Countries › Dominican Republic › Guide › 3. Investing › Choosing an investment regime in the Dominican Republic: which incentive fits, and the new limit on stacking them

Choosing an investment regime in the Dominican Republic: which incentive fits, and the new limit on stacking them

Last verified: 2026-10-30 · Status: Changing

The main routes are free zones, tourism, the border zone, renewable energy, film, industry and public private partnerships, each with its own council and filing. Since Ley 30-26 of June 2026, a taxpayer cannot use two incentive regimes for one activity, and Hacienda reviews a cost benefit study before classification. Start from where the customer is, where the site is, and how long the project takes to pay back.

USD figures use the Banco Central de la República Dominicana reference selling rate of RD$60.9007 per US dollar for 29 October 2026, the latest row in its published rate file on the verification date, rounded to the cent.

Key facts

Two incentive regimes on one activity	Not allowed Código Tributario art. 2-1, as of 2026-10-30 · in force
Free zone exemption term outside the border area	15 yearsLey 8-90 art. 28, as of 2026-10-30 · in force
Tourism exemption term	15 yearsLey 158-01 art. 7 as amended by Ley 195-13, as of 2026-10-30 · in force
Border regime term from the law	30 yearsLey 12-21 art. 5, as of 2026-10-30 · in force
General corporate income tax rate	27 %Código Tributario art. 297, restated by Ley 30-26, as of 2026-10-30 · in force

The rule

1. Taxpayers may use the tax regime they find most convenient, but may not benefit at the same time from more than one incentive regime for the same economic activity, investment or operation.Ley 11-92, Código Tributario, art. 2-1 added by Ley 30-26, art. 2-1, 2026-06-18 official text · verified 2026-10-30 · changed: New in Ley 30-26 of 18 June 2026.

2. Institutions that manage laws with exemptions must send the feasibility study to the Ministry of Hacienda y Economía before the application is decided, for a cost benefit analysis. If the ministry finds that the application does not meet the requirements, it recommends that the Executive object to the classification, by a reasoned technical report.Ley 253-12 art. 45 as replaced by Ley 30-26, art. 45, 2026-06-18 official text · verified 2026-10-30 · changed: Ley 30-26 of 18 June 2026 replaced art. 45 and added the route for Hacienda to recommend an objection.

3. DRAFT, NOT IN FORCE. The draft regulation of Ley 30-26 would allow general credits and deductions alongside a regime, and different regimes for different activities if the taxpayer keeps separate books. Hacienda could seek an objection if the investment does not match the law, the tax cost exceeds the social benefit, it distorts the sector, the project is profitable without incentives, or no indirect effects appear.Draft regulation of Ley 30-26, arts. 1 and 7, 2026-10-30 official text · verified 2026-10-30

4. Free zone companies selling goods or services to anyone in the Dominican Republic pay income tax of 3.5% on gross local sales.Ley 139-11 art. 11 paragraph III as replaced by Ley 253-12, Ley 253-12 art. 31, 2012-11-09 official text · verified 2026-10-30

5. Classification of new special free zones under Ley 8-90 is suspended.Ley 253-12, art. 36, 2012-11-09 official text · verified 2026-10-30

Regime	Best fit	Income tax	Term	Authority	Filing fee
Free zone, Ley 8-90	Exporters of goods and services	100% exempt; 3.5% on local sales	15 years, 20 in border zones	CNZFE	RD$300,000 company; RD$400,000 service zone; RD$600,000 park
Textile, Ley 56-07	Apparel and footwear, also local sales	Exempt on production if out of other special regimes	None stated	CNZFE	RD$50,000
Tourism, Ley 158-01	Hotels, resorts, complementary offer	100% exempt	15 years from completion	CONFOTUR	None in the law
Border, Ley 12-21	Any company operating in the seven provinces	100% exempt	30 years from the law	Coordination Council	Set by Council resolution
Renewables, Ley 57-07	Generators and self producers	Exemption repealed in 2012	Equipment relief	CNE	None in the law
Film, Ley 108-10	Productions shot in the country	25% transferable credit	Per project	DGCINE	None in the law
Industry, Ley 392-07	Manufacturers	None; refunds and customs facilities	While qualified	PROINDUSTRIA	None in the law
PPP, Ley 47-20	Infrastructure and public services	Accelerated depreciation option	Up to 40 years	DGAPP	Up to 0.5% and 2% of capex

Regimes at a glance

Worked example

A US manufacturer weighs a RD$304,503,500 (US$5,000,000.00) plant. If output is exported, a free zone gives 100% income tax relief for 15 years at a permit fee of RD$300,000 (US$4,926.05). If half is sold locally, that half pays 3.5% of gross local sales, and the 20% and local content limits apply. In Dajabón it could look at Ley 12-21 instead, but it cannot use both for the same activity.

Step by step

Decide where the customer is: export, local or State.
Fix the site, since the border and tourism regimes depend on location or activity.
Prepare the feasibility study early, because Hacienda now reviews it before classification.
Model tax with and without the regime, since a project that pays on its own can be objected to under the draft regulation.
Separate books by activity if more than one regime is planned.
Confirm the final regulation of Ley 30-26 before filing.

Common traps

The non stacking rule took effect in June 2026, but its reach is still being set by a draft regulation. Treat any two regime plan as uncertain.
A classification can be objected to after a technical review. Do not commit capital on the assumption that it will be granted.
Incentive exemptions reach only the regime activity. Other income pays the normal 27%.
Fees listed are filing fees. Studies, lawyers and environmental permits come on top.

Sources

← Investor protections in the Dominican Republic: expropriation, confiscation limits and what the law guaranteesFree zones in the Dominican Republic: how to get in, what it costs and how long the exemptions last →

Get rule changes weekly

Free. One email a week from The LatAm Thread.

One more step after you press the button: we take you to Substack, where your email is already filled in. Confirm there to start. No spam, unsubscribe anytime, we never share your address. By subscribing you agree to the privacy policy.