solvent.
Moving outside of the US, or your home country, wherever that may be, can be a bit daunting. Where do you start? How can you get the best and right advice the first time? Going on a scouting trip is usually the first step in that process.
Some of the topics you may want to cover during an exploratory tour should include:
–health insurance and medical care (it’s a fraction of the cost in the US),
–residency and second citizenship options,
–incorporation,
–real estate law,
–communication options,
–offshore banking, and other related issues.
There are a couple of well-known international companies that offer lifestyle/investment discovery tours to the Dominican Republic. Just Google “Investment Trips to the DR”.
About the Author
Tropical Pathways is a tourism company that provides an inside look at investment opportunities of all kinds to small intimate groups of like-minded individuals. We offer you an all-inclusive investment tour to see real estate in Panama, Mexico, Roatan and the Dominican Republic. For more information visit: Panama Real Estate
