7 Must-knows before investing in Dominican Republic

Investment, when done right, is what brings freedom. But it can also be stressful, when it is not made the right way. To do it the right way, information is the ultimate resource to seek for and keep. This article aims to enlighten everyone who envisions to take advantage of all the investment opportunities in the Dominican Economy. Do have in mind that momentum is the common risk of all emerging economies, so there is no better time to invest than NOW! Let's discover 7 Must-knows before investing in the DR.
 
1- Emerging Economy
Though the popular conception tends to make people feel that the bigger the economy the more attractive it is for investors, the technical reality of a smart investor is different. The primary goal of an investor is to gain a significant return on his/her investment, what is called the Return On Investment (ROI). Unfortunately, in either powerhouse economies or emerging economies, that strategy is with a cost, which begets the question of minimizing that cost as low as possible in order to get the highest possible return. The emerging markets are uniquely known for being the best answer to that question, as they provide incredible rewards once the risks are well-managed. The Dominican Republic Economy is part of that category, it is the largest economy in the Caribbean with many sectors to invest in, but still is in its emancipation phase.       
 
2- Equal Rights in business
You may wonder as a foreigner if you would be able to, not only invest in the Dominican Republic, but also possess assets, or to go further, if your rights will be respected in terms of unfair competition or more. The answer is literally Yes you can! From small to big, in less to more lucrative sectors, all good investments are welcomed. Personally, I have experienced foreigners who are investing in real estate in the DR. Another important thing is how easy it is for foreigner to legalize a business, the best way is to find an attorney with the specialization in business to do that. Find a trustworthy lawyer to help you with your business by emailing us here.        


3- Infrastructure
Well-placed infrastructure is one of the core elements which characterizes an emerging market. During the past years the Dominican Republic government has spent huge amounts of money in both economic and social infrastructures or even more sophisticated ones like cable cars. They have digital infrastructures, a good number of the population experience electricity 24/7 and they all have access to it. All the major cities and provinces are linked with smooth roads, airports and good public transportation like Caribe Tours to name a few, which significantly decreases the cost of entry in any sector. If you are a family-oriented investor you can even dare to think about traveling or getting established in the DR with your whole family as buying or renting a property for a short term in the DR is a simple process . For that economy, the best is to come given that it is just insane how the country is always in construction.

 
4- Money Centric Culture
You can have love for money too, but not more than Dominican People.It is just crazy how good they are at segmenting people into low, medium and high class in their daily conversations. The more you have, the more respected you are. On one hand a few can see that as a bad thing, but on the other hand people can argue against it. But the important thing is that as an investor you will come to make good money and spend it too. There are many good places to enjoy life in the DR during your investment journey so you will be part of the high class Automatically, you will get more respect.

5- Cheap Housing
As an investor you have the choice to either buy land and construct your business building or just rent a commercial place and start running your business.
You are also free to decide to be in the country or not while investing. You will always be the one responsible for the pros and cons of whatever choices you make  and/or your investment model. However, for an exchange rate of US$ 1.00= RDP 55.20 and € 1.00 = RDP 57.50  In January 2023.  he Foreign Direct Investment (FDI) cost in the Dominican Republic is relatively low and that goes to all the sectors, mainly the housing one. As we have mentioned infrastructure availability earlier, you will always find specialized construction companies in the DR  like (sunshine-invest) to help you not only in your custom planned homes/buildings as well as in investment projects e.g. condominiums, complexes  with relatively good prices but also in your decision and process to buy a comfy property.

6- Political Stability 
Political stability is a concept which is hardly understandable  and most of the time under-explained, under-estimated by the common people and even confused by professionals in the field. The best way to understand it, is to firstly comprehend what political instability is. Secondly differentiate the political stability concept and the political stability index. Political instability is the state of a government facing unconstitutional destabilized or overthrown situations. Once a government is not facing these situations it is called political stability. The index is what measures political stability, in other terms we can say that it measures the perception of the likelihood that the government will be destabilized or removed from power by force. That index is calculated by taking the average of many other indexes and it provides a value within the interval of [ (-2.5 weak; 2.5 strong)]. A simple math analysis can help us understand that the closer the value is to the negative bound the weaker is the index, vice-versa. The past two decades have been marked by an average score of -0 points of the Dominican Economy with  a min of -0.42 points and a max of 0.25 points. The latest  value from 2021 is 0.14 points. These data sounds complicated, however the only thing to keep in mind is that the Dominican republic economy is about to live its quarter of century of reasonable political stability, and this paragraph is  not longer for no reason, it is clear and proven that  good governance attracts investment which is in its turn crucial for an economy to take off. The stability that we are talking about is apparent, you can personally decide to test it by booking your comfy and luxurious apartment in a touristic place like Sosúa or a peaceful city like Santiago de los Caballeros or the capital Santo Domingo and make of the Dominican Republic your next memorable trip experience.

7- Cheap Workforce
Congratulations to you for making it this far, reading is not a piece of cake grin. Relax your mind as this paragraph is going to be less data centered and more reality-oriented. The  Dominican Republic  labor force contains a huge amount of good technicians and educated professionals. It is divided mainly into two categories: the Dominican and a vast majority of Haitian migrants.This last one, is underpaid and undervalued everywhere on the Dominican national territory whatever their skills and experience. We hope that with future coming investments from this article and everywhere else, light will shine and one day that circuit will be regulated, that Haitian migrants will benefit from temporary protection measures. Which will make the Dominican Republic a more cosmopolitan society to invest in.

 

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- Real Estate Investor, Digital Marketer, Economist. 


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