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The Dominican Republic is a Caribbean nation with free trade zone incentives, digital nomad visa program, and strategic access to North American and Caribbean markets.
Region
CARIBBEAN
Corporate Tax
27%
Setup Time
3 weeks
Currency
DOP
Occupying the eastern two-thirds of Hispaniola in the heart of the Caribbean, the Dominican Republic has evolved from a tourism-focused economy into a diversified business hub. With established free trade zones, growing infrastructure, and strong ties to both North American and Caribbean markets, the country presents compelling options for entrepreneurs seeking a Caribbean base with substance.
Life in the Dominican Republic revolves around warmth—both climatic and cultural. The country enjoys tropical weather year-round. From the beaches of Punta Cana to the colonial charm of Santo Domingo's Zona Colonial, lifestyle variety abounds.
The population of approximately 11 million creates a significant domestic market. Spanish is official, with English common in tourist and business areas. Healthcare operates through both public and private systems, with private hospitals offering quality care.
Safety varies by area. Tourist zones and upscale neighborhoods are generally safe. The cost of living spans a wide range, with local life costing far less than in North America.
The Dominican Republic has built a substantial business ecosystem through decades of foreign investment. The corporate tax rate of 27% applies to standard companies, but the free trade zone system offers far more favorable treatment for qualifying export businesses.
CAFTA-DR membership provides preferential access to US markets. The call center and BPO industry has grown substantially. The digital nomad visa program welcomes remote workers.
Company formation requires no minimum capital for a standard limited liability company (S.R.L.). Registration typically takes three to four weeks.
Foreign ownership is permitted at 100% in most sectors. Banking functions adequately, with both local and international banks present.
The free trade zone system (Zonas Francas) offers exemptions from corporate income tax, import duties, and other levies for 15-20 years or more. Qualifying activities include manufacturing, assembly, logistics, and call centers.
Hurricane exposure is reality in the Dominican Republic. Business continuity planning and insurance are essential. The Dominican peso fluctuates against the dollar, requiring currency management.
For entrepreneurs seeking Caribbean lifestyle, US market access, and established business infrastructure, the Dominican Republic offers more depth than many Caribbean alternatives.
Local: SRL
Local: S.A.
Local: Sucursal
| Corporate Tax Rate | 27% |
| Personal Income Tax Rate | 25% |
| VAT / Sales Tax | 18% |
| Capital Gains Tax | 27% |
| Withholding Tax | 27% |
| Reduced Corporate Tax Available | Yes |
| Non-Resident Withholding Exempt | No |
| Tax Treaty Network | Yes |
| Banking Access | MEDIUM |
| Financial Privacy | MEDIUM |
| Currency Controls | NONE |
| Local Bank Account Required | Yes |
| Non-Resident Bank Account Allowed | No |
| Physical Presence for Banking | Yes |
| Banks Restrictive (High Risk) | No |
| AML Officer Required | No |
| MLRO Required | No |
| Compliance Officer Required | No |
| Data Protection Officer Required | No |
| Bookkeeping Frequency | Annual |
| Local Bookkeeping Required | Yes |
| Mandatory Audit | No |
No dedicated crypto licensing framework in Dominican Republic. Cryptocurrency activities are permitted but unregulated.
| License Required | Yes |
| Local Director Required | Yes |
| Local AML Director Required | No |
| Local Legal Address Required | Yes |
| Local Physical Office Required | Yes |
| Capital Maintained in Account | Yes |
| Compliance Program Required | Yes |
| Travel Rule Compliance | N/A |
| Business Plan Required | Business plan required |
| Personnel Required | Management team |
| Insurance Required | No |
| Remote Incorporation Possible | No |
| 100% Foreign Ownership | Yes |
| Min. Shareholders | 2 |
| Min. Directors | 1 |
| Shareholder/Director Same Person | Yes |
| Registry Public | Yes |
| Renewal Period | Annual |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Annual |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | Yes |
| Compliance Audit Mandatory | Yes |
| Technical Audit Mandatory | Yes |
| Corporate Income Tax Applicable | Yes |
| Dividend Tax Applicable | Yes |
| Capital Gains Tax Applicable | Yes |
| Territorial Tax Regime | No |
| VAT Applicable | Yes |
| Regulators | Gaming Commission or equivalent |
| Licensing Fee Details | Standard gambling licensing |
| Permitted Business Models | Casino, Sports Betting |
| Permitted Activities | Land-based and online gambling |
| Restricted Activities | Varies by jurisdiction |
| Cross-Border Service Allowed | No |
| Physical Inspection Required | Yes |
| Player Fund Segregation | Yes |
| B2B/B2C Separate Requirements | No |
| License Required | Yes |
| Local Director Required | Yes |
| Local AML Director Required | Yes |
| Local Legal Address Required | Yes |
| Local Physical Office Required | Yes |
| Capital Maintained in Account | Yes |
| Compliance Program Required | Yes |
| Travel Rule Compliance | FATF guidelines |
| Business Plan Required | Comprehensive business plan |
| Personnel Required | Qualified management, compliance officer |
| Insurance Required | Yes |
| Insurance Details | Professional indemnity required |
| Remote Incorporation Possible | No |
| 100% Foreign Ownership | Yes |
| Min. Shareholders | 2 |
| Min. Directors | 1 |
| Shareholder/Director Same Person | Yes |
| Registry Public | Yes |
| Registry Access | Central Bank registry |
| Renewal Period | Annual |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Annual |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | Yes |
| Compliance Audit Mandatory | Yes |
| Technical Audit Mandatory | No |
| Corporate Income Tax Applicable | Yes |
| Dividend Tax Applicable | Yes |
| Capital Gains Tax Applicable | Yes |
| Territorial Tax Regime | No |
| VAT Applicable | Yes |
| Regulators | Central Bank |
| Licensing Fee Details | Varies by license type |
| Permitted Business Models | Banking, EMI, Payment Services |
| Permitted Activities | Banking, payment services, lending |
| Restricted Activities | Deposit taking requires full banking license |
| Cross-Border Service Allowed | Yes |
| Physical Inspection Required | Yes |