Dominican Republic Tax Incentives
Discover the exceptional tax advantages available to real estate investors in the Dominican Republic.
Investment Incentives Overview
The Dominican Republic offers some of the most attractive tax incentives in the Caribbean for real estate investors. These incentives are designed to stimulate economic growth, promote tourism development, and attract foreign investment.
At Meridian, we help our clients navigate these incentives to maximize their investment potential while ensuring full compliance with Dominican law. Our team works closely with legal experts specializing in Dominican tax law to provide accurate, up-to-date information.
Key Benefits for Investors
- Significant tax exemptions on income, property, and import duties
- Accelerated depreciation allowances for qualifying properties
- Reduced property transfer taxes for certain developments
- VAT exemptions on construction materials and equipment
CONFOTUR
The Tourism Promotion Council (CONFOTUR) offers substantial tax incentives for qualifying tourism projects in the Dominican Republic. Law 158-01 and its amendments provide a framework for these incentives, which can include:
100% Income Tax Exemption
For up to 15 years on profits generated by the project.
100% Real Estate Tax Exemption
On property taxes for up to 15 years.
100% Import Duty Exemption
On equipment, materials, and furnishings needed for the project.
100% VAT Exemption
On construction materials and equipment.
Qualifying projects include hotels, resorts, villas within tourism complexes, golf courses, marinas, and other tourism-related developments in designated tourism zones.
Inquire About CONFOTUR Projects
Zonas Francas
The Free Trade Zones (Zonas Francas) in the Dominican Republic offer exceptional tax benefits for commercial and industrial developments. Law 8-90 establishes these special economic areas with incentives including:
100% Corporate Income Tax Exemption
Complete exemption from income taxes for the duration of operations.
100% Municipal Tax Exemption
Exemption from construction taxes, business licenses, and other municipal taxes.
100% Export/Import Duty Exemption
No duties on imports of raw materials, equipment, or exports of finished products.
100% VAT Exemption
Exemption from value-added tax on purchases.
These incentives make Zonas Francas particularly attractive for commercial real estate investments, manufacturing facilities, and business operations.
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Renewable Energy Incentives
Law 57-07 provides substantial incentives for renewable energy projects in the Dominican Republic, making green development particularly attractive. These incentives include:
Income Tax Exemption
Up to 10 years of exemption from income tax for renewable energy projects.
Import Duty Exemptions
100% exemption on import duties for equipment and materials used in renewable energy systems.
Tax Credit
Up to 40% tax credit on self-generated renewable energy investments.
Accelerated Depreciation
Special accelerated depreciation allowances for renewable energy assets.
These incentives apply to solar, wind, hydroelectric, biomass, and other renewable energy projects, making eco-friendly developments particularly attractive for investors.
Learn About Green Properties
Ready to Maximize Your Investment Potential?
Our team of experts can guide you through the tax incentive application process and help you find properties that qualify for these exceptional benefits.