In addition, the law prohibits strikes until mandatory mediation requirements have been met. Of these, street robbery is particularly concerning as criminals often use weapons to coerce compliance from victims. +1 (809) 567-7775 U.S. companies also frequently cite the governments slow response to the Odebrecht scandal as contributing to a culture of perceived impunity for high-level government officials, which fuels widespread acceptance and tolerance of corruption at all levels. The World Banks 2020 Doing Business report noted that resolving complaints raised during the award and execution of a contract can take more than four years in the Dominican Republic, although some take longer. Arroyo Hondo, Santo Domingo, D.N. Sanctioned-Venezuelan firm Petrleos de Venezuela, S.A. (PDVSA by its Spanish acronym) is the minority shareholder. Fundamental aspects of the United Nations Commission on International Trade (UNCITRAL) model law are incorporated into Law 489-08. Coordinator for the Arctic Region, Deputy Secretary of State for Management and Resources, Office of Small and Disadvantaged Business Utilization, Under Secretary for Arms Control and International Security, Bureau of Arms Control, Verification and Compliance, Bureau of International Security and Nonproliferation, Under Secretary for Civilian Security, Democracy, and Human Rights, Bureau of Conflict and Stabilization Operations, Bureau of Democracy, Human Rights, and Labor, Bureau of International Narcotics and Law Enforcement Affairs, Bureau of Population, Refugees, and Migration, Office of International Religious Freedom, Office of the Special Envoy To Monitor and Combat Antisemitism, Office to Monitor and Combat Trafficking in Persons, Under Secretary for Economic Growth, Energy, and the Environment, Bureau of Oceans and International Environmental and Scientific Affairs, Office of the Science and Technology Adviser, Bureau of the Comptroller and Global Financial Services, Bureau of Information Resource Management, Office of Management Strategy and Solutions, Bureau of International Organization Affairs, Bureau of South and Central Asian Affairs, Under Secretary for Public Diplomacy and Public Affairs, U.S. Corruption and poor implementation of existing laws are widely discussed as key investor grievances. In January 2020, the government announced a special incentive plan to promote high-quality investment in tourism and infrastructure in the southwest region and, in February 2020, it passed a Public Private Partnership law to catalyze private sector-led economic growth. Real Estate in Dominican Republic - Holasw The BCRD does not report investment stock positions. Products produced in FTZs can be sold in the Dominican market, but relevant taxes will apply. At least one firm said it intended to back out of a competition for a public concession as a result of a solicitation from government officials. The investors range from large firms to private individuals. Dominican officials have expressed concerns about the potential for widespread civil unrest or instability in Haiti contributing to illegal flows of people and illicit goods across the border. No information for the Dominican Republic is available on the IMFs Coordinated Direct Investment Survey (CDIS) website. PDF A Legal Guide to Investing in The Dominican Republic Ministries and agencies do not conduct impact assessments of regulations or ex post reviews. The FCPA prohibits promising, offering, giving or authorizing giving anything of value to a foreign government official where the purpose is to obtain or retain business. The projects and businesses that qualify for these incentives are: (a) hotels and resorts; (b) facilities for conventions, fairs, festivals, shows and concerts; (c) amusement parks, ecological parks, and theme parks; (d) aquariums, restaurants, golf courses, and sports facilities; (e) port infrastructure for tourism, such as recreational ports and seaports; (f) utility infrastructure for the tourist industry such as aqueducts, treatment plants, environmental cleaning, and garbage and solid waste removal; (g) businesses engaged in the promotion of cruises with local ports of call; and (h) small and medium-sized tourism-related businesses such as shops or facilities for handicrafts, ornamental plants, tropical fish, and endemic reptiles. FDI projects in the Dominican Republic for 2022 were . Although there is not a local culture of CSR, large foreign companies normally have active CSR programs, as do some of the larger local business groups. Many companies report that the procedures to resolve expropriations lack transparency and, to a foreigner, may appear antiquated. This section provides information for current and potential investors in the Dominican Republic. 16-95 Foreign Investment, Law No. The required documents include the application for registration, containing information on the invested capital and the area of the investment; proof of entry into the country of the foreign capital or physical or tangible goods; and documents of commercial incorporation or the authorization of operation of a branch office through the setting up of legal domicile in the country. Tourism, remittances, foreign direct investment, mining revenues, free-trade . Companies registered in 38 other countries comprised the remaining investments. Still, illicit and counterfeit goods, as well as online and signal piracy, are common and continue to present challenges for authorities. Office of the Special Envoy for Critical and Emerging Technology, Office of the U.S. The Dominican government is a party to the Multilateral Investment Guarantee Agency (MIGA). Many of the major manufacturers in free trade zones have voluntary codes of conduct that include worker rights protection clauses generally aligned with the ILO Declaration on Fundamental Principles and Rights at Work; however, workers are not always aware of such codes or the principles they contain. For foreign citizens who want to live permanently in the United States. Oceanfront residential properties list for between US$1,700 and US$2,500 per square meter. Some firms have had repeated difficulties obtaining dollars during periods of high demand. Mob schemes in the Dominican land, airspace, and territorial waters include transshipment of South American drugs destined for the United States and Europe, transshipment of ecstasy from the Netherlands and Belgium destined for United States and Canada, substantial money laundering activity particularly by Colombian narcotics traffickers, and significant amphetamine consumption. Notable exceptions are in the electricity, banking, and refining sectors. The Dominican Stock Market (BVRD by its Spanish acronym) is the only stock exchange in the Dominican Republic. *No spam: We will NEVER give your email address to anyone else. 2008-2023 - Live and Invest Overseas - All Rights Reserved. Live well on US$1,355 a month (enjoying extras you'd struggle to afford back home). Investing in the Dominican Republic: what you need to know All of the key data and information needed when considering investing in the Dominican Republic. There are no known organized domestic terrorist groups in the Dominican Republic. According to the Latin American Public Opinion Project, there is a steady increase in crime-related victimization and a growing perception of insecurity in the Dominican Republic since 2010. Simply enter your email address below and well send you our FREE REPORT - The 10 Best Places To Retire In 2023. Weak land tenure laws and government expropriations without due compensation continue to be a problem. Under Law 57-07 on the Development of Renewable Sources of Energy, investors in this area are granted, among other benefits, the following incentives: (a) no custom duties on the importation of the equipment required for the production, transmission and interconnection of renewable energy; (b) no tax on income derived from the generation and sale of electricity, hot water, steam power, biofuels or synthetic fuels generated from renewable energy sources; and (c) exemption from the goods and services tax in the acquisition or importation of certain types of equipment. He appointed officials with reputations for professionalism and independence including a career anti-corruption advocate now serving as head of the Public Procurement General Directorate. Investment incentives exist in various sectors of the economy, which are available to all investors, foreign and domestic. However, this electronic method of registration is not widely used in practice and consultation with a local lawyer is recommended for company registrations. 47-20 to establish a regulatory framework for the initiation, selection, award, contracting, execution, monitoring and termination of PPPs in line with the 2030 National Development Strategy of the Dominican Republic. Direct Line for American Business The Dominican Monetary and Banking system is regulated by the Monetary and Financial Law No. 98-03 on the Creation of the CEI-RD, and Regulation 214-04 govern foreign investment in the Dominican Republic and require an interested foreign investor to file an application form at the offices of CEI-RD within 180 calendar days from the date on which the foreign investment took place. 03 / Select Countries You can add more than one country or area. Neither World Bank nor Dominican sources break down FDI from the Dominican Republic to individual destination countries. In March 2019, a specialized bankruptcy court was established in Santo Domingo. Visit the Dominican Republics export.gov pageto get an overview of economic conditions and opportunities. The United States and the Dominican Republic are both parties to the CAFTA-DR free trade agreement, which entered into force in 2007 and contains an investment chapter. The Dominican Constitution accords foreign and local investors equal treatment under the law, stating expressly that foreigners in the Dominican Republic are entitled to the same rights as Dominican nationals except when it comes to political activity. Similar properties in nearby hotel-style developments are priced at around US$250,000. At #SemanaMipymes2023, @UNIDO was delighted to engage with current and potential future partners to increase collaboration in promoting investments and empowering MSMEs in the Dominican Republic as part of the #ACPBizFriendly Programme. Nonetheless, the Dominican Republic is a likely transit point for extremists from within the Caribbean, Africa, and Europe. Cap Cana is a luxury resort community located in the Dominican Republic. According to Article 69 of the Constitution, all persons, including foreigners, have the right to appear in court. It regulates the types of investments, the areas of investment, and the rights and obligations of investors, among others. Ave. Repblica de Colombia No. Email: info@pciudadana.org. The Central Bank participates in this market in pursuit of monetary policy objectives, buying or selling currencies and performing any other operation in the market to minimize volatility. CNZFE delineates policies for the promotion and development of Free Zones, as well as approving applications for operating licenses, with discretionary authority to extend the time limits on these incentives. Centro de los Heroes, Santo Domingo, Repblica Dominicana Use our expert DR real estate broker and buyer's agent. According to the Dominican Ministry of Industry and Commerce, other free trade agreements currently in force include a preferential trade agreement with Panama, a trade agreement between the Dominican Republic and the Central American countries of Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua, a free trade agreement with CARICOM (the Caribbean Community), and the Economic Partnership Agreement (EPA) between the European Union and CARIFORUM (an organization of Caribbean nations, including the Dominican Republic). The Dominican Republic stands out as a safe and attractive investment destination due to its economic and political stability. On the 2020 Global Innovations Index, the Dominican Republics overall rank was 90 out of 131 nations analyzed. The basic concepts of the Dominican legal system and the forms of legal reasoning derive from French law. To engage effectively in the Dominican market, many U.S. companies seek local partners that are well-connected and understand the local business environment. Why Invest in Real Estate in The Dominican Republic Is the Right Thing to Do. The National Commission for the Defense of Competition (ProCompetencia) has the power to review transactions for competition-related concerns. During the Dominican government's recent announcement of the country's upcoming appearance at the Expo 2020 Dubai, investment in the tourism industry was highlighted as a key motivation for participation, highlighting how tourism represents another of the biggest business opportunities in the Dominican Republic right now. Claim up to $26,000 per W2 Employee Billions of dollars in funding available Funds are available to U.S. Border porosity remains an ongoing concern for the Dominican Republic as the security situation with Haiti has arguably been complicated by the withdraw of the United Nations Stabilization Mission in Haiti (MINUSTAH) in 2017. Not only do opinions provide the requesting party with a rebuttable presumption that the conduct does not violate the FCPA, but DOJ publishes past opinions which can provide guidance for other companies facing similar situations. These prohibitions apply to U.S. persons, both individuals and companies, and companies that are listed on U.S. exchanges. Political expediency, corruption, and fraud have all been cited as practices that have complicated the issuance of titles or respect for the rights of existing title holders. However, some foreign investors indicate that the uneven enforcement of regulations and laws, or political interference in legal processes, creates difficulties for investment. Bilateral Investment and Taxation Treaties, 12. National IPR Center . With its central location in the Americas, a fast-developing infrastructure, and a generous package of tax incentives, the Dominican Republic is one of the best places in the Caribbean region to do business. The main productive sectors receiving investment include services, apparel and textiles, tobacco and derivatives, agro-industrial products, and medical and pharmaceutical products. The law prohibits dismissal of employees for trade union membership or union activities. Business Matching Services The private sector has access to a variety of credit instruments. There are several reasons for investing in the Dominican Republic, here are three main ones. Department of Commerce In November 2020, the Attorney Generals Office detained 11 former officials and alleged front men, including two siblings of former President Danilo Medina, as part of the Anti-octopus operation. They are accused of having used their family connections to gain privileged access to the public procurement process and, consequently, of having accumulated fortunes illicitly during the past administration. No information for the Dominican Republic is available on the IMFs Coordinated Portfolio Investment Survey (CPIS) site and the Dominican government only publishes information on general investment flows ( https://www.bancentral.gov.do/a/d/2532-sector-externo). In the last decade, the Dominican government received a $10-million, Inter-American Development Bank (IDB) loan to modernize its property title registration process, address deficiencies and gaps in the land administration system, and strengthen land tenure security. State-Owned Enterprises 8. I was privileged to be in Santo Domingo for last weeks Live and Invest in the Dominican Republic Conference. Please visit the export.gov page on the Dominican Republic for an overview of economic conditions and opportunities in the region. For example, a current project that began in 2019 provides two $10 million loan financing facilities to support lending to small- and medium-sized enterprises, with an emphasis on women-owned businesses. According to the Central Bank of the Dominican Republic, foreign exchange income derived from FDI in the country between 2010 and 2020 generated an average of $2.5bn per year, and foreign investment into the tourism sector accounted for 21.35% of the period's accumulated FDI flows. Limits on Foreign Control and Right to Private Ownership and Establishment. The main laws governing commercial disputes are the Commercial Code; Law No. + Follow. The law provides for complete exemption from all taxes, duties, charges, and fees affecting production and export activities in the zones. The Tourism Promotion Council (CONFOTOUR) is the government agency in charge of reviewing and approving applications by investors for these exemptions, as well as supervising and enforcing all applicable regulations. According to the World Bank, the Dominican Republic achieved record growth of 7% in 2018 following several years of strong economic performance during which growth averaged 5.3% per year from 1993 to 2018 and 6.3% per year from 2014 to 2018. U.S. Investing in the Dominican Republic's real estate market: opportunities Several IP authorities in the Dominican Republic grant intellectual property rights. Law 158-01 on Tourism Incentives grants wide-ranging tax exemptions, for fifteen years, to qualifying new projects by local or international investors in that sector. The government actively courts FDI with generous tax exemptions and other incentives to attract businesses to the country. Invest Dominican - Your Caribbean Assets There have been three U.S. investor-state dispute cases filed against the Dominican Republic under CAFTA-DR. One case was settled; in the other two, an arbitration panel found in favor of the government. Invest in the Dominican Republic | Live and invest Overseas In certain circumstances, producers may be eligible for a transferable tax credit equal to 25% of expenditures in the Dominican Republic for such projects. However, financial depth is relatively constrained. The provisions of law are fully in accordance with rules established by the Final Act adopted during the Uruguay Round negotiations of the General Agreement on Customs and Trade, which the Dominican Republic is a member.. The level of economic growth achieved by the country has consistently remained at a level which is the . Email: office.santodomingo@trade.gov Calle Hiplito Herrera Billini esq. It is regulated by the Securities Market Law No. 183-02, and is overseen by the Monetary Board, the Central Bank, and the Superintendency of Banks. The Dominican Republic has a single-window registration website for registering a limited liability company (SRL by its Spanish acronym) that offers a one-stop shop for registration needs ( https://www.formalizate.gob.do/). Article 221 of the Constitution declares that foreign investment shall receive the same treatment as domestic investment. InvestmentDR@State.gov. There are 695 companies operating in a total of 75 FTZs, of which approximately 33 percent are from the United States. The U.S. Department of State has assessed the Dominican Republic as being a low-threat location for terrorism and a medium-threat location for political violence. Existing hotels and resort-related investments five years or older are exempt from 100% the taxes and duties related to the acquisition of equipment, materials and furnishings needed to renovate those premises. They have complained of difficulties in the subsequent enforcement even in cases in which the Dominican courts, including the Supreme Court, have ordered compensation or when the government has recognized a claim. Historically, the tourism, real estate, telecommunications, free trade zones, mining, and financing sectors are the largest FDI recipients. Register with the U.S. Embassy: if you are active in the Dominican Republic, let us know by sending an email to the contact addresses at the top of this page. The Dominican Republic, an upper middle-income country, contracted by 6.7 percent in 2020 and concluded the year with a 7.7 percent deficit thanks to the pandemic.
