SANTO DOMINGO – The Dominican Republic boasts a wealth of resources. It's a destination that stands out not only for its people, climate, and beaches, but also for offering investors legal security, tax incentives, and consistent economic growth.
This was stated by the financial director of Gesproin Group , Daniel Sánchez, and his legal consultant, Edgar Encarnación, when they were interviewed during the sixth episode of the program “La Ventana de El Inmobiliario ” .
Encarnación, who is a lawyer and surveyor, highlighted that the country has registered an advance in legal security, which covers everything from procedures for obtaining construction permits to real estate transactions.
He also stated that one of the most significant advantages is equality in terms of obtaining real estate, without restrictions for investors, who, without being residents and without being nationals, can acquire a property.
“Here we don’t discriminate between a national or a foreign investor. For example, I can compare it to Mexico, which has a special law that, in certain tourist areas, does not allow a foreigner to own real estate; instead, they have to incorporate a corporate vehicle,” he said.
The expert explained that another benefit lies in “special laws” that provide facilities for first-time buyers.
He maintained that buyers enjoy tax benefits for both property tax and transfer tax, in addition to the security provided by the backing of the Tourism Development Council (Confotur) .
Given the fears that sometimes arise when investing in the real estate sector, Edgar Encarnación highlighted the importance of researching the companies behind each project.
“Regarding legal certainty, we have made progress, as I mentioned before, but I always recommend that any investor conduct their due diligence. It's essential to thoroughly investigate who is behind the projects, who the developers are, and what they have done throughout their careers or years as a company,” he stated.
More air routes, more tourists and more investment in the Dominican Republic
Daniel Sánchez, the financial director of Gesproin, the company that carries out the real estate development of Coral Golf Resort , in Punta Cana, indicated that, in terms of investment, this project can be managed with the condohotel business model .
“The Condohotel model is proving extremely successful in the Dominican Republic because it allows you to come to your property for part of the year, and for another part —when it might be winter in another country— you leave it rented out and it generates passive income that is also very well taxed in this country,” he explained.
Sánchez, a Spaniard who has lived in the Dominican Republic for 18 years, revealed that, given the drop in Canadian air bookings to the United States, the nation has a great opportunity to capture a portion of that market.
“This year, with the problems arising between the United States, due to Trump, and Canada, 70% of trips to Florida by Canadians have already been canceled. Just by capturing a small percentage of those trips, we in the Dominican Republic could attract an additional one million Canadians to the one million who already visit,” he explained.
The real estate and hospitality expert highlighted that the Caribbean country has experienced "quite remarkable growth" recently. He confirmed this by mentioning the "major brands" that have been investing there in recent years.
The finance director discussed the total number of tourists arriving in the country, a figure that reflects the growing interest in getting to know and experience the Dominican Republic.
He also highlighted the constant opening of new air routes , which facilitates access from different international markets.
He explained, “That means more people will move in. Demand will continue to grow. So, properties will continue to appreciate.”.
Given this scenario, Daniel emphasized the importance of knowing how to choose companies and professionals when investing in the country.
“Not all developers are the same. In other words, we have to know how to search, seek advice from a good financial advisor, a good real estate advisor, and a good law firm—and not from a friend, but from a professional,” he concluded.
