Incentives for Foreign Investments in the Dominican Republic - Constitution References

The 39th amendment to the Dominican Republic’s Constitution in 167 years was enacted on January 26, 2010, and establishes the general and fundamental principles governing the nation and inhabitants. The most relevant to foreign investment are Articles 25 and 221.

Article 25 expressly entitles foreigners in the Dominican Republic to the same rights, except for participating in local political activities, and subjects them to the same duties as Dominicans. Foreigners must properly register with the Registry of Foreigners, and if necessary, can seek diplomatic protection after exhausting all available remedies and procedures afforded under Dominican law, limited only by international conventions.

Article 221 grants equal treatment to both public and prívate business activities, and guarantees equal conditions to both local and foreign investments with no restrictions but those established by the Constitution and the law. 

Incentives for Foreign Investments in the Dominican Republic - General Overview

The Dominican Republic has been recently modernizing its legal and economic system in order to adapt to new globalized standards and involve foreign capital. With the highest GDP growth rate in the Caribbean, the Dominican government supports internationally accepted financing arrangements and observes international operating standards. Tourism, telecommunications, and free trade zones have caused the greatest investment growth, but there are more opportunities like renewable energy, agriculture, mining, construction, aviation, electricity, and ports.

The Export and Investment Center of the DR (CEI-RD) is responsible for encouraging foreign investment. The main laws and regulations in this area are: (A) The Constitution of the Dominican Republic; (B) Law #16-95 on Foreign Investments, (C)Regulation 214-04 on Registration and Capital Repatriation, and (D) the DR-CAFTA free trade agreement. Also, Laws #8-90 and #158-01, covering Free Trade Zones and Tourism, offers generous tax incentives to investments in these sectors. And the government has supported investors looking for investment guarantees from external agencies by backing economically significant infrastructure projects with its full faith and credit.