The country enjoys a growing and stable economy with a relatively high purchasing power in Latin America. According to the “2010 Doing Business Report”, the Dominican Republic enhanced its global ranking in the “overall ease of doing business” category, going from 102 to 86 among 183 economies. This study finds the country strengthened by investor’s protections with new law-making companies, making the country the next global reformer in this area.
With the purpose of accelerating the development of the tourist industry in regions of great potential, such as the east coast, the Dominican Republic approved "Law No. 158" which promotes investment in tourism. The main incentive of this law is the ten year exemption of 100% of the national and municipal taxes due to the incorporation of companies and capital increase, transfer of property rights, sales, exchanges and taxes on property. Under Resolution No 06/2002 issued by CONFOTOUR July 30th, 2002, Cap Cana offers the benefits of Act.159 to the original purchaser.
• Currently income tax between 10% and 25% of withholding tax on interest payments on debt instruments, payable to nonresidents
• 3% transfer taxes levied upon transfers of real property
• Real estate property tax (IPI) of 1%
• Import taxes ranging from 3% to 35% on certain goods and machinery (for non luxury equipment)
• Certain national and municipal taxes levied in connection to the incorporation of business entities and capital increases
• Clients who buy directly from Cap Cana are exempt of a transfer tax of 3%.
They may also deduct, over a period of 5 years, the amount of their investment for purposes of DR income taxes for up to 20% The purchase of real estate in Dominican Republic is at its most secure level; therefore real estate has not only become a desirable lifestyle option for resort ownership, but a viable investment strategy.