DOMINICAN REPUBLIC Trends and Developments Contributed by: John Seibel, Fernando P Henríquez, Adriana Paz, Francesca Molina and Gia Guerrero, Seibel Henríquez
such as the Land Use Planning Law – require that any investor, domestic or foreign, engage specialised legal counsel from the earliest stages of project structuring. The sections that follow examine the main incentive regimes, the most common due diligence challenges, and the legal tools available to successfully navigate this market. II. Legal Incentives and Strategic Investment Regimes The Dominican Republic offers a range of legal frame - works specifically designed to incentivise investment in key sectors of the economy. These regimes not only generate significant tax benefits but also direct - ly shape the legal structure of real estate projects. Understanding them is essential for any investor seek - ing to optimise the financial viability of their develop - ment. A. Tourism and real estate development: the CONFOTUR regime Tourism investment in the Dominican Republic has established itself as one of the most attractive in the Caribbean, with the country consolidating its position as a compelling setting for tourism-related capital investment and projects with strong long-term growth potential. At the heart of this advantage is Law No 158-01 on the Promotion of Tourism Development (CONFOTUR), which continues to be one of the primary instruments used by the State to channel private investment into tourism-linked real estate. The incentive regime estab - lished by this law has proved particularly effective in stimulating hotel, residential resort and mixed-use developments across the country. The regime offers substantial tax benefits, including exemptions from real estate transfer tax, the ITBIS value-added tax, income tax and the Real Estate Asset Tax (IPI). These exemptions apply for a defined period and are conditional on the project maintaining its active classification status with the relevant author - ity – a compliance requirement that makes proactive legal management essential throughout the life of the development. According to government projec - tions from the Ministry of Tourism, projected foreign investment in the tourism sector totals USD4,253 mil -
lion, with combined domestic and foreign investment reaching approximately USD22,310 million. Destinations such as Punta Cana, La Romana, Miches and Pedernales have experienced the most significant growth under this regime, reflecting a deliberate State strategy to promote tourism as a driver of economic growth and territorial development. Pedernales, in particular, is emerging as the next major tourism fron - tier, anchored by the Cabo Rojo development project and a new international airport currently under con - struction. Accessing CONFOTUR benefits requires qualifying the project through a formal administrative process and maintaining compliance with applicable environ - mental and regulatory requirements throughout the life of the development. Investors should engage legal counsel with experience in the regime from the outset, as errors in the qualification process can result in the loss of benefits that are otherwise central to the pro - ject’s financial model. B. Emerging sectors shaping real estate development Industrial and logistics development: free trade zones Free trade zones are areas within the national terri - tory operating under special tax and customs regimes designed to incentivise investment, generate employ - ment and strengthen exports. The Dominican Repub - lic’s free trade zones have historically maintained their regional leadership as platforms for trade, logistics and global services. The regime is governed by Law No 8-90 on Export Free Trade Zones and its implementing regulations, administered by the National Council of Export Free Trade Zones (CNZFE). As of 2024, the sector host - ed 843 companies with cumulative investment of USD7,735.7 million, equivalent to 3.1% of national GDP. In January 2025, exports under this regime totalled USD560 million – a 3.1% increase over the same month in 2024 – and the sector added more than 10 million sq ft of additional operational space in 2025 alone, underscoring the scale of real estate demand generated by this ecosystem.
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