Taxation in the Dominican Republic: What should investors know?
One of the main reasons why Spanish entrepreneurs choose investing in the Dominican Republic is the existence of a Convention to avoid double taxation and prevent tax evasion, signed between Spain and the Dominican Republic in 2011 and in force since 2014.
This agreement allows:
- Eliminate double taxation on income generated in both jurisdictions.
- Regulate the taxation of income, dividends and capital gains.
- Ensuring a transparent fiscal framework, avoiding tax evasion and guaranteeing the legality of international operations.
Tax incentives and benefits for foreign investors
Despite the existence of structured taxes, Dominican legislation has developed multiple tax incentives to encourage investment, especially in key sectors such as tourism, construction and renewable energy.
Some of the main advantages for foreign investors include:
- Income tax exemption for up to 15 years in tourism projects approved under Law 158-01.
- Exemption from VAT and tariffs in the import of goods and materials for real estate projects.
- Facilities for the repatriation of capital and dividends, without restrictions on the movement of funds.
- Tax benefits for annuitants and pensioners to move their residence to the country.
Dominican Republic and its tax reform
The Dominican tax system is constantly evolving to ensure its competitiveness and sustainability. Currently, changes are being promoted within the Tax reform in the Dominican Republic, whose objective is to improve the efficiency of tax collection and broaden the tax base without affecting foreign investment.
Furthermore, the Tax pressure in the Dominican Republic remains at competitive levels within the Caribbean region, ensuring a balance between economic growth and state revenue.
Dominican Republic: A growing investment destination
With foreign direct investment exceeding $ 4,390 billion in 2023, Dominican Republic continues to consolidate its position as the main recipient of investment in the Caribbean.
The real estate sector is one of the most dynamic, with innovative projects such as Larimar City & Resort, what are you offering high profitability opportunities in a rapidly expanding market.
In conclusion, the combination of tax incentives, legal stability and a growing economy make Dominican Republic a strategic destination for Spanish investors. Despite its fiscal attractiveness, the country It is not a tax haven, since it has a structured and constantly updated tax system.
The tax reforms underway seek to improve the efficiency of the system without affecting the arrival of foreign capital, which makes it a destination Safe and profitable for real estate and business investment.
If you want to know more about investment opportunities in Larimar City & Resort, consult with our experts.
Contact us in info@larimarcity.com
By Macarena Perona,
Assistant to Director
Larimar City & Resort