FOREIGN INVESTMENT

FOREIGN INVESTMENT - Santana Ripoll - EN

FOREIGN INVESTMENT IN THE

DOMINICAN REPUBLIC

Dominican law accords equal treatment to domestic and foreign investment. The only restrictions on foreign investment apply to some particularly sensitive industries, such as mining, where no sovereign government may invest in Dominican mining projects. Aviation, health projects such as hospitals and pharmacies, the handling of toxic waste, and radio transmissions require a minimum of Dominican capital. Public media managers must be Dominican, among other industry-specific restrictions.

To promote foreign investment in the country and to develop the export sector, the country created the Center for Export and Investment (“CEI-RD”). The registering of investment at the CEI-RD is not mandatory and even without it foreign investors may remit profits and repatriate capital without prior authorization, provided they meet tax commitments, which are the same as for Dominican nationals. The remitted amounts include royalties, capital gains, and capital upon liquidation of the company receiving the investment, to the extent of invested capital. Registration with the CEI-RD, however, allows access to preferential treatment and expedited residence rules for investors and company management.

The Dominican Republic has maintained an active policy of multilateral trade relations, signing numerous free trade agreements as well as bilateral investment treaties with Argentina, Chile, South Korea, Spain, Finland, France, Italy, Morocco, Panama, Republic of China (Taiwan), the Netherlands, and Switzerland. At the same time, it has signed treaties to avoid double taxation with Canada and Spain.

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