The Dominican Republic welcomes more and more foreigners who wish to live in this Caribbean country. Several reasons: a nice climate throughout the year, simplified procedures to settle, magnificent and diverse landscapes, a cost of living lower than in Western countries, political stability, the economic growth of recent years, many flight connections, the kindness of its people ... The list could be long, the most important reason is probably the simplicity of life compared to the stress of industrialized countries.

The steps to emigrate are simple. The first step has to be completed in your country of residence. You must apply for a residence visa at the embassy or consulate of the Dominican Republic. You must meet one of the following requirements: to be of Dominican origin, to be married with a Dominican citizen, to have an employment contract, to be retired, to be an investor, to be the owner or to intent to be the owner of a property, and other approved requirements. Emigration fees amount to 110 €; Spanish translation and legalization of documents required amount to about 650 € (fees quoted by the Consulate of the Dominican Republic from Marseille in France). Within month you receive your residence visa.

Once in the country and within two months, you have to ask your temporary resident card. A year after obtaining the temporary card, you can ask your final residence card. In both cases, it is better to engage the services of a lawyer who will help you through the intricacies of the Dominican administration.

Finally, after two years of residence in the country, you can apply for the Dominican citizenship.

For more information on the requested documents, see the following websites:
Dominican Office of Tourism
DR1.com

If the Dominican Republic attracts many tourists, it is also a magnet for the economic sector which sees it as a potential development. The Dominican State therefore proposes different types of visa.

The tourist visa: No visa needed for Western countries. Simply present your passport (valid for three months after the date of return) or your identity card secured with integrated photo (for a direct flight in this case) and pay US $ 10 for the tourist entry card and US $ 20 to the exit. We recommend that you pay in US dollars because customs officers do not give back change of Euros and pesos are exchanged at a disadvantageous rate for tourists. If you nevertheless need a tourist visa, you need to request it in the Dominican consulates or embassy in your country.

The business visa: You must apply for it with Dominican diplomatic representations in your country. It usually takes week, but this may vary by country.

The work visa: It is equivalent to the previous and by the way called “business visa for employment". In addition to the regular document requested, an employment contract duly authenticated by the Dominican authorities must be provided.

The dependency visa: It is for spouses and children of those with business, work or student visas. The documents requested are the same as for these visas, plus a marriage certificate or/and a birth certificate(s).

The student visa: You must apply for it with Dominican diplomatic representations in your country. It usually takes week, but this may vary by country. In each case, the fees applicable to visa amount to 110 € (price indicated by the consulate of R & D in Marseille, France) plus cost of translation in Spanish (40 € per act) and legalization (90 € per act).

If case of an investment of at least 200,000 dollars in a company duly incorporated in the Dominican Republic and in compliance with the Act 16-95 on foreign investment, foreign investors enjoy the resident investor status. A residence permit is granted within 45 days.

For more information on visas procedures:

Dominican Ministry of Tourism
DR1.com
Secretary of State for External Affairs of the Dominican Republic

Over the past ten years, the Dominican Republic has made easier the installation of foreigners for private or business purposes. In 1998, the state removed all restrictions on property’s acquisition, placing Dominicans and Dominicans on an equal footing. Everyone, a person or a company, may buy a property without being a resident.

Faced with the growing development of tourism in the country and the growing installation of foreigners, particularly retirees, the Dominican State recognizes that the contributions in cash and capital from abroad contribute to the well-being of the population thanks to the dynamism generated by economic activity and production. The Dominican Republic is filled with natural resources, cultural, technological and human resources to position itself as a suitable place for retirees' installation.

Under this assumption, the Law # 171-07, enacted in July 2007, represents a step forward for the reception of foreigners. Retirees wanting to settle in the country can get their Dominican residency within 45 days (vs. 6 months on average) after the administration has approved the request as required by law. In addition, the applicants receive a series of exemptions: no tax on the importation of personal effects and furniture, on transfers of real estate in case of acquisition of a first property, on the payment of dividends and interest generated in the country and abroad, partial exemption on the import of their vehicle and 50% exemption from taxes on property (when taxable).

For larger- scale investments, the law # 158-07 exempts investors from income tax for 10 years, from the ITBIS and transfer taxes in case of the acquisition of a first property.

In addition, the Dominican State is working on transparency. Banks must follow a strict procedure for monitoring all their transactions. In real estate, the new Property Registry Law. # 108-05 approved in 2005, guarantees a transparent system for the purchase, sale and registration of real estate in the country. The Bureau of Land Registry opens its record to anyone wishing to check a title or even ask for written confirmation.

Extract of Law # 171-07

Dominican Taxes

The Dominican Republic is a democratic country ruled by a government elected by universal vote. Therefore, it has at his disposal a tax service to collect the necessary money for the functioning of the State: the DGII (General Direction of the Internal Taxes)

There are 6 principal taxes that we will divide in three categories:

1. The taxes linked to real estate
2. The taxes on individuals and corporations
3. The taxes on products and services

1. The taxes linked to real estate.

Fees on transfer.
When a person buys real estate in the Dominican Republic, whether he or she is a native Dominican or a foreigner, she must pay about 5.5% of the total sum for transfers’ fees of title and the notary stamps.

IPI/VSS
If the house has a value higher than 5,000,000 Dominican pesos (102 450 € / 139 40 US$*), the owner must pay the tax IPI/VSS, in this case 1% on the amount above the 5 000 000 pesos. For example, a property of a value of 8 000 000 pesos will be taxed 30 000 pesos (1% of 3 000 000 pesos), which is equivalent to 617 €* for a property estimated at 164 640 €* or 832 US$* for a property estimated at 221 920 US$*. The DGII stipulates that it is the owner responsibility to be in compliance with the law while carrying out his declaration with the authorities.

This tax is assessed on all lodgings (house and apartment) in the urban or rural zones once the value (including the land) surpasses 5 000 000 pesos, as well as lands in the urban zones that have less than 30% of the surface occupied by a building. In any case, the rate of 1% remains the rule.

It exists some exemptions to the IPI/VSS: all individuals of more than 65 years that can justify to be owner of their property for at least 15 years and this property being the unique one than they possess, as well as the structures and lands in the name of the Dominican State, the charitable institutions, the religious organizations and the diplomatic delegations

*the conversion into Euro and Dollar is based on the rates of May 15 2009

Tax on dwelling and property tax
It does not exist any others property taxes that the IPI/VSS in Dominican Republic. There is no dwelling tax.

Exemptions or tax reduction on property.
Exemptions or tax reduction can be seen in some special cases. We will quote two here. All retired or rich individual that installs itself in the country with transfer of their pensions or income in the Dominican Republic benefits from a series of exemptions, of which the one on the real estate transfers at the time of the acquisition of a first real estate property and of less 50% of the tax on real estate property, IPI/VS (so taxable). For the other advantages, consult our card A welcoming country. When there is investment on a large scale, the law 158-07 exempts the investors of the taxes of transfer on the first property bought.

The last tax of this section concerns the successions and donations. The rate of imposition to the heirs in the case of a succession is of 3% on the estate of the deceased person. In the matter of donations, the State collects 25%. In order to pay fewer taxes, many persons choose to create a type corporation SCI that becomes owner of their properties. For more information on the creation of a corporation, consult our card Etablish a company.

2. The taxes on the individuals and the corporations

ISR –Taxes On Income
The ISR is the tax on all income, whether it is the result of work or profit, obtained by physical persons, corporations or jointly inherited property, on a specific period time. This tax concerns all persons and situated entities in the country or of foreign sources originating investment and of financial gains. Some entities are exempt of the ISR: the public services, the religious institutions, the social, artistic, political and scientific centers they are declared non-profit…

The tax rate varies according to two criteria: - The lawful persons situated in the country pay 25% on net taxable income since the fiscal year 2007; - The physical persons residents or situated in the country pay a progressive rate according to their net taxable income. The scales are revised every year according to the accumulated inflation corresponding to the previous year. For example, for the year 2009;

Income to DOP 330 301.00	Exemptions
Income of DOP 330 301.01 to DOP 495 450.00	15% of the surplus of DOP 330 301.01
Income of DOP 495 450.01 to DOP 688 125.00	A fixed amount of DOP 24 772,00 plus 20% of the surplus of DOP 495 450,01
Income above DOP 688 125.01	A fixed amount of DOP 6 3 307,00 plus 25% of the surplus of DOP 688,125.01

The declaration is a voluntary act that must carry out itself before March 31 of each year and corresponds to the income of the previous year (1st January to December 31) for the physical persons and jointly inherited properties. The date limit of the corporations and lawful persons is of 120 days after the closing of the accounts of the company. There is new calendar each year that these entities must respect.

3. Taxes on the products and the services

ITBIS
The ITBIS is a tax on the transfer and the importation of industrialized goods, as well as the lending and renting services. This tax is assessed on the physical and lawful persons whether national or foreign. Public and private businesses are also responsible, whether they realize taxable activities or no, they have the obligation to apply the withholding ITBIS induced in the services that are provided by physical persons, as well as when they pay benefits of independent professional services and on rentals to other corporations, for profit or not.

The rate of the ITBIS is set at 16% on the price of the realized transfer and/or realized service. The declaration and the payment must be done in the course of the 20 first days of the following month of the declared period. In the framework of an importation, the rights of importation and of customs are paid at the same time.

A business can ask for the reimbursement of the ITBIS when the product bought is not for his profit but for a third party (for example, the materials that a construction business buys for the house of a customer). The stated amount is deducted from the taxes that the business must pay to the State. The declaration is done yearly or monthly according to the business activity. An individual also pays the ITBIS, it is included in his bill.

ISC - Selective Tax on the Consumption
The ISC taxes the transfers of certain national manufactured goods at the manufacture level, as well as on his importation. The eligible products are:

1. Alcoholic products: specific amounts according to the quantity of liters of absolute alcohol;
2. The products with tobacco: specific amounts according to the packages of cigarettes and 130% for the cigars;
3. Telecommunications services: 10%;
4. Payments done by checks by financial entities as well payments made through electronic transfers: 1.5 per thousand (0,0015);
5. The assurances usually: 16%;
6. Other goods establish by Law (Título IV Ley 11-92 d/f 16/05/92 and its modifications): specific amount according to the good.

Tax on motor vehicles
This category groups together all the taxes generated by the registration, issuance of license plates, the traffic and the modifications of the gray card (change of owner, of color and duplication).

Communicate: phone, internet and mail

TELEPHONE

It is very easy to call from the Dominican Republic. Codetel, the national telephone company, has offices in each city. It is also very common to find phones in cafes.

From the Dominican Republic to other countries:

To the USA and Canada	1 + Area Code + number
To France	011 + 33 + number (without 0)
To Belgium	011 + 32 + number
To Great Britain	011 + 44 + number
To Spain	011 + 34 + number
To Switzerland	011 + 41 + number

To call to the Dominican Republic, simply dial:

1 + 809 + 7-figures number or
1 + 829 + 7-figures number desired

Inside the country, it should be noted that one must dial 1 before any mobile phone number when calling from a landline phone.

Installing the phone:

It is mandatory to be resident in the country to open a line with Codetel. The cost of basic installation is 1500 pesos (44 US $ / 32 € *). The cost depends on the subscription plan.

Mobile phones

It is possible for anyone to acquire a mobile phone under a prepaid or subscription plan. Companies that offer these services are Claro (subsidiary of Codetel), Orange Dominicana, Centenial, Viva, and Triscón. It is important to learn about the coverage of each of these companies. Lack of coverage may exist in some regions.

INTERNET

It is very easy to access Internet in the country; Internet cafes are plentiful and prices low. Wi-Fi has also developed in touristic spots.

Installing Internet at home:

Depending on the type of provider, it may be mandatory to be a resident to have Internet installed at home (especially when Internet is accessed through the phone).

• DLS by phone: Through a telephone line.
• DLS cable: Through the cable. The service can be provided by various companies like Telecable de Tricom, Aster and CableNet.
• DIAL UP: Through the telephone line. This service is included in some Codetel telephone plans. It can also be contracted in separately with other companies such as Tricom.
• Two-way satellite system: the satellite dish is connected to a modem by two coaxial cables, one for emission and one for the reception. The modem is connected to one or more computers through an Ethernet cable.
• 3G: Small 3G modem that connects to a USB jack on the computer. ADSL connection can be established in all places where a cell phone can receive calls.

MAIL

Like everything in the Dominican Republic, mail takes time, it can be slow and sometimes fast ... INPOSDOM (Dominican Postal Service) is responsible for mailing. To receive mail in the country, the more advisable is to rent a mailbox for several years because addresses are often incomplete ... In Cabrera, the annual rental rate is 1,000 pesos. The office is open from 8 am to 12 pm and 1 pm to 5 pm. Sending a postcard will cost you 35 pesos (1 U.S. $ / € 0.74 *) or 50 pesos (U.S. $ 1.42 / € 1.06 *) for express mail. Stamps are sold at the post office or at the hotels. INPOSDOM is committed to deliver your card within 5 days after its mailing.

For more information, http://www.inposdom.gob.do.

In addition, operators such as UPS, FedEx, and DHL are present in the country. Other local companies offer their services. For example, in Cabrera, the company Flash Parcel Service (FPS) offers a post office box in Florida, USA. From there FPS delivers the mail in Cabrera. Vice versa, FPS takes care of your mail from Cabrera.

* All prices and exchange rate as of October 2008

 

Installation

The electricity market is private in the Dominican Republic and shared between several companies. A Cabrera, you must contact EDENORTE which will connect your home after signing a contract. You have to provide a passport or resident card, and a lease contract or a title deed. The price of installation depends on the demand for electricity in the house. It is customary to use 110 volts current; the company may also install 220 volts at your request.

Alternative

Electricity in Dominican Republic is a sensitive issue. Most tourists staying in hotels, let alone all-inclusive, are not aware of the problem. While current is provided continuously in hotels and resorts, this is not always the case in rest of the country. Many reasons are raised that explain power cuts. The government plans coal power plants by 2010 to reduce dependence on oil. Gradually new energies are emerging, such as solar and wind power. Other voices promote more hydropower.

Different systems can help to fix these power cuts. The first is the inverter / converter (« inversor »). It is a device connected to batteries that charge when current on; when current is off, the device takes over. Time of autonomy depends on the number of batteries and consumption.

The second is the generator ("la planta"). Autonomy also depends on the power of the device and consumption. You can find the model you want in different stores in Cabrera.

Other systems based on renewable energies begin to develop. Solar energy is one of them and already a lot of houses are equipped with a solar water heater. Some companies sell devices functioning on wind energy.

We have available a list of companies providing these different systems in and around Cabrera. Please contact us.

The Dominican education system is accessible from the age of 5 - 6 years and starts with the first grade, "primer grado”. The elementary school continues until the eighth grade (octavo grado). Beyond it is high school, from "primero de bachilerato" to "cuarto de bachilerato", 4 years to reach the equivalent of the baccalaureate. Next is the University for some Dominicans.

A recent study conducted in part by UNESCO, the SERCE (Second comparative and explanatory regional study) in 16 Latin American countries has shown the weakness of the Dominican school system. All topics combined, education is below the regional average. The country was last for learning. Especially in the third grade, success rates in mathematics are 0.3% against 54% in Cuba, and 0.52% in reading, against 44% in Cuba and 18.22% in Costa Rica.

The rate of children enrolled in elementary school is important, 92.7% in 2005; unfortunately, education is of poor quality. Due to a large young population, students have a half-day class to share school facilities. They are studying an average of two and a half hours per day. Later, there is an important decrease in the number of post-elementary students, the enrollment rate dropping to 65.6% (in 2005). It is even worse in higher education where only 16.74% of youth aged from 18 to 24 are enrolled in school and the drop rate reaches 50% to 70%.

International Schools

There are private international schools in the country, some attended by children of residents. The choice of international schools is wide in Santo Domingo ; it includes the « French lycée ». There are also international schools outside the capital, such as the International School in Sosua, the French school of Rio San Juan (under the supervision of the French school) and the International School of Cabrera. It is possible for children of foreign residents to pursue an education equivalent to that of their respective countries, in a suitable teaching language (bilingual or trilingual).

Some addresses:

International School of Cabrera: comprehensive primary education, trilingual (English, Spanish, French) from kindergarten to the fifth degree.

Address:
Calle Lorenzo Alvarez - Cabrera
Phone: 809 757 5772
felicitahadley@hotmail.com
www.aicabrera.com

French School of the Costa Verde: Courses in French from kindergarten to first degree. Address: Carretera Rio San Juan - Gaspar Hernandez - Río San Juan
Phone: 809 796 6898
jpamadorrd@yahoo.fr
www.ecole-francaise.com

French lycée : Course from Kindergarten to « Terminale »
Address: Rafael Damirón Esq. Jimenez Moya - Centro de los Heroes - Santo Domingo Phone: 809 533 33 38 / 809 535 27 61
info@lfsd.edu.do
www.lfsd.edu.do

For many years, the Dominican public healthcare system had an awful reputation of mismanagement and inefficiency. Change was initiated in the 1990s, which led in 2001 to two important laws, laws # 42-01 and # 87-01. The first one is the General Healthcare Law, and the second creates the Dominican Social Security System (SDSS).

Several agencies have been established to make healthcare accessible to everyone. Programs such as the unique system of beneficiaries’ identification provide disadvantaged groups with access to healthcare. There are three levels of healthcare service: the first level provides direct access to basic healthcare in rural clinics and dispensaries, the second one provides healthcare in the municipal and provincial hospitals, and the third one provides healthcare in general and specialized hospitals. The creation in 2000 of the Secretary of State for Environment Protection boosted the control and improvement of living conditions for better health (quality of food, water control, and emissions of gases ...).

In 2005, the government initiated further healthcare reform of: reform of public healthcare programs, organization of regional networks of public healthcare services, access to quality medicines, insurance coverage for the entire population with a focus on the poorest.

The road is still long to develop an effective healthcare system after years of backwardness, and the government is working hard. There are currently two healthcare systems: the public service, which is free and the private sector, which is sometimes very expensive. It is possible to subscribe to an insurance that covers all or part of the bills in the private system. These insurances can be contracted by the Dominicans, the residents but also the foreigners. The coverage depends on the selected plan and the insurance premium.

You have the choice of several banks in the Dominican Republic; the most common is el Banco Popular. The opening hours are usually from 8:30 am to 3:00 pm, with an opening on Saturday morning from 8:00 am to 1:00 pm (excluding holidays).

You can change foreign currencies and traveler's checks and withdraw cash from widespread ATMs.

Open an account

There are two types of account available: savings (“Cuenta de Ahorros ") and checking (“Cuenta Corriente”). For each category there are several options. For example, Progresso offers savings accounts with or without a bankbook with or without booklet, either in U.S. dollars or Euros to both private and corporate clients. For each of those accounts, a minimum opening deposit is required (below the minimums for the bank Progresso).

Savings	500 DOP
Private Savings Account in US$	300 $US
Corporate Savings Account in US$	500 $US
Private Savings Account in Euros	300 €
Corporate Savings Account in Euros	500 €
Private Checking Account in RD$	1 000 DOP

A foreigner can open an account. The requirements are as follows:

• Being at least 18-year old;
• Providing a photocopy of passport;
• Providing a letter of reference from the bank in the country of origin (in Spanish);
• Being sponsored by a Dominican citizen.

Borrowing rates

Borrowing rates are far from being interesting in the Dominican Republic; they are often very high. The rates vary from 12% to 20% for a real estate investment. It is recommended to negotiate a loan from a bank in your country of origin.

ESTABLISH A COMPANY

On December 11, 2008 the Executive Power of the Dominican Republic enacted a new General Law for commercial companies and limited liability sole proprietorship (No. 479-08). The famous companies CxA disappeared on June 11, 2009 after adopting new articles of association.

The 479-08 Law represents a comprehensive reform of the Dominican Law for business corporations. The main objective is to update existing laws and to deal with legal matters that were not previously covered, as well as to strengthen the protection of the different actors. In this respect, the law provides for two legal forms of corporation. The law also covers the most important aspects of the daily company’s business, sets standards for good management and provides greater transparency in corporate affairs.

Among the new types of corporations are the limited liability corporation (minimum of 2 partners and maximum of 100,000 pesos of authorized capital) and the limited liability sole proprietorship (1 sole partner and unlimited authorized capital).

In the table below, a summary of new types of business corporations:

Type	Minimum number of partners	Capital	Members’ responsibility	Auditor Public
Company with Public Offering	2	From DOP 30,000,000.00	Limited to the contribution	Mandatory
Public Limited Liability Company	2	Fixed by the Stock Supervisory Authority	Limited to the contribution	Mandatory
Limited Liability Company	2 50 maximum	From DOP 100,000.00	Limited to the contribution	Optional
General Partnership	2	Defined in the Partnership Agreement	Unlimited	Optional
Limited Partnership	2	Defined in the Partnership Agreement	Unlimited for general partners and limited partners	Optional
Limited Partnership with a share capital	1 general partner and 3 limited partners	Defined in the Partnership Agreement	Unlimited for general partners and limited partners	Mandatory
Limited Liability Sole Partnership	1	Defined in the Partnership Agreement	Limited to the contribution	Optional