DOMINICAN REPUBLIC Trends and Developments Contributed by: John Seibel, Fernando P Henríquez, Adriana Paz, Francesca Molina and Gia Guerrero, Seibel Henríquez
The incentives available are substantial: tax exemp - tions for up to 30 years, subsidised rental rates for physical space, preferential interest rates, preferential allocation of export quotas, and full exemption from import duties on materials used to construct hous - ing for workers. Eligible sectors span agriculture, livestock, agro-industry, energy, manufacturing, con - struction and sustainable tourism – a broad scope that creates diverse real estate development opportuni - ties in zones that are only beginning to realise their potential. A flagship project consolidating the growth outlook for this region is Port Cabo Rojo, a port terminal form - ing part of the Cabo Rojo Tourism Development Pro - ject, executed under the leadership of the General Directorate of Public-Private Partnerships (DGAPP), the Pro-Pedernales Trust and the Ministry of Tourism. The Cabo Rojo International Airport, currently under construction, is similarly positioned to transform the Enriquillo region into a high-end tourism destination and a broader catalyst for economic and social devel - opment. Accessing the benefits of this framework requires satisfying a series of formal requirements, including incorporation under Dominican law, obtaining the cor - responding classification certificate and submitting periodic compliance reports to maintain privileged status within the programme. This process demands legal accompaniment at every stage. As in the CON - FOTUR context, real estate due diligence challenges such as cadastral overlaps and title deficiencies are particularly prevalent in border regions and must be addressed proactively. D. Legal investment structures and investor protection The Dominican legal framework provides a stable and well-structured environment for FDI. Law No 16-95 on Foreign Investment is the principal statute governing the forms and types of foreign investment permitted in the country, the rights and obligations of investors, and the exceptions to equal treatment in specific investment areas. Of relevance to investors, it guaran - tees the right to repatriate capital and profits in freely convertible currency – a right that presupposes the formal registration of the investment with the relevant
authorities and is a critical assurance when evaluat - ing long-term capital commitments and exit options. For the structuring of real estate projects, Law No 189- 11 on the Development of the Mortgage Market and the Trust in the Dominican Republic has proved espe - cially significant. It provides the legal basis for real estate trusts ( fideicomisos ), which have become the vehicle of choice for structuring developments in the Dominican market, offering investors legal certainty, asset protection and a clear governance framework. The State body responsible for promoting and facili - tating investment – ProDominicana, established under Law No 98-03 – serves as a key institutional point of contact for foreign investors navigating market entry. Beyond domestic law, the Dominican Republic has subscribed to agreements with international organi - sations that provide coverage against political and commercial risks, including the Multilateral Investment Guarantee Agency and the US International Develop - ment Finance Corporation. These multilateral protec - tions add a further layer of security for investors struc - turing significant capital commitments in the market. III. Elevated Real Estate Due Diligence as a Strategic Investment Tool Modern real estate due diligence in the Dominican Republic should go beyond the customary document review. Although the property system offers guaran - tees and safeguards, a comprehensive audit can be indispensable for the legal security of any capital com - mitment. The local market has complexities ranging from coexistence of final titles with possessory rights, technical errors that may persist from past systems, and some growing compliance and regulatory com - plexities. Furthermore, evidence of a thorough inves - tigation could cement good faith standing against potential challenges to ownership stemming from issues in past transactions. Investors should work with local counsel to identify hidden contingencies before a transaction is finalised. Proper due diligence should not be treated just as a risk mitigation mecha - nism, but as a means to enhance real property value and investments.
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