Dominican Republic: A land of growth, opportunity and endless summer

In connection with the first project that Stonehard PREMIER by LUXIMMO presents in the Dominican Republic — Unico Residences , we decided to tell you more about this tropical country, where culture and history go hand in hand, summer never ends, and coffee and chocolate are a true pleasure.

The Dominican Republic is located on the eastern part of the island of Hispaniola, in the region more commonly known as the Caribbean. The country is the second largest after Cuba and is distinguished by impressive natural resources and a rich history. Here you will find mountains with scenic trails, stunning views, as well as endless beaches with fine white sand and crystal clear waters. The Dominican Republic is among the most preferred tourist destinations in the world — ranked in the top 10 globally and #1 in the Caribbean.
Although Punta Cana is the most popular place, the country offers many other wonderful locations where you can not only relax, but also fall in love... and why not make them your home.

In the following lines, we will share why interest in the country is growing every year and what are the main advantages of choosing the Dominican Republic as a place for a vacation home or a long-term investment in real estate.

Strategic location

Geographically, the country is located almost equidistant from North and South America, two continents with developed economies and strong ties to the Caribbean. This is one of the reasons why tourism here is booming. The Dominican Republic has 8 international airports and 13 ports, which ensures a constant flow of visitors. The warm, humid climate further enhances the attractiveness of the location throughout the year.

Economic growth

We often associate countries in the region with tropical climates and less developed economies, but the Dominican Republic categorically refutes this stereotype. Over the past twenty years, the country has reported stable and consistent GDP growth.
In recent years, growth has averaged 5.6% per year , compared to around 3% for other countries in the region. The share of the population below the poverty line is decreasing, and the middle and upper classes are expanding.
Thanks to the state's targeted investments in tourism and international positioning, economic development is expected to continue and accelerate.

Property prices

The Dominican Republic is still actively developing its new construction market in the premium and luxury segments, as well as in the vacation property category. As a result, prices are still significantly lower than in the Bahamas, Puerto Rico, and Mexico, countries with a similar geographical location.
The cost of living in the capital, Santo Domingo, is also 35–50% lower than in major cities in the US or Canada.

Tax breaks for foreign investors

The Law for the Promotion of Tourism Development (Law 158-01), known as Confotur , provides some of the most attractive tax incentives in the region for projects located in specially designated zones. Thanks to these incentives, the Dominican Republic is increasingly attracting international investors.

Main advantages of the Confotur law:

• Income tax exemption for a period of 15 years
  
  

• Exemption from tax on transfer of real estate ( 3% )
  
  

• Exemption from annual real estate tax (IPI) for 15 years
  
  

• Exemption from customs duties on imports of machinery, equipment and materials necessary for the construction or initial equipment of the project
  
  

These incentives lead to significant direct tax savings and significantly increase the return on investment (ROI). It is thanks to Confotur that many projects achieve profitability that exceeds the average levels for the region.

Residency status

The Residency by Investment program offers a fast and easy path to legal residency for anyone who invests a minimum of $200,000 in an approved real estate or tourism project — including apartments, villas, or hotel rooms.

Main advantages:

• Free entry and exit from the country
  
  

• Possibility to include immediate family members
  
  

• Tax breaks and a stable legal environment
  
  

• Access to permanent residence and subsequently citizenship
  
  

What does this mean for the investor?
The program not only facilitates the expansion of an investment portfolio, but also adds significant personal value — the opportunity to create a second home in a stable, rapidly developing economic and tourist environment.

Rental

Due to the extremely high interest from tourists, rental property in the Dominican Republic is among the most profitable investments.
You can choose between long-term and short-term rentals, with numerous professional companies operating in the local market that take on the advertising, management and maintenance of the property.
The legislation also provides for tax relief on rental income, which further increases profits for owners.

So it’s no surprise that more and more investors and buyers are choosing the Dominican Republic for their next home or project. And with the emergence of new, luxury residences like Unico Residences , the options are becoming even more accessible. If you’re considering an investment or looking for a place that combines luxury, nature, and perspective, the Dominican Republic is a destination worth considering.