Countries › Dominican Republic › Guide › 3. Investing › Restricted activities and ownership limits in the Dominican Republic: a short closed list and a few sector caps

Restricted activities and ownership limits in the Dominican Republic: a short closed list and a few sector caps

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

Ley 16-95 closes only three areas to foreign investment: imported toxic waste, activities harming health or the environment, and defence production without Executive authorization. Sector laws then add specific limits, such as 51% Dominican capital for a national insurer and 35% for a national airline. The 80% Dominican staff quota applies to every employer, foreign or not.

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

Activities closed to foreign investment by Ley 16-95	3 categoriesLey 16-95 art. 5, as of 2026-10-30 · in force
Dominican capital needed for a national insurer	51 %Ley 146-02 art. 1 literal h, as of 2026-10-30 · in force
Dominican capital for a national airline, general route	35 %Ley 491-06 art. 237 as amended by Ley 67-13, as of 2026-10-30 · in force
Dominican share of staff	80 %Código de Trabajo art. 135, as of 2026-10-30 · in force
Defence production	Barred without express Executive authorization Ley 16-95 art. 5 literal c, as of 2026-10-30 · in force

The rule

1. No foreign investment is allowed in the disposal of toxic, hazardous or radioactive waste not produced in the country, in activities affecting public health or the environmental balance under the applicable rules, or in producing materials and equipment directly tied to defence and national security unless the Executive expressly authorizes it.Ley 16-95 sobre Inversión Extranjera, art. 5, 1995-11-20 official text · verified 2026-10-30

2. If foreign investment affects the ecosystem in its area of influence, the investor must present a project to recover the ecological damage that may be caused.Ley 16-95 sobre Inversión Extranjera, art. 5 paragraph I, 1995-11-20 official text · verified 2026-10-30

3. Foreign investment in each area of the economy follows the conditions and limits of the laws and regulations for that area.Ley 16-95 sobre Inversión Extranjera, art. 5 paragraph III, 1995-11-20 official text · verified 2026-10-30

4. An insurer counts as a national insurer only if at least 51% of its capital and voting shares belong to Dominican persons, through nominative shares. Where the holders are companies, at least 51% of their capital and voting shares must belong to Dominican individuals. Foreign insurers may instead operate as such under a separate section of the law.
Cost to do it: Minimum paid in capital in the text is RD$8,500,000 or the peso equivalent of US$500,000, and the Superintendencia may adjust it by resolution; check the current figure.Ley 146-02 sobre Seguros y Fianzas, art. 1 literals h and i; arts. 12 and 13, 2002-09-26 official text · verified 2026-10-30

5. A Dominican company counts as a national airline if at least 35% of its capital and board are Dominican, more than half of its non board management is Dominican and its main office is in the country. It may instead be up to 100% foreign owned if the investor is an internationally recognized foreign airline or a subsidiary it controls and the Executive authorizes it.Ley 491-06 de Aviación Civil, art. 237 as amended by Ley 67-13, art. 237, 2013-04-24 official text · verified 2026-10-30

6. Mining concessions cannot be granted to foreign governments, directly or through intermediaries. In justified cases, and with Congress approval, the Executive may make special agreements with foreign mining companies that are partly or wholly State owned.Ley 146-71 Minera, art. 9, 1971-06-04 official text · verified 2026-10-30

7. Mineral and hydrocarbon deposits and other non renewable resources may be explored and exploited by private parties only under concessions, contracts, licences, permits or quotas set by law.Constitución de 2024, art. 17, 2024-10-27 official text · verified 2026-10-30

8. The State may grant concessions for natural resources or public services for the time and in the form the law sets, always with adequate consideration for the public interest and the environment.Constitución de 2024, art. 50 num. 3, 2024-10-27 official text · verified 2026-10-30

9. Foreign capital may enter banks and credit entities by buying shares of existing ones, forming new share entities, setting up subsidiaries of foreign banks, or opening branches of foreign banks. The Junta Monetaria authorizes share purchases above 30% of paid capital, subsidiaries and branches.Ley 183-02 Monetaria y Financiera, art. 39 literal a, 2002-11-21 official text · verified 2026-10-30

10. At least 80% of a company's workers must be Dominican, and Dominican workers must receive at least 80% of total pay. Pay for technical, management or executive work is excluded from the wage test.Código de Trabajo, Ley 16-92, arts. 135 and 136, 1992-05-29 official text · verified 2026-10-30

11. Land in the border zone is subject to specific legal requirements that privilege Dominican ownership and the national interest. This guide found no law in force that sets those requirements; bills were pending in 2025.Constitución de 2024, art. 10 num. 2, 2024-10-27 official text · verified 2026-10-30

12. In any State contract with foreign persons domiciled in the country, they must submit to Dominican laws and courts, although the State may send disputes to treaty based jurisdictions and to national or international arbitration under law.Constitución de 2024, art. 220, 2024-10-27 official text · verified 2026-10-30

Area	Limit	Source
Imported toxic or radioactive waste	Closed	Ley 16-95 art. 5 a
Activities harming health or environment	Closed, under the rules for each matter	Ley 16-95 art. 5 b
Defence materials	Closed unless the Executive authorizes	Ley 16-95 art. 5 c
Insurance	51% Dominican for national status; foreign insurer route exists	Ley 146-02 art. 1
Airlines	35% Dominican, or up to 100% for a foreign airline with Executive approval	Ley 491-06 art. 237
Mining	No foreign governments; concession needed	Ley 146-71 art. 9; Constitución art. 17
Banking	Open, with Junta Monetaria approval above 30%	Ley 183-02 art. 39
Border land	Constitution calls for specific rules	Constitución art. 10

Main limits by area

Worked example

A foreign group opens a call center with 50 staff. No ownership limit applies, but at least 40 staff must be Dominican under art. 135, and Dominican workers must take at least 80% of pay once technical and management pay is left out.

Step by step

Map the activity against the closed list in Ley 16-95 art. 5.
Read the sector law for licences, capital and nationality conditions.
Size the staffing plan against the 80% tests before signing a lease or a visa plan.
For land near the border, take local title and legal advice before any payment.

Common traps

National status in insurance and aviation is a defined category with consequences in the sector law. A foreign owned company can often operate, but on the route for foreign operators, so read which applies.
The labor quota is a count of workers and a separate pay test. Passing one does not pass the other.
The defence limit depends on an Executive act, so build the time for it into the plan.
Bills on foreign purchase of border land were in Congress in 2025 per press reports and could change the position; check their status before buying.

Sources

← Foreign investment in the Dominican Republic: equal treatment, no screening and registration after the factInvestor protections in the Dominican Republic: expropriation, confiscation limits and what the law guarantees →

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