Safety of Dominican investment promotes the development of tourism projects in the country
April 20, 2023
Authors: María Álvarez and Ney De la Rosa
With sustained growth for decades, the Dominican Republic has established itself as one of the main tourist destinations in the Caribbean and one of the most important in all of Latin America.
This privileged position is due to the numerous investments attracted by the incentives, initiatives and development strategies promoted by the joint effort of the country’s political and social leadership and the contributions of a dynamic and active private, national and international sector. Consequently, the Dominican Republic has achieved enviable levels of growth in the tourism sector.
Tax exemptions drive foreign investment in local tourism
The Dominican tourism promotion strategy includes a number of tax incentives, which constitute an important stimulus for foreign investors to settle in the country.
Law No. 158-01 for the Promotion of Tourism Development includes an ambitious package of exemptions and tax incentives, including but not limited to, payment of 100% income tax, import taxes on machinery and equipment, among others. These exemptions are valid for 3 years during the construction of the approved project, plus a tax exemption period of 10 years from the date of completion of the construction and equipment works.
The Dominican business environment is favorable for investing
Likewise, in its national tourism promotion strategy, the Dominican Republic as a country brand actively encourages investors, a series of values and elements that guarantee the security of their investment.
Among these factors, the political and macroeconomic stability of the country, the strengthening of an independent Dominican justice system, the efforts to consolidate legal security in the country and the creation of a favorable business climate for investment stand out.
The investment climate includes government initiatives, such as the launch of the investor’s guide, the transparency of the rules that govern the sector, and the creation of the Central Unit of Tourist Procedures (UCTT).
The UCTT tries to simplify the procedures before CONFOTUR, through the interconnection of the different institutions that are part of the processing, obtaining and renewal of the permits and licenses required for any project related to the tourism sector.
Commitment to promote Dominican tourism investment
However, in addition to the benefits mentioned, the construction of an open climate for investment and consolidated legal security is a task that does not end, but must be strengthened and consolidated over time.
For this reason, the country has national and international actors in the tourism sector, who work on the constant improvement of the Dominican tourism offer and, in the promotion of investment in this sector.
No doubt, the Dominican Republic has become the most attractive destination in the region thanks to its unbeatable natural resources, the successful development strategy it has implemented, and, the commitment of the government authorities and the other main actors in the sector, to constantly improve Dominican tourism.