Business & Economy
Economy in the Dominican Republic
The Dominican Republic has the ninth largest economy in Latin America, and is the largest in the Caribbean and Central region. It is an upper middle-income developing country primarily dependent on mining, agriculture, trade, and services. Although the service sector has recently overtaken agriculture as the leading employer of Dominicans (due principally to growth in tourism and Free Trade Zones), agriculture remains the most important sector in terms of domestic consumption and is in second place (behind mining) in terms of export earnings
Tourism accounts for more than $1 billion in annual earnings. Free trade zone earnings and tourism are the fastest-growing export sectors.
The Dominican Republic’s most important trading partner is the United States (about 40% of total commercial exchange). Other major trade partners are the People’s Republic of China (despite they don’t have diplomatic ties as the DR recognizes Taipei’s government as the legitimate of China), Haiti, Canada, Mexico, India, Spain, Brazil, Germany, the United Kingdom and Japan, in that quantitative order.
|GDP||$143.100 billion (2015 est.)|
|GDP growth||7.0% (2015 est.)|
|GDP per capita||$10,060 (2013 est.)|
|GDP by sector||agriculture: 11.5%; industry: 21%; services: 67.5% (2010 est.)|
Love Where You Work
Are you interested in making a move that involves your current work or business? Maybe you’d like to start a new business here in the DR? The Dominican offers a stable financial environment with the infrastructure needed to be productive.
With the largest economy in Central America and the Caribbean, the Dominican Republic has a strong consolidated financial sector and a well-organized business community. This provides newcomers with networks for rapidly inserting themselves into industry and commerce. Geographically located near major markets, the Dominican Republic is at the center of the Americas. As such, it has signed trade agreements that provide privileged market access to and from the United States, Europe, Central America and the Caribbean.
Other pluses for doing business in the country include its abundant work force, including both non-skilled and highly skilled staff. There is a young and talented population, including a large number of bilingual workers. The Dominican Republic’s economic growth has been one of the strongest in the LAC region over the past 25 years. In the first quarter of 2017, the economy expanded by 5.2 percent, following yearly average growth of 7.1 percent between 2014-16. This contrasted sharply with that of the average 1.4 percent contraction for the LAC region in 2016. (World Bank)
Two Ways to Earn Income Here:
- Work remotely in an existing business: relocate your home, but continue to do your normal work via the Internet.
- Move here and start a new business or purchase an existing business.
THINGS TO KNOW:
- The DR has excellent infrastructure. If you are able to work remotely, technology is on your side here with great Internet services and access to technical support.
- The DR government is foreign investment friendly and offers services to investors and business people who want to start companies here. Tax exemptions and special allowances are given to investors and those wanting to start businesses.
- You can keep and use your existing North American or European company; you must register it with the DR government.
- It’s a good idea to get a tax accountant as well as your residency status if you want to work legally in the country.
- A good accountant can assist with business incorporation.
- Taxation is very low here.
- If you want to start or buy a business here, research and information are key.
According to the World Bank, the Dominican Republic was ranked as the largest Foreign Direct Investment (FDI) recipient in the Caribbean in 2012. In 2012, FDI flows into the Dominican Republic grew 59% on the back of the acquisition by Anheuser-Busch InBev of Cervecería Nacional Dominicana, the country’s largest brewer, for more than US$1.23 billion. Even without this acquisition, however, FDI in the Dominican Republic would have been up on 2011, driven by increased investments in electricity, manufacturing and mining. Investment was also up in manufacturing in export processing zones, tourism and real estate.
For more detailed legal information on working/doing business in the Dominican Republic, please visit this link on Guzman Ariza’s law firm site.