The exceptions are the disposal and storage of toxic, hazardous, or radioactive waste not produced in the country; activities affecting public health and the environment; and the production of materials and equipment directly linked to national defense and security, which requires express authorization from the Executive Branch.

The restricted list is short and narrowly construed; in practice, sector regulation (banking, insurance, telecom, energy) matters more to foreign investors than the investment law itself.

III. Forms of Dominican Foreign Investment

Under Law 16-95, a foreign investment may take the following forms:

• Contributions in freely convertible currency, exchanged through a national banking institution.
• Contributions in kind, such as machinery, equipment, parts, raw materials, products, and intangible technology.
• Financial instruments classified as foreign investment by the Monetary Board, except instruments resulting from Dominican debt re-conversion operations.

Dominican regulations also treat as foreign investment technology transfers, technical assistance, and basic and detailed engineering agreements with foreign individuals or companies. Royalties under such agreements may be remitted in freely convertible currency, provided the agreements are registered with the competent authority (see section V) and the payments comply with Dominican tax rules on deductibility and withholding (see Tax Law, section IV).

IV. Purpose of the Foreign Investment

Foreign capital contributions may be made to the capital of new or existing enterprises organized under any corporate form recognized by the General Law on Business Companies (SRL, SA, SAS, and others), or through an affiliate or a foreign branch.

Foreign investment may also be made in Dominican real estate or in financial assets, pursuant to the rules issued by the Monetary Board.

V. Registering the Foreign Investment

Within one hundred eighty (180) calendar days after each investment is made, the foreign investor should apply for registration before ProDominicana (the Export and Investment Center of the Dominican Republic, CEI-RD), pursuant to Law 98-03 and Decree 214-04. Once the file is complete, ProDominicana issues the Certificate of Registration of Foreign Investment within fifteen (15) business days.

Registration is declarative rather than a condition for the validity of the investment, but it documents the invested capital for repatriation purposes and supports ancillary benefits, such as the investor residency-by-investment track for qualifying investments.

VI. Benefits of Registering the Investment

Foreign investors who register their investment may repatriate all after-tax profits for the relevant fiscal period in freely convertible currency, without prior government authorization.

They may likewise repatriate the entire capital invested, in freely convertible currency and without prior authorization, upon the sale or liquidation of the investment, including capital gains recorded in the investor’s corporate books under generally accepted accounting principles. Taxes on such gains remain payable in the DR (see Tax Law, section II).

VII. Foreign Investment Tax Incentive Laws

Exports Promotion. Law 84-99 provides incentives such as the reimbursement of taxes and customs duties paid by exporters on raw materials, components, intermediate goods, labels, containers, and packing materials, when incorporated into export goods or returned abroad in the condition in which they entered. The law also establishes a Temporary Admission Regime for Inward Processing, allowing certain goods to enter Dominican customs territory with suspension of duties and import taxes for re-export within no more than 18 months.

Renewable Energy. Law 57-07 on Incentives for Renewable Energy and Special Regimes grants qualifying renewable energy producers a 100% exemption from import duties and from ITBIS on equipment, machinery, and accessories for the production, transmission, transformation, and interconnection of energy from renewable sources. The original income tax exemption for developers was curtailed by Law 253-12, and the tax credit for self-producers was reduced; current benefits should be confirmed case by case with the National Energy Commission (CNE) concession framework before modeling a project.

Textile, Apparel and Leather Industries. Law 56-07 declares of national priority the textile, apparel and accessories, footwear, and leather manufacturing chain. Qualifying companies enjoy exemption from ITBIS and other taxes on the import or local purchase of raw materials, components, machinery, equipment, and services, and a zero percent (0%) tariff on imports of the exempted products of these industries. They may sell up to one hundred percent (100%) of goods and services into DR territory.

Tourism Promotion. Law 158-01 on Tourism Development Incentives, as amended by Law 195-13, grants persons who undertake, promote, or invest in qualifying tourism projects, hotels, resorts, convention and entertainment facilities, ports and marinas, aquariums, restaurants, golf courses, sports facilities, tourism real estate, and related infrastructure, a 100% exemption for up to 15 years from: (a) income tax on the promoted activity; (b) company incorporation and capital increase taxes, construction permits, real estate transfer tax, and property tax (IPI); (c) import taxes and ITBIS on equipment, materials, and furnishings needed to start operations; and (d) taxes and withholdings on qualifying financing and interest. Projects require classification by CONFOTUR (see Tourism Law).

Incentive regimes are under increased fiscal scrutiny. Law 30-26 (June 2026) empowered the Ministry of Finance and Economy to review and object to initiatives involving fiscal incentives that pose risks to public finances; investors should confirm the current status of each regime before committing capital.

This publication is provided for informational purposes only and not as legal advice. Any transaction related to any of the described aspects shall require advice and be specifically consulted with the Firm in advance. © Arthur & Castillo. All Rights Reserved.  Next