Changes to LAW No. 9996: For the attraction of investors, rentier residents and pensioner residents and its regulations

SUMMARY

Objective of the law: Encourage the attraction of investors, rentiers and pensioners.
 

General benefits:

1. Tariff exemption and all import taxes present for a single time, for the importation of household items.
2. Importation of up to two land, air and/or maritime transport vehicles, for personal or family use, free of all import, customs and value-added taxes.
3. The amounts declared as income to become a creditor to the benefits of the law will be exempt from income tax. The income obtained in the national territory, resulting from the investments made in the country, will be subject to income tax.
4. Exemption of twenty percent (20%) of the total transfer tax on real estate acquired.
5. Exemption from import taxes for instruments or materials for professional or scientific practice.
    

RELEVANT CHANGES

1. Investment USD$150,000: may be in real estate, shares, securities, projects of national interest or productive interest, venture capital funds and sustainable infrastructure projects.
   What Changed: Investment in real estate may not be made through a legal person. Investment will be exempt from income tax.
2. Allows the importation of household items, with a total tax exemption from all import taxes. It may be imported only once or even a second time in case of loss of the imported household items. The benefit is extended to dependents.
3. Allows the importation of up to 2 vehicles with a total exemption from all import, customs and value-added taxes.
4. Allows exemption of twenty percent (20%) of the total transfer tax on real estate acquired within the term of the law, provided that the beneficiary is the registered owner of the property.
5. Exemption from import taxes for instruments or materials for professional or scientific practice, if it is shown that they are required by the applicant.
6. Investment through trust: only the settlor may opt for the benefits of the law.
    

BENEFITS & VALIDITY

1. Benefits may be requested only during the first five years.
2. Validity of benefits for 10 years.
3. Loss of immigration status implies automatic loss of benefits.
    

EXEMPTIONS AND TAX BENEFITS

DGME will forward the resolution of tax exemptions to the General Directorate of Taxation and the General Directorate of Finance.

1. Import Exemptions

• Household goods
• Instruments or materials for professional or scientific practice
• Import of vehicles
• Request of the interested party in EXONET
• *Registration before Taxation.

2. Real estate transfer tax exemption

• 20% exemption on transfer tax
• If you sell or transfer the property within the term of the law, you must pay all the exempted taxes
• ​*Complete transfer form.

3. Fiscal residence

• They will not automatically be considered tax residents, but they will obtain said status if the provisions of the final paragraph of article 2 of the Income Tax Law are met
• *In case of cancellation of immigration status, you must regulate your tax situation.