The Dominican Republic has experienced a boom in the real estate and commercial sector in the last decade, attracting foreign investors from all over the world. For those interested in investing in the country, it is important to know the necessary requirements and procedures. Here is a detailed guide on what a foreigner needs to invest in the Dominican Republic:
Requirements for investments in real estate developments
- Passport valid for at least six months.
- Residence Visa (RS). Depending on the country of origin.
- Letter of Incorporation to the Foreign Investment Program.
- Certified Foreign Investment Certificate.
- Inextensive Birth Certificate, original.
- Certificate of No Criminal Record from your country of origin or the country where you have resided in the last five years.
Confotur Law and Tax Benefits
The Confotur Law (Law 158-01) provides significant tax incentives for foreign investors in the Dominican Republic. This law offers benefits such as:
- Tax exemptions of up to 15 years for tourism projects and real estate developments.
- Exemption from Real Estate Property Tax (IPI).
- Tax exemption on imports of construction materials.
Applicability of the Confotur Law
To take advantage of the benefits of the Confotur Law, investors must register their projects with the Ministry of Tourism of the Dominican Republic, thus ensuring eligibility for these incentives.
Opening of Bank Accounts
To make investments in the Dominican Republic, foreigners may need to open local bank accounts. Requirements vary by bank, but generally include:
- Valid passport
- Residence permit
- Additional documentation demonstrating source of income
Advantages of Local Bank Accounts
Local bank accounts allow investors to manage their finances efficiently, facilitating transactions for property and business acquisitions.
Legal Considerations and Contracts
When investing in the Dominican Republic, it is essential to have the proper legal advice to ensure that transactions are carried out correctly. Purchase and sale contracts should be drafted and reviewed by local lawyers, ensuring that they comply with Dominican law.
Protection for Foreign Investors
Having legal counsel guarantees the protection of investors’ interests, reducing the risk of possible legal conflicts.
Investment in real estate assets for foreigners
All foreigners can invest in real estate assets and real estate with the only requirement that their personal documentation is current and they can prove the origin of the funds based on the Anti-Money Laundering and Terrorist Financing Law.
Tax exemptions will only be obtained in the acquisition of real estate assets in the tourism sector whose project has the CONFOTUR granted by the Ministry of Tourism.
If you are interested in exploring investment opportunities in the Dominican Republic, we invite you to get to know the Plaza Roca Universalproject. This set of commercial premises is adapted for any type of business, providing a unique opportunity to capitalize on the thriving Dominican economy: Plaza Roca Universal.
