"A doctor is living there."
Translation:Tha dotair a' fuireach an sin.
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ann doesn’t refer to any specific place, it may be just used as a kind of dummy predicate referring to a general existence.
Compare the English sentence there are good people – in this sentence there doesn’t point to any particular place, the meaning of the sentence isn’t that in some particular place (there) are good people, but rather that good people generally exist. You could say that in Gaelic as tha daoine matha ann.
But if you want to say there are good people there when the second there does refer to a particular place, you use an sin, which has the latter meaning of English there: tha daoine matha an sin.
And similarly, if you want to state that a doctor is living in some particular that place, you use an sin in Gaelic.