In the Dominican Republic, access to financing for foreign investments is crucial for economic development. Financing sources include financial institutions and government programs.
Foreign investment benefits the country by boosting employment and technology transfer, especially in sectors such as tourism, industry, and services.
Requirements for foreign investors include complying with the legal framework and the necessary procedures to establish an investment project, considering tax and legal aspects.
Access to Foreign Financing in the Dominican Republic
Investors in the Dominican Republic have access to various financing options, especially in key sectors like tourism, renewable energy, and the film industry.
Significant tax incentives in these sectors include exemptions from:
- Income tax
- Import taxes
- Tax on the Transfer of Industrialized Goods and Services (ITBIS)
These exemptions aim to promote investment and economic development.
What Do Foreigners Need to Invest in the Dominican Republic?
To invest as a foreigner, it is advisable to seek guidance and assistance through Pro Dominicana, the Export and Investment Center of the Dominican Republic.
This organization offers free support services in the installation and development process of direct foreign investment projects. Services include technical assistance, information on procedures and registrations required depending on the sector, and support in all necessary requirements for the investment process.
Financing for Real Estate Investments
Foreigners interested in obtaining financing for real estate investments must meet specific requirements such as presenting documents that justify their income, copies of property titles or sales deeds, and authorizations for banks to request credit information abroad.
Additionally, opening an account in the disbursement currency and presenting various documents related to the property to be acquired are required. Financial institutions, like Banco Popular Dominicano, may require additional documents to evaluate the application and ensure creditworthiness.
What Does Foreign Investment Bring to the Dominican Republic?
Foreign investment in the Dominican Republic has had a significant impact on the country’s economy, contributing to economic growth and development in several key sectors.
A recent study highlighted that foreign direct investment (FDI) increased by 64% since 2020, with projections placing it at 4.2 billion dollars by the end of 2023. The most dynamic sectors in terms of FDI were energy, with 26.2% of the total, and tourism, with 24.7%.
Which Sector or Economic Activity in the Dominican Republic Has Received the Most Foreign Direct Investment in Recent Years?
In the past two years, the energy and tourism sectors have received the most foreign direct investment in the Dominican Republic. In 2023, the energy sector represented 26.2% of total foreign investment, while tourism accounted for 24.7%.
What is the Largest Source of Income for the Dominican Republic?
The largest source of income for the Dominican Republic is tourism, closely followed by remittances and free zones. Tourism leads due to the country’s natural beauty, favorable climate, and diverse cultural and recreational offerings.
Remittances, mainly from Dominicans living abroad, also represent a significant portion of income. Additionally, free zones, which promote the export of manufactured goods, significantly contribute to the country’s economy.
If you seek to invest in the Dominican Republic, at CONTADORES DOMINICANOS, we have professionals in tax and fiscal matters ready to help you establish your business or company.
