During the last two decades, the Dominican Republic (DR) has established itself as one of the fastest-growing economies in the Americas, with an average real GDP growth rate of 5.4% between 1992 and 2014. The DR remained the fastest-growing economy in the region in 2014 and 2015, with a GDP growth rate of 7 percent. Recent growth has been driven by construction, manufacturing, and tourism. For 2016, a GDP growth rate of 7.3% is forecasted. Regarding Foreign Direct Investment (FDI), the Dominican Republic has become the regional center for attracting FDI. Investment captured in the Dominican Republic during 2015 represented 37 percent of the total foreign investment received in the Caribbean, consolidating its position as the largest recipient of FDI in Central America and the Caribbean. A favorable business climate for investment has played a fundamental role, supported by a legal system offering advantages such as equal treatment for foreign investors, repatriation of 100 percent of profits, free convertibility of funds, free access to international currency through local banks and the Central Bank, and a fast and simple registration procedure.
The real estate sector is no exception, with foreign investors receiving the same treatment as nationals, being able to acquire properties throughout the national territory, including tourist areas and maritime zones. The only exception is the border area, where the constitution restricts real estate acquisition by foreigners. Foreigners do not require residency or a local partner to acquire real estate in the Dominican Republic. The purchase can be made through an individual or a local or offshore company. Once the purchase transaction is completed, the foreign citizen acquires full and absolute ownership of the property, with the same rights of use and disposal as Dominican citizens. Additionally, Law 171-07 on incentives for pensioners and foreign source rentiers allows real estate investors to obtain residency permits in 45 days.
Furthermore, the real estate sector has been greatly encouraged through a series of government initiatives aimed at promoting tourism internationally and granting significant tax incentives to sector investors through Law No. 158-01 on Tourism Development Promotion. The law aims to develop the tourism industry rationally and sustainably in certain demarcations of the nation, offering multiple attractive tax opportunities for investors wishing to enter the sector. These facilities include a 10-year tax exemption of 100% on income tax, capital gains tax, company formation tax, and capital increase tax, as well as a tax exemption on property transfer and real estate property. Likewise, the law exempts 100% of customs or import duties on goods, furniture, equipment, and materials necessary for the construction and operation of the real estate facilities in question.