A growing concern of foreign nationals that are of retirement age is where to retire. With the current financial crisis affecting many countries retirees are looking for alternative destinations in order to make sure they can live comfortably on their pension income. The Dominican Republic offers many incentives to those who wish to retire in the country. Some of those incentives are:
- Permanent residency in 45 days
- Qualify for citizenship within six months of being issued a residency card
- 50% tax exemption on properties
- Exemption of taxes on income earned from pension
- Exemption from taxes levied of the payment of dividends and interest earned
- Exemption of taxes of home furnishings and personal property
- Partial exemption of vehicles taxes (transfer taxes on the purchase of vehicles)
- Exemption of 50% of the capital gains tax, as long as the annuitant is the main shareholder of the company and that company is not engaged in commercial or industrial activities
For those looking to build a home to retire in, the cost of land in the Dominican Republic is very reasonable. To cite an example, in a town like Cabrera you can purchase property with a million dollar view at a very affordable price. This is of special interest to foreigners coming to the DR on a budget, after all, not everyone can afford to purchase expensive property in the most exclusive areas, but in this diverse island everyone can have their dream house in the perfect spot at an accessible cost.
Another reason for retiring in the DR is the low cost of living which is also a concern for those living on a budget. In a future article we will address that subject in detail.