STARTING, OPERATING AND DOING BUSINESS IN THE DOMINICAN REPUBLIC
As business owner you need to know the ground rules for playing in the Dominican Republic. Over the last five years, we’ve realized that foreign investors have lots of information on how to do business in Dominican Republic. Unfortunately most of it biased or wrong.
The present article is intended, and designed, to be a self-help tool for the business owner who wants an up-to date guide to the basic financial, legal, and tax ground rules that apply to most businesses operating in the Dominican Republic. You will find useful information on how to set up a Dominican corporation, a subsidiary, a branch, hiring personnel and more. For more and precise information, please contact us fmiranda@fgasoc.com.do. Also, for your queries relating to trademark (presently under construction)www.trademark-registration.com.do; for real estate, www.Dominican-real estate.com.do, for information about traveling or staying in Dominican Republic, www.Dominican-residence.com.do.
To invest in the Dominican Republic, you can form what we call a “per share” company, similar to LLCs of the United States, because your liability (responsibility in French legislation) is limited to the amount of your investment. It is possible, also, to enter into a partnership. In a partnership the associates have to face personally business liabilities during the life of same.
While considering, or doubting which form of corporation is easier to establish in the Dominican Republic, we suggest a branch. You may bring your foreign corporation to the Dominican Republic, and fix domicile, get tax payer ID, and registration with the Ministry of commercial concerns. You can also form your own “per share” company in the Dominican Republic. To set up said corporation you must pay taxes, have a minimum of seven members and obtain registration with Internal Revenue Office.
It is mandatory to have a minimum quota of national investment? Legislation 16-95 establishes equal treatment for nationals and foreign investors. Nevertheless we do have regulated fields, such as mining, insurance, telecommunication, etc.
Reporting issues.
When you do business through a corporation with a capital over RD$500,000.00, you must have an “organized accounting system”, which means that a certified Public Accountant must certify your financial statement for preparation of income tax. Taxes? What is my tax liability as foreign investor?
The rule. All income of Dominican source or income from sources outside the Dominican Republic that proceed from investments and financial profits are liable to Dominican taxes. And…home company’s expenses, are these, deductibles from the taxable income of a Dominican branch or subsidiary?
Branch’s expenses can be deducted from the taxable income. The subsidiary, however, is not allow to deduct home company’s expenses.
Am I liable to capital gains? Yes at 25% of your net income. However, your capital losses can be compensated when they exceed the capital profits obtained on a same fiscal year. The remaining balance can be compensated with the capital gains obtained in subsequent activities.
And…individual taxes? A) As a resident in the Dominican Republic, your tax will fall upon your income of Dominican source, or income of sources outside the Dominican Republic that proceed from investments and financial profits; B) For non residents, taxes will fall upon your income of Dominican source; C) residents are liable to taxes for the amounts perceived after the third year or taxable period after they have established their residence in the Dominican Republic.
You need the assistant of a good Attorney to set up your residence and to help you with your tax statement, because we do not have tax treaties to allow the foreigners to obtain a tax refund when they leave the Dominican Republic.
How long can I stay in Dominican Republic without paying income tax? If you stay in the Dominican Republic for more than 128 days, in a continuous or irregular manner, during a fiscal period, the Government will treat you as a resident and you are liable to personal taxes, for you income coming from Dominican sources. But…
I am just working in the Dominican Republic, am I still liable to pay taxes for benefits paid or received in my Country of origin?Services provided in the Dominican Republic and paid in your Country are subject to Dominican taxes. Only Christmas’s salaries are tax-exempt.
For information about hiring personnel in the Dominican Republic, free zones incentives, import and export, contact Freddy Miranda at fmiranda@fgasoc.com.do, and get a free consultation.
The author is an Attorney of Figueroa Guilamo & Associates. Dominican Republic. www.fgasoc.com.do. www.Dominican-residence.com.do, www.Dominican-realestate.com.do, www.Trademark-registration.com.do.
IMPEACHMENT TO CESAR SÁNCHEZ AND EDWIN CROES
DOMINICA REPUBLIC ECONOMIC OUTLOOK
REAL ESTATE COMPANIES IN DOMINICAN REPUBLIC
DOMINICAN REAL ESTATE…MORE
Impeachment
After the announcement of President Hipolito Mejía that the Dominican Government would be acquiring Edenorte and Edesur (companies in charge of energy supply to the population) by September 30th, 2003, the members of Chambers of Deputies passed a motion to summon César Sánchez, and Edwin Croes. Here is the press note from Diario Libre.
Santo Domingo. The lower Chamber (Chamber of Deputies) approved a motion to summon the manager of the Dominican Corporation of Electric Companies (CDEE), César Sánchez and Edwin Croes, to a hearing so they can explain the procedure used to purchase the Corporations Edenorte and Edesur.
One of the reasons for the summon is that the Executive Power has to inform the country on the economic conditions under the Government acquired Edenorte and Edesur. The proposal was introduced by Vivtor Bisonó (Ito) Deputy of the party known as Social Christian Reform Party, PRSC, and received the approval of 101 deputies. Only three deputies voted against the motion, Ramon Bueno, Celestino Peña and Maria de La Cruz.
Concerned
The president of the lower chamber is concerned about the crisis in the energy supply to the population, a situation that is a threat to social stability. Alfredo Pacheco acknowledged, nevertheless, that the way the Government is facing the crisis shows bravery, determination and a willingness to search for the best solutions that will allow the establishment of a “healthy energy market”, in the areas of distribution, production and commercialization of energy.
ECONOMIC OUTLOOK BY BM
“President Mejía is facing increasing opposition to his bid for a second term in office. Both PRD president Hatuey Decamps and Vice-President Milagros Ortiz Bosh will run against Mejía for the party nomination at the PRD convention, which should be held in the autumn.”
“Problems in the electricity sector look set to continue to plague the economy. As the currency depreciates, distributors are faced with much higher costs.”
“Business Risk-Esport Tax Alarm. The Supreme Court´s ruling that the 5.0% export tax was not constitutional since it had not passed through the correct legislative channels has been welcomed by the business community. Despite this, the business environment is likely to remain volatile, as the fallout from the Baninter scandal and increasingly dim economic prospect do little to inspire confidence.”
“OIL BOMBSHELL. As if the administration did not have enough economic troubles to contend with, Venezuela dropped a bombshell in September, with President Hugo Chávez accusing the Dominican Republic of sheltering opponents of his regime. Chávez subsequently suspended oil shipments to the Caribbean state, leaving the government look for alternative sources of petroleum, in place of the 100,000 barrels/day (b/d) I currently receives from Venezuela under agreements based on the 1980 San José Accord.”
DOMINICAN REAL ESTATE
REAL ESTATE COMPANIES IN DOMINICAN REPUBLIC
You know that the Dominican Republic is in the western Caribbean and that it shares its territory with Haiti. You may not know that Haiti has been a great influence on the commercial and real estate laws of the Dominican Republic.
Real estate companies in the Dominican Republic are governed by the Dominican Commercial Code. This is an adaptation and translation of the Haitian and Napoleonic Codes.
Real estate companies in the Dominican Republic are usually formed with the structure of a commercial company. This requires a minimum of seven shareholders. These shareholders can be Dominican nationals or foreigners.
Other types of companies can be adapted to hold real estate in the Dominican Republic, for example a joint venture. However setting up a specific real estate company is the most common solution.
In the past few years, the franchise system has become popular. Real estate franchises now dominate the Dominican Republic market. Companies such as REMAX, COLDWELL BANKER and CENTURY compete in real estate in the Dominican Republic.
CARIBBEAN REAL ESTATE FOR SALE
a) Caribbean Real Estate for Sale
Real estate located in the Caribbean is very attractive to investors and individuals eager to have a comfortable retirement home. Caribbean properties can be found for sale in the Eastern as well as the Western Caribbean. The major islands for real estate sales in the Western Caribbean are the Dominican Republic and Puerto Rico.
b) Buying Real Estate in the Caribbean
Real estate property in the Caribbean is easy to buy and reasonably priced compared to major investment locations such as South Florida or Orlando, Florida.
As soon as you have found a Caribbean property that might be suitable, you should immediately seek the counsel of a good real estate lawyer, or the advice of an experienced real estate investor.
Buying real estate in the Caribbean can be a complex process. The services of a good lawyer and, taking the time to complete all details for the sale, greatly simplify the task.
REAL ESTATE FOR SALE IN DOMINICAN REPUBLIC
a) Buying real estate in the Dominican Republic is not an easy task, especially for foreigners , particularly US Citizens.-
The US legal system is more complex than Dominican Legislation. When you read “Real estate for sale Dominican Republic” you will know that you have found a property that can be acquired relatively quickly and for a reasonable price, including legal costs.
b) Dominican Republic Real Estate.-
Real estate sales in the Dominican Republic are governed by the Land Registry Law. For transactions involving non-Dominican citizens, a special law on foreign investment may also apply. The Dominican Civil Code also covers the drawing up of contracts and legal documents for real estate transactions.
Although in the Dominican Republic there is a fairly long-standing registry system, real estate in the Dominican Republic can be acquired securely. Two years ago, title insurance companies have been established to protect the rights of foreigners and other investors who make real estate purchases..
See list of properties for sale www.fgasoc.com.do under investment opportunities.
RETIRING TO THE DOMINICAN REPUBLIC
a) Real Estate for sale in the Dominican Republic
The best way to find real estate for a retirement home in the Dominican Republic is through a reputable Agency. Property for sale can also be found through real estate lawyers. This latter source provides complete service and they may offer better rates for commissions.
b) Casa de Campo, Dominican Republic.-
Casa de Campo is one of the most exclusive resorts in the Caribbean.
Casa de Campo, Dominican Republic, has one of the most famous golf courses in the world. The famous Teeth of the Dog courseis not only prestigious and beautifully designed, but also challenging and full of surprises.
For retirement in the Caribbean, Casa de Campo is one of the outstanding options.
See properties for sale, Casa de Campo, Dominican Republic, WWW.fgasoc.com.do.
REAL ESTATE COMPANIES IN DOMINICAN REPUBLIC
Here you will find almost the entire list of real estate companies in Dominican Republic.
A R Inmobiliaria (A R Inmobiliaria, S.A.) http://www.arinmobiliaria.com
Cargin, S.A. http://www.cargin.net
Ceballos & Henriquez Ingenieros Constructores http://www.ceballosyhenriquez.com
Century 21 Hispaniola S A http://www.century21hispaniola.com
Century 21 http://www.century21.com.do
Cid (Centro Inmobiliario Dominicano) http://cid.com.do
Coldwell Banker http://www.coldwellbanker.com.do
Coldwell Banker Dominicana http://www.coldwellbanker.com.do
Corazones Realty C por A. http://www.corazonesrealty.com
Corazones Realty, C. por A. http://www.corazonesrealty.com
Cupido Realty http://www.cupidorealty.com
Felga, S A http://www.felga.8k.com
Geomercadeo http://www.geomercadeo.com
Hidden Coast Realty, http://www.hiddencoastrealty.com
Inmobiliaria Gómez Marte http://igm.5u.com
Inmobiliaria Veneluc (Inmobiliaria Veneluc, S.A.) http://www.veneluc.com
Inversiones Herfesa, C por A http://www.herfesa.com.do
Los Sueños Resort and Marina, http://www.lossuenosresort.com
Los Tablones, S A http://www.lostablones.com
Lugar Opciones Inmobiliarias http://www.lugaropcionesinmobiliarias.com
Ogar.Com http://www.ogar.com
Propiedades OGL S.A., http://www.propiedadesogl.com
Re/Max North Coast Office http://www.remaxnorthcoast.com
Remax
REMAX Santo Domingo http://www.remaxsantodomingo.com
Sea Horse Ranch http://www.sea-horse-ranch.com
Selman Purcell & Asociados http://www.selmanpurcell.com
Selman Purcell & Asociados http://www.selmanpurcel.com
Stewart Title Dominicana http://www.stewartdr.com
Team Max Inmobiliaria http://www.teammax.com.do
Acevedo Bienes Raices
Alco Bienes Raices
Arenal Inmobiliaria
Átomo Inmobiliaria
Báez Rogers y Asociados
Bienes Raíces América
Bisersa, S.A.
Calatayud Dominicana S A
Camadosa
Camillo y Asociados
Canto y Rondón CxA
Cardenas Bienes Raíces S A
Cardinal Bienes Raíces
Carely Inmobiliaria
Cargin, S A
Caribbean Realty
Carlos Coll
Carol Bienes Raíces
Casa De Negocios ABC & Asoc
Casa Polanco
Casolar Inmobiliario
Castañeda & Asociados
Castillo M, Roselio
Castro y Asoc, Bienes Raíces
Caza Bienes Raíces
Century 21 Juan Perdomo
Ceballos & Henriquez Inmobiliaria
Cenprebirsa
Central Inmobiliaria De Apartamentos, S A
Centro Crédito Santiago
Compañía De Desarrollo y Crédito S A
Compañía De Inversiones
Compañía De Inversiones
Conbrase
Condominio Metropolitano San Juan
Consorcio Empresarial Inmobiliario
Consorcio Empresarial Inmobiliario
Consorcio FM
Construcciones Y Diseños Fernandez (Codifesa)
Construcciones Y Diseños Fernandez S A
Constructora Acevedo CxA
Constructora Acevedo CxA
Constructora Acevedo CxA
Constructora Arnusa
Constructora Hormigonera S A
Constructora Zacarías
Consulting Plus S A
Consultores Jurídicos S A
Continental Service
Copesa
Cornielle & Cornielle
Corporacion Agropecuaria Jg
Corporación De Servicios Múltiples
Corporación Inmobiliaria Dominicana, S A
Corporación Livra S A
Corporación Livra S A
Corporaciones De Imágenes y Servicios
Cotelsa
Covinfa S A
Crédito Ovalles S A (CREDOSA)
Créditos Hipotecas Y Transportes, S A
Credivensa
Cruz Tineo & Asociados
Cuevas Guzmán y Asociados
Cuevas, Aristomelia
Dominicana Real State
Era 2000 Realty
García Inversiones Inmobiliaria
Gesinca
Gestiones de Ventas Inmobiliarias (Gevisa)
Gestiones Inmobiliaria C por A. (Gesinca)
Gestiones Inmobiliarias, C. POR A.
Gestiones Inmobiliarias, CxA
Grupo Financiero Popular
Guerrero Realty C por A
Home Hunters
Idecasa,
Imova S.A. Bienes Raíces
Inalco, C. por A.
Inmobiliaria Bethel
Inmobiliaria BHD
Inmobiliaria Cachisa de Escazú S.A.
Inmobiliaria Comercial, C. por A.
Inmobiliaria Costa Luga
Inmobiliaria CrediCorp
Inmobiliaria e Inversiones Piantini
Inmobiliaria e Inversiones Roseda, S.A.
Inmobiliaria e Inversiones Roseda, S.A.
Inmobiliaria Encarnacion Troncoso Y Asociados
Inmobiliaria H.A.
Inmobiliaria Ifranca
Inmobiliaria Intercaribe
Inmobiliaria Karondy
Inmobiliaria La Roca S.A.
Inmobiliaria Leota
Inmobiliaria Ligure S.A.
Inmobiliaria Lopez
Inmobiliaria Madrigal S.A
Inmobiliaria Mil Novecientos Ochenta y Seis S.A.
Inmobiliaria Olivo & Rosario
Inmobiliaria Pfaeffle y Echeverría
Inmobiliaria Rosario & Asocs.,
Inmobiliaria S.P.M. S.A.
Inmobiliaria San Aquileo S.A.
Inmobiliaria San José S.A.
Inmobiliaria Teremar S.A.
Inmobiliarias e Inversiones Acrópolis
Inver-House
Inverlisa Inmobiliaria S A
Inversiones Cariari Bienes Raíces
Inversiones Cecil
Inversiones Dos Mil Cuarenta y Tres S.A.
Inversiones Helvia S.A
Inversiones Inmobiliarias Carmen Camacho
Inversiones Integrales
Inversiones Integrales
Inversiones La Rosa Azul Rohrmoser S.A.
Inversiones Lilia María S.A.
Inversiones Lotes y Casas S.A.
Inversiones Luz Amparo S.A.
Inversiones Múltiples S.A
Inversiones Rey Rojo S.A.
Inversiones Tejeda y Asociados
Inversiones y Desarrollos El Rodeo S.A
Jimpach R.P.S. Catorse S.A.
Latitude 9
Leco Inmobiliaria
Leo Desarrollos Inmobiliarios S.A
Loresca S.A.
Los Reyes S.A.
Mabinsa S.A.
Margarita Saborío Romero
Miramar Country Club, C. por A.
Novohogar
Nuevo Sol
Oficina De Bienes Raíces Florentino C por A.
Oficina de Bienes Raíces Luis Soto y Ulises Baesa
Oficina Ricardo Rojas Díaz S.A.
Prime Real Estate & Investments
Progreso Realty
Proinsa Propiedades e Inversiones Ros S.A.
Propiedades Bressamone Inc S.A
Propiedades Cervinia Inc. S.A.
Propiedades Conegliano Inc S.A.
Propiedades Dobbiaco Inc S.A
Propiedades Garigliano S.A.
Propiedades Kaiemet S.A
Propiedades Loira S.A.
Rainbow Real Estate
Real Estate Arca del Pacífico
Reinvidicaciones Bienes Raices S.A.
Remax
Rodolfo Realty
Rodríguez Cordero Carlos L. Agente Bienes Raíces
SERAALSA, S.A.
Seraalsa, S.A.
Servicios Profesionales D'Oleo Montero & Asoc
Stewart Title
Sunrise Realty
Sunrise Realty
Tropical Bienes Raíces
Ulate Rojas Olga Marta
Urbaniza, C. POR A
Ureña Rojas Mayra Cecilia
USA Realty Co. of Costa Rica
Vacacional Matua, C x A.
Van Keeken Marinus
Vásquez Espinoza Elda
Venta Fincas Forestales San Rafael de Heredia
Vida en Abundancia Bienes Raices
Videla Ibarra Horacio Adolfo
Villas Margot
Vlasos Trejos Róger
