Dominican Republic: Investing

FDI in Figures

The country is among the main recipients of FDI in the Caribbean and Central America. The Dominican Republic had been receiving a growing inflow of FDI until 2008. Due to the slowdown of the global economy, the FDI flow was reduced in 2009, but it still represented USD 2.1 billion and it has started to increase again in 2010. The share of the FDI's stocks in regards to the GDP remains relatively low when compared to other developing countries.

The difficulties that foreign investors have to face include: corruption, failure to honor contracts, disregard for court rulings and a lack of standard procedures for the customs valuation of imported goods.

The tourism sector is the largest recipient of foreign investment. The United States is the largest investor, followed by Canada and Spain.

	Dominican Republic	Latin America & Caribbean	الولايات المتحدة	Germany
Index of Investor Protection	5.7	5.1	8.3	5.0

Source: Doing Business

Note: The Greater the Index, the Higher the Level of Investor Protection.

Foreign Direct Investment	2008	2009	2010
FDI Inward Flow (million USD)	57	41	31
FDI Stock (million USD)	525.9	559.4	590.3
Performance Index*, Ranking on 141 Economies	43	37	-
Potential Index**, Ranking on 141 Economies	78	-	-
Number of Greenfield Investments***	16.0	13.0	-
FDI Inwards (in % of GFCF****)	35.9	14.7	-
FDI Stock (in % of GDP)	24.5	28.5	-

Source: UNCTAD - Last Available Data

Note: * The UNCTAD Inward FDI Performance Index is Based on a Ratio of the Country's Share in Global FDI Inflows and its Share in Global GDP. ** The UNCTAD Inward FDI Potential Index is Based on 12 Economic and Structural Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy Use, R&D, Education, Country Risk. *** Green Field Investments Are a Form of Foreign Direct Investment Where a Parent Company Starts a New Venture in a Foreign Country By Constructing New Operational Facilities From the Ground Up. **** Gross Fixed Capital Formation (GFCF) Measures the Value of Additions to Fixed Assets Purchased By Business, Government and Households Less Disposals of Fixed Assets Sold Off or Scrapped.

Tax Rates

VAT (ITBIS): 16%
Company Tax: 29%
Withholding Taxes: Dividends: 25%, Interests: 25%, Royalties: 25%.
Bilateral Agreement: Dominican Republic and Egypt are not bound by a Double Taxation Agreement.
Social Security Contributions Paid By Employers: 7.10% (pensions), 7.09% (family healthcare), and 1.10% (labor risks insurance).

Investment Opportunities

Tenders, Projects and Public Procurement: Inter-American Development Bank, Tenders in South America
DgMarket, Tenders Worldwide
Setting Up a Company: Consult Doing Business Website, to know about procedures to start a Business in Dominican Republic.
Useful Resources: Dominican Republic Export and Investment Centre (CEI-RD) (only in Spanish)

Any Comments About This Content? Report It to Us.

Learn more about Investing in the Dominican Republic on Globaltrade.net, the Directory for International Trade Services.