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Executive Summary
The Dominican Republic is located in the Caribbean region on the island of Hispaniola, and shares it with Haiti. The Dominican Republic is the second largest island nation in the Caribbean’s after Cuba. It covers the area of approximately 48,442 sq km.

Santo Domingo is the capital of the Dominican Republic; Spanish is its official language. The Dominican Republic follows a representative democracy model, which has established a liberal economic system, which determined development of the country. Having been known solely for sugar production, it has now become an economy dominated by services, where a tourism market segment is growing rapidly. Uneven distribution of income, authorities’ corruption, unemployment and uneven electric supply services over the territory of the country remain its significant problems. Migration in and out of the country significantly affects economic activities and the GDP.

The Dominican Republic is known for rapid and easy procedure of a divorce solution which is offered to citizens of the Dominican Republic and foreigners. In order to process a divorce, the agreement of both spouses must be granted. At least one of two spouses must be present in a Dominican Court for less than half an hour. The divorce is then completed in approximately 15 days and the document testifying it may be sent anywhere in the world by post or courier.

The Dominican Peso (DOP) is the national currency. USD and EUR are widely accepted on the most part of the territory in tourist destinations.

Geography
The Dominican Republic comprises many small islands and cays. Its mainland  has four important mountain ranges. Pico Duarte, which raises at 3,098 metres above the sea level is not only the highest point of the Dominican Republic, but also of all the Caribbean islands. In addition, Lake Enriquillo is the largest lake of the Caribbean region. There are several rivers, many lakes and lagoons on the territory of the country, which makes its landscape diversified and can satisfy all the preferences: beaches, lakes, rivers, mountains. Such a rich natural diversity plays an important role for tourists who always more frequently choose the Dominican Republic as their destination. The country is also rich in biodiversity.

The climate is relatively mild and the weather is sunny most days in a year. The average annual temperature reaches approximately 26 degrees C.

Map, Flag and Coat of Arm


Types of Company

Corporation

The Dominican Republic is not a classical offshore jurisdiction, and it is not often considered as an alternative for the purposes of a company incorporation and its management in favourable business environment. However, it is an attractive jurisdiction, as its taxation regime is based on the territoriality principle.

There are no minimum authorized capital requirements, but when issued, capital must be expressed in DOP. Three individuals should be assigned to the positions of a company’s administration: president, vice-president and secretary. A company must be registered with the local authorities. Shareholders must meet on the annual basis and the minutes of their meetings must be submitted to the Mercantile Registry.

Taxation

Personal
Individuals are liable to pay income tax on income derived from employment, business, independent business, investment, capital gains, pensions, real estate and other immovable property, as well as gambling profits. Residents and non-residents are taxed exclusively on income derived from activities conducted within the territory of the Dominican Republic. Income tax has a scalable nature, being levied at 0% to 25%.

Corporate
IThe standard rate of the corporation tax is 25%. Tax on assets at a rate of 1% of the company’s assets is levied and deducted from the corporation tax.  Withholding taxes are levied on dividends, payrolls and interests. The standard rate of VAT is 16%. Municipal tax at a rate of 1% of the property value must be paid by real estate owners in the cities, rural properties are not taxed.

 
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