How to Retire in the Dominican Republic – The Ultimate Guide
Thinking about retiring in the Caribbean, wondering where might be best for you and how to make the move? As the largest and most diverse country in the Caribbean and the leading vacation spot in the region, the Dominican Republic is a popular retirement destination. We put together this guide for readers looking to retire in the Dominican Republic.
The guide covers all aspects of retiring in this welcoming country, from how you can apply for residency as a retiree or pensioner to how you can find homes for sale in the Dominican Republic and condos for sale in the Dominican Republic which might be suitable for your retirement in this warm and sunny Caribbean destination.
Can I Retire in the Dominican Republic?
Benefits – Why Retire in the Dominican Republic?
How Much Does it Cost to Retire in the Dominican Republic?
Buying Real Estate for Your Retirement & Applying for Residency
Where are the Best Places to Retire in the Dominican Republic?
Find Out More About Retiring in the Dominican Republic
The Dominican Republic offers a straightforward residency program (under Law 171-07) which offers a fast track path to residency retirees (and investors) together with a range of tax incentives.
To qualify for the program, a retiree must be able to demonstrate a minimum, stable income of at least US $1,500 per month from a government pension plan, a private pension, or other independent income.
Find out more: Residency in the Dominican Republic
Retiring in the Dominican Republic can offer numerous benefits, as follows…
Straightforward Path to Residency
Applying for residency is a relatively straightforward process for qualifying applicants.
Fast Application Process
Thanks to the fast-track application process provided by Law 171-07, applicants should receive their residency card within 45 working days.
Tax Incentives Under Law 171-07
Retirees approved for a residency card under the fast-track residency program qualify for a range of tax incentives, as follows:
- Exemption from taxes on real estate transfers on the first property purchased,
- 50% exemption from taxes on mortgages provided by financial institutions regulated by the Monetary and Financial Law,
- Exemption of 50% of Real Estate Property Tax (tax on real property is 1% of the value of the property when the value exceeds RD $ 7,019,383),
- Exemption from taxes on the payment of dividends and interest generated in the Dominican Republic or overseas,
- Exemption of 50% tax on capital gains if the applicant is the major shareholder of the company that has to pay this tax and that this company is not engaged in commercial or industrial activities,
- Exemption from taxes on home furnishings and personal property,
- Partial exemption from tax on used motor vehicles.
Applicants will enjoy the above tax incentives for the duration of their period of residency in the country.
Low Cost of Living
The Dominican Republic also offers a comparatively low cost of living with high quality, yet affordable, medical care, transport and entertainment. Healthcare and dental care is significantly more affordable than the USA, hence the country’s reputation as a medical tourism destination.
Best of all, the country offers a fantastic lifestyle for retirees living in the Dominican Republic. The climate is fabulous. The beaches count among the best in the world. People are generally friendly and welcoming. Real estate and infrastructure is of a high quality.
Find out more: Invest in the Dominican Republic
As mentioned above, while the standard of living in the Dominican Republic tends to be very high, the cost of living tends to be low compared to other destinations in the Caribbean.
The Government welcomes foreign investment and there are no restrictions on foreign investors buying property in the Dominican Republic.
In fact, foreign buyers enjoy the same rights as citizens, including waterfront and beachfront real estate in the Dominican Republic.
As a result, the Dominican Republic is one of the Caribbean’s top destinations for retirees purchasing a home in the sunshine and other overseas property buyers.
A wide selection of property is available on the island from attractively priced beachfront condos for sale in the Dominican Republic to lavish luxury real estate in the Dominican Republic overlooking some of the best beaches, marinas and golf courses in the world.
Find out more: Buying a house in the Dominican Republic
Find out more: Buying a condo in the Dominican Republic
Where are the best places to retire in the Dominican Republic? Well, that very much depends on your personal preferences.
For beach lovers looking for a condo within easy reach of lively restaurants and bars, golf courses and all kinds of amenities, attractions and entertainment, Punta Cana and Bavaro on the country’s eastern coast are very popular choices and very easy to get to via Punta Cana International Airport.
For those who prefer the quiet and tranquility away from the crowds, be sure to take a look at Las Terrenas in the province of Samana which is renowned for its unique cosmopolitan vibe and breathtaking beaches.
Do you have family members that love kitesurfing? If so, do check out Cabarete and Sosua in the province of Puerto Plata, which are well-established and vibrant destinations on the country’s northern coast offering long golden sand beaches and world-class kitesurfing conditions.
Find out more: Best places to buy property in the Dominican Republic
Would you like to find out more about retiring in the Dominican Republic or perhaps you would you like to browse property for sale which would be suitable for your retirement?
We would be delighted to help. You can explore Dominican Republic real estate on our website or contact 7th Heaven Properties, the Luxury Caribbean Property Specialist, to begin your property search and to discuss your options in more detail.