What are my legal guarantees as a foreign investor?

As a foreign investor in the Dominican Republic, you benefit from strong legal protections equivalent to those granted to local investors. Here are the main legal guarantees available to you:

1. Equal treatment and legal protection
The Foreign Investment Law 16-95, enacted on November 20, 1995, ensures that foreign investors receive the same rights and legal protections as local investors. This law removed previous restrictions, allowing foreign capital to enter most economic sectors, except those related to national security.

2. Free transfer of capital and profits
Foreign investors can repatriate their capital and profits without prior government approval. This includes transferring dividends, interests, and invested capital abroad, ensuring financial liquidity and flexibility.

3. Access to tax incentives and special programs
The Dominican Republic offers various tax incentives to attract foreign investment, particularly in tourism, renewable energy, and free trade zones. For example, the Tourism Incentive Law 158-01 grants significant tax exemptions for approved projects, boosting the tourism sector.

4. International agreements and economic integration
The country is a signatory of several free trade agreements, including DR-CAFTA (the Dominican Republic-Central America Free Trade Agreement with the U.S.) and the Economic Partnership Agreement with the European Union. These agreements facilitate trade and provide additional legal security for foreign investors.

5. Institutional support for investors
The Center for Export and Investment of the Dominican Republic (CEI-RD) is a government agency created to assist foreign investors. It provides guidance, information, and helps facilitate administrative procedures for setting up and operating businesses in the country.

6. Compliance with the Calvo Doctrine
The Dominican Republic adheres to the principles of the Calvo Doctrine, which states that foreigners must assert their rights and resolve disputes under local laws and jurisdictions, without intervention from their home governments. This ensures that foreign investors are subject to the same obligations and receive the same protections as Dominican citizens.

In summary, the Dominican Republic provides a favorable and transparent legal framework for foreign investors, ensuring strong protection of their rights and investments.