Foreign direct investment is one of the Dominican Republic’s main sources of foreign exchange income. And also help to create jobs and a more dynamic economy in the Dominican Republic.
Despite the global pandemic Covid-19, Dominican Republic is one of the most attractive countries in terms of investment among the States of the Caribbean and Central America.
Few days ago, Central Bank unveiled the official statistics on foreign investment in the Dominican Republic in the last 10 years.
According to the Central Bank’s foreign exchange inflows from foreign direct investment amounted to 25.372 billion dollars.
Since 2019 until June 2020, about 80% of foreign direct investment has been concentrated in the following sectors: tourism, real estate, energy, trade and industry, as well as free zones. The remaining 20% came from telecommunications, mining, finance and transportation.
Investment in tourism in the Dominican Republic retains its leading position due to the great attractiveness of this sector in the world leisure market. Construction and development of new tourist complexes on the territory of the Dominican Republic mainly engaged investors from Spain, the USA and Mexico.
Between 2010 and September 2020, foreign direct investment in the Dominican tourism sector reached US $ 5.5 billion, accounting for about 20% of the total foreign direct investment attracted by the Dominican Republic during this period.
In second place is the real estate sector, which holds about 17% of the total foreign investment.
In third place – electric power with an investment of 804.4 million dollars, which indicates that country follows the world trends in the development of renewable energy sources.
The tourism sector has incentives for the development of Law № 184-02, 266-04 Law and the Law № 195-13 of promoting the development of tourism.
It worth noting that according to Law No. 158-01 on Tourism Promotion of 2001 and subsequent amendments to the law, companies created for the implementation of tourism projects can be fully (100%) exempt from income tax, state and municipal taxes on building permits, including deeds of land purchase, as well as import taxes and other taxes applicable to equipment, materials, and furniture that are required for the first equipment and start-up of the facility, etc.