In the Dominican Republic, there has been a law since 2007 that grants tax incentives to Dominicans or foreigners who are residents of the Dominican Republic. This is Law 171-07, on special incentives for pensioners and rentiers from foreign sources.

The law provides for three categories of people who can apply for its benefits:

Pensioners or Rentiers: Those individuals, either Dominicans or foreigners, who receive a pension from a foreign government or private entity and who have decided to reside in the Dominican Republic. The pension category also includes the income received from private pension plans. The minimum pension to apply is US $ 1,500.00 dollars per month.

Rentiers: Those who receive a fixed or variable income of not less than US $ 2,000.00 per month, for: deposit or investments in banks, investment portfolios, dividends from companies, remittances, earnings from real estate, titles or investments of any other nature from overseas.

Among the benefits granted by the Law to applicants, are:

• • An abbreviated Dominican legal residence procedure for foreigners, through which the applicant accesses permanent residence. This residence must specify the applicant’s Rentier, Retiree or Pensioner status. Obtaining residency in advance with that status is a prerequisite for obtaining the benefits of the law.
  • Total exemption from Customs tariffs on household goods and furnishings that the applicant imports into the country. In the case of imported motor vehicles, a partial exemption from the tariff applies.
  • Exemption from the real estate transfer tax for the first property acquired in the Dominican Republic.
  • Exemption of 50% of the tax on mortgage registration in case the purchase is made with mortgage financing.
  • Exemption of 50% of the annual property tax if applicable.
  • Total exemption from taxes on interest or dividends received by the applicant from any Dominican or foreign institution or person.
  • Exemption of 50% of the capital gain tax that could general the sale of the property that constitutes the first real estate acquisition that the applicant would carry out in the country.

Applicants for these benefits may work in the country or carry out any other activity that generates income, without affecting the previous benefits. In this case, the income they receive from these activities will be subject to local taxes.