1. Fastest growing economy in Latin America
Over the past 25 years, the Dominican Republic (DR) has experienced a remarkable period of robust economic growth. The economy continued its rapid expansion in the years leading up to the COVID-19 pandemic, and between 2015 and 2019 the Dominican Republic's annual GDP growth rate averaged 6.1%.

Tourism, remittances, foreign direct investment, mining revenues, free trade zones, and telecommunications have helped make the Dominican Republic one of the fastest-growing economies in the Latin American and Caribbean region. (LAC)

Over the past decade, economic growth in the Dominican Republic has substantially reduced poverty rates and supported the expansion of the middle class. The country is on track to realize its ambition to achieve high-income status by 2030.

2. Prominent tourism industry
Tourism in the Dominican Republic is an important sector of the country's economy. More than 6 million tourists visit the Dominican Republic each year, making it the most popular tourist destination in the Caribbean and placing it in the top 5 in the Americas.

The tourism industry accounts for 11.6% of the nation's GDP and is a particularly important source of income in the country's coastal areas. The nation's tropical climate, white-sand beaches, diverse mountainous landscape, and colonial history draw visitors from around the world. ​

As one of the most geographically diverse nations in the region, the Dominican Republic is home to Pico Duarte, the highest mountain peak in the Caribbean, and Lake Enriquillo, its largest lake and lowest elevation. The oldest cathedral, castle, monastery, and fortress built in all of the Americas are located in Santo Domingo's Zona Colonial, an area declared a UNESCO World Heritage Site.

3. High return on investment
Thanks to its growing tourist attraction, the rental business in the Dominican Republic is very lucrative, especially in coastal cities such as Las Terrenas, Samaná. A good investment property located not too far from the beach or with stunning panoramic views will undoubtedly benefit from high occupancy and rental rates, which guarantees a strong return on investment, between 6% and 12% per year for the best properties. The average ROI for rentals is 8% per year.

In addition, the growing demand for beach properties in the Dominican Republic and the recent arrival of North American tourism to Samaná, Las Terrenas is boosting property values. Therefore, homeowners can expect strong capital gains on their property in the short to medium term.

The high season runs from December 15 to April 30. During peak season rental rates typically go up 40-50% and occupancy rates 75-90%.

Christmas, New Year, and Easter are the busiest times in terms of tourism. Rental rates typically increase by 100-200% as most rental properties are occupied.

The shoulder season runs from July 1 to August 30. During that period, occupancy rates typically range from 55% to 80%.

The low season runs from May 1 to June 29 and from September 15 to November 30. The occupancy rate during the low season is usually between 35% and 60%.

4. Modern Infrastructure ​

Over the last 20 years, the Dominican Republic has significantly improved and invested in its infrastructure in large cities and in tourist areas such as Las Terrenas and Samaná, for example. These areas now benefit from private hospitals, international schools, electricity grids, and new roads.

Former PLD president Leonel Fernández (2008-2012) launched a major marketing campaign to develop tourism in the Samaná peninsula and in Las Terrenas in particular.

 

During his tenure, he installed and started up the new highway that connects Santo Domingo with Samaná, as well as the new El Catey Airport at the entrance of Samaná, a 20-minute drive from Las Terrenas. The airport is growing rapidly and receives direct flights from Canada, the United States, and Europe.
 
5. 25 years of political stability
Since moving towards democracy 25 years ago, the Dominican Republic has known stability and rapid expansion, opening up to the globalized economy and diversifying its industries. ​
 
His politics are liberal with a focus on tourism development, which is great news for foreign real estate investors. In addition, Luis Abinader and the Ministry of Tourism are beginning to subsidize various areas of the country to support their development and help them grow as the next tourist destinations.
 
All the signs are green for the island to grow very prosperous and attract more tourists!

6. Excellent weather
The Dominican Republic enjoys a subtropical climate. Average temperatures fluctuate between 20°C/68°F during the winter and 31°C/88°F in the summer. The ocean and hills always bring a refreshing breeze from the trade winds.

The region of the Samaná Peninsula where Las Terrenas is located is considered the lungs of the island due to its exuberant vegetation and the incredible variety of plants, trees, and tropical fruits.

Although there is not a bad time to come to the Dominican Republic, December to April is considered the best time of the year to visit. The temperatures are milder and the air is less humid. There is more breeze coming from the ocean and the waters are still and transparent.

There are 2 seasons in the Dominican Republic. The rainy season expands from September to November: during that time there are more waves and currents in the ocean. Tropical rains are usually strong but last only a few minutes. Many will take refuge under a terrace until the rain stops.

The rest of the year is less humid, with occasional quick and hot rains. The waters are turquoise and calm.

7. Strategic location in the heart of the Caribbean
The Dominican Republic's location on the Atlantic Ocean, a short distance from North and Central America, makes it an attractive destination for Americans.

Every year you see more flights coming from the US and Canada in particular, eager to discover this new destination with an Afro-Latino culture and lifestyle.

The island is also very accessible from Europe with frequent flights from Spain, France, and Germany among others.


8. A safe destination
The main tourist destinations in the Dominican Republic are very safe for their visitors. Foreigners and local tourists walk leisurely day and night along the promenade or in the center.

A special body called "Politur" is present in Las Terrenas, Punta Cana and the Colonial Zone of Santo Domingo.

Their goal is to help and guide tourists with any problems they may encounter and to make sure that the areas remain safe for all visitors.

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9. Safe and efficient legal environment
The legal system of the Dominican Republic is based on the Napoleonic Code. A nine-member Supreme Court is the final court of appeal. The Senate appoints Supreme Court justices, who in turn appoint judges to lower courts, which include appellate courts and provincial, municipal, commercial, and territorial courts.

At the real estate level, the legal environment is very attractive for foreign investors since they can become sole owners of their property, including land, thus enjoying the same property rights as Dominicans. The original title deed will be physically covered from the seller to the buyer along with the GPS demarcation that identifies the boundaries of the land.

In addition, the real estate transaction is legally supervised by a certified Notary Public who applies due diligence before making the purchase-sale of a property.

10. Attractive Tax Incentives
The real estate industry has been significantly promoted by government measures to stimulate tourism and give significant tax incentives to investors in promoting tourism development.

One of the main laws that support this is the CONFOTUR certification. Its objective is to develop sustainable tourism by offering tax incentives to investors.

It is relevant to highlight the 100% tax exemption for a period of 15 years on the following:
 

• Rental income

• Capital gain

• Incorporation of Companies and Capital Increase

• Transfer of real estate

• Real estate ownership

In summary, the Dominican Republic offers great potential for foreign investors looking for new business opportunities, with the real estate sector in tourist areas definitely being a very attractive sector.