Disclaimer: This article is not a substitute for legal nor accounting advice. Look for professional advice before you take action.
What’s not to love about the beautiful island that is the Dominican Republic? So many people have enjoyed this Caribbean paradise for decades. And if you happen to be one of the lucky ones that live there, no one would blame you for not wanting to leave the beauty of such a place.
Whoever said that you have to sacrifice leaving paradise to secure your dream job? Although that may have been the case years ago, times are changing rapidly.
This article will touch on five key elements you should look into to land an independent contractor job for a US company from the beautiful shores of the Dominican Republic.
#1 Understand Possible Visa Requirements
Let's get the biggest question out of the way! Do you need a work visa to work for a US company from DR? The answer is no, you don't! What's wonderful about remote jobs hiring from abroad is that there is no need for you to obtain a visa to become a remote employee. We bet that takes the pressure off!
#2 Know Your Tax Obligation
Now that the biggest question has been answered, we'll look into the next important task you'll have to consider when embarking on your journey to becoming a digital nomad. Taxes.
With so many remote jobs hiring, it's imperative for a remote software developer to understand and record your tax obligation.
Each county has its own rules and regulations that you must abide by. That will include registration with the local Dominican Republic tax system. But more on that in a moment. Let's first chat about what the tax obligation looks like in the DR.
Like many of the countries we have covered in this series, such as Peru and Bolivia, the Dominican Republic does not tax non-Dominican sources of income. Therefore, if you are a remote employee for a United States-based company, you are not taxed on that income. However, if you earn income sourced from within the DR, you'll be subject to pay on that income.
The income limit places taxable income at approximately 330,000 Dominican pesos. Up till that point, the income is not taxable. After that threshold has been passed, the tax obligation is at 15% and progresses upward from there.
#3 Make Sure You Are Properly Registered
Naturally, you must properly register with the tax authorities in the Dominican Republic to report any DR-sourced income. This is to be done by registering with El Registro Nacional de Contribuyentes (RNC). There are two separate categories: taxpayers and registers.
You will receive an RNC number which you will use to pay your tax obligations, and it must be on all invoices and documents. Taxes are to be paid on March 31st, but you may be subject to pay on a different day depending on filing obligation.
#4 Arrange How You Will Receive Your Salary
When it comes to overseas payroll, one of the more difficult aspects is how the payment will be received by the independent contractor. The world continues to move toward digital means of payment, so getting paid for your work abroad is less troublesome than ever before. Let's take a look!
The most known form to receive money abroad is through a bank transfer. A bank transfer is a great option for those who already have an account in the Dominican Republic whose employers operate through Dominican Banks.
However, transfer services typically come with fees. These fees can sometimes become quite costly, so it's a good idea to check with your local bank for availability to assess their transfer rates and fees.
Unlike many other countries we have covered, such as Chile or Bolivia, PayPal is available to those in the Dominican Republic. Moreover, it has many features to accommodate your needs, such as the ability to bill invoices to your employer or submit payment requests.
This is another digital wallet you can use to receive money in the DR. You have the option to send Dominican pesos or USD. Transfer your money to your local bank account or pick up the cash at a certified location, whichever is better for your needs. This option is convenient as you can move money around in ways you see fit. Keep in mind that there are fees involved with the exchange rate and the service in general; however, Remitly aims to provide low rates for its users.
#5 Let Us Help You Land Your Dream Job
At Nexton, we take pride in helping senior software engineers, developers, and other technical talent elevate their career and everyday life by aiding them in their dream job search! Our process involves a series of short interviews and assessments with you to understand your strengths and goals for your desired position.
We assess your skills and look into US companies looking to hire remote software developers. These companies are looking to add talent to their staff for the long term. In addition, the flexibility of taking on a remote position with a US company offers the possibility to achieve that work-life balance that many people are seeking.
Are You Ready to Start Your Journey?
If you are considering the digital nomad lifestyle, you aren't alone! So many US companies are looking for remote employees, and you, as a senior software engineer, have what it takes to claim your dream job from home. Contact us at Nexton, and we will get you started on your path to a fulfilling career as a digital nomad!