In previous articles, we have commented on the various options and benefits the Dominican Republic offers for its citizens and foreign nationals, which go beyond the sun, the beach and the natural features of the island. While the features we just mentioned are essential attributes of this country, there are also other favorable and attractive aspects of the Dominican Republic, such as the various ways of conducting business and the profitability these endeavors may have.

It is no coincidence that many people, especially foreign nationals, commonly attest to the vast number of business opportunities in the Dominican Republic, and call it a goldmine; where there is a vast number of possible profitable endeavors.

The ease to formalize any business activity

1. The ease and affordability of establishing a company in the Dominican Republic: this is essential to formalize a profitable business anywhere.
2. The simplicity and the various accounts that can be opened in the country, since the Dominican Republic has a solid banking system. There are multiple banks, both national and international.
3. The labor market is broad and affordable (for employees and employers), high-level professionals, as well as technicians and workers in all areas.

Profitable Businesses in the Dominican Republic

Hotel Industry – Tourism Sector: One of the main economic areas of the Dominican Republic is the Tourism sector, which is why it is and will continue to be a profitable business in the country.

Some of the reasons are:

• Its Beaches: The Dominican Republic is characterized by having the most beautiful beaches in the entire Caribbean, full of white sand, palm trees, and warm turquoise water.
• Its weather: One of the best climates, characterized by a bright sun all year round, which is perfect for tourism.
• The human factor: The general feature of the Hispanic community is their happiness. No other country exemplifies this trait more than the Dominican Republic, where you will find human warmth, hospitality, and land of happy people.
• Labor: Abundance of highly qualified labor.
• Industry Accessibility: Given that this is one of the foundations of the country’s economy, the various institutions that regulate said sector offer plenty of options and the State is committed to its growth.
• Demand: Thanks to its very high demand, this industry is extremely profitable in the country; given that there is the tourism of foreign nationals and natives, who enjoy tourist life.

If you still have doubts, we invite you to verify the following:

• The rates of foreign nationals traveling to the country to conduct tourist activities.
• The cities in the Dominican Republic with the highest amount of tourists are Punta Cana, Samana, Las Terrenas, Juan Dolio, and Puerto Plata.
• The infrastructure and investments that have been allocated to this sector, support the reliability of this business.
• Among many other reasons that can be verified.

Real estate and construction sectors in the Dominican Republic: This has been one of the most solid industries in the country, given that it has experienced sustained growth, which is something that has been confirmed by specialists in the field in recent years.

Some of the reasons are the following:

• The main reason is supply and demand (of infrastructure, sale, and rental of real estate, etc.).
• The Dominican Republic has changed its entire structure, and every citizen wants to acquire a suitable property.
• One of the investment options for foreign nationals and Dominicans living abroad is buying assets for investment purposes or retirement.
• Among others.

Free Zones in the Dominican Republic continues to be a catalyst for growth in the country. This industry has the support of the government, due to its positive economic impact, along with undeniable growth and business reliability.

In essence, these business types are supported by the country and the government due to their positive economic impact and how convenient this business type is. Thanks to its tax benefits, ease of execution and its profitability.

Free Zone Tax benefits in the Dominican Republic

Commercial free zone companies in the Dominican Republic were introduced with decree 997-02. These companies are granted a 100% exemption on all customs regulations, import tax payments and export of the items specified in Law n.º 4315, from October 22, 1955. We will list the applicable exemptions below:

1. Payment of income tax established by Law 5911, of May 22, 1962, and its modifications, regarding companies by shares.
2. Tax payment on the establishment of commercial companies or capital increase thereof.
3. Payment of municipal taxes that may affect these activities.
4. All import taxes, tariffs, customs duties and other related charges that affect raw materials, equipment, construction materials, building materials and office equipment, among others. All of these materials are intended to: build, enable or operate in the free zones in the Dominican Republic.
5. Tax on patents, assets or patrimony, as well as the Industrialized Goods transfer tax (known in Spanish as ITBIS).
6. Consular fees for all imports allocated to free zone companies or operators.
7. Payment of import taxes, among others.

Free zones have a special regulation aimed at employees, which benefits the business and the hired labor. One of the main reasons why this industry has strong support from the State is because the employment generation of a free zone company is almost eight times greater than the average Dominican company.

Other profitable Businesses in the Dominican Republic

What we just mentioned above only details and specifies some profitable businesses, however, the list is not all-encompassing. On the contrary, it is unlimited. Other important and highly profitable sectors are:

1. Technology and Telecommunications
2. Gastronomy
3. Supermarkets
4. International Brand Stores (clothing, footwear, makeup, perfumes, among others)

Given that we are a developing country, almost every business is profitable, thus we invite you to consider and obtain more information about this beautiful land. 

If you want personalized and detailed advice on a specific business, you may contact us and we will gladly assist you.