Can Dominicans invest in Hedge Funds

[Jean Gler]

Hi everybody,

My wife and I are fresh residents in the D.R.
We make our living by introducing international investors to Hedge Funds.
Our company is registered off-shore and we are U.S.A regulated (CFTC/NFA)

I would appreciate if anyone can address the following:

1. Can Dominican Republic citizens invest outside of the D.R?
2. Can Dominicans invest in off-shore Hedge Funds?
3. Is there a tax on such investments?

We are looking to establish business relationships with High Net Worth and Institutions in the D.R, does anyone have any good ideas/tips?

Thanks!

[PICHARDO]

Originally Posted by Jean Gler

Hi everybody,

My wife and I are fresh residents in the D.R.
We make our living by introducing international investors to Hedge Funds.
Our company is registered off-shore and we are U.S.A regulated (CFTC/NFA)

I would appreciate if anyone can address the following:

1. Can Dominican Republic citizens invest outside of the D.R?
2. Can Dominicans invest in off-shore Hedge Funds?
3. Is there a tax on such investments?

We are looking to establish business relationships with High Net Worth and Institutions in the D.R, does anyone have any good ideas/tips?

Thanks!

1. Yes.
2. Yes.
3. Yes.

[Jean Gler]

Thanks !!!

[Fernandez]

Careful.

The Information and Tax Echange agreement of 1986 and subsequent agreements hold Dominicans investing capital abroad responsible for reporting all income and capital gains, subject to Dominican taxation. The "offshore" capital is also considered subject to the foreign currency gains and losses, and there are estate issues to consider.

As an international private banker with 30 years of advising Dominican investors, your activities in the DR are also regulated with respect to advisory and investment services, and you need to be careful exactly what you are advising- including "hedge" funds and non-traditional investments.

If not correctly structured, activities can be considered assisting "flight capital"

good luck.

[Expat13]

Originally Posted by Fernandez

Careful.

The Information and Tax Echange agreement of 1986 and subsequent agreements hold Dominicans investing capital abroad responsible for reporting all income and capital gains, subject to Dominican taxation. The "offshore" capital is also considered subject to the foreign currency gains and losses, and there are estate issues to consider.

As an international private banker with 30 years of advising Dominican investors, your activities in the DR are also regulated with respect to advisory and investment services, and you need to be careful exactly what you are advising- including "hedge" funds and non-traditional investments.

If not correctly structured, activities can be considered assisting "flight capital"

good luck.

So for clarity purposes,CAN a DR Resident can legally invest offshore , but must report all income derived from investment as well capitail gains.And the oweness is on the DR resident to report this in his tax returns. This being said, can the resident wire money from his DR Bank to the offshore institution problem free? Also do the banks do money draft registered checks payable to other countrys i.e. USA or Canada?, UK? What is the local tax rate on these style of capital gains? THX

[wuarhat]

Originally Posted by Fernandez

Careful.

The Information and Tax Echange agreement of 1986 and subsequent agreements hold Dominicans investing capital abroad responsible for reporting all income and capital gains, subject to Dominican taxation. The "offshore" capital is also considered subject to the foreign currency gains and losses, and there are estate issues to consider.

As an international private banker with 30 years of advising Dominican investors, your activities in the DR are also regulated with respect to advisory and investment services, and you need to be careful exactly what you are advising- including "hedge" funds and non-traditional investments.

If not correctly structured, activities can be considered assisting "flight capital"

good luck.

Do LRD citizens have access to any tax protected retirement investment vehicles such as the USA IRAs?