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US Citizen working from DR for a US Company.

Last activity 26 November 2024 by planner

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Michael C Mitchell Sr.

I'm a US Citizen that would like to work Remote from the DR for a US Company.

I will not own any property, but I will rent an apartment.

The Tax situation is confusing for the Corporation.  Where can I find the correct information?

planner

What corporation???

om2252001

@Michael C Mitchell Sr.


if you work for a US company you will be taxed for US taxes

planner

So assuming some things,  if you work here for ANY company you need to report your income here and pay taxes.  However  without a work visa or residency you will be working here illegally. We have no "digital nomad" visa. 


So you would do what most digital nomads do,  show up, work and not report anything.  right now the gov't is not worrying about this.  Could that change? Sure.

Vagabundo2000

Yes, the Dominican Republic does indeed offer tax advantages for so-called "digital nomads" or people working remotely. Under certain conditions, foreigners who work online for foreign companies or clients can be exempt from income tax. In recent years, the government has introduced measures to attract international remote workers and boost tourism. These measures include residence permits and simplified tax rules for such activities.


Income earned through online work for foreign clients is often considered non-taxable, as long as the income is entirely sourced from abroad and transferred into the Dominican Republic. However, the specific regulations and requirements can be complex, so it's recommended to seek local tax or legal advice to ensure all conditions are met and that there are no unexpected tax obligations.

planner

Where is the source of this information?

Vagabundo2000

Dominican Tax Authority (Dirección General de Impuestos Internos, DGII):  Their website also offers useful information regarding tax obligations and exemptions for services provided internationally.

To ensure these regulations apply to your specific case, it may be wise to consult a tax advisor or speak directly with the DGII, as the application of these rules can depend heavily on the exact business context.

planner

I am  checking this information because no one I work with has seen anything like this. Seems to me we would have heard this.

planner

@Vagabundo2000


As of now there are NO CHANGES to tax law or labor law.  NOTHING is in effect that you suggest.


No measures for residence permits or simplified tax rules have been implemented!


Please point out the ACTUAL LAWS or RESOLUTIONS that state these changes!

ddmcghee

Also, the company (employer) has concerns because it has to be legally able to employ someone living in the DR. I worked for a huge global company that operated all over the world but not in the DR. I was not able (per company rules) to bring any company equipment (phone or laptop) into the country, and was limited to attending to urgent needs only via email or phone calls during my vacations here. If the company wants to ensure they play by the rules, they will have to jump through a lot of hoops to allow you to work from DR. And then you will also need to find a way to get a cedula so that you can legally work from DR. Tax laws are territorial!

Michael C Mitchell Sr.

@planner

WSP, USA

It's the corporate taxes giving the company pause.

planner

the corporate taxes have no bearing  here.  What the corporation does in the USA  does not  effect anything here.

Michael C Mitchell Sr.

https://www2.deloitte.com/content/dam/D … s-2024.pdf


What would apply?

planner

None of this.  The corporation is not here, doing business here.  Your status will be illegal and thus no taxes paid.

Michael C Mitchell Sr.

Well, I'm not there yet.  I would be a resident because I would be there 10 months out of the year.

I would get a visa to be legal.

I think something happens if I stay more than 182 days out of the year.

planner

You need to see if you qualify for residency.

windeguy

You need to see if you qualify for residency. - @planner

Precisely, 


People sometimes assume they can get legal residency here, but do not have the qualifications to do so. 

Check here to see if you qualify:


https://migracion.gob.do/en/servicios/residence/

Michael C Mitchell Sr.

Very confusing. Maybe Rentier?  Not sure

windeguy

Very confusing. Maybe Rentier? Not sure - @Michael C Mitchell Sr.

https://migracion.gob.do/en/servicio/renter-residence/


To whom this service is intended

Foreigner who enters the Dominican Republic in order to establish residence in the country, and who is a beneficiary of a monthly income or permanent income for a minimum amount of two thousand dollars (US $ 2,000.00), from a company or agency of foreign origin .

Michael C Mitchell Sr.

Understood.  My confusion is with below.

  1. Residence Visa (RS) is that something else.  Another fee?
  2. Passport with a minimum validity of (18) months. My passport expires next year, so would I need to renew early?
  3. Guarantee policy contracted with Seguros Reservas.  Is that Issuance of residence card and identification proof?
  4. Medical examinations, in one of the institutions authorized by the DGM.  DGM??????
  5. File deposit for Rentista Residence – RD$ 28,800.00 - Annually? One-time? Monthly??
  6. Issuance of residence card and identification proof – RD$ 3,500.00 - Annually? One-time? Monthly??
  7. Medical examinations – RD$ 6,300.00 - Annually? One-time? Monthly??

windeguy

Not an expert on current residency having done mine back in 2001.


The resdicency visa goes in your passport to start the process. Sounds like you need a new passport with longer valid period.   You get the residency visa in your home country after you file the appropriate paperwork and pay whatever fees. Then you have 6 months to complete the residency process while in the DR after you enter the DR. 


The insurance policy is paid in case you have to be deported  for some reason.  I didn't have that back in the day.


Medical exams are done in Santo Domingo at a government indicated clinic.  Drug tests, chest X-Ray.


Temp Residence is 5 one year periods renewed annually.  Then 1 one year period for permanent residency and then permanent renews for 4 years following what a poster on another forum said. As you can see even permanent residence isn't really permanant but renews peridodically.  After enough years you could get a 10 year residence card.


You can verify all of the above by contacting your local Dominican Embassy. These things change over time.

om2252001

@windeguy

om2252001

@windeguy

Agree, just a way for the government to keep making money from expats, add in the cost of the lawyers fees and it is quite a bit of money , US residency 10 years I believe now up to $750 US, and when renewal comes around may be eligible for citizenship.Maybe reason why so many foreigners don’t even bother, they have been living here for years. And I doubt DR government will tighten up any laws, they are famous for making new laws but never enforcing them.. Ask you Dominican friends how many of them have a drivers llicence, or wear a helmet?

windeguy

It is true that those from tourist card countries can stay forever and ever and that is a long time,

Also they can driver  on their foreign licenses  for  years which technically are valid for only 30 days.

Some even work here. 


As long as the laws are note enforced this will continue for those who don't mind being illegally in the country.


The DR focuses on the issues with Haitians with a goal to deport 10,000 a week. 

ddmcghee

For the rentista visa, you have to have a 5 year proven record of making the minimum per month in passive income.

windeguy

For the rentista visa, you have to have a 5 year proven record of making the minimum per month in passive income. - @ddmcghee

And passive income is not from being employed.  Some people might not understand that point.

Michael C Mitchell Sr.

There does not seem to be a way for a US Citizen to legal work as a remote worker helping people in Americans.

Michael C Mitchell Sr.

I hate spell check.

I do not see a way for US citizens to work remotely from the Dominican Republic.

planner

There is not currently a legal way

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