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Foreign investment in the Dominican Republic

The Dominican Republic is the fastest growing economy in the Caribbean and treats foreign capital on the same footing as domestic capital. We turn that openness into an investment that is well structured, registered and protected.

A destination open to foreign capital

Law 16-95 on Foreign Investment guarantees the foreign investor the same treatment as a national, free repatriation of capital and profits, and access to sector incentive regimes. Registering the investment with ProDominicana (the Dominican Republic Export and Investment Center) is not a requirement for investing, but it is the key that unlocks formal repatriation of dividends and residency by investment for the principals.

Our clients are investors from the United States, Puerto Rico, Canada, Spain and Latin America who buy real estate, develop tourism projects, set up plants in free trade zones, open service operations or acquire going Dominican businesses. We offer all of them the same thing: a single team that structures the investment, executes it and keeps it compliant.

  • Choice of investment vehicle: Dominican company, branch, trust or direct acquisition
  • Registration of the foreign investment with ProDominicana and investment certificates
  • Tax incentives: tourism (Law 158-01 and CONFOTUR), free trade zones (Law 8-90), renewable energy (Law 57-07), border region and film
  • Due diligence on the Dominican counterparty and on the asset being acquired
  • Investment agreements, joint ventures and shareholder agreements with local partners
  • Sector permits, environmental licenses and municipal authorizations
  • Repatriation of profits and international tax planning
  • Residency by investment for the principals and their families

Structure before you invest

The most important decision is usually made before the first dollar is transferred: how to hold it. A Dominican company offers limited liability and full access to incentives; a branch simplifies consolidation with the parent; a trust under Law 189-11 separates the asset from personal wealth; direct ownership by an individual is the simplest but least protected. We model the alternatives with the client's accountant and tax adviser at home so the structure works on both sides of the border.

Protecting the investment

The Dominican Republic has signed bilateral investment treaties and the free trade agreement with the United States and Central America (DR-CAFTA), whose investment chapter offers protection against expropriation without compensation and access to international arbitration. Domestically, practical protection comes from well drafted contracts, clean titles, permits in order and a corporate structure that isolates risk. We handle all of it and, if a dispute arises, we litigate or arbitrate in the investor's defense.

Frequently asked questions

Is it mandatory to register a foreign investment in the Dominican Republic?
It is not mandatory in order to invest, but registration with ProDominicana is necessary to formally repatriate capital and profits through the financial system and to qualify for residency by investment under Law 171-07.
Can a foreigner own one hundred percent of a Dominican company?
Yes. With few sector exceptions, Law 16-95 requires neither a local partner nor limits on foreign ownership.
What tax incentives exist for foreign investors?
The main ones are the tax exemption of up to fifteen years for tourism projects approved by CONFOTUR, the free trade zone regime with exemption from income tax, ITBIS and duties, and the Law 57-07 incentives for renewable energy.

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