While Law 16-95 celebrates three decades of attracting foreign investment, the current real estate boom demands not only updating this legal framework but also strengthening our registration system to guarantee higher quality investments.
By Reyna Echenique
Special for El Inmobiliario
The Dominican real estate sector is experiencing a historic moment. The developments transforming our urban and tourist landscape demonstrate the combined success of Law 16-95 on Foreign Investment and Law 158-01 on Tourism Development. This legal synergy has been fundamental in positioning the country as a preferred destination for real estate investment in the Caribbean.
Successful legal synergy
The combination of Law 16-95, which guarantees equal treatment for foreign investors, and Law 158-01, which offers specific incentives for tourism and real estate developments, has created a favorable environment for investment. The results are evident in the development of tourist resorts, residential complexes, and commercial projects that have significantly transformed the national landscape.
Need for strengthening the registry
However, the current dynamism of the real estate market demands a modernization of our registration system. Law 108-05 on Real Estate Registration, while representing a significant step forward, needs to be adapted to the new market realities, especially regarding projects in the planning and construction phases.
Comprehensive modernization
The updating of these legal frameworks cannot be viewed in isolation. While Law 16-95 needs to adapt to the new dynamics of global investment, the land registry system requires more robust mechanisms to protect buyers and investors, especially in projects under development.
Looking to the future with confidence
Advanced registration systems, such as the one implemented in Dubai, offer interesting models to consider, especially regarding the provisional registration system for off-plan projects. This type of innovation could perfectly complement our current foreign investment framework, attracting not only more committed and higher-quality developers, but also substantial investments.
Opportunity for improvement
Modernizing these legal frameworks could:
- Strengthen protections for off-plan buyers
- Attracting more committed developers
- Improve the quality of real estate projects
- Increase the confidence of international investors
The current moment, marked by a significant real estate boom, presents the perfect opportunity to strengthen our legal frameworks. Updating Law 16-95, modernizing the registry system through an amendment to Law 108-05, and maintaining effective incentives such as those in Law 158-01 could consolidate the Dominican Republic not only as a destination for real estate investment, but also as a regional benchmark for quality and security in real estate investments. Let us remember that legal security is the true luxury of real estate, and starting at an early stage attracts more and better foreign investment.
This third article concludes the series on foreign direct investment in the Dominican Republic.
The author Reyna Echenique is a lawyer, real estate entrepreneur and CEO of Echenique Group, Secretary of the Board of Directors of AEI, and is also a specialized advisor in attracting foreign direct investment, a graduate of the 2023 Diploma from ProDominicana on foreign investment, and analyzes the impact of public policies on the investment climate.
