DR banks strong
The end of 2008 found Dominican Banks with assets totaling RD$596.5 billion, for an increase of RD$60 billion over 2007. Listin Diario details that the benefit of this is that an increase in liquidity could be advantageous in the result of a financial crisis on the world markets. Bank administrator Rafael Camilo made the declaration on the status of banks during a press conference to discuss the Dominican banking structure, a variety of economic indicators and monetary policy. According to Camilo, banks made RD$12 billion in earnings, RD$2.6 billion more than in 2007. He said banks paid RD$3 billion in taxes in 2008. He also explained that credit increased by 17.2%. Bank solvency rate also recorded an increase of 1.4%, realizing 14.5 in 2008
DR Banks Strong
January 30, 2009 — drparadiseHalloween & Christmas 2008 – Las Terrenas, Samana, Dominican Republic
January 21, 2009 — drparadise
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- Christmas 2008 –
purchase of property in the Dominican Republic
March 4, 2008 — drparadiseThank you for your interest in our services. We would be more than happy to assist you in the purchase of property in the Dominican Republic. For general information on buying real estate in the Dominican Republic, please refer to our articles on that subject found in our website www.drlawyer.com . You may go directly to them by clicking here: http://www.drlawyer.com/txt/articlesreal.html .
As an initial advice we recommend all of our clients to not have any monies wired to the seller before our attorneys have either conducted the due diligence on the property and/or a promise of sale has been signed conditioning the final sale to the due diligence findings. Please obtain a copy of the Certificate of Title from the seller in order for us to begin the title investigation.
As for fees, our standard fixed fee for real estate purchases ranges from 0.1% to 1.0% of the gross purchase price, depending on the value of the transaction. Our fees for purchases below $500,000 US is 1% with a minimum fee of US$850 for cash purchases requiring only one contract and US$1500 for purchases requiring more than one contract. The fixed fee covers the following: (a) title investigation and due diligence, (b) negotiation, preparation, authentication and recording of the deed of sale, (c) short-term escrow services and (d) obtaining from the Internal Revenue Department an appraisal of the property purchased in order to ascertain the amount of transfer taxes to be paid, (e) payment of taxes, (f) recording of the deed of sale at the Registry of Titles, and (g) obtaining the Certificate of Title in the name of the buyer.
Not included in the fixed fee are transfer taxes (approx. 3.1% of appraised value), surveyor’s fees ($150+ depending on the size of the property) incorporation costs ($1400 + depending on the capitalization), fees and expenses related to the representation of the client by power of attorney in case the client will not be present at closing ($250). We strongly recommend using a corporation for the purchase for the reasons found in our website article. Legal fees in the Dominican Republic are subject to a 16% service tax.
Finally, we would be most grateful, if you could take a second of your time and fill out this quick four-question Prospective Client Survey by clicking on the following link or pasting it on your browser’s address bar.
http://www.surveymonkey.com/s.aspx?sm=9XNkUvId0fX992xoYqFuDg_3d_3d
Respectfully yours,
DanDannyDaniel Hussmann
1-829-644-8094
www.drparadise.com
Skype Address – dlhussmann
Las Terrenas, Samana, Dominican Republic
Agreement with a AAA Prime Bank in NYC
February 12, 2008 — drparadiseWanted to let you know we have been able to reach an agreement with a AAA Prime Bank in NYC. This is not a local lender. They offer three types of mortgages: purchase, refinance and cash out (sorry no construction loans). Offer is limited to U.S., Canadian & UK citizens. See the below requirements.
- The property must have a clear title. If the title is not available, the buyer can be approved and the file held until the title becomes available.
- Completely filled application (lender application form)
- Signed credit report release form
- 2 years full tax returns
- Most recent four (4) pay statements
- Most recent asset statements (ex. Stocks, 401k, brokerage account, etc.), must include support documentation
- Minimum loan is $150,000.
- LTV is 70% of appraised value, meaning if the property appraised at $250,000, the most they would finance is $175,000.
- The loan will be a 30 year mortgage fixed for 5 years at 7.95% that changes to an ARM (Adjustable Rate Mortgage) for the final 25 years. Prepayment penalty in place for the first 5 years that begins at 5%, and reduces by 1% per year until the end of the 5th year.
- Buyer should know within 72 hours about the loan status once the documents are in the lender’s hands.
- Fee structure – lender charges a 2% origination fee, we are paid by the lender. Based on the above example total mortgage fees would be $3,500.
- Mortgage Insurance is NOT required
- Property Insurance IS required (obtained by the borrower)
- Property should be within a gated community
- Americans and Canadians can write off the loan interest on their income tax.
The lender is interested in moving fast and if the buyer is qualified should have their loan in about 30 days. If you have someone who requires a mortgage please let us know, we can help you make your sale.
Regards
Larry Rogers
Dominican Mortgage Broker C por A
Oficina #203, Calle Alejo Martinez
Sosua, El Batey, Puerto Plata DR
Ph: (809) 571-3161
Internet Ph: (772) 539-9662
Fax: (809) 571-4009
E-Mail: info@dominicanmortgagebroker.com
Internet: www.dominicanmortgagebroker.com
LOAN REQUIREMENTS, BANCO POPULAR, DOMINICAN REPUBLIC
December 11, 2007 — drparadiseLOAN REQUIREMENTS
BANCO POPULAR
LAS TERRENAS, SAMANA PENINSULA, DOMINICAN REPUBLIC
8 November, 2007
With Cedula (residency card):
<!1. Bank statements from last year (not required if banking with Banco Popular)
<!2. Passport
<!3. A letter from purchaser asking for the loan
<!4. Met Jaime the bank manager
<!5. Financial statement from accountant showing Net Worth
<!6. Appraisal done by bank appointed appraiser. Bank Manager accompanies. (+/- $150.00 USD)
Without Cedula: all the above plus…
<!1. Last income tax statement
<!2. International credit report from TransUnion (´Express¨ prices are more)
a. United States US$ 20.00
b. Europe US$180.00
c. Spain US$100.00
d. Latin America US$125.00
e. Caribbean US$250.00
Banko Popular loans 80% of the value of the property so expect to pay 20% down
Interest rate at time of this writing is 9.0% USD and 13.95% Peso
This is for a 20 year note
DanDannyDaniel L Hussmann
DR Paradise Realty
829-644-8094
www.drparadise.com
Three steps to Citizenship and a Dominican Passport
August 14, 2007 — drparadiseHello friends,
Considering relocating to another country? or second citizenship options? We think the Samana Peninsula in the Dominican Republic may be the place for you! You may not have realized, but this is no small Caribbean nation! We boast a population of about 8.5 Million happily smiling souls. We are located just 3 and ½ hours by plane from New York and a 90 minutes hop/skip/and jump from Miami/Ft Lauderdale. There are many airports to choose from including our newest International Airport at El Catay. This modern beauty was built specifically to service our beautiful Samana Peninsula on the north coast. Samana has been specifically hand-picked by the Dominican Government to become “The Jeweled Showcase of the Caribbean.”
I can think of tons of reasons to choose the Dominican Republic as your place to be. I’m going to share these with you too! But one of the many reasons people seek out the Dominican Republic for residency and dual citizenship opportunities is because of its quick, simple, easy, and most of all welcoming procedures for procuring both legal residency and eventual citizenship as well.
Now I’m a Realtor. I work with DR Paradise Realty. We’re located in Las Terrenas on the Samana Peninsula. Remember that “Jeweled Showcase” I was speaking of earlier? Well, if the Samana Peninsula is the “Showcase”, then by all facets (pun intended ;o)) of your sparkling (too far?) imagination, Las Terrenas is the Crown Jewel in that showcase! This may not be the best forum for specifically identifying Las Terrenas as the perfect place to be (it is though!) but I couldn’t resist just a small plug for our special spot in the brilliant Dominican Republic sun. Hey, it could easily become your special spot as well!
Have you ever looked into buying Real Estate in the Caribbean? Places like the Bahamas, Bermuda, St. Martin, Aruba, Turks & Caicos Islands, etc? How about Costa Rica or Panama? We’re 10 years behind their pricing! But it won’t last long! There is a great steady heat here in the Dominican Republic Real Estate Market. Prices are climbing upward every day. In comparison, if you have ever attempted to shop for real estate in some of the other Caribbean Islands and countries, you will quickly realize what a bargain this is.
Did you know that bank account interest is Tax-Free for residents and non-residents alike. Please take a look at some of the typical Short-term CD rates being offered….
Here is the link that shows you on the Central Bank´s website, but here are the rates: http://www.bancentral.gov.do/english/investment_instruments.asp
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What this means is that your dream of an early retirement income derived from banking investments is actually a do-able thing here! If you have some liquid cash, you can actually live off your interest. Did you know you can live here, quite comfortably on as little as $2,000 per month? Heck, my Social Security checks will cover most of that!
Yes, some things are expensive…gas is not cheap and prices for food in the grocery stores can surprise you. But you quickly learn what, where, and how to make smart purchases. For instance, my haircut in Las Terrenas this week, with tip, with razor trimming and probably 40 minutes of TLC in the chair was only about $4 US! Also, labor is really cheap, real estate is really cheap, the sand and the beach and the sun and the stars and the warm friendly people are cheap too…in fact, those last five things are all free!
Tomorrow, I will write more about the reasons people would want to obtain residency and/or Citizenship (passport) status. Just exactly what are the benefits? Are there any downsides? Then on Thursday, I will Outline the actual step-by-step process for doing so.
Until then, I have enjoyed sharing one of my many passions, the stunningly gorgeous Dominican Republic with you and I look forward to sharing again tomorrow!
Your friend in the DR,
DanDannyDaniel Hussmann
DR Paradise Realty
1-829-644-8094
Final Installment – 3 Steps to Dominican Citizenship and a passport – the Outline
August 14, 2007 — drparadiseIt’s me again, DanDannyDaniel coming at you from Beautiful Sunny Dominican Republic – where every day is like the vacation you’ve always dreamed of!
I promised you the step-by-step outline for Residency and eventual Dual Citizenship in the DR and I’m the last one that wants to disappoint! Without further ado…..
Three Steps to Citizenship and a Passport
Step 1. Provisional Residency
a. Medical Exam
1. Must be taken inside the DR
2. By a Medical Doctor
3. At the Department of Immigration
a. Urine Sample >
b. Blood Sample > (looking for Aids, Illegal Drugs, and T.B with these 3 tests)
c. Chest Ex-ray >
d. Have you had surgery in the past 5 years?
e. What prescription Meds are you on?
f. Various and sundry other medical questions may be asked.
b. Department of Residency Application filed
1. Copies of current passport needed
2. Certified or original copies of your Birth Certificate needed (be sure to make copies, originals will not be returned)
3. Police letter of good conduct from your local Police Department (easier for some than others! ;o))
4. Proof of Economic solvency in the amount of $500,000 Pesos Dominican (about $15,000US at this writing)
a. Can be cash
b. Real Estate purchase
c. Business Investment
d. Utilization of a locally Incorporated Company
5. Interpol background check by National Police (Uh-oh, look out James Bond)
c. Once Residency Application is filed you may expect to obtain your Initial Provisional Residency Card and your Initial Cedula (ID) Card within 60-90 days – both these cards are valid for one year.
d. Now you have all rights to live, work and citizenship except voting
e. This also starts the clock ticking for eventual citizenship
2. Permanent Residency
a. After the original one year time frame for the Provisional Residency has passed, the above process is Repeated Once Again Exactly as Explained
b. The purpose is to renew the above. Renewing then changes the status to Permanent residency
1. Your 2nd Residency Card is valid for two years
2. Your 2nd Cedula Card is valid for six years
c. The reason for this duplication is because the Dominican government wants to see that all applicants have demonstrated they are law-abiding citizens.
3. Becoming a Citizen (and gaining a 2nd Passport)
a. After the above Permanent Residency Status is completed, Application for Naturalization is deposited
b. This takes about 5 months
c. Find a competent attorney – this is my disclaimer here…you will need a Dominican attorney – we can make recommendations for you.
d. You must make yourself available for a brief interview
1. This happens 2-3 months after your Application for Naturalization is deposited.
2. You must demonstrate some knowledge of the country and basic historical facts…such as…..
a. Major cities
b. Airports
c. Founding Fathers (I’m not one of them though I do consider myself somewhat of a pioneer)
d. Date constitution was Signed
e. Etc,.
3. Swearing in Ceremony
a. Usually the Chief of National Police or the Vice President, whomever is available- though the President will actually sign your papers
b. Held Monthly
4. Once this is completed you may apply for your new Passport (takes one day!)
5. Also apply for a new Cedula Card as a citizen (usually about 45 days)
OK, that’s it. Bienvendo, welcome, glad to have ya! Now, let’s buy and sell some Real Estate!
All my best to all of you. I hope you will visit soon and enjoy our little piece of DR Paradise!
DanDannyDaniel Hussmann
1-829-644-8094
Why in the world would someone even want to get a 2nd residency, or even dual citizenship?
August 14, 2007 — drparadiseHello-o-o, I’m ba-a—cc-kk!
Let’s pick up where we left off yesterday. Why in the world would someone even want to get a 2nd residency, or even dual citizenship? What’s in it for them?
First of all, aside from the very attractive reasons to consider living in the Dominican Republic, this country has gone out of its way to simplify these matters. I told you they were a welcoming sort didn’t I? The Dominican Republic offers a very simple and uncomplicated process both for residency status and naturalization (citizenship and second passport) . OK, that being said, let’s get back to the why of it all. Some questions that some people may have are: Why would someone be interested in going through a process for residency status or even a second citizenship? Is this legal? What are the benefits?
The three main reasons are: taxes, banking or investments, and personal safety, usually in that order. In Europe, your personal and corporate income taxes could go as high as 65% or more. If you live in the United States or Canada, you could be paying close to 50% also. OUCH!! So relocating to a country where you can legally opt out of paying these (I believe) exorbitant taxes is impetus alone for doing so.
Would you like to know how to do this? I bet you would! Well, Europeans and Canadians especially, (and other countries as well) can declare themselves legally non-resident for tax purposes. If you prove that you are legally resident someplace else, if you are no longer living in your previous home country, and you are not using the various government services you would otherwise pay taxes for and use, you should not have to pay for these services. “Por supuesto y si claro as we say here! Of Course! This makes perfect sense to me!
The laws are quite different for Americans. But, Americans can exempt up to about US$82,000 or so (this figure is indexed up each year) if such a person is both living and working outside of the US. Did you catch that folks? I said “Exempt”, this is no write-off…it’s as if your first 80 Grand is TAX-FREE! I hardly think I need to say too much more about that! Isn’t that exciting?
Did you know that Americans especially have a difficult time establishing a bank account, brokerage account or other kinds of investments outside of the US. What could be the reason for this? It’s certainly very legal for a US citizen to own a bank account or investment account outside of the US. It is also very legal in most countries for foreigners to establish accounts as well. Legality is not the problem. Banks and investment firms make up their rules. The US government makes up its rules. Guess what? Many banks and investment firms don’t like the US governments rules. They don’t want to play with the US government! They believe the US Governments rules and regulations are an aggravation, a harassment…a real pain in the ol’ nalgas to be blunt! (H-m-m, I’ve felt the same thing myself once or twice!).
These financial institutions would rather just do without. Many such firms have decided against accepting American citizens investments. They very simply do not want the aggravation of being beleaguered by the US tax authorities. So, they simply do not accept US citizens as an internal policy. So, if there were a legal way around this dilemma would you do it? Of course you would…you’re a smart cookie! Why not become something other than a US citizen? I’m not saying you should give up your American citizenship. Heck, I’m as Red, White and Blue -blooded as anyone! I’m proud to be an American! But since obtaining a second citizenship is perfectly legal for Americans (and for many other nationals as well), and it could help me keep some of my hard earned money, and especially since I truly am NOT using the various government services I normally would be paying for…shoot, sign me up! If you or I have a second passport, we can get around these ‘harassments’ and start earning some of those great interest rates we discussed earlier.
I really hate talking about the personal safety aspect. Unfortunately, this is a very real consideration for Americans. It cannot be denied there are many areas in this great wonderful world where US citizens are not warmly welcomed. I must say, the Dominican Republic is definitely not one of them. Here, we are welcomed with open arms and wide Dominican smiles. Even in my somewhat limited travels I have been acutely aware that my American body was perhaps fouling up the air. Having legal travel document from someplace else, an ‘alter-identity’ so to speak – may help you steer clear of jeopardy and in the most severe circumstances, perhaps even save your life.
Every country has a process allowing you to become a legal resident, and eventually at some point in the future, a citizen (entitling you to a passport). And this is true when it comes to the Dominican Republic. The main differences here, are the costs, requirements and waiting time. As I mentioned earlier, the Dominican Republic has an open arm policy and they have streamlined the method for doing this.
OK, have I helped? Have I bored you to tears? Tomorrow, I will add the step-by-step outline for making this happen. Thank you again for your time and interest. I am at your service if you need me for this, for travel arrangements to the DR, and especially for helping you find the right Dominican Republic Real Estate investment for you!
Until tomorrow then,
DanDannyDaniel Hussmann
