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Why The Dominican Republic ?
.
As
an
introduction
and
to
start
off
our
discussion,
you
probably
should
make
a
short
list
of
what
you
might
be
looking
for in a new country in terms of relocation, retirement,
business opportunities, cost of living, access to affordable health
care, access to affordable education for your children, etcetera,
etcetera. Of course, each person is different as each person
surely
could be in a different point in his or her own life. For
example,
younger people with children might be concerned about education and
schools, and as such this could be a top priority. Others might
be
close to retirement age, and are concerend about things like health
care, and if their retirement income can possibly go further in one
country versus another. And yet again there might be some
individuals
merely concerned about business and travel, and if a particular country
is convenient for international flights or if the local
investment climate
is attractive for them (taxation, cost of labor, etc.).. To offer up some possible things we consider important, here are a few items we have considered when taking into account the current economic, social and political dynamics currently underway. Much of these topics or themes have been covered in more detail in our monthly newsletter to clients, but to be brief, we will simply gloss over a few here for you. . One major concern on the minds of many people these days is of course the world economy. Which is to say specifically that many people are justifiably worried about inflation, devaluation of currencies and the resultant cost of living issues that result. In conjunction, what countries might be held hostage to higher and higher prices for imported goods and the social upheaval that follows if such goods cannot be obtained? In this regard, one should consider that the Dominican Republic is a major producer of agriculturlal and food products: Chicken, Beef, Pork, Rice, Diary Products (Milk, Cheese, Butter), Coffee, Sugar, Potatoes, Platano and other kinds of Bananas, Root Vegetables such as Yuca and Batata, Fruit such as Mango, Pineapple, Oranges (and other Citrus Fruits), Cherries, Grapes and even Apples. In addition, items such as cooking oil is all locally produced as well. In fact, local Dominican farmers produce about 85 percent of the local food sold inside the country with the balance made up by imports geared to the more affluent consumer that wishes to buy certain foreign items - - but generally speking the country is certainly self sufficient in terms of food production. Meaning, Dominicans can find everything at home, grown at home. If they purchase any imported or foreign food items it is because they want to, not because they have to. And with that said, even though many Dominicans of course will complain about higher food prices (that have been felt by the consumer in all countries recently), it is also true that local meat and vegetables are LESS expensive in the Dominican Republic than what consumers are paying in countries such as the US and Canada (on average, for locally produced items). . Moving along with our economic theme, it is of interest to note that the Dominican Republic reported about 5 percent positive GDP growth in 2010 and is on track to finish up 2011 with an expected positive GDP of an estimated 2 to 3 percent, which is quite impressive considering the growth rates in Europe and the US currently. One can see this growth visually or physically with the number of new stores, shopping malls and related business activity in the country, which is a direct result of the rising middle class that has spawned a number of higher end luxury stores in the country also. As just one example, the luxury goods chain Louis Vuitton recently established a new store in Santo Domingo. This of course is not to say that the country has become less affordable because higher end stores are being established. Rather, the comment is made to simply highlight the economic progress that has taken place in the country over the past 15 years, and to state that the Dominican Republic is an up and coming nation, economically speaking. Where would you rather relocate to - - a country on the decline or one that is on the way up ? . For those people that like the idea of living in a warm Caribbean climate, but are somewhat concerned about getting island fever (because the particular island they are considering is so small as to create anxiety) the Dominican Republic is located on the second largest island in the Caribbean. In terms of making a size comparison, it is roughly 35,000 square miles or about the size of the US state of South Carolina. In addition, aside from offering typical Caribbean beaches, it also offers the highest mountain peak in the Caribbean (Pico Duarte), which means that those people preferring a cooler mountain climate can have that as well. In fact, you may not believe it, but if you drive up to the higher elevated areas around the town of Jarabacoa, you will find pine trees and ferns, a topography that is quite similar to the northeastern part of the United States (New England). This area is actually called the ALPS of the Caribbean, and while it can be hard to imagine, one truly can have the best of both worlds (mountains and the beach) living in a place with such diverse topography. . In terms of housing, the other interesting thing about the Dominican Republic is that real estate prices have historically been more affordable in comparison to other Caribbean destinations, making the country a preferred choice for both middle class and higher net worth persons coming from Europe or North America. But maybe even more important is the lack of mortgage – housing problems that have plagued countries such as the US and Spain in recent years. Which is to say, there never has been any kind of low interest rate no money down – no documentation mortgage loans in the Dominican Republic. Because of that, real estate prices have not fallen due to boom - bust cycles because of cheap or easy credit over the past few years (in fact they have gone up) and there is no glut of abandoned of foreclosed properties in the country either. This has been the case more due to the very conservative lending practices of the local Dominican Banks rather than any any other reason, but regardless, the real estate market in the country has maintained an even keel during a period of economic storms elsewhere. Investors that have purchased real estate in the Dominican Republic over the past few years usually have found very favorable results in terms of maintaing value and resale value as well. . This leads us to discuss banking, which is some what tied in to the real estate commentary mentioned above. In this regard, the truth of the matter is that Dominican Banks in general are quite conservative by nature as is the government banking regulatory authority that supervises the banking industry. In addition, a government maintained banking insurance fund does indeed exist to insure banking deposits (and it is quite healthy in comparison the current banking insurance programs as they currently exist elsewhere). In terms of banking options for the consumer, most of the larger banks in the Dominican Republic offer US Dollar, Euro and Dominican Peso Savings Accounts plus Certificates of Deposit also. Since there are no currency or exchange controls, bank depositors are free to exchange between these currencies as they wish, and send in or remit out funds without restriction as well. In addition, local commercial paper and government bonds (denominated in either Pesos or US Dollars) are 100 per-cent locally tax-free also, allowing for comfortable monthly income for investors or retirees. . Should you wish to obtain more information about residency, banking, incorporations or real estate, please feel free to read the articles listed below or you may use our reply reply form also, which you can access via the link directly below. .
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Dominican
Republic Real Estate -
Investment Potential and Inflation Hedge
.Aside
from
such
traditional
inflation
hedges such as gold or silver, real
estate has also been one asset class that has tended to at least hold
it's value during periods of currency devaluation (currency
devaluation or what is also known as inflation). Of course,
today's economic environment is a bit different than what has been
experienced before, which is why we might be seeing both
inflation in consumables (higher prices for items such as food, and
other consumer goods) with deflation in some asset classes, such as US
based real estate. However, not all real estate is created equal,
which is why it is just as important what you pay as to where you
buy. In this regard, real estate in the Dominican Republic has
held it's value, and has in fact increased in value whereby such values
in countries like the US and Spain have declined. In fact, real
estate in many other emerging or developing markets can report the very
same thing, and there is a reason for that.
. Click Here For Article |
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A Great Tax
Saving Idea: Moving Your Small Business To The Dominican Republic
.If
you
currently
have
a
small
business
located
in
one
of
the so-called
industrialized social welfare democracy nations, there is one thing we
can guarantee for you: Higher Business Taxes. Why? Because all of
these countries have social welfare benefit programs that they can no
longer afford, and ever decreasing tax revenues. The result of
which is going to be higher taxes for the middle class and small
business owner, and reduced benefits for all. Why do you think
large multi-national companies have set up subsidiaries and operations
in other countries over the past two decades?
.Of
course,
many
small
business
owners
think
such
an
idea
is
only for the
very large conglomerates, but that is a myth. Naturally it all
depends upon what kind of business that you have, if you are a
beneficial candidate to make such a move (or not), but it is not that
costly or as difficult as you may think. Certainly if you have an
on-line retail business, a service business such as a travel agency or
even a tax preparation service, such kinds of businesses can literally
operate anywhere. And that being the case, would you not rather
be doing business in a country that does not tax you to death?
. Click Here For Article |
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Dominican
Republic Residency & Naturalized Citizenship
. Every country on the planet usually
has some process or program whereby foreigners can come to apply for
legal residency, and eventually at some point, naturalized citizenship
as well. In this regard, the Dominican Republic is no different,
with the only notable difference being that you will probably find the
requirements and time line easier and shorter than a number of other
countries. Which is to suggest that the requirements for the
residency application in the Dominican Republic is going to be much
more reasonable for the average middle class person coming from another
country, and also the waiting time for one to become a naturalized
citiizen (and obtaining a passport as a result of that) as well.
. Many people have taken advantage to become a Naturalized Dominican CItizen, and it may surprize you to learn that as of September 2011 - Dominican Passport holders can travel visa free to: Argentina, Bolivia, Chile, Cuba, Ecuador, El Salvador, Israel, Hong Kong, Japan, Peru, Nicaragua, Singapore, South Korea, Taiwan, and Uruguay. This of course is only a partial list, and new countries have been added in recent years, so check with the Embassy or Consulate for more up to date information . |
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The
Great
Escape:
Why
Are So Many People Leaving The US & EU ?
. It has been a bit over 15 years now
that Roger Gallo wrote his very predictory book titled: Escape From America. Roger
of course was one of the first people to identify this trend, which
over time has accelerated and evolved. Whereas it used to be
the case of retirees, or those close to retirement, primarily
looking for a better place to live, it is now the younger generations
that are leaving as well. Why are they leaving? Where are
they going? This article will answer some of
these questions and offer a glimpse of a trend that we believe will
only continue for a variety of reasons. To be sure, many of these
new expatriates are moving to the Dominican Republic, and a whole list
of some other jurrisdictions as well. But regardless of where
they are going, there are some commonalities in why they are leaving
and what they are looking for (or looking to get away from also).
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Is It Really True That Dominican Republic Real Estate Can Be Tax Free ? . .
Click Here For Article |
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Banking & Fixed Income
Investments In The Dominican Republic:.
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This section is dedicated to answering the most commonly asked questions about banking, personal or corporate bank accounts, savings accounts, credit cards and tax-free fixed income investments such as commercial paper or bonds. One common question is: Can someone actually live off the interest from investments in the Dominican Republic? With interest rates currently at about 6 percent for US Dollar denominated commercial paper or bonds, and with interest rates at roughly 10 percent ior more in Dominican Pesos, both tax-free, the answer is a resounding YES. . Find out why smart investors are moving their money to other jurisdictions, into other currencies, and into other kinds of assets as well. Protecting yourself from insane politicians that want to devalue the national currency where you currently live, is the only option of any sane person, and the only option for survival going forward. |
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