The Dominican Republic's Little-Known 0% Tax Strategy 🇩🇴

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Sep 22, 2025

Discover the hidden tax advantages of the Dominican Republic! Explore how their semi-territorial system differentiates between active and passive income. Learn about the three-year tax residency benefits and economic free zones that can supercharge your financial strategy. Javier shares insights into fast-track citizenship options and how to create practical, multi-jurisdictional structures for optimal tax neutrality. This vibrant Caribbean destination might just be the key to unlocking your wealth potential!

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ANECDOTE

Caribbean Roots Shaped His Jurisdiction Choices

Javier Correa describes personal comfort with Caribbean Spanish culture and beach living from growing up near the sea in Caracas.
He explains his preference for Panama as a main hub while keeping the DR as part of his diversification plan.

INSIGHT

Three-Year Territorial Tax Window

The Dominican Republic uses a semi-territorial tax system that separates foreign active and passive income for taxation.
New tax residents get a 3-year full territorial regime exempting all foreign income, then passive foreign income becomes taxable.

ADVICE

Structure Active Income Offshore First

Treat foreign active business operations as tax-free in the DR if they truly operate and have permanent establishments outside the country.
Keep earnings in foreign companies until you distribute dividends to avoid immediate DR taxation.

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What do we all know about the Dominican Republic? The weather is great, they have a solid path towards citizenship, and you'd better brush up on your Spanish when visiting. But did you know that they have a great tax system that can make it really attractive for the right portfolios? Javier will take us through the DR tax system and explain how they differentiate between Passive and Active income, their 3-year complete territorial tax program and how you can benefit from their economic freezones.

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