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Buying under a company name
The advantage of buying a property in a company name in Dominican Republic
many investors think of the Bahamas, Belize and other jurisdictions when contemplating an offshore incorporated company your offshore banking relationship. However three may be some circumstances when forming a Dominican Incorporate Company is a smart choice.
When many people think about offshore incorporations or trusts, the Dominican Republic is on e of the last places that come to mind. To be sure, the Dominican Republic is not a traditional tax haven as the Isle of Man, the Bahamas, Panama or some other jurisdictions. Even so, that may be even more of a reason for investors to consider forming a company to protect their real estate or vacation property. In addition, the Dominican Republic dos offer investors Tax-free banking and US dollar accounts.
Why Form a Dominican Company
like any other strategy to protect your assets and gain tax advantages, the main goal of asset protection is the separation of personal property from the beneficial owner. In other words, if your assets are not in your name, they cannot be taken away from you if a lawsuit arises or if someone wishes to attach your property for some reason. In essence you do not own the property a completely separate entity does. But this is not the only real benefit of a Dominican company. Owning you Dominican Republic vacation property, real estate or investment via an incorporated company also provides tremendous tax advantages.
While it is true that other tax haven jurisdictions may be a better choice for general asset protection or tax strategies, any investor considering the Dominican Republic should for a separate company for the following reasons.
The main advantage to forming a Dominican company are that you will not be personally liable for debts or problems incurred during the operation of the business. A second important reason to incorporate is too avoid the application of Dominican rules of inheritance to your Dominican properties. In heritance of real property in the Dominican Republic is governed by Dominican law which provides for forced heirship part of the estate must go to certain heirs by law. 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.
Title of real estate and bank accounts
the Dominican Republic is an emerging market. Wirth less than 16% of the tourist coming from the UA, it has also remained sort of an undiscovered market for many investors. Because of this, the Dominican Republic offers some of the best real estate bargains AND Returns form time deposit investments in the entire Caribbean, but obscurity has its price. The meaning is that the Dominican Republic is not as sophisticated as say the Bahamas or Panama with regards to foreign ownership of real estate or investments. While the new legislation has greatly liberalized and improved foreign ownership
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