The Dominican Republic offers multiple investment opportunities due to a wide variety of factors that have increased its competitiveness, making it an ideal destination for doing business.
Strategic Geographic Location
Its location, in the very centre of the Caribbean, has made the Dominican Republic a vital trade link between Europe, North America and the rest of Latin America. It offers preferential access to more than 1,000 million consumers through free trade agreements with the United States and Central America (DR-CAFTA) and the Economic Partnership Agreements (EPAs) with the European Union and the United Kingdom.
Solid Legal Framework and Incentives
The Dominican Republic’s government favours Foreign Direct Investment (FDI) through a solid legal framework that, not only offers legal security to investors but also a set of incentives and tax exemptions that guarantee higher returns on their investments, all while generating employment, boosting the economy and promoting the country’s development.
There are special incentives laws, particularly, in the following sectors: tourism development, film industry, renewable energies and free zones. Additionally, the Dominican Republic has Law 47-20 for Public and Private Partnerships, which can offer strategic opportunities for investors in key projects in the country.
Regarding its unique ecosystem for Free Zone operations, the country has 79 Free Zone parks, more than 120 export destination countries, more than 734 companies operating under Free Zone incentives and more than £6 billion in exports from Free Zones.
The DR is also a World Class Film Location. It has 5 filming facilities and 10 post-production/animation companies. It also has state-of-the-art studio facilities, including a 60,500 ft2 exterior water tank. Additionally, the Dominican Republic has a favourable climate year-round. It has a 25% Transferable Tax Credit, Filming Facilities, more than 3,500 skilled and experienced crew and 350 specialised vendors, including MBS and PJ Gaffers.
The country has a vast physical infrastructure, is well developed and it is adjusted to economic requirements which are focused on producing and commercialising goods and services. Its network of roads is one of the best in the region, linking practically all destinations in the country. It also has a modern, spacious and efficient system of airports and ports. As of June 2022, the Dominican Republic has 8 international airports, more than 320 daily flights, 12 cargo ports and 3 cruise ports.
Likewise, its advanced and reliable telecommunications infrastructure constitutes one of its main competitive advantages.
DR is also an ideal place for logistic operations. With the logistic deposit scheme, operators can consolidate, deconsolidate, store, pack, repack, label, relabel, distribute, in designated logistics centres, without paying import taxes until the product is nationalised. Reasons to choose the DR for logistic operations include:
- Stock of goods can remain in logistics centres for 1 year (renewable) on a tax suspensive status.
- Goods may be subject to re-labelling, packaging, selection, classification and any modification that does not alter their nature.
- A Commercial invoice is NOT required for import/entry to logistic centres – ONLY THE PACKING LIST.
- No limitation/quotas on imports to the local market.
- Expedited customs processes: IT-based inspections.
Variety of Natural Resources
The Dominican Republic is known to have a vast diversity of attractive natural resources, such as its beautiful beaches, fertile soils, warm climate and mineral deposits, which makes it an ideal place to explore and invest. The Tropical Climate usually averages around 28C throughout the year.
There is great potential in the energy sector, particularly, with an installed capacity of 3,824 MW. 74% in conventional energy and 26% in renewable energies. The government is committed to fighting against climate change and to its growing transition to green and clean energy.
Economic, Social and Political Stability
Legal security, economic dynamism and an attractive business climate continue to make the Dominican Republic the ideal destination for attracting Foreign Direct Investment in the region and one of the most vibrant economies in Latin America and the Caribbean.
The Dominican Republic is committed to a future built with competitive human talent, environmental sustainability and technological innovation. More than 50% of the population is under 29 years old. It is ranked No. 4 in the proficiency index in Latin America and No. 2 in the Island Economies of the Future.
For more information on investing in the Dominican Republic, please see our Dominican Republic Investment Guide, available, in English, on the following website: Guía de Inversión RD 2021 – Prodominicana.gob.do