Legal Question in Tax Law in Dominican Republic
Bringing in foreign money
My family is originally from the Dominican Republic. We have lived in the
US for 30 years, but my grandfather still lives in Dominican. He wants to
start buying investment properties with my father here in the US. What
are the tax implication for my dad (a U.S. citizen) if he brings in money
from Dominican and uses it to buy property? Is there a limit to how much
money he can bring in? Any information you can offer would be helpful.
1 Answer from Attorneys
Re: Bringing in foreign money
If your grandfather is not a US Citizen then he can use his dominican earned money to invest in the United States. There is a double taxation agreement between the Dominican Republic and United States that states that if you have paid income taxes in one country you don't have to pay taxes in the other country for the same money earned and that you have already paid taxes on. Every property that he purchases must be under his name (your grandfather) or his company name. However, your father being a US Citizen, will have a tough time buying property or investing in the US without justifying where he earned his money. He cannot say that his father gave it to him as a donation without paying taxes for the money received (even as a donation). Therefore, your father cannot have the properties that your grandfather purchases under his name without paying taxes. I hope that gives you a clearer picture on what your father and grandfather plan to do. Best Regards!