Residency and Citizenship in the Dominican Republic: Tax Advantages and More

1) Introduction

The Dominican Republic offers an ideal combination of natural beauty, economic stability, and a welcoming environment for foreigners. MigratioLex, in collaboration with leading local lawyers, provides specialized guidance for entrepreneurs, investors, digital nomads, retirees, and rentiers who want to settle in the country while optimizing tax benefits.

2) Residency Options in the Dominican Republic

This article focuses on residence visas (RS) under Law 171-07 for investors, annuitants, and pensioners/retirees. These visas offer attractive pathways for temporary, permanent, or definitive residence with additional tax advantages.

3) Key Benefits of Dominican Residency

• Direct permanent residence for investment, annuitant, and retiree visas
• Eligibility to work legally in the Dominican Republic
• Possibility to apply for citizenship after a short period (6 months to 2 years)
• Territorial taxation with foreign income exemptions
• Exemptions on real estate, capital gains, and mortgage taxes

4) General Requirements for All Visas

• Passport: Original passport valid for at least 18 months.
• Birth Certificate: Legalized or apostilled.
• Criminal Record: Certificate from countries of residence for the last 5 years, legalized or apostilled (not required for minors).
• Medical Certificate: Confirming no infectious diseases.
• Marriage Certificate: Legalized or apostilled, if applying with spouse.
• Photos: Recent photographs as required.

5) Application Process

1. Step 1 – Apply at Dominican Consulate: Start your application in your country of origin before traveling to the Dominican Republic.
2. Step 2 – Travel to the Dominican Republic: Once your visa is approved, travel to the country.
3. Step 3 – Complete Immigration Procedures: Within 60 days, submit documents to the General Directorate of Immigration for temporary or permanent residence.
4. Step 4 – Citizenship Option: For investment visas, apply for citizenship after 6 months of legal residence (process may take up to 2 years).

6) Tax Advantages and Additional Benefits

• Exemption from taxes on foreign income for investment, annuitant, and retiree visa holders
• Exemption from real estate transfer taxes on the first property
• 50% reduction on mortgage and real estate taxes
• Exemption from dividend and interest taxes (domestic and foreign)
• 50% exemption on Capital Gains Tax under certain conditions
• Double non-taxation opportunities and fiscal transparency

7) Long-Term Residence

Permanent residence is granted directly for investors, annuitants, and retirees, renewable every 4 years. Additionally, after 10 years of legal residence, permanent residence (RD-1) can be renewed every 10 years.

8) Citizenship in the Dominican Republic

The Dominican Republic allows dual nationality. Citizenship can be obtained through naturalization or by holding an investment visa. Investors can apply for citizenship after 6 months of residence, while standard naturalization typically requires at least 2 years of legal residence.

9) Contact MigratioLex