Purchasing Real Estate in the Dominican Republic

Real estate purchases in the DR works a little differently than in the U.S. and other countries. Instead of tendering a written offer, you first negotiate and reach a verbal agreement on the price with the seller. Then, a binding "Promise of Sale" or "Option to Purchase" is prepared by an attorney and signed by both parties. At this time, the deposit or advance payment is normally made.

Many attorneys and notaries in the DR do not protect the buyer adequately in the "Promise of Sale." For instance, sometimes buyers are asked to pay a large percentage of the sale price without any security or direct interest over the property. (Escrow agents are rarely used.) If these funds are misused, the buyer’s only recourse is to sue the seller personally—and he may have become insolvent by then. This can be particularly disconcerting if a bank forecloses on a development property. Even if the developer has not performed his basic obligations, you could still be responsible for making your payments as contracted.

Your best protection is to get a trustworthy, reliable attorney, and title insurance. In the Dominican Republic, as in many Latin American and European countries, the government provides title insurance. Unfortunately, this governmental arm is not known for its solvency, so seek out a private insurer like First American Title Insurance.

Four simple steps to ownership

1. Buyer and seller sign a "Contract of Sale" before a notario who authenticates it. (Notaries in the Dominican Republic are required to have a law degree.) The Contract of Sale contains the legal description of the property, the price, and conditions of sale.

2. The authenticated Contract is then taken to the nearest Internal Revenue Office for payment of the appropriate taxes.
The authenticated Contract is then taken to the nearest Internal Revenue Office for payment of the appropriate taxes.

3. The Contract of Sale and the Certificate of Title of the seller are deposited at the Title Registry Office for the jurisdiction where the property is located, and the sale is recorded.
The Contract of Sale and the Certificate of Title of the seller are deposited at the Title Registry Office for the jurisdiction where the property is located, and the sale is recorded.

4. The Title Registry Office issues a new Certificate of Title in the name of the buyer and cancels the old Certificate issued previously to the seller.
The Title Registry Office issues a new Certificate of Title in the name of the buyer and cancels the old Certificate issued previously to the seller.
The time span from the filing of the Contract of Sale to the issuing of the new Certificate of Title may vary from a few days to a few months, depending on the Title Registry Office where the sale was recorded.

Taxes and closing costs - Expect to pay approximately 5% of the sale price for taxes and closing costs. This amount includes a transfer tax of 4.48%, document taxes, special stamps for registration, and tips. Taxes must be paid before filing the purchase at the Title Registry Office. Many buyers, with the complicity of their attorneys or notaries, have been known to evade paying part of the transfer tax by lowering the true purchase price in the Contract of Sale. This is common practice in the DR and it has become so blatant and widespread that the tax authorities have now set a minimum value for properties in some locations. But, considering that property taxes here are extraordinarily low (1% per year of the declared value), unless you are buying a high-priced property, your annual taxes will be negligible. So, committing fraud to lower your annual rate may not be worth doing…especially if, when you go to resell, and 25% capital gains taxes are due, your property is assessed at its true worth. For these reasons, you should probably do the right thing from the beginning and claim the true price of purchase in your purchase documents. Ask your attorney for advice…if you use a loophole in the law that allows you to buy property through a DR corporation you have formed, you can lessen your tax burden considerably.

Inheritance of real estate - There are no restrictions on foreigners inheriting title to property in the Dominican Republic. Inheritance taxes range from 17% to 32% of the appraised value of the estate depending on the relationship between the beneficiary and the deceased. If your beneficiary resides outside the DR, inheritance taxes are subject to a 50% surcharge. As in many Latin countries, inheritance of real property is governed by a law which provides for "forced heirship," meaning that part of the estate must go to certain heirs. For example, a foreigner with a child must reserve 50% of the estate to that child despite the existence of a will, or of the law of his country of residence. To avoid this application, you can own your property indirectly through a holding company. Again, ask your attorney to advise you of your options.

Perform due diligence - Before purchasing a property, hire a real estate attorney to do the due diligence. To start this process, the seller should provide you and/or your attorney with:

1. Copy of the Certificate of Title to the property.

2. Copy of the survey to the property or plat plan.

3. Copy of his/her identification card (cédula) or passport.

4. Copy of the receipt showing the last property tax payment (IVSS) or copy of the certificate stating the property is exempted from the IVSS tax.

If the seller is a corporation, it should provide:

1. Copy of the corporate documentation, including by-laws and resolution authorizing the sale.

2. Certification from the Internal Revenue Office showing the corporation is current with its income tax filings.

If the property is part of a condominium, you need:

1. Copy of the condominium declaration.

2. Copy of the condominium regulations.

3. Copy of the approved construction plans.

4. Certification from the condominium showing the seller is current with his condo dues.

5. Copies of the minutes of the last three condominium meetings.

If the property is a house, you need:

1. Copy of the approved construction plans.

2. Inventory of furniture, etc. (Many properties in Latin America are sold furnished and you want to be sure that, come closing time, you get the furnishings you originally agreed to purchase and not lower-cost substitutions. This should include bathroom and lighting fixtures, etc., right down to the kitchen sink. (Tip: take photos.)

3. Copies of the utilities contracts and receipts showing the seller is current with his payments.

Once all the above documentation is obtained, your attorney should go through this checklist:

Title search: A certification should be obtained from the Title Registry Office regarding the status of the property, whether any liens or encumbrances affect it, and you should insist that he/she confirms the results of the Registrar’s search by personally investigating the appropriate files at the Title Registry Office.
Survey: An independent surveyor should verify that the property being sold coincides with the one shown on the survey provided by the seller. (An exception can be made if the property is located in a previously inspected subdivision.) The survey should be checked even when the seller provides a government-approved plat.
Inspection of improvements: A qualified builder or architect should examine any improvements to be made to any structures to confirm that the plans presented are correct and that the improvements are in good condition.
Permits: Have your attorney confirm that the property may be used for the purposes you desire. Why? Because restrictions may exist that you are unaware of. For example, a 60-meter "maritime zone" exists along the entire Dominican coastline—from the high tide mark inland—designating all beaches as public property. No building is allowed within the maritime zone without a special permit. And in tourist zones, there are specific building restrictions.

Possession: Your attorney should ensure that the seller is in possession of the property and that no squatters rights exist. Dominican law is protective of the rights of any tenants on the property, and evicting someone who doesn’t want to leave willingly is time consuming and expensive. Be especially careful with unfenced properties outside known subdivisions. Fencing them before closing is advisable.

Employees: The seller should pay any employees working on the property their legal severance up to the time of the closing; otherwise you may find yourself liable for these costs later.

If you would like us to handle your real estate transaction please contact us at BankerTrust@gmail.com

Two Passports is a Very Good Idea

It all comes down to a little booklet with a logo on the cover (and why having two is a very good idea):
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The current news and politicians say that we live in a dangerous world today. We live in a different world today too, or so we are told. But in reality how different are things really, in comparison to say 30 years ago? How about 50 years ago? How about 100 or perhaps 200 years ago? World and even national history is full of political conflicts, one party involved with public events or perhaps what might be deemed even aggressive acts to sway public opinion, trade and economic conflicts draped in the clothing of something else, and many other issues affecting the stability and economic or physical well being of the society at large. However, what is always true is that it becomes important in such a moment, for one group to quickly and easily identify and define the other. What group do you belong to? Who are you? Stated another way, which passport do you carry? Who are you affiliated with, in terms of country? Where do you come from (so we know how to deal with you)?
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Whether we like it or not, our identification documents immediately present a stereotype in order to define the rules of social, political and even economic engagement, regardless of who we really are and regardless if we have ill intent or not. Our identity documents, our Passport, becomes our calling card, so to speak - telling everyone else in a foreign land how to deal with us (or not as the case may be). What does your say? Does it say, for example, I come from a large nation that is actively involved militarily in foreign affairs? Does it say - I am from a small, obscure and peaceful country? Does it say, do not do business with me - my government is nothing but trouble and bad news?
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For Americans especially (and some other nations also), the above is very true. If you travel, for example, you are singled out, either in a positive way or a negative way all depending where you are from or better stated, what passport you have. In terms of business, many financial institutions will not deal with you, or open an account for you. So, being from the wrong country, even if you yourself are not directly responsible for the things that create such a stereotype, could have a very real effect on your physical safety and financial well being as well.
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The question is then, how do you want to be perceived and treated? People in a democratic and free society, have the opportunity to join whatever groups they wish (and carry an ID document or card proclaiming themselves as a member). The American Express Company tells us, membership has its privileges. Maybe, and then again maybe not, but in the least with such an example - you have a choice to join or not. So, why can't you join another country?
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Well, the truth is that you can, and probably should. Aside from the issues that might surround personal safety, there also exists the issue of taxation matters as well. Simply changing your country of affiliation can in many cases reduce your tax burden down to zero. Sound unbelievable - does it not? However, it happens to be true. Some countries, such as the United States, attempt and claim the right to tax its own citizens regardless of where they are living and regardless of how the income is earned (income from investments and other kinds of passive income especially). Other nations hold a different point of view, claiming even though you are a citizen, if you are not living in the country of your passport - why should you pay taxes? Sounds good to us. So why is it that ALL countries do not adopt this philosophy? Good question, but is there really an answer as to why one nation feels it has the right to tax its citizens to death and others do not? Another related point to consider are the social welfare benefits programs that current exist is these high tax nations, and the fact that they look like there are and will be, in deep trouble financially going forward. If you hold citizenship from such a country - is it more likely the government may insist on taxing you even more in the future to pay for it all - or less? Simply because you have say, a blue passport instead of a red, green or black one - can it mean the difference between being taxed to death later on - or not? While it can be difficult at times to predict the future exactly, there are of course certain possibilities that seem more likely than others.
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So, let us sum up why someone would considering getting a second passport or obtaining dual citizenship. It is an interesting issue that often invokes all sort of patriotic emotions when being considered, but regardless, if you think that you do not need one - better think again. Many will tell you that obtaining another citizenship or passport could result in a loss of your existing citizenship - which is not necessarily true. For example, Americans often believe this to be the case, but it is also the case that many people (including US based lawyers) really do not understand the law and regulations when it pertains to dual citizenship.
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However, do consider the idea that a second passport or citizenship could offer the following benefits:
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Number One: Allow you to invest or bank abroad when many financial institutions will not accept you as a citizen from a particular country (US Citizens Take Note).
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Number Two: Possibly save your life when the country that has issued your first passport is at war or has engaged in some activity to make you unwelcome in certain places.
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Number Three: Offer an existing option should you decide down the road to renounce citizenship from country number one for whatever reasons, including increased taxation.
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Expatriation or even just becoming a dual citizen from another country is an interesting issue that often invokes all sort of patriotic emotions when being considered, but regardless, if you think that you do not need one - better think again. Many will tell you that obtaining another citizenship or passport could result in a loss of your existing citizenship - which is not necessarily true. For example, Americans often believe this to be the case, but it is also the case that many people (including US based lawyers) really do not understand the law and regulations when it pertains to dual citizenship.
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Possibly you have made up your mind to live in another country - to expatriate as it were. Maybe you are just thinking about it. Regardless, there certainly are some myths and falsehoods floating around - especially among Americans principally when it comes to matters related to Expatriation, Residency in your new country and Dual Citizenship as well.
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First off, the topic of expatriation - The Merriam-Webster dictionary defines it as follows: Medieval Latin expatriatus, past participle of expatriare to leave one's own country - 1: to withdraw (oneself) from residence in or allegiance to one's native country, 2: to leave one's native country to live elsewhere; also to renounce allegiance to one's native country.
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In other words, the term expatriate could refer to someone that simply has decided to live in another country (and maintain previous nationality or citizenship) or it could refer to someone that has decided to renounce previous citizenship as well. Both definitions apply. So, for example, you are an expatriate if you are an American that decided to retire to say Ecuador, or where ever else for that matter, but of course maintain your existing citizenship as well. Simply moving to another country does not mean you loose your existing citizenship, just as obtaining legal residency status in your new country does not jeopardize your existing nationality or citizenship either (more on this in a moment). So, becoming an expatriate does not mean you are a criminal or some kind of anti-patriotic malcontent - nor does it mean that you have necessarily renounced or relinquished your previous citizenship either (although this is something you could do as well). It simply could be that you decided to live in Thailand or the Dominican Republic, for example, because in such places you can live very well on your US$1,500 per month pension (whereas this is near impossible in many parts of the US or Europe). Some people do of course take it a step further, and seek to become a citizen of their new country as well. But again, dual citizenship is recognized and perfectly LEGAL in most countries, including the US. However, choosing a country because of residency and or citizenship requirements can be just as important of a factor as climate, real estate prices, and so on. Important because perhaps the requirements are too restrictive for you, too costly in terms of real estate purchase or other kinds of investment - or perhaps not - as the case may be.
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So, let us discuss residency first and then move on to dual citizenship as the next progression thereafter. It is important to note that in your new country, one should obey the local laws and adhere to whatever legal requirements might exist. In terms of immigration or residency matters, each country of course has their own set of rules and requirements. In fact, this alone may be an important point to decide where you wish to live as well. For example, in places such as the Turks and Ciacos Islands, in order to qualify for residency status, one must demonstrate a fairly expensive home purchase and or investment. This is true also for the Bahamas, and a number of other destinations as well. So, as an illustration, if you are not prepared to spend say US$250,000 for a second home - then that may eliminate such jurisdictions from the list of consideration. Also, keep in mind that in can be almost impossible to obtain naturalization (ability to become a citizen) in the Turks and Caicos, so you must remain with residency status alone (and are subject to the whims of local government if they want to renew your residency status or not, and if not - you have a problem, especially after spending a considerable amount of money on a home purchase). This was the very recent case in the Turks and Caicos, whereby many foreigners were forced to leave simply because the local political tide turned against them (and renewal of residency status refused).
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In contrast, countries such as the Dominican Republic have a fairly simple and straight-forward process for obtaining residency, and the requirement is that an applicant demonstrate assets or investments equal to RD$500,000 Pesos, which is about US$15,000 under current exchange rates. So, doing something as simple as establishing a US Dollar Bank Certificate of Deposit (with a local bank) for a very affordable monetary amount will allow you to qualify. In addition, one can become a naturalized citizen within a fairly short period of time (in comparison to other countries) after having achieved Permanent Resident status. Panama allows for a fairly simple process if one establishes a bank deposit for US$100,000 and so it goes it many other jurisdictions as well (although the naturalization process is much quicker in the Dominican Republic than it is Panama, if this is an end goal).
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Naturalization in your new country, whether you decide to maintain dual citizenship (have two citizenships and thus two passports) or relinquish your previous one is often a natural progression for some people, but certainly not all. However, in today's climate both in Europe and in the US, many people decide to obtain another citizenship out of investment necessity. To explain further, any American that has attempted to open a banking or investment account in Switzerland and a host of other jurisdictions, will find the door closed to them simply because they are American. Is it somehow illegal for an American to open a bank or investment account abroad? Not at all, and neither is there any law or regulation prohibiting a bank in say Ireland, Switzerland, Liechtenstein, etc. to accept an American client either. They simply will not do so, because they feel it is more hassle than worthwhile (hassle and aggravation from the American IRS to name just one). It is interesting to note that for Americans, as just stated, a foreign account is perfectly legal - IF you can find a bank or broker to take you on as a customer.
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Europeans also have a problem in countries such as Switzerland now that the European Union has gone into full force, and has recently started pressuring tax reporting (and tax collection) when a citizen from one EU nation has an account in another. Switzerland is not a member of the EU, but they have certainly been feeling the heat. So, many Europeans as well are interested to become a citizen of Brazil, Costa Rica, where ever - simply for banking purposes also. But banking or investing is not the only reason one might consider a dual nationality. Travel is another concern, all depending upon what former country you come from. To be sure, I know of many people that would prefer to travel as a Dominican, or a Costa Rican, etc. rather than their previous nation of citizenship (always better to be from some peaceful country not involved in politics or war elsewhere). Of course the reasons for seeking dual nationality or dual citizenship do not stop there. Some countries for example have more favorable tax legislation when it comes to inheritance matters. Many others do NOT tax its citizens on interest or earnings from outside the country as well, so there are indeed many reasons on a personal level for someone to have an interest in this topic.
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One of the most troublesome things about the topic of dual citizenship (and residency also) is the lack of knowledge most people have. Which is to say, they often rely upon rumor, innuendo or simply bad information to formulate an opinion. Many Americans especially are ill informed. For example, if you visit the following US State Department Web Site, you will find the information reprinted below:
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A person who: (1) is naturalized in a foreign country; (2) takes a routine oath of allegiance or (3) accepts non-policy level employment with a foreign government and in so doing wishes to retain U.S. citizenship need not submit prior to the commission of a potentially expatriating act a statement or evidence of his or her intent to retain U.S. citizenship since such an intent will be presumed. When, as the result of an individual's inquiry or an individual's application for registration or a passport it comes to the attention of a U.S. consular officer that a U.S. citizen has performed an act made potentially expatriating by Sections 349(a)(1), 349(a)(2), 349(a)(3) or 349(a)(4), the consular officer will simply ask the applicant if there was intent to relinquish U.S. citizenship when performing the act. If the answer is no, the consular officer will certify that it was not the person's intent to relinquish U.S. citizenship and, consequently, find that the person has retained U.S. citizenship.
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DUAL NATIONALITY (From US State Department Web Site):

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Dual nationality can occur as the result of a variety of circumstances. The automatic acquisition or retention of a foreign nationality, acquired, for example, by birth in a foreign country or through an alien parent, does not affect U.S. citizenship. It is prudent, however, to check with authorities of the other country to see if dual nationality is permissible under local law. Dual nationality can also occur when a person is naturalized in a foreign state without intending to relinquish U.S. nationality and is thereafter found not to have lost U.S. citizenship the individual consequently may possess dual nationality. While recognizing the existence of dual nationality and permitting Americans to have other nationalities, the U.S. Government does not endorse dual nationality as a matter of policy because of the problems, which it may cause. Claims of other countries upon dual-national U.S. citizens often place them in situations whereby their obligation to one country are in conflict with the laws of the other. In addition, their dual nationality may hamper efforts to provide U.S. diplomatic and consular protection to them when they are abroad.
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In summary, dual citizenship is perfectly legal if you are a US Citizen - Now You Know. In addition, it is perfectly legal and accepted if you are a citizen of a large list of other countries as well.
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LOSS OF NATIONALITY AND TAXATION - From US State Department:

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P.L. 104-191 contains changes in the taxation of U.S. citizens who renounce or otherwise lose U.S. citizenship. In general, any person who lost U.S. citizenship within 10 years immediately preceding the close of the taxable year, whose principle purpose in losing citizenship was to avoid taxation, will be subject to continued taxation. For the purposes of this statute, persons are presumed to have a principle purpose of avoiding taxation if 1) their average annual net income tax for a five year period before the date of loss of citizenship is greater than $100,000, or 2) their net worth on the date of the loss of U.S. nationality is $500,000 or more (subject to cost of living adjustments). The effective date of the law is retroactive to February 6, 1995. Copies of approved Certificates of Loss of Nationality are provided by the Department of State to the Internal Revenue Service pursuant to P.L. 104-191. Questions regarding United States taxation consequences upon loss of U.S. nationality, should be addressed to the U.S. Internal Revenue Service.P
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http://travel.state.gov/law/citizenship/citizenship_778.html
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Do you become a legal resident of your new country or do you eventually become a citizen? That is entirely up to you, and certainly a very personal decision for each individual. But, the important point is, investigate the TRUTH and know the facts regardless of what you decide. Also, remember the old boy scout motto: Be Prepared.

Contact us at BankerTrust@gmail.com if you have any questions or would like us to provide you with this valuable service.

Benefits of a second passport or citizenship

Number One: Allow you to invest or bank abroad when many financial institutions will not accept you as a citizen from a particular country (US Citizens Take Note).
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Number Two: Possibly save your life when the country that has issued your first passport is at war or has engaged in some activity to make you unwelcome in certain places.
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Number Three: Offer an existing option should you decide down the road to renounce citizenship from country number one for whatever reasons, including increased taxation.

Importing Into The Dominican Republic

Q: Can anyone import goods into the DR?
A: Yes. A private person may import goods if they are for personal use. If the quantity and nature of these goods indicate that they may not be for personal use customs will (in most cases) require that a legally established company be the consignee. You MUST be at least legal resident to have a shipment cleared on your behalf; Customs will require your ID number (cédula). For businesses the Tax Contributor Number (RNC) is required.

Q: What documents do I need to import goods into the DR?
A: It depends on the type of goods you will be importing. In general ALL shipments will require the following:
*Commercial Invoice
*Bill of lading or Air Way Bill
*Consular Invoice
*C1 (optional)

Some shipments may require special permits and documentation. For example, to import cosmetics, medicine and food you will need permits from the Health Department (Secretaría de Salud Pública), these means that there is additional procedure outside the Customs clearance that have to be followed PRIOR to the arrival of the shipment. You must know that not everything can be imported into the DR. Please consult a customs broker if you are not sure about the goods you are importing prior to the actual shipment taking place.

Please be aware that ALL documents MUST be original and printed on original stationery (not photocopies, no faxes). Customs frowns upon the use of handwritten documents, the more official-looking the documents are the least problems you may have. If you have lost the documents or they haven’t arrived on time you will only be able to clear your shipment if you present at customs a bond for the value of the merchandise. Customs may still decline to let you take your goods.

Q: What is a Consular Invoice?
A: By law the shipper must summit an original commercial invoice to the Dominican consulate closest to the point of shipping.The consulate will issue a Consular invoice this document is needed to clear the shipment in the DR. The fee that the consulate charges varies depending on the location. In absence of a Dominican Consulate in a radius of 100 miles to the shipping port the shipper must require the local chamber of commerce to issue a letter stating that there isn’t a Dominican consulate within the required distance. Although the law states that a Consular invoice is needed for any shipment worth US$100.00 or more, in the practice it is only needed for shipments worth US$1000.00 or more. If the consignee cannot produce the Consular invoice at the time of clearance customs will fine the consignee. At the moment the fine is about RD$6500.00

Q: What is a C1?
A: If the importer buys the dollars to pay for their shipments from a bank, the bank will issue a document stating that you bought your dollars there, this document is a C1. The bank will charge 4.75% of the amount of US$ bought, this accounts for the Currency Exchange Tax (Comisión Cambiaria). This money goes to the central government. If you bought your dollars from any other source then (since you cannot produce the C1) Customs will charge the 4.75% along with the rest of the duties and taxes.

Q: What is the typical procedure to clear a shipment at Customs?
A: You, or your broker on your behalf, must fill out a form (Form. 3480) declaring the details of the shipment (Shipper, consignee, commodity, total FOB, freight, insurance, etc). This document along with the documents listed above will be presented at the Customs office of the port/airport of arrival. A Customs officer (Verificador) will be assigned to inspect the shipment and confirm the veracity of the information declared in the Form. 3480. ALL shipments are inspected. Once the shipment is inspected the form goes to the Assessment Department (Valores), this department will check the prices that you declared (your prices may or may not be accepted as true and will be readjusted by customs) and calculate the amount of duties and taxes to be paid. After paying these you can withdraw your goods from Customs.

You must make your presentation no later than 10 days counting from (and including) the arrival date. Failure to do so will result in heavy fines.

Although this is a basic review of the procedure in reality is DOES NOT work so simply. Consult your customs broker for details.

Q: What should I expect to pay?
A: There isn’t a “flat” tax in the DR, so duties can go from 0% to more than 100%, it depends on the commodity that you are importing. Duties and taxes are calculated on a CIF basis. Only insurance bought from Dominican companies are accepted at customs for the purpose of calculating taxes. If you cannot produce your insurance policy at the time of clearance Customs will assume 2% of the FOB value as cost of insurance. Taxes and duties are paid in RD$ at current exchange rates.

Besides duties, certain taxes and fees are also paid at the time of clearance:
*Comisión cambiara (see C1 above): 4.75%
*ITBIS: 12%
*Selectivo al consumo: 20 - 40% (luxury goods and alcohol)
*Warehousing (Portuaria): calculated on the basis of weight and days at port.

If you are importing full container loads (FCL) you will have to leave a deposit of RD$38,000.00 per container to guarantee that they will be returned clean and in good condition within 14 days of arrival to port. For each day after that US$100.00 per container will be deducted from the deposit. This is not paid to the government but rather to an association of shipping lines.

Q: Are there exception to the rules?
A: Yes, certain businesses and commodities are treated in a different manner. Manufacturing Free Zones companies for example are exempted from paying duties and taxes (some fees apply). There are many other exception to the rules, please consult your custom broker for details.

Q: What are the major ports and airports in the DR?
A: The largest airport in the DR is AILA (SDQ), near Santo Domingo followed by La Unión (POP) near Puerto Plata and Aeropuerto Internacional del Cibao (STI) near Santiago.

The most important port in the DR is Rio Haina. Rio Haina Oriental is operated by the government, Rio Haina Occidental is operated by Maersk/Sealand. Puerto Plata is the second largest. Other ports are Boca Chica (west of Santo Domingo), San Pedro de Macorís, and Manzanillo. There are a few other ports that don’t have regularly-scheduled lines going in or out.

If you need shipping assistance, please email us at BankerTrust@gmail.com or visit our web site at http://www.banker-trust.com/Dominican_Shipping_Cargo.html

Protecting Your Assets in the Dominican Republic

More and more people are seeing the writing on the wall. Our phones are really ringing. Their real estate, which they bought with the expectation that it would increase in value and be salable, is neither increasing in value or salable.

In fact, prices are going down. Their pride and joy is not salable in many locations in any reasonable time.

In short, many people are finding that their real estate investments are coming back to bite them. What do you do when this happens?

The unfortunate answer in many cases is nothing. It is often too late. If you have waited until your net worth has gone negative, and you have no reasonable shot at intelligent Asset Protection, you have few options. Many people find themselves in this position. They have little they can do, but deal with their insomnia, the probable divorce, and their loss of self-worth and faith. These folks waited till the sky fell…. and it is falling.

There are some of you out there who are facing this problem but are not in critical condition yet. If you are one of these people, I urge you to read the writing on the wall and start taking the steps to get out of the way of this pending avalanche.

Getting out of the way of the pending avalanche is pretty easy if you have an old and cold Asset Protection Plan. A person with a strong plan is like the pig with the brick house. He is hard to get to, and he has protection in place. In most cases he can go to Red Alert Status and emerge from the other side of the inevitable attacks intact. This is a good reason to never put Asset Protection off.

The person without Asset Protection Planning in place has a much harder burden. What options are available? This is often a tough question, and one which takes a lot of skill and experience to evaluate. Again, often the answers are none. HOWEVER, there are often a number of steps even the unprotected person can consider if he sees the onslaught coming.

Remember, there are often a number of actions that can be taken when troubles loom, even when the real estate appears upside down. In some cases, traditional Asset Protection (often involving trusts) may be appropriate especially if the payments are current on the troubled real estate. If traditional Asset Protection is not appropriate, there are many other avenues which are nevertheless available to the person facing down a potential financial meltdown. These can be as simple as ERISA planning (a la O.J. Simpson) or annuity/insurance planning, which can sometimes protect assets even if storm clouds are brewing. In all events, please do not ignore the protection that the normally simple homestead laws of your state may provide (you often have to take steps to preserve this protection).

It is not an easy or do-it-yourself task to determine what can be done when the financial skies are dark. Do not do this yourself; but, for heavens sake, get with a pro and take a look at your options if things are going to pieces. Contact us if you need our help. We are pleased to give you our thoughts.

You will be surprised at the options which are often available in the Dominican Republic.

Email: BankerTrust@gmail.com

A Second Passport from the Dominican Republic

There are quite a number of people that either desire a Second Passport from a stable democratic country, or in the least know that they can gain some important benefits from the possession of a secondary travel document. The problem for many is of course the expense and time involved. In the case of countries like Belize or Grenada, an almost immediate passport is possible through special economic citizenship programs. However, with costs reaching up to US$ 50,000, the price tag is prohibitive for some people.

One can also look at special residency programs from countries such as Panama, Ecuador and elsewhere. While the expenses may be much lower than the figure mentioned previously, clients must often wait up to five years to obtain their passport.

The Dominican Republic - The Best Kept Secret in the Caribbean for Expatriates

While the Dominican Republic does not offer formal economic citizenship programs, the process and cost involved for both residency and eventual naturalization makes it one of the best bargains around. The Dominican Republic is also one of the best places in the Caribbean for bargain Caribbean Real Estate, Tax-Free Banking, and the added bonus of beautiful climate should your interests include a comfortable place to call home.

Being situated on the second largest Caribbean island (for those that want to explore the possibility of a second home), the country offers both the highest Caribbean mountain range ~ Pico Duarte, and miles of unspoiled beaches. In short, this means that those people seeking either a cooler climate found in the lush mountain range or the endless summer lifestyle of a tropical beach can find what they want.

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Canadians and Europeans can declare themselves non-resident for taxation purposes in their respective home countries with a legal residency elsewhere.

Americans have the most difficulty establishing bank accounts abroad with a US Passport.

The country also has a number of special "free-zones", allowing entrepreneurs or business owners to operate a business with a very reduced corporate income tax for up to twenty years. This is in contrast to places like the Bahamas, which prohibits owners of a Bahamas IBC or "International Business Company" from owning real estate or operating a company within the Bahamas through the IBC structure. As a result, it is possible for individuals to live in the Dominican Republic and own property without restriction as an individual or through a Dominican Incorporated Company (or other entities as well, such as a Panama Foundation). In addition you can enjoy US Dollar or Euro denominated bank accounts (some US Dollar investments up to 9% tax-free) and also may own and operate a business through a local Dominican Incorporated Company.

There are few low priced places in the Caribbean and none have more opportunities with less hassles than the Dominican Republic - It is a Caribbean nation with low real estate prices and a loyal European tourist community. The beaches, mountains and countryside are truly magnificent with a wide range of climate zones.

Some Immediate Banking Benefits for Americans and Europeans

If you are an American and have attempted to open a bank account outside of the US these days - then you already know that showing a US passport to a banker can be like garlic to a vampire. If you are a European, we all know that the only way one can address taxation in terms of banking - is to demonstrate residency outside of an EU Country. In both cases, a very legal and legitimate Residency Document solves the problem in many cases.

The Process for Obtaining Residency and a Second Passport

Clients would need to visit Santo Domingo in order to begin the residency process, but there is no requirement that clients remain in the country during the residency process. In addition, there is no specific required minimum investment in the country in order to apply for residency. Clients should bring with them at least 3 original or official copies of their birth certificate and a letter of good conduct from their local police department.

The process would begin with a required local medical examination by the medical staff at immigration. However, this is a fairly quick and painless process. (blood test, urine and chest x-ray) The reason of course is that the government wants to make sure prospective applicants do not have TB or AIDS, or are illegal drug user - a valid health concern for any country.

Banker Trust would arrange for completion and deposit of the residency application. In conjunction with this, handling the translation of client documents (such as birth certificate, etc.) and everything else to move the process along. In fact, the hardest thing a client must do is - show up. If you can simply make your way to Santo Domingo, half the battle is already won.

Within 60 to 90 days of the initial application, clients would receive a special card from Immigration, indicating Provisional Residency, which is dated for one year. Also, the client would obtain a Cedula Card as well. At this point, the client would have the legal right to both live and work in the country, should they choose to do so. Unlike in Panama, where the initial temporary residency card must be turned in to immigration should the client wish to travel, this first Immigration card obtained from the Dominican Republic is kept by the client at all times. Clients may exit and enter the country at will.

Note: A Cedula Card is technically a voter registration card used in all Latin American countries. This is the same card all Dominicans receive at the age of majority (18 years of age), and provides for all of the rights and privileges of any other Dominican, with the exception of the right to vote in local elections. The right to vote comes when the client is naturalized as a citizen (whereby the client would obtain a new cedula as a citizen, once they become one - should they wish).

The initial Cedula carries a one-year expiration, and must be renewed after the first year expires. Upon completion of the second year, the client may then move forward with the naturalization process (citizenship) and application for a Dominican Passport.

What is the cost involved? Much less than half of the costs required by other programs, and in fact a much easier process as well. In short, clients have the opportunity to pursue second citizenship from a stable democratic country, at a cost that is downright inexpensive in comparison to some other programs. In addition, should someone wish to retire, live or perhaps start a business in the Dominican Republic, there are a number of attributes that make this country one of the best places for relocation as well. When you also consider the additional investment or tax-free banking opportunities, this wonderful island nation is ideal place to call home.

Obtaining Residency Status in the Dominican Republic

Foreigners wishing to live or work permanently in the Dominican Republic are required to obtain residency status. Obtaining permanent residency in the Dominican Republic is a three-step process:

1. First, the foreign national must apply for a residence visa at the Ministry of Foreign Affairs ("Secretaría de Estado de Relaciones Exteriores").
2. Once the residence visa is obtained, the applicant must file within the next two months for his provisional residency at the Immigration Department ("Dirección General de Migración"). The procedure at Immigration usually takes approximately four months before provisional residency is granted for one year.
3. Finally, after the expiration of the provisional residency, the applicant may file for his permanent residency at the Immigration Department.

Residency Visa

The required documents for a residency visa application are:

* Birth certificate (a true copy translated into Spanish by a Dominican official translator);
* Marriage certificate (if spouses are applying jointly);
* Passport (two complete photocopies);
* Tourist card or business visa with evidence of the applicant's last date of entry into the Dominican Republic;
* Evidence of solvency such as bank deposits, property titles, vehicle registrations or a work contract;
* Notarized letter of guarantee from a Dominican person or corporation or a permanent resident;
* A certificate of good behavior from the Dominican authorities;
* Medical exam performed in the Dominican Republic ((blood test and chest x-rays);
* 4 photos 2 x 2 (front);
* 4 photos 2 x 2 (profile);
* Completed application forms.


Provisional Residency

The required documents for a provisional residency application are:

* Two copies of the residency visa or the tourist card;
* Birth certificate (a true copy translated into Spanish by a Dominican official translator);
* Marriage certificate (if spouses are applying jointly);
* Notarized letter of guarantee from a Dominican person or corporation or a permanent resident;
* Affidavit regarding the solvency of the guarantor backed by evidence of solvency such as bank deposits, property titles, etc.;
* Work contract (if the applicant works in the country);
* A certificate of good behavior from the Dominican authorities;
* Medical exam performed in the Dominican Republic ((blood test and chest x-rays);
* 4 photos 2 x 2 (front);
* 2 photos 2 x 2 (profile);
* Completed application forms.

Once the application is approved, the applicant receives a Provisional Residency Card and an Identity Card ("Cédula de Identidad").

For many years now, the Immigration Department has waived the requirement of a residency visa to apply for residency for those applicants who have entered the country with a tourist card or visa.

Permanent Residency

The required documents for a permanent residency application are:

* Three photocopies of the provisional residency card;
* Affidavit by two residents of the Dominican Republic regarding the good morals and good behavior of the applicant;
* Notarized letter of guarantee from a Dominican person or corporation or a permanent resident;
* A certificate of good behavior from the Dominican authorities;
* Medical exam performed in the Dominican Republic ((blood test and chest x-rays);
* 4 photos 2 x 2 (front);
* 2 photos 2 x 2 (profile);
* Completed application forms.

After approval of the petition, the applicant receives a Permanent Resident Card valid for a two-year period, renewable for additional two year periods.

Please contact us at BankerTrust@gmail.com if you have any questions or would like us to perform this service for you.