The Dominican Republic is a preeminent tourist destination that attracts adventure-seeking travelers from all corners of the world.
Millions troop to this tiny Latin American country annually to marvel at its picturesque landscapes and enchanting beaches. The nation is also a multicultural utopia where people from diverse cultural backgrounds converge and mingle freely. Coupled with its relatively peaceful political landscape and thriving economy, it’s understandable why many people would go a step further to become full citizens of the Dominican Republic.
Like most countries, there are different ways to become a Dominican Republic citizen. Citizenship may be conferred by birth, naturalization, and investment.
This article looks at the perks of applying for Dominican Republic citizenship by investment.
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What Is Citizenship By Investment?
Citizenship by investment, commonly abbreviated as CBI, is a legal mechanism many countries use to grant citizenship to aliens. Also known as economic citizenship, CBI allows foreign nationals to become citizens of particular countries in exchange for a substantial contribution to the nation’s economic development.
Citizenship by investment used to be a preserve of big-time investors with a demonstrated capacity to channel millions of dollars into the destination country’s economy through avenues like financing startups and purchasing government bonds. However, nations like the Dominican Republic have since opened their doors to medium-scale investors as well.
It’s also great to know you can visit dozens of countries visa-free on a Dominican passport. And as you shall find, many of the Dominica passport visa free countries maintain close economic ties with this Latin American nation.
Benefits of Dominica’s Citizenship by Investment
- Opportunity to Invest In a Bullish Economy
The Dominican Republic is categorized as an upper-middle-income developing country. As such, the nation presents immense opportunities for investors.
Dominica has consistently claimed a spot among Latin America’s fastest-growing economies for the past 20 years, often ranking alongside Israel and Uruguay. Recent projections indicate that the country’s gross domestic product (GDP) may hit USD 169.61 billion in 2018, potentially making it the largest economy in the Caribbean.
All these indicators designate the Dominican Republic as a prime investment destination in 2024.
- Strategic Investment Location
Obtaining Dominica’s citizenship by investment lets you set up your business within proximity to lucrative markets. That’s due to the country’s strategic location in the middle of the Americas.
The Latin American nation is within 1,500 miles of the United States and South America, allowing you to tap into millions of potential customers. It’s also a member of the Caribbean Community and Common Market (CARICOM), a regional trade organization comprising 15 countries.
As with many economic blocs, CARICOM maintains free-trade policies among member states. Investors within the bloc also enjoy attractive trade deals with the US, Canada, and EU.
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- Multiple Sectors to Invest In
Tourism is one of the economic mainstays of the Dominican Republic. The sector has accounted for about a quarter of the country’s GDP in recent years.
So thriving is the Dominican tourism industry that CARICOM predicts the sector may record a steady annual growth rate of 5% between 2022 and 2026.
However, tourism isn’t Dominica’s only lucrative sector. Others include agriculture, manufacturing, food processing, mining, and telecommunications. Coffee and sugarcane are noteworthy agricultural subsectors performing exceptionally well in the Caribbean.
- Ease of Traveling
The Dominican Republic may be your next investment destination. But it doesn’t have to be your last.
After setting up a successful venture in this Latin American country, you may want to expand your company to other regions. And that may call for regular business trips.
Well, it’s great to know that you can fly to 72 countries visa-free with a Dominican passport, including Brazil, Malaysia, Hong Kong, and Israel. This is a welcome provision, considering how time-consuming the visa application process can be.
- Political Stability
Most countries in the Caribbean enjoy reasonable political stability, and the Dominican Republic is no exception.
Dominica’s stability is mainly due to its entrenched democratic system. The country has remained incredibly peaceful despite sharing an expansive border with violence-stricken Haiti.
With almost no recent recorded politically motivated violence, the Dominican Republic is an ideal investment destination.
- Favorable Taxation Policies
The Dominican Republic is also famous for its favorable corporate tax policies.
The country’s corporate income tax (CIT) rate is 27%. While this is higher than nearby jurisdictions like Jamaica (25%), Belize (25%), and the Bahamas (0%), it’s still in the ballpark.
Besides, the withholding tax (WHT) rate for locally paid or globally remitted dividends in the Dominican Republic stands at 10%. The cherry on the cake is that nearly all taxes are federally levied. Investors don’t have to pay provincial or local government tax.
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How to Obtain a Dominican Citizenship by Investment
Applicants to the Dominica CBI must be 18 years or older. There are no provisions for those in the age of minority since minors are considered incapable of operating successful businesses either.
The Dominican Republic also grants CBI privileges only to applicants of good health. Besides, you must demonstrate outstanding character, which includes having no criminal record.
If you meet the above criteria, proceed to apply for citizenship by following the below procedure;
- Prepare the necessary documentation, including your birth certificate, passport, and police records.
Note that you must get all documents notarized and legalized before submitting them. You can seek professional assistance from authorized agents.
- Attend a comprehensive medical examination and provide reports from such tests.
- Reserve a property in the Dominican Republic through a sales and purchase agreement (if you’re a real estate investor)
- Get your agent to submit your documents.
Your authorized agent will conduct their due diligence to ascertain that the information provided is accurate, factual, and up to date. They’ll then escalate your documents to the government to kick-start the process.
- Wait for government feedback.
The outcome of your CBI application depends mainly on the authenticity of the provided information. If you’re successful, the Dominican government will instruct you to donate to the Dominica Economic Diversification Fund (EDF) (which starts from $200,000) or close on a real estate transaction. You’ll then provide proof of payment to the government, after which you’ll receive a registration certificate.
- Apply for a passport.
Your certificate of registration serves as proof of your Dominican Republic citizenship. You can use the document to apply for a Dominican passport.
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Wrap Up
The perks of applying for Dominican citizenship by investment far outweigh the drawbacks. From economic and political stability to favorable taxation policies, this Latin American country has all the hallmarks of an ideal investment decision.