Transaction from funds to the Dominican Republic

General Declaration on Capital Transfers – Financial Resources to the Dominican Republic

A wealth transfer can take many forms—e.g., as an investment, real estate purchase, business start-up, or even a personal transfer. Legal, tax, and banking requirements must be observed both in the country of origin (e.g., Germany, Austria, Switzerland, Italy, Spain) and in the Dominican Republic (DR).

Clarify the purpose and origin of the money

• Proof of the origin of the assets (e.g. savings, sales proceeds, inheritance, donation).

• Clear definition of the purpose: e.g., purchasing a property, investment, living expenses.

Prepare documentation & evidence

• Bank statements, contracts or other proof of origin.

• Translation (certified if necessary) into Spanish may be required.

• Tax evidence from the country of origin (e.g. approval by the tax office for larger amounts).

Make a bank transfer

• The use of official banking channels (e.g. SWIFT transfer) is recommended.

• It is best to transfer directly to an account in the DR at a reputable bank (e.g. Banco Popular, Banreservas, BHD León).

• Indicate the intended purpose of the transfer (e.g. “Inversión inmobiliaria”, “Fondo personal”).

Import declaration (for larger amounts)

• Above a certain amount (e.g. USD 10,000 or equivalent), registration is mandatory with the Dominican Customs (DGII) or the Banking Superintendence (Superintendencia de Bancos).

• For cash transfers over USD 10,000: Customs declaration (Aduanas) required.

Check tax treatment

• No taxation of pure asset transfers to the DR.

• However, taxation may occur when the capital is invested and profits are made.

• When purchasing real estate, for example, there is a property transfer tax (3% of the property value).

• Consultation with a local tax advisor is recommended.

Use of trusts or companies (optional)

• For larger assets, a transfer via a Dominican company (SRL, SA) may be advisable.

• Alternatively, via trust models or attorney accounts.

Registration in the country of origin

• In Germany, for example, observe the foreign account reporting requirements (§138 AO).

• Money Laundering Act (GWG): Transfers of €12,500 or more are subject to reporting to the Bundesbank.

• It is advisable to consult a tax advisor or bank.

Important instructions

• Avoid cash transfers as they can lead to problems with customs.

• Always check contracts with a local lawyer.

• For real estate transactions: Prior examination of the title (title search) and involvement of a notary public are required.

Useful institutions & contacts in the DR

• Banco Central de la República Dominicana (BCRD) – www.bancentral.gov.do

• Dirección General de Impuestos Internos (DGII) – www.dgii.gov.do

• Superintendencia de Bancos – www.sb.gob.do

• Aduanas (Customs) – www.aduanas.gob.do

Summary of financial transfers and remittances to the Dominican Republic from personal experience

Transferring funds to the Dominican Republic requires the utmost care and strict adherence to applicable regulations. International payments there are subject to strict government control. In most cases, processing takes place indirectly via the United States, which entails additional time constraints.

To prevent money laundering and illicit transactions, both the Dominican authorities and the financial institutions involved apply the highest standards. Even minor discrepancies—for example, in names, addresses, or information about the intended purpose—can lead to the blocking of transfers. Such situations must be avoided at all costs, as clarifying suspicions is often time-consuming and often requires evidence that cannot be obtained locally on short notice.

There are various regulated options for securely transferring large amounts of money to the Dominican Republic. Exchange rates and transfer fees aren't the only considerations – legal, formal, and documentary requirements are crucial.

• Our performance

  We offer you sound advice on suitable transfer methods and, if desired, comprehensive support in the preparation and implementation.

  Depending on the scope and effort involved, you may be required to pay a fee for this.

• Important

  We do not undertake any transactions or execute any money transfers on your behalf. Our services are limited exclusively to advisory and support services. The responsibility for the execution and all decisions related to the money transfer rests solely with you.

Below you will find the most important points related to financial transfers and cash withdrawals in the Dominican Republic

Required documents

Regardless of whether it is a transfer or a cash withdrawal – especially for larger amounts or international transactions – the following documents are usually required

• Proof of the origin of the assets

• Valid international passport with expiration date beyond one year

• employment contract

• Payroll statements for the last three months

• Proof of annual income (e.g. tax assessment or wage statement from your home country)

• Receipts of additional income with proof for the tax authorities in the home country

• Bank statements of existing assets, possibly retroactively for 2-3 years

• Tax number of the company in the Dominican Republic, if money is transferred to such a company

• Purchase agreement or preliminary contract for the property in question

• Certification by a notary or corresponding proof

  
  

Further important information

• There may be follow-up questions by phone. Therefore, all parties involved—for example, the seller or the notary—should be reachable by phone.

• Knowledge of Spanish is essential. Without sufficient language skills, smooth communication with the financial institution is almost impossible.

• When faced with questions or requests from the bank, demonstrate a willingness to cooperate and respect. Rude comments or complaints are counterproductive.

• Should any problems arise, it is advisable to involve a local, linguistically proficient, and legally knowledgeable person. Often, only a single document is missing – without it, the transaction will not proceed.

  
  

Concluding remark

This information is not intended to fuel concern, but rather to provide a realistic picture of operations in the Dominican Republic. Incomplete or contradictory information can cast a negative light on bank employees. For their own protection, they therefore act strictly according to the Dominican government's guidelines and the bank's internal policies, which can sometimes be strict.