SANTO DOMINGO. – Last week the Dominican Senate passed a bill which aims to facilitate the flow of investments to the country, and for citizens who reside abroad to access the benefits and exemptions granted to foreign investors.
According to the initiative’s author, (PRSC-National District) deputy Víctor Bisono, the Incentives to Pensioners and Retirees of External Source Law on is an important instrument to motorize Dominican Republic’s economic and productive activity.
The legislation will now go to the Executive Branch, where president Leonel Fernandez is expected to sign it into law.
Bisono said pensioners or retirees who meet its requirements will benefit from the Residency by Investment program, which allows investors to obtain their definitive residence within 45 days.
The law affords pensioners and retirees who meet the requirements and conditions in the current Law, the benefits and exemptions granted to foreign investors and citizen residing abroad, via the following dispositions:
a) Residency by Investment Program, where foreign investors obtain definitive Residency in a term of 45 days. b) Tax exemption for Home Appliances and Personal Goods. c) Partial tax exemption of Motor Vehicles.
Pensioners and retirees will also benefit form the present Law’s stipulation, which states that amounts declared as income to take advantage of its benefits don’t pay Income Tax.
In countries with similar laws such as Costa Rica, Guatemala and Panama, foreign pensioners and retirees post investments in the billions of dollars annually.
The new legislation would make Dominican Republic a competitive attraction within the retirement destination options.