n recent years, the Dominican Republic has become one of the best destinations for doing business in Central America and the Caribbean. Besides the natural attributes of the island, the country has solid legal frameworks that support the start of new businesses.
What business is profitable in the Dominican Republic? With a stable economy and consistent GDP growth, this Central American country manages to attract foreign investors.
Foreign companies can benefit from various foreign investment laws offered by this country and established in Dominican legislation. This way, they can create profitable businesses in the Dominican Republic.
The Dominican Republic is considered one of the most attractive countries for doing business in Central America and the Caribbean.
Ease of Doing Business in the Dominican Republic
Factors such as higher economic growth, as well as economic, social, and political stability, make this country one of the favorites for foreign investors.
The Dominican government constantly works to promote the ease of starting businesses, offering tax incentives to foreign investment.
Incentives and Tax Benefits for Foreign Investment (Law 16-95):
- National treatment for foreign investors.
- Exemption from taxes on the repatriation of 100% of profits.
- Residence permit program for investment.
- Free access to international currency.
- Easy and fast procedure for investment registration.
Business Outlook in the Dominican Republic:
According to the World Bank’s Doing Business 2022 ranking, the Dominican Republic shows improvement in the following areas:
- Starting a business.
- Obtaining construction permits.
- Getting electricity.
- Enforcing contracts.
Where is it easier to do business in the Dominican Republic?
One of the main commercial activities in the Dominican Republic is the services sector (which contributes around 60% of total GDP), followed by foreign trade activities, sectors such as livestock, agriculture, construction, as well as energy and mining companies.
An important sector that has seen significant growth in recent years is tourism and hospitality, positioning the Dominican Republic as a tourism powerhouse in the Caribbean.
Likewise, the wide variety of natural resources such as beaches, mineral deposits, and fertile lands are opportunities for investment in this territory.
Most Profitable Businesses in the Dominican Republic
Tourism-Hospitality:
The beaches, climate, and facilities offered by the tourism sector make this sector a profitable and attractive business for foreign investors.
Tax incentives for the tourism sector:
Exemption of up to 100% of the following taxes:
- Income tax.
- National and municipal taxes for using and issuing construction permits.
- Import taxes, fees, surcharges, duties, and the ITBIS tax.
Free Zones:
This sector is characterized by government support and facilities due to the positive economic impact it represents for the country.
Tax benefits of Free Zones:
Exemption of up to 100% of the following taxes:
- Income tax.
- Municipal tax payments.
- All import taxes, tariffs, customs duties, and other levies.
- All patent taxes on assets or wealth, as well as the ITBIS tax.
- Tax on the formation of corporations.
Real Estate and Construction Sector:
This is one of the most solid and growing sectors in recent years in the Dominican Republic and the Caribbean.
Tax benefits for the construction sector:
- Exemption from the payment of Asset Tax.
- Exemption from the ITBIS (VAT) on payments made to contractors.
- Elimination of NCF for contractors.
The Dominican Republic is a developing country with great opportunities for foreign investments seeking to do business in Central America and the Caribbean.
At Contadores Dominicanos, we provide all the legal, corporate, and accounting advice to create businesses and foreign companies in Dominican territory. We have highly qualified professionals ready to answer all your questions.
