Countries › Dominican Republic › Guide › 3. Investing › Free zones in the Dominican Republic: how to get in, what it costs and how long the exemptions last

Free zones in the Dominican Republic: how to get in, what it costs and how long the exemptions last

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

Ley 8-90 gives parks and companies 100% relief from income tax and a long list of other taxes for 15 years, or 20 in border zones, and the council may extend it. Getting in means a permit from the Consejo Nacional de Zonas Francas de Exportación at RD$300,000 for a company in a park, RD$400,000 for a service zone or RD$600,000 for a park. At the end of 2025 there were 98 parks, 858 companies and 200,237 direct jobs.

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

Income tax exemption, outside border zones	15 yearsLey 8-90 art. 28, as of 2026-10-30 · in force
Income tax exemption, border zones	20 yearsLey 8-90 art. 28, as of 2026-10-30 · in force
Income tax on gross local sales	3.5 %Ley 253-12 art. 31, as of 2026-10-30 · in force
Local sales cap under art. 17 literal e	20 % of outputLey 8-90 art. 17 e, as of 2026-10-30 · in force
Installation permit, company in a park	300000 DOPCNZFE service sheet, as of 2026-10-30 · in force
Installation permit, service zone	400000 DOPCNZFE service sheet, as of 2026-10-30 · in force
Installation permit, park	600000 DOPCNZFE service sheet, as of 2026-10-30 · in force
Term to decide a permit	30 working daysLey 8-90 art. 19, as of 2026-10-30 · in force
Parks at end 2025	98 parksCNZFE Informe Estadístico 2025, as of 2025-12-31 · in force
Companies operating at end 2025	858 companiesCNZFE Informe Estadístico 2025, as of 2025-12-31 · in force
Direct jobs at end 2025	200237 jobsCNZFE Informe Estadístico 2025, as of 2025-12-31 · in force
Free zone exports in 2025	8548.6 USD millionCNZFE Informe Estadístico 2025, as of 2025-12-31 · in force

The rule

1. Beneficiaries are operators, which get a permit to run a zone by Executive decree on the council's recommendation; companies, which get an installation permit and direct their output or services to export; and investors in the capital, financing or securities of either.Ley 8-90 de Fomento de Zonas Francas, art. 5, 1990-01-15 official text · verified 2026-10-30

2. Zones may be industrial or service zones anywhere in the country, border zones between 3 and 25 kilometres from the Haitian line, or special zones tied to immobile resources. In the Distrito Nacional, the Executive may limit installation to advanced technology plants or services that need highly skilled labor.Ley 8-90 de Fomento de Zonas Francas, art. 6, 1990-01-15 official text · verified 2026-10-30

3. New classifications of special free zones are suspended.Ley 253-12, art. 36, 2012-11-09 official text · verified 2026-10-30

4. A company files a formal application showing shareholders, capital and its origin, product or service, jobs, local value added and inputs. A summary is published in the press for two consecutive days so anyone can object.Ley 8-90 de Fomento de Zonas Francas, art. 14 and paragraph, 1990-01-15 official text · verified 2026-10-30

5. Applications for installation permits are decided within 30 working days of filing. The council sits at least every 30 days.Ley 8-90 de Fomento de Zonas Francas, art. 19 literal b paragraph; art. 21, 1990-01-15 official text · verified 2026-10-30

6. Permit to install a company in a free zone park: filed on the free zones single window with the letter, form, lease or park letter of intent, constitutive documents with shareholders and contributions, payment proof and any product sample. Documents must be in Spanish or translated.
Cost to do it: RD$300,000 (US$4,926.05). Not refundable or transferable, and payments are valid for 45 days.CNZFE service sheet, Permiso de Instalación de Empresas en Parques, 2026-10-30 official text · verified 2026-10-30

7. Permit for a service free zone: also needs a technical and economic feasibility study and title or a legalized lease of at least five years on the building.
Cost to do it: RD$400,000 (US$6,568.07).CNZFE service sheet, Permiso de Instalación de Zona Franca de Servicios, 2026-10-30 official text · verified 2026-10-30

8. Permit to develop a park: needs a feasibility study, land title or lease, plans and the executive team history. The operator permit is ratified by decree.
Cost to do it: RD$600,000 (US$9,852.10).CNZFE service sheet; Ley 8-90 art. 7, Permiso de Instalación de Parques; art. 7, 2026-10-30 official text · verified 2026-10-30

9. Operators and companies have 100% relief from income tax, construction, loan and real estate transfer taxes, tax on forming or raising capital of companies, municipal taxes, import duties on inputs and equipment used to build or run in the zone, export taxes, patent and asset taxes, ITBIS and consular fees.Ley 8-90 de Fomento de Zonas Francas, art. 24, 1990-01-15 official text · verified 2026-10-30

10. Exemptions run from the first full year of operations, for 20 years in border zones and 15 elsewhere. The council may extend operating permits.Ley 8-90 de Fomento de Zonas Francas, art. 28, 1990-01-15 official text · verified 2026-10-30

11. Companies selling to anyone in the Dominican Republic pay income tax of 3.5% on gross local sales.
Example: Local sales of RD$10,000,000 pay RD$350,000 of income tax. / Sales of US$164,201.73 pay US$5,747.06.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

12. A company may sell up to 20% of output into the local market for goods made in the country with all taxes paid. It may also sell locally, with full duties and taxes, if the product is not made outside the zone or has at least 25% local inputs. Finished textile, apparel, leather and footwear goods can go to the local market up to 100%, free of duties.Ley 8-90 art. 17 literals e and f, literal f as replaced by Ley 56-07, art. 17, 2007-05-04 official text · verified 2026-10-30

13. Profits and reinvestment put into establishing and developing zones are exempt from income tax at 100% for border operators, 80% in the Distrito Nacional and within 50 kilometres, and 90% elsewhere, with a yearly cap of 50% of income. The investment must stay in place at least three years, with a yearly audited report.Ley 8-90 de Fomento de Zonas Francas, arts. 26 and 27, 1990-01-15 official text · verified 2026-10-30

14. Companies report monthly to the Banco Central, with a copy to the operator and the council, within the first 15 days of each month, including local spending. Operators also report monthly and pay a yearly fee set by the council.Ley 8-90 de Fomento de Zonas Francas, arts. 11, 12 and 18, 1990-01-15 official text · verified 2026-10-30

15. Textile, apparel, leather and footwear companies, in or outside free zones, get relief from ITBIS and other taxes on listed inputs, machinery and services, and a 0% tariff on listed items. Those that close operations in another special customs regime are exempt from income tax on their production if they are current on tax and authorized by the council.
Cost to do it: Permit RD$50,000 (US$821.01) per the CNZFE sheet; the sheet shows 30 days to process.Ley 56-07, arts. 1 to 4 and 6, 2007-05-04 official text · verified 2026-10-30

Permit	Fee RD$	Fee US$	Extra documents
Company in a park	300,000	4,926.05	Lease or park letter of intent
Service free zone	400,000	6,568.07	Feasibility study; title or lease of at least five years
Park	600,000	9,852.10	Feasibility study; land title or lease; team history
Ley 56-07 company	50,000	821.01	Tax, customs and social security clearance letters

Which permit and at what fee (CNZFE service sheets, 30 October 2026)

Worked example

A medical device maker leases a building in a park and pays RD$300,000 (US$4,926.05) for the permit. Its first full year is 2028, so the exemption runs for 15 years from then. In a year with RD$1,218,014,000 (US$20,000,000.00) of exports and RD$60,900,700 (US$1,000,000.00) of local sales within the limits, it pays 3.5% on the local sales, or RD$2,131,524.50 (US$35,000.00), and no income tax on the export income.

Step by step

Pick a park or qualify for a service zone, and get the letter of intent.
Form the company; a free zone company can use constitutive documents in preliminary form on filing.
Pay the fee and file on the single window within the 45 day payment validity.
Expect the press summary and the council decision within 30 working days once the file is validated.
Register foreign capital through the council; see fx/foreign-investment-registration.
Set up monthly Banco Central reports, local sales tracking and customs inventory control.

Common traps

The term starts with the first full year of operations, not with the permit. A long start up does not use it up, but delay delays the benefit.
The 20% local sales rule and the art. 17 f test are separate routes. Sales that do not fit either are not allowed.
The service sheets show fees but not what the council may ask for extensions or changes, which have their own sheets.
Ley 8-90 art. 38 still mentions exchange at the Banco Central, which conflicts with Ley 183-02 free convertibility. See fx/export-proceeds-and-import-payments before relying on it.
Under the non stacking rule a free zone company cannot add a second incentive regime on the same activity.

Sources

← Choosing an investment regime in the Dominican Republic: which incentive fits, and the new limit on stacking themTourism incentives in the Dominican Republic: CONFOTUR classification and 15 years of tax relief →

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