Investment Info

Why Invest in the Dominican Republic?

The Dominican Republic is one of the most stable countries in the Caribbean and Latin America, economically and politically. It is also one of the fastest growing Caribbean destinations. As a result, the Dominican Republic offers secure and profitable investment opportunities. As tourism in the country is steadily developing, this tropical paradise with its investor friendly taxation and ownership policies, attractively priced land, and availability of cheap labor offers the potential for extraordinary profits.

Simply stated, the Dominican Republic is the bargain-hunters dream for real estate investment. It’s a market that has yet to be discovered by the masses. However, with improved infrastructures and a rapidly growing tourist industry, the secret will be out soon.

Investment Opportunities in the Dominican Republic

The main opportunities for business development in the Dominican Republic are within the sectors of telecommunications, infrastructure, renewable energy, agribusiness, call/contact centers, software development, manufacturing and tourism.

There is an extensive network of industrial free zone parks which houses more than 600 international companies, all of which operate under a tax-free regime and special customs treatment. The Santo Domingo Cyberpark specializes in Information Technology related to different industries, including software development and computer design and manufactured technology products.

Why Invest Offshore?

Now more than ever, investors want to diversify their portfolios away from stocks and banks and are looking offshore for new opportunities. International real estate offers a possible safe haven for our hard-earned money. This trend is building momentum, and is expected to continue for the next decade.

Why Invest in a Resort Location?

80 million baby boomers are going to retire over the next 18 years. When seeking retirement property, baby boomers have expressed being near water as their number one requirement. Resort locations with views of or access to beaches will be in high demand.

Market Access

An open trade agenda has given the country access to approximately 878 million consumers worldwide. The country is a founding member of the World Trade Organization and has entered into many free trade agreements with its trading partners – including the Dominican Republic-Central America Free Trade Agreement with the United States (DR-CAFTA) and the Economic Partnership Agreement with the European Union and the CARIFORUM countries.

Even with the current worldwide economic conditions, the Dominican Republic is holding strong and continuing to grow. Investment money is coming into the country from the US, Canada, Europe Russia, China, and other international markets.

MSNBC aired a feature on July 21, 2006 by correspondent Kerry Sanders titled “Small Island, Big Investment Potential: Caribbean’s pristine Dominican Republic attracts wave of U.S. investors”. The article credits the surge of investor interest to several important factors, including the democratic government that welcomes foreign investors, an increase in direct flights from the United States, the visibility of Dominican baseball stars, and a great deal of recent good press. On top of these factors-and perhaps most importantly-land is available at bargain prices and labor is cheap.

Dominican Republic law is very friendly to foreigners: Law 21-98 of 1998 specifies that no restrictions are to be placed on the acquisition of land by foreigners, and that ownership would be certified by a notary public (In the Dominican Republic a notary public must have a law degree). Investors hold a certificate of title in the investor’s name and are granted the same rights as residents.

Considerable foreign funds are being invested in the development of real estate projects geared towards travel and tourism. Resort communities of upscale villas and apartments are being developed to serve as vacation rentals or second homes. Real estate analysts predict this trend will continue well into the next decade.

For example, Donald J. Trump has just signed a partnership agreement with Cap Cana, S.A., in the Dominican Republic to develop a luxury resort valued at over two billion dollars. The resort will include a golf course, golf villas and golf lots, estate lots, a beach club, a condo hotel, and residences with ocean views that together will be called Trump at Cap Cana.

The average hotel occupancy rate in the Dominican Republic has been 74%-in the last two years. Currently there are only 70,000 hotel rooms in the DR, one quarter of what will be needed in the next 8 – 10 years to accommodate the projected increase in tourist visits.

Dominican Republic appreciation rates have been 20% annually. Fast growing regions may see appreciation rates as high as 50% in the coming years. Up to 90% LTV financing is available from both United States and Dominican banks, allowing investors to leverage their money.

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