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The article provides a comprehensive analysis of the regulatory framework governing foreign investment in the Dominican Republic, highlighting its central role in the nation’s economic growth and its positioning as one of the leading investment destinations in the Caribbean and Central America. The report examines the constitutional, legal, and regulatory structure that governs foreign investment, as well as the public policies designed to attract international capital.
Its main focus is the principle of equal treatment for domestic and foreign investors, guaranteed by the Dominican Constitution and the Foreign Investment Law. The article emphasizes that there are no general restrictions on foreign investment, nor are there prior approval requirements for the repatriation of capital or profits—factors that contribute to a high level of legal certainty.
Among the most relevant points is the analysis of the strategic sectors that attract the majority of foreign investment, such as tourism, real estate, energy, free trade zones, telecommunications, mining, commerce, and industry. The document highlights the key role of tax incentives, particularly those applicable to free trade zones, tourism, renewable energy, film production, logistics, and manufacturing, which include extensive tax exemptions and regulatory facilitation.
The article also examines international agreements such as DR-CAFTA and tax treaties to avoid double taxation—particularly the treaty with Spain—which strengthen investor confidence and facilitate access to international markets. The report further analyzes common transactional structures, including mergers and acquisitions, asset and share purchases, and the legal requirements applicable to each.
Finally, the article outlines recent developments and future outlooks, such as reforms in competition law, insolvency, secured transactions, and public-private partnerships, as well as the growing interest in nearshoring and the relocation of productive operations.
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Dominican Republic’s 2026 Foreign Investment LEXOLOGY In-Depth |
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