Foreign Investment. An Attractive Gateway to Dominican Residency
15 de January 2025

Foreign Investment. An Attractive Gateway to Dominican Residency

In the Dominican Republic, there exists the Residency by Investment Program, established under Decree No. 950, which allows investors to obtain permanent residency within forty-five (45) business days before the General Directorate of Migration, following the acquisition of the corresponding visa for the selected migratory category. Under this decree, an individual benefiting from this program through investment is referred to as an Investor Resident.

The Residency by Investment Program includes three (03) general categories, as follows:

Investor: Defined by the Foreign Investment Law as the owner of a foreign investment duly registered within Dominican territory.

To obtain the migratory category of a direct investor, as established under Article 55 of Regulation 631-11 of the General Migration Law, a foreigner must invest a minimum of two hundred thousand United States dollars (US$200,000.00) or its equivalent in national currency or any other internationally accepted foreign currency recognized by the Central Bank of the Dominican Republic.

Moreover, the aforementioned investment must comply with the provisions of Law No. 16-95 on Foreign Investment or contribute to the capital of a Commercial Company or Individual Limited Liability Company duly constituted in Dominican territory under Law 479-08 on General Commercial Companies and Individual Limited Liability Companies, as amended. This category also includes the direct relatives of the investor, to facilitate their inclusion in this preferential program.

Within this category, there are additional classifications, including investors in Investment Projects operating under the Free Trade Zone Regime, investments in Border Development Projects, and investments in Tourism Development Projects.

Consequently, after securing the proper registration of their investment or based on the selected classification, the investor may apply for the Residency by Investment Visa at the Dominican Consulate in their country of origin or last residence.

Pensioner or Retiree: As defined under Law No. 171-07 on Special Incentives for Pensioners and Foreign Source Rentiers, this category refers to foreigners receiving a monthly income from a government, official agency, or private company of foreign origin, who declare their intention to transfer their residence to the Dominican Republic and receive their pension or benefit in the country.

To qualify for this preferential regime, the pensioner must receive a monthly income of at least one thousand five hundred United States dollars (US$1,500.00). If the applicant includes direct relatives, an additional income of two hundred fifty United States dollars (US$250.00) per dependent is required, as stipulated by law.

Notably, this category does not require a minimum age; however, applicants must meet the requirements for obtaining the Residency by Pension/Retirement Visa at the Dominican Consulate in their country of origin or last residence.

Rentier: Defined under Law No. 171-07 on Special Incentives for Pensioners and Foreign Source Rentiers as individuals who derive stable, permanent income primarily generated or sourced abroad, from the following:

  • Deposits and/or investments in foreign banks;
  • Remittances from foreign banking or financial institutions;
  • Investments in companies established abroad;
  • Income from real estate;
  • Interest earned from securities issued in foreign currency abroad and deposited in financial institutions authorized to operate in the Dominican Republic;
  • Profits from investments in securities issued in foreign or national currency with the State or its institutions provided the principal has generated abroad, and the currency exchange occurs through financial institutions in the country;
  • Interest, rent, or dividends from movable or immovable investments in the Dominican Republic, where the principal was predominantly generated abroad.

To benefit from this preferential regime, the rentier must receive a minimum monthly income of two thousand United States dollars (US$2,000.00). For direct relatives, an additional income of two hundred fifty United States dollars (US$250.00) per dependent is required, as established by law.

Under this category, Law No. 171-07 stipulates that the applicant must demonstrate stable and permanent income generated abroad for five (5) years, which will be verified before approval of the Residency by Rentier Visa at the Dominican Consulate in their country of origin or last residence.

In this regard, foreigners who qualify under any of the above-mentioned categories within the Residency by Investment Program may access various tax benefits as provided by law, including:

  • Exemption from household goods and personal property taxes;
  • Partial exemption from motor vehicle taxes;
  • Exemption from property transfer taxes for the first acquired property;
  • 50% reduction in mortgage taxes when the creditor is a financial institution regulated by the Monetary and Financial Law;
  • 50% exemption from Real Estate Property Tax, where applicable;
  • 50% exemption from Capital Gains Tax, provided the rentier is the company’s majority shareholder subject to this tax and the company is not engaged in commercial or industrial activities.

Thus, foreign investment is an attractive gateway to obtaining residency in the Dominican Republic under the Residency by Investment Program. Furthermore, within a short period, individuals may also acquire Dominican nationality, provided they meet the requirements established by the Ministry of Interior and Police, the institution responsible for evaluating applicants for Dominican nationality.

Licda. Kendy Mariel Gracia Acosta

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