Overview Dominican Republic | Blockchain DigitalCity
About The Dominican Republic
The Dominican Republic boasts a stable government and economy with many growth sectors. Agriculture (primarily sugar) and mining operations led the D.R. economy until the 1990’s when tourism became one of the country’s top sources of income. The progressive government has promoted strong freehold land ownership laws, and created incentives to purchase and invest in the island nation. There are no restrictions on foreigners purchasing property in the D.R. Additionally, the Blockchain DigitalCity project enjoys 30 years of tax free status on capital gains and rental revenue, and no stamp duty.
The Dominican Republic maintains warm temperatures throughout the year. It is the second largest country in the Caribbean after Cuba, and one of the few countries in the Caribbean where visitors can undertake multi-day hikes into remote wilderness. Mountain ranges reach up to 10,000 feet in elevation, allowing for a diverse variety of activities, experiences, and development. The Dominican Republic is easily accessible from North and South America, as well as Europe; it is just over a 3-hour ﬂight from New York City, and shorter from other East Coast cities. It has seven international airports (the most in the Caribbean), with frequent ﬂights to major US, Canadian, and European cities.
The Blockchain DigitalCity project lies on the north coast of the Dominican Republic located along the coast of the Atlantic Ocean. It is approximately 5 miles of San Felipe de Puerto Plata (typically known as Puerto Plata). Puerto Plata is the capital of the Dominican province also named Puerto Plata which is served by Gregorio Luperon international Airport. The site can also be accessed via the Santiago international Airport, approximately one hour away.
Many well-known destinations are found on the North Coast, from the world-renowned kite-boarding Mecca of Cabarete, to the resort town of Playa Dorada, with its own Golf Course, both to the east of Puerto Plata. The coast west of Puerto Plata is slowly being discovered, and there are spectacular landscapes to be found between Puerto Plata and Luperon, all within a 90-minute drive of Santiago, one of the larger cities in the Dominican Republic with a population over 1,000,000.
The Dominican Republic has a mild, subtropical climate with temperatures ranging from 64 degrees to 90 degrees Fahrenheit, with high humidity. Rainfall is generally moderate.
The Dominican Republic has set up one of the most wide-ranging systems of incentives for investors, they include:
Right to Private Ownership and Establishment
The Dominican Constitution guarantees the freedom to own private property and to establish businesses. The Foreign Investment Law (No. 16-95) provides foreign investors the same rights to own property & industries as are guaranteed by the Constitution to Dominican investors.
A Receptive Environment for Investors
During the last two decades, the Dominican Republic has sought to foster a highly receptive environment for international investors, adopting policies that minimize regulatory obstacles and, at the same time, provide assistance and incentives to foreign companies and individuals to bring their capital into the country. As a result, the country has become the number one recipient of direct foreign investment in the region: 21 billion dollars’ worth from 2006 to 2015.
Tourism and Development, Incentive
Law 158-01 on Tourism Incentives, as amended by Law 195-13, and its regulations, grants wide-ranging tax exemptions, for fifteen-15 years, to qualifying new projects by local or international investors.
The projects and businesses that qualify for these incentives are:
(a) hotels and resorts;
(b) facilities for conventions, fairs, festivals, shows and concerts;
(c) amusement parks, ecological parks, and theme parks;
(d) aquariums, restaurants, golf courses, sports facilities, and any other tourist facility;
(e) port infrastructure for tourism, such as recreational ports and seaports; (f) utility infrastructure for the tourist industry such as aqueducts, treatment plants, environmental cleaning, and garbage and solid waste removal;
(g) businesses engaged in the promotion of cruises with local ports of call; and
(h) small and medium-sized tourism-related businesses such as shops or facilities for handicrafts, ornamental plants, tropical fish, and endemic reptiles.
The government of the Dominican Republic announced a goal of doubling the number of tourist arrivals to the country from 5 million in 2012, to 10 million by 2022.
Renewable Energy Incentives Law (No. 57-07)
The Dominican Republic encourages investment in the renewable energy sector. Under Law 57-07 on the Development of Renewable Sources of Energy, investors in this area are granted, among other benefits, the following incentives:
(a) no custom duties on the importation of the equipment required for the production, transmission and interconnection of renewable energy;
(b) no tax on income derived from the generation and sale of electricity, hot water, steam power, bio-fuels or synthetic fuels generated from renewable energy sources; and
(c) exemption from the goods and services tax in the acquisition or importation of certain types of equipment.
The National Energy Commission is the governmental entity in charge of granting incentives in this industry, which has attracted substantial interest from international investors.
Additionally, the credit on investment expense granted to self-power producers is 40%. There are no requirements for investors to export a defined percentage of their production.
Incentives for International Financial Free Zones
Under Law 480-08, companies in special free zones can offer all types of financial and support services to persons or entities located outside the Dominican Republic without having to pay taxes for a 30-year period. Partners and shareholders of companies in financial free zones are exempted from paying taxes on the profits or dividends received.
Incentives for Immigrant Investors
Law 171-07 grants foreign nationals who invest a minimum of $200,000 in the Dominican Republic or meet certain criteria as retirees with special benefits such as expedited residency in the country, exemption from duty for the importation of household goods, exemption from transfer taxes for the first purchase of real estate, exemption from taxes on dividends and interest, and 50% reduction on property and capital gains taxes.
The Dominican Constitution accords foreign and local investors equal treatment under the law, stating expressly that foreigners in the Dominican Republic are entitled to the same rights as Dominican nationals, except for participating in local political activities. At the same time, foreign investors are bound by the same rules and regulations applicable to local investors. Foreign investors can freely hold equity in local businesses and joint ventures, as well as buy real estate in their names.
Foreign Investment Law 16-95, enacted on November 20, 1995, and its enabling regulations, eliminated all barriers formerly imposed on international investments in the Dominican Republic. Investors contributing capital to companies operating in the Dominican Republic are granted unlimited access to all sectors of the Dominican economy, except for investments related to national security and other sensitive industries.
Foreign Direct Investment
There are no limits on foreign control of firms or screening of foreign investment in the open sectors not excluded in the Foreign Investment Law (No. 16-95).
No Limits on Foreign Control
There are no general (statutory, de facto, or otherwise) limits on foreign ownership or control.
No Limits on Non Regulated Cryptocurrency for Offshore Trading from the Blockchain DigitalCity Free Trade Zone Financial Park
Crypto Regulation in Dominican Republic
In the Dominican Republic, status of cryptocurrency was determined in the official explanation of the Central Bank of June 28, 2017. It states that the only legal means of payment in the country was and will be the national currency, and legalization of cryptocurrency will not be carried out. Citizens can carry out all transactions at their own risk, but they are not prohibited.
In other words, from the Blockchain DigitalCity project, all our clients can deal in Cryptocurrency across the world, because we are NOT dealing with any clients within the Dominican Republic.
Additional Government Incentives
No Limits on access to Foreign Exchange
Foreign companies are unrestricted in their access to foreign exchange. There are no requirements that foreign equity be reduced over time or that technology be transferred according to defined terms. The government imposes no conditions on foreign investors concerning location, local ownership, local content, or export requirements.
Foreign Tax Credit
Taxes paid abroad on foreign income taxed in the Dominican Republic may be credited up to the amount of the Dominican tax liability generated by such income. The specific credits are determined on a case-by-case basis.
No Data Storage Requirements
There are no requirements for foreign IT providers to turn over source code and/or provide access to surveillance (back doors into hardware and software or turn-over keys for encryption).
Registration of foreign investments is optional. No government approval is required for the repatriation of profits.
Government Assistance to Foreign Investors
The Center for Exports and Investment of the Dominican Republic (CEI-RD), a government agency created in 2013 with the explicit purpose of attracting foreign investment and fostering exports, assists foreign investors in their business ventures in the Dominican Republic, providing them with timely advice and information, as well as assistance in coordinating their applications for government permits.
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