The Executive Branch enacts Law No.189-11 on Mortgage Market Development and Trusts in the Dominican Republic.

Law No.189-11 on Mortgage Market Development and Trusts provides tax incentives and exemptions which should promote private sector participation in low-cost housing projects. In addition, it establishes the Trust as a legal instrument in the Dominican legal framework. As per this new law, Dominican legal entities incorporated to manage assets, investment fund managers, stock brokers, banks, savings and loans and other financial intermediaries authorized by the Monetary Board will be able to act as trustees.

Law 189-11 establishes the Trust as a legal instrument in the Dominican legal framework,and it clearly states the obligations of the settler, the trustee and the beneficiaries. Asper the law, the transfer of assets and/or rights of any nature to a Trust, will create anautonomous and independent patrimony, separated from the personal assets of the settlerand the trustee. In principle, these assets will be exempted from the payment of taxes,duties and charges and will not be pursued by creditors. However, the required registrationfees charged by the pertaining Chamber of Commerce, as well as the applicable transfer orregistration taxes established by the Law, will have to be paid.

To review Law 189-11, please visit: http://www.suprema.gov.do/PDF_2/novedades/Novedad_Ley%20189-11.pdf


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