Steps involved in a purchase in the Dominican Republic

• Preliminary Steps: Real estate purchases in the Dominican Republic do not usually follow the North American pattern of a written offer tendered by the buyer to the seller, followed by the sellers written acceptance. Instead, after verbal agreement is reached by the buyer and seller on the price, a binding Promise of Sale is prepared by an attorney (solicitor) or notary public which is signed by both parties. (Notaries in the Dominican Republic are required to have a law degree.)

Because of certain peculiarities of Dominican Real Estate Law, it is recommended that the prospective buyer retain a real estate attorney (solicitor) before signing any documents or making a deposit. Depending on the wishes of the parties, the attorney (solicitor) may proceed with the due diligence first, before preparing the Promise of Sale, or alternatively, prepare the Promise of Sale first, conditioning the purchase to the results of the due diligence to be done in a specified term.

• Promise of Sale: This is a formal document, binding on both parties, and signed by them in the presence of a Notary Public. From a practical point of view, it is more important than the Deed of Sale, since it generally contains a complete and detailed description of the entire transaction up to the time when the purchase price has been paid in full and the property is ready to be conveyed to the buyer. A well-drafted Promise of Sale should contain at least the following provisions:

(a) Full name and particulars of the parties. If the seller is married, the spouse must also sign.
(b) Legal description of the property to be purchased.
(c) Purchase price and payment terms.
(d) Default clause.
(e) Date of delivery of the property.
(f) Due diligence required or done.
(g) Representations by the seller and remedies in case of misrepresentation.
(h) Obligation by seller of signing the Deed of Sale upon receipt of final payment.

Many attorneys (solicitors) and notaries in the Dominican Republic do not protect the buyer adequately in the Promise of Sale. Among the most common deficiencies are the following:

(a) The buyer is allowed to pay a large percentage of the price of sale without any security or direct interest over the property. In case of misuse of these funds, the buyer's remedies may be limited to suing the seller personally. Many condo buyers in Santo Domingo have suffered through this experience in the last few years. Generally, the developer uses the buyers’ funds, along with a bank loan, to finance the construction. The bank collaterizes the loan with a mortgage on the property. If the developer runs into financial difficulties or misappropriates the funds, the bank forecloses and the buyers lose both their money and Atheir@ property.

(b) Payments are not conditioned on the availability of clear title or the adequate progress of construction. Sellers, therefore, may demand payment or place the buyer in default without performing their own basic obligations.

(c) Escrow agents are rarely used. The seller, therefore, has control over the funds as they are paid.

• Deed of Sale (Contrato de Venta): This is also a formal document binding on both parties, and signed by them in the presence of a Notary Public. It is used primarily for the purpose of conveying the property from the seller to the buyer.

In case of a cash purchase, it is simpler and cheaper to go directly from verbal negotiations to the signing of a (Contrato de Venta), instead of taking the preliminary step of signing a Promise of Sale.

• Determination and Payment of Transfer and Registry Taxes: The authenticated Deed of Sale is taken to the nearest Internal Revenue Office where a request is made for the appraisal of the property. The Internal Revenue Office checks if the seller is in compliance with his tax obligations and selects an inspector to do the appraisal. The determination of the amount of taxes to be paid may take a few days or weeks, depending on the availability of the property inspector.

• Filing at the Registry of Title: Once the property has been appraised and taxes paid, the Deed of Sale and the Certificate of Title of the seller are deposited, along with the documentation provided by Internal Revenue, at the Title Registry Office for the jurisdiction where the property is located.

• Certificate of Title: At the Title Registry Office, the sale is recorded and a new Certificate of Title is issued in the name of the buyer. The property belongs to the buyer from the time the sale is recorded at the Registry. The time for the issuance of the new Certificate of Title may vary from a few days to a few months depending on the Title Registry Office where the sale was recorded.

Due Diligence

Many attorneys (solicitors) in the Dominican Republic do not perform the required due diligence on real estate transactions, limiting themselves in many cases to obtaining a certification on the status of the property from the Title Registry Office. It often happens that the real estate agent and/or the seller pressure the buyer into a hurried closing despite the advice of legal counsel.

To start the due diligence, the seller should provide the buyer or the attorney with the following documents:

• Copy of the Certificate of Title to the property.

• Copy of the official survey to the property or plat plan. Under the new Property Registry Law, the sale of properties without a government-approved plot (Adeslinde@) cannot be recorded at the Registry, except in the following cases: (1) Sales executed before April 4, 2007, which may be recorded during a two-year period ending on April 4, 2009, and (2) Sales of the entire property executed after April 4, 2007 (sales of portions are not allowed), for just one time.

• Copy of his or her identification card (ACédula@) or Passport and that of the spouse, if married.

• Copy of the receipt showing the last property tax payment (IPI) or copy of the certificate stating that the property is exempt from property tax, and certification from the Internal Revenue Office showing the seller is current with his or her tax obligations.

If the seller is a corporation:

• Copy of the corporate documentation, including bylaws, up-to-date registration at the Mercantile Registry and resolution authorizing the sale.
• Certification from the Internal Revenue Office showing the corporation is current with its tax obligations, specially Income Tax and Tax on Assets.

If the property is part of a condominium:

• Copy of the condominium declaration.
• Copy of the condominium regulations.
• Copy of the approved construction plans.
• Certification from the condominium administration showing the seller is current with his or her condo dues.
• Copies of the minutes of the last three condominium meetings.

If the property is a house:

• Copy of the approved construction plans.
• Inventory of furniture, etc.
• Copies of the utilities contracts and receipts showing that the seller is current.

Once the documentation listed above is obtained, the attorney should address every item on the following checklist:

• Title Search: A certification should be obtained from the appropriate Title Registry Office regarding the status of the property, stating who the owner is and whether any mortgages, liens or encumbrances affect it. The buyer should insist that his or her attorney confirm the results of the Registrar=s search by investigating the pertinent files at the Title Registry Office.

• Survey: An independent surveyor should verify that the property to be sold coincides with the one shown on the survey presented by the seller except when the property is located in a previously inspected subdivision. Cases have occurred in which a buyer acquires title over a property some distance away from the one he or she believes to be purchasing due to careless work by a previous surveyor or to fraud by the seller. The survey should be checked even when the seller provides a government-approved plat.

• Inspection of Improvements: A qualified builder or architect should examine any improvements to be sold (house, condo) to confirm that the plans presented are correct and that the improvements are in good condition.

• Permits: The attorney should confirm that the property to be purchased may be used for the purposes sought by the buyer. There are many legal restrictions which should be taken into account before purchasing. For example, Law 305 of 1968 establishes a 60-meter Amaritime zone along the entire Dominican coastline, measured from the high tide mark inland, which in effect converts all beaches into public property. No building is allowed within the maritime zone without a special permit from the Executive Branch. Also, in tourist areas, there are building restrictions administered by the Ministry of Tourism.

• Possession: The attorney should check that the seller is in possession of the property. It should be ensured that no squatters rights of any kind exist. Special precautions should be taken with unfenced properties outside known subdivisions. Fencing them before closing is advisable. If there are tenants on the property, the buyer should be informed that Dominican law is protective of a tenant=s rights and that evicting a recalcitrant tenant is time-consuming and expensive.

• Employees: The seller should pay any employees working on the property their legal severance, otherwise the buyer may find himself liable for the payment later.

• Utilities: The attorney or buyer should check that the seller does not have any utility bills pending by enquiring at the appropriate power distributor, water, cable and telephone companies.

Taxes and Expenses on Property Transfers

Taxes must be paid before filing the purchase at the Title Registry Office. Taxes and expenses on the conveyance of real estate are approximately 3.5% of the government-appraised value of the property, as follows:

• 3% Transfer Tax (Law # 288-04)
• Minor expenses such as cost of certified check required to pay taxes to Internal Revenue, sundry stamps and tips at the Registry.

Taxes are paid based on the market value of the property as determined by the tax authorities, not on the price of purchase stated in the deed of sale.

Buyers wishing to lessen the impact of transfer taxes have the option of using a loophole in the law which allows the contribution in kind of property into corporations without paying transfer taxes. For this, cooperation from the seller is essential.

Property Taxes in the DR

Properties held in the name of an individual are subject to an annual property tax ("IPI") of 1% of government-appraised value in excess of RD$5,000,000 pesos except for unbuilt lots or farms outside city limits and properties whose owner is 65 years old or older, who has registered it in his or her name for more than 15 years and has no other property.

If the property is held by a corporation, no property tax is due. Instead, the corporation must pay a 1% tax on corporate assets. However, any income tax paid by the corporation will constitute a credit toward the tax on assets, so that if corporate income taxes paid are equal to or higher than the taxes on assets due, the corporation will have no obligation to pay taxes on its assets.

Title Insurance

In the Dominican Republic, as in many Latin American and European countries, the government provides title insurance. The old Land Registry Law established an indemnity fund with which to pay claimants who due, for example, to an error of the Registrar, were deprived of their property. Unfortunately, the funds collected were used by the government for other purposes.

The Property Registry Law in effect since April 4, 2007, has created a new 2% tax on all conveyances in order to establish an indemnity fund. It is also possible to obtain title insurance from private insurers.

Purchase of Real Estate by Foreigners

There are no restrictions on foreigners purchasing real property in the Dominican Republic. Formerly, Decree 2543 of March 22, 1945 and its amendments required that foreigners obtain prior Presidential approval except in certain cases. Decree 21-98 of January 8, 1998 abolished this regulation and established as the only requirement that the Title Registry Offices keep a record, for statistical purposes, of all purchases made by foreigners.

Inheritance of Real Estate by Foreigners

There are no restrictions on foreigners inheriting title to real property in the Dominican Republic. Inheritance taxes have been recently lowered to 3% of the appraised value of the estate. If the beneficiary resides outside the Dominican Republic, inheritance taxes are subject to a 50% surcharge, raising the tax rate to 4.5%.

Inheritance of real estate is governed by Dominican law which provides for Aforced heirship: part of the inheritance must go to certain heirs by law. For example, a foreigner with a child must reserve 50% of the estate to that child despite the existence of a will or of the law of his country of residence. To avoid the application of Dominican rules of inheritance to the estate, it is advisable for foreigners to hold real estate indirectly through a holding company.

Investment opportunities in the Dominican Republic and Trinidad and Tobago

Trinidad and Tobago Minister of Trade Mariano Browne urged the private sectors of Dominican Republic and his country to continue embracing the opportunities in trade and investment.

During his speech at a two-day business forum between the two nations at the Hilton Trinidad, Browne ointed out there are opportunities for trade and investment between Trinidad and Tobago and the Dominican Republic, outside the energy sector.

He said Trinidad and Tobago enjoyed a record 15 years of economic growth and was only now experiencing an economic slowdown. He also mentioned exports to the Dominican Republic expanded by 105.5 per cent over the past seven years but were largely dependent on the energy sector.

"We are transforming Trinidad Tobago into a regional hub for business and trade by enhancing the business environment, promoting investment and of course, seeking market access and key partnerships with our regional colleagues, like the Dominican Republic," Browne stated.

Dominican Republic 86th place out of 183 world economy ranking

The World Bank published the Doing Business 2010 report which ranks the Dominican Republic in 86th place, out of 183 economies, climbing 16 places, up from 102 in the 2009 report.

According to Maria Victoria Abreu, of the National Competitiveness Council (CNC), the difference was made by the new Corporation Law (No. 479-08) promoted by the CNC. The new law calls for new modern corporate structures as well as significantly easing company formation, Abreu stated.

Between June 2008 and May 2009, 287 reforms were recorded in 131 economies, 20% more than the year before. Reformers focused on making it easier to start and operate a business, strengthening property rights and improving the efficiency of commercial dispute resolution and bankruptcy procedures.

Dominican Republic is the world’s 2nd happiest country

The world’s happiest country, followed by Dominican Republic, according to a report on happiness and satisfaction with life by a British organization, which evaluated 143 countries that gather 99% of the planet’s population, affirmed the Costa Rican press Saturday.

In Costa Rica, 85% of those consulted stated their feeling "satisfactorily happy in this country," Central America’s most prosperous and politically stable, according to newspaper La Nacion, which published the British organization The New Economics Foundation’s happiness index.
“Dominican Republic occupies second place, followed by Australia, whereas the United States ranked 114th and Zimbabue in last (143)," the newspaper said.

In the previous report in 2006, Costa Rica occupied second place, after Vanuatu, a Pacific archipelago.

The index measured three variables: life expectancy when born, satisfaction level expresses by the inhabitants and the ecological practices of each country.

“In Costa Rica, life expectancy when born is 78.5 years; 85% of the Costa Ricans surveyed said they are happy and being satisfied with their life, and the country is close to reaching a balance between what’s consumed and what the natural resources offer," said Nic Mars, one of the report’s authors.

Opportunities for all

Real estate in the Dominican Republic offers many opportunities, if we advantage of them, this sector can have a very positive effect on the country’s development and the quality of live of its entire population

The tourism industry is one of the most important pillars that support boost and diversify the country’s economic development. With an increase of 9.9% registered in 2006, this industry’s growth seems well on its way. However, the country now has its eyes on real estate as a means to complement the traditional passenger sector. The goal is to become one of the most important real estate tourism destinations worldwide.

Catalyst of multiple benefits

Real estate has a tremendous impact on different areas of our economy, such as construction, agriculture, manufacturing, business, tourism related activities, and other innovative services like health centers, spas and investments from pension funds. In addition, in indirectly benefits other industries by using products like dairy, plastic, paper, furniture, lingerie, home décor, arts, crafts, restaurants, bus transportation, tour agencies, entertainment and cultural events, shopping centers, clinics and much more.

All activities related to real estate create thousands of direct and indirect jobs in formerly stagnant communities, thus helping improve the quality of life of its population and distributing many benefits to the general economy.

Furthermore, the sector makes a significant contribution to the country’s income, strengthening our balance sheet.

Tangible results

An investment in real estate is very profitable, which is why investors find it so attractive, especially foreigners.

This year alone, internationally renowned projects have sold more than US$1,500 million. Their success helps strengthen the county’s image, not only as a tourism destination but also as a center for real estate.

TOURISM INCENTIVE WITH TAX BENEFITS (LAW 158-01)

Object of this Law Article 1. The Law for Promoting Tourism Development is hereby established for scarcely developed tourist destinations and new destinations in provinces and locations having great potential; as well as the Official Fund for Tourism Promotion.

Paragraph I. The purpose of this law is to increase the pace of a rational process of development of the tourist industry in regions with great potential or with excellent natural conditions for tourism exploitation throughout the country, which, whether or not declared as tourist destinations, have not reached to this date the expected degree of development, and which are listed below:
1. Tourist Destination No. 4, Jarabacoa and Constanza, (Decrees Nº1157, of July 31, 1975; and Nº 2729, of September 2, 1977);
2. Tourist Destination IV, expanded: Barahona, Bahoruco, Independencia and Pedernales (Decree No.322-91, dated August 21, 1991);
3. Tourist Destination V, expanded: Montecristi, Dajabon, Santiago Rodríguez and Valverde (Decree No.16-93, of January 22, 1993);
4. Tourist Destination VIII, expanded, comprising the province of San Cristobal and the municipality of Palenque, as well as the provinces of Peravia and Azua de Compostela;
5. Tourist Destination comprising the municipalities of Nagua and Cabrera (Decree 199-99);
6. Tourist Destination of Samana Province (Decree No.91-94, dated March 31, 1994);
7. The province of Hato Mayor and its municipalities; El Seybo Province and its municipalities; the province of San Pedro de Macorís and its municipalities; Espaillat Province and its municipalities Higüerito, Jose Contreras, Villa Trina and Jamao al Norte; the provinces of Sanchez Ramirez and Monseñor Nouel; the municipality of San Jose de Las Matas; the province of Monte Plata; Guaigui, La Vega and Puerto Plata.

Paragraph II. For this purpose, this law and its regulations establish the incentives to be given as stimulus to projects and investments pursuing the aforementioned goals and objectives.

Paragraph III. The tourist destinations of Puerto Plata or Costa de Ambar, Santo Domingo, and others that may have benefited from incentives in hotel installations, shall only benefit presently from the complementary offers established in article 3, excepting numeral 1 regarding hotel installations, resorts and/or hotel complexes.

PURPOSE OF INCENTIVES

Article 2. All persons or entities domiciled in the country undertaking, promoting or investing capitals in any of the activities set forth in article 3 and in the tourist destinations and/or provinces and/or municipalities mentioned in the preceding article may benefit from the incentives and benefits granted by this law.

Article 3. The establishment in our national territory of businesses engaged in the tourist activities listed below are hereby declared of special interest to the Dominican Republic:

1. Hotel facilities, resorts and/or hotel complexes;
2. Building facilities for conventions, fairs, international conventions, festivals, shows and concerts;
3. Businesses engaged in the promotion of cruises establishing any of the ports specified in this law as their mother port for the origin and final destination of their ships;
4. Construction and operation of amusement parks and/or ecological parks, and/or theme parks; 5. Construction and/or operation of port and maritime infrastructure for tourism, such as recreational ports and seaports;
6. Construction and/or operation of tourist infrastructures, such as aquariums, restaurants, golf courses, sports facilities, and any other that may qualify as a tourist activity.
7. Small- and medium-sized businesses whose market is fundamentally related to tourism (handcrafts, ornamental plants, tropical fish, endemic reptiles farms and the like);
8. Utility-infrastructure companies for the tourist industry, such as aqueducts, treatment plants, environmental cleaning, and garbage and solid waste removal.

INCENTIVES AND BENEFITS GRANTED BY THIS LAW

Article. 4. Businesses domiciled in the country and qualifying for the incentives and benefits established in this law are exempted one hundred percent (100%) from paying the taxes:

1. The income tax subject to incentives under article 2 hereof;
2. National and municipal taxes levied on the use and issuance of construction permits, including land purchase documents, provided that such land is used for one of the purposes described in article 3 hereof;
3. Import duties and other taxes, such as tariffs, fees, late charges, including the Tax on Transfer of Industrial Goods and Services (ITBIS) that are applicable to the equipments, materials and furnishings needed for initially equipping and putting into operation the tourist resort concerned.

Paragraph I. National and international funding given to such companies as are the subject of these incentives, as well as any interest thereon, are exempted from all taxes and withholdings; Paragraph II. Natural persons or bodies corporate may deduct up to twenty percent (20%) of their annual profits, provided that the same are invested in a tourist resort within the scope of this law;
Paragraph III. Full and absolute tax exemption shall be granted in connection with the machinery and equipment needed to achieve a high quality profile of products (including kilns, incubators, production control treatment plants, and laboratories), at the time of establishing the tourist project.
Article 5. No new taxes, tariffs, fees, etc. shall be established during the tax-exemption period. Article 6. The incentives and benefits referred to herein shall be strictly limited to new projects whose construction is started after the enactment of this law.

EXEMPTION PERIOD

Article 7.- The tax-exemption period for every tourist resort, business or company shall be ten (10) years from the date of completion of the construction work and the furnishing of the project subject of these incentives. A term not exceeding three (3) years shall be provided to begin the sustained and uninterrupted operation of the resort approved, the nonobservance of which shall result in the immediate loss of the exemption rights acquired.

Article 8.- A Council on Tourism Development (Consejo de Fomento Turístico-CONFOTUR) shall be in charge of applying this law. Such council shall be presided by the Secretary of State of
Tourism, and shall include:
1. A representative from the Ministry of Finance;

2. A representative of the National Association of Hotels and Restaurants, Inc. (Asociación Nacional de Hoteles y Restaurantes, Inc. [ASONAHORES]);

3. A representative of Tourist Operators (OPERTUR);

4. A representative of the Technical Undersecretariat of Tourism, who shall act as Secretary;

5. A renowned environmentalist (ecologist), chosen by the Ministry of the Environment.

6. A representative of the Ministry of Culture.

Article 9.- All applications for qualification under this law shall be filed at the Ministry of Tourism, which shall keep a record of such applications in such manner as established by CONFOTUR regulations.
Article 10.- All applications submitted to the Council for Tourism Development should be either approved or rejected, giving reasonable arguments therefor, within a period of time not exceeding sixty (60) days in all.

Article 11.- The qualification applications approved by CONFOTUR shall be the subject of a resolution containing a statement of the technical and financial characteristics on which such decision was based.

Article 12. The Ministry of Tourism shall see to the faithful observation of the provisions herein established, by means of inspectors, who, duly authorized, may conduct inspections in the entire area in the zone and, in the event of an infraction of the law, of its regulations or of all regulations in this respect, shall write a statement in connection thereto, the contents of which shall be considered as evidence until proven otherwise. Paragraph.- The Ministry of Tourism shall submit such statements of infractions to the Attorney General of the Republic, who shall in turn send them to the appropriate District Attorney.

Article 13.- Any violation of this law by individuals or bodies corporate, shall result automatically in the loss of the incentives, and in the obligation to pay all monies not paid under this law.

REQUIREMENTS FOR SUBMITTING APPLICATIONS

Article 14.- All new projects applying for the incentives and benefits created hereby should be drawn up and submitted together with the following documents:

1. An environmental impact study considering the type of project, the infrastructures required, the impact zone and the sensitivity of the area. Projects requiring minor tourist infrastructures shall be exempted from submitting an environmental impact study;

2. An architectural proposal, as well as the preliminary engineering details for such project, prepared by a professional or a renowned professional firm of capable Dominican professionals licensed to practice their profession. Any consultancy, advice or participation by foreign specialists in the development of the preliminary architectural or engineering studies, or in subsequent stages of project development, shall be in all cases made through a local professional firm or a firm duly authorized to practice such profession, which shall be in charge of and legally responsible for such development;

3. Those projects that anticipate handling large volumes of fuel and/or involve an intensive traffic of vessels should be accompanied by a contingency plan to prevent and control oil spills.

Paragraph.- All projects should have a preliminary approval of the appropriate urban and municipal planning agencies of the jurisdiction where the projects are to be situated.

Article 15.- Before starting construction, and upon obtaining the required authorizations therefor, all infrastructure projects should submit a bank guarantee to cover all environmental recovery expenses if any damage has been caused to the environment due to negligence of the promoter,

Article 16.- The Ministry of Tourism shall be responsible for guaranteeing that no infrastructure project is approved within protected areas intended for national parks, unless it is proven by means of studies that such project shall not endanger the preservation of the natural resources or the fauna and flora.

SANCTIONS

Article 17.- All businesses established under the incentives and benefits of this law shall guarantee the preservation of all natural resources and the protection of the environment.

Paragraph.- The Ministry of Tourism shall be responsible for guaranteeing that, during the construction and operation of any business established under the benefits of this law, all surrounding natural resources are respected and preserved.

Article 18.-Failure to maintain the level of quality and quantity of services in the category stated during the tax-exemption period, upon notice by the Ministry of Tourism and after expiration of the term given for such purpose, as established by regulations, shall determine the suspension of the incentives and benefits granted.

SPECIALIZATION OF FUNDS FOR TOURISM PROMOTION

Article 19.- With the objectivo of promoting the Dominican Republic more effectively in the international tourist market, and by virtue of the creation under this law of new tourist destinations, the Official Tourist Promotion Fund is hereby established, to be administrated by the Ministry of Tourism with the advice of the private sector, mainly the National Association of Hotels and Restaurants (Asociación Nacional de Hoteles y Restaurantes, Inc. (ASONAHORES), and other institutions from that sector. Such fund shall be managed according to the following provisions:

1. Fifty percent (50%) of all proceeds from the application of the aeronautics tax per passenger transported, at entry and departure, in non-scheduled international or chartered flights, collected by the Department of Civil Aeronautics, shall be applied to the Official Tourism Promotion fund managed by the Ministry of Tourism;

2. The remaining fifty per cent (50%) shall be allotted to the operations fund of the Department of Civil Aeronautics, to be used in specific programs of said office, in order to improve the security of civil aviation in the Dominican Republic;

3. All proceeds from tourist cards in all airports and seaports in this country may be deposited directly, in such percentage as has been established, in the respective accounts of the institutions mentioned in 1 and 2 above.

OTHER PROVISIONS

Article 20.- The Executive Power is given a term of one hundred and twenty (120) days after the enactment of this law, to prepare and publish the regulations pertaining to the same.

Article 21.- The statements herein contained shall prevail over any provision established in previous laws or in administrative measures previously established by the Executive Power.

Dominican Republic joins the International Renewable Energies Agency

The Dominican Republic today joined the International Renewable Energies Agency (IRENA), which promotes energetic sources such as alternatives to fossil fuels, issue which Foreign Relations minister Carlos Morales called "a new paradigm of the United Nations."

The country became the entity’s 80th member on January 26 in the original conference of Bonn, four months after the preparatory meeting was held in Madrid.

"It’s a fundamental organization for the impulse of renewables, which as well, is one of the new energy paradigms of the set of the United Nations," the Dominican official said when he met in Berlin with his German par, Heinrich Tiemann.

Together with Dominican Republic, Mexico, Guatemala, Honduras, Belize, Panama, Costa Rica and El Salvador among others countries, belong to the agency, which Morales said bolsters the future of the region’s energy development.

IRENA is the fruit of a German initiative, and Spain and Denmark soon joined the agency which promotes renewable energies around the world and helps surmount the obstacles to their development.

Foreign Investment Law of the Dominican Republic (LAW 16-95)

The Dominican State recognizes that foreign investment and technology transfers contribute to the economic growth and social development of the country insofar as they favor the generation of jobs and foreign currency, promote the process of capitalization and provide efficient production, marketing and management methods;
It is advantageous that investors, whether foreign or national, should have similar rights and obligations in the investment fields;

THE FOLLOWING LAW HAS BEEN GIVEN
Art. 1.- For the purposes of this law on foreign investment, the following shall be understood to be:

a) Direct Foreign Investment:
Contributions originating from abroad, belonging to foreign individuals or corporations or individual nationals residing abroad, to the capital of a company operating in national territory;
b) Foreign Reinvestment:
That foreign investment made in whole or in part from the profits originating from a registered foreign company into the same company that generated them;
c) New Foreign Investment:
Foreign investment made in whole or in part from the profits originating from a duly registered direct foreign investment into a company different from that which generated the profits;
d) Foreign Investor:
The owner of a duly registered foreign investment;
e) National Investment:
That made by the State, municipalities and national corporations domiciled or resident in the National territory, as well as by foreign individuals residing in the national territory that do not meet the conditions for obtaining the certificate of foreign investor;
f) Central Bank:
This is the Central Bank of the Dominican Republic.
Art. 2.- Foreign Investment can assume the following forms:
a) Contributions in freely-convertible currency, exchanged in a banking institution authorized by the Central Bank.
b) Contributions in kind, such as industrial plants, new and re-conditioned machinery, new and re-conditioned equipment, replacements, spare parts and parts, raw material, intermediate products and final goods, as well as intangible technological contributions; and
c) Those financial instruments the Monetary Board relegates to the category of foreign investment, except those that may be the product of contributions or internment of an operation for the re-conversion of the Dominican foreign debt.
PARAGRAPH I: Independently of the investments foreseen in item b) of this article, contracts for technology transfer can be signed with foreign individuals or corporations, such as contracts for the license of technology, for technical assistance, basic and detailed engineering.
PARAGRAPH II: Intangible technological contributions are understood to be funds originating from technology, such as Trademarks, product models or industrial processes or services, technical assistance and technical knowledge, franchise and management assistance. The application regulation of this law shall determine the general framework that will be applied to technology, including those areas in which the capitalization of intangible technological contributions will be allowed.
Art. 3.- Targets of Foreign Investment:
a) Investments in the capital of an existing or new company, as per the provisions contained in the Commercial Code of the Dominican Republic, including the establishment of branch offices, pursuant to the conditions set by the laws.
Foreign Investment in share companies must be represented in nominative shares.
b) Investments in real properties located in the Dominican Republic, with the limitations in effect and applicable to foreigners; and
c) Investments towards the acquisition of financial assets, pursuant to the general norms issued in this area by the monetary authorities.
Art. 4.- Within 90 days of making its investment, any foreign company or investor must register it with the Central Bank of the Dominican Republic. For these purposes, the following documents will be filed:
a) Application for registration, containing all the information relevant to the invested capital and the area in which the investment has been made;
b) Proof of entry into the country of the foreign currency or physical or tangible goods.
c) Formative documents of the commercial corporation or the authorization of the operation of branch offices via the setting of domicile.
PARAGRAPH I: Once the document filing requisites have been met, the Central Bank will issue immediately to the applicant a Registration Certification of Direct Foreign Investment.
PARAGRAPH II: Foreign Re-Investment and New Foreign Investment, described in article 1 of this law, shall also be registered with the Central Bank, meeting the requisites provided by the regulation for applications.
PARAGRAPH III: In the case of companies operating in Industrial Free Zones, the registration and delivery of information shall be made in the National Council of Export Free Zones, which shall have the obligation of communicating this immediately to the Central Bank.
Art. 5.- Foreign Investment will not be allowed in the following categories:
a) Disposal and remains of toxic, dangerous or radioactive garbage not produced in the country;
b) Activities affecting the public health and the environmental equilibrium of the country, pursuant to the norms that apply in this regard; and
c) Production of materials and equipment directly linked to national defense and security, except for an express authorization from the Chief Executive.
PARAGRAPH I: When the Foreign Investment affects the eco-system in its area of influence, the investor must present a proposal with the provisions for recovering the ecological damage it may cause.
PARAGRAPH II: The competent authorities related to the area in question shall have the responsibility for compliance with the provisions contained in this article.
PARAGRAPH III: Foreign investments shall be made in each area of the national economy, pursuant to the conditions and limitations imposed by the laws and regulations governing each one of said areas.
Art. 6.- Investors and the companies or corporations in which foreign investors may participate or be owners, shall have the same rights and obligations that the laws confer upon national investors, save the exceptions foreseen in this law or in special laws.
Art. 7.- The individuals or corporations that make investments defined in article 1 of this law, shall have the right to remit abroad, in freely-convertible currencies, without the need for prior authorization, the total amount of invested capital and the dividends declared during each fiscal period, up to the total amount of the net current profits of the period, upon payment of income tax, including the capital gains made and registered in the books of the company according to generally accepted accounting practices.
They can also repatriate, under the same conditions, the obligations resulting from technical service contracts where fees are established for the purposes of technology transfers and/or contracts for the local manufacture of foreign brands, which include clauses for the payment of royalties ("regalías") as long as said contracts and the amounts or procedures for the payments involved have been previously approved by the Central Bank of the Dominican Republic or an official agency subsequently designated to coordinate, facilitate and supervise everything related to foreign investment.
Art. 8.- Within the following 60 days, the foreign investor must convey to the Central Bank the following:
a) Statement of profits contained in the fiscal year, duly certified by a Certified Public Accountant ("Contador Público Autorizado"), specifying the percentage of said profits that were subject to remittance;
b) Documentary proof of settlement of tax commitments.
Art. 9.- Non-compliance with this obligation will carry the applicable sanctions contained in the law that governs the obligation of supplying information to the Central Bank of the Republic.
The Central Bank must inform the National Congress annually of everything related to the flows of foreign investment in the country.
Art. 10.- Article 12, added to Law 622, of 28 December 1973 to Law 173, of 6 April 1966, is modified, so that hereinafter it reads in the following manner:
"Art. 10.- Foreign individuals and corporations, as well as nationals, can engage in the Dominican Republic in the promotion or handling of the importation, sale, rental or any other kind of marketing or operations of merchandise and products of foreign origin that may be produced abroad or in the country, whether acting as agent, representative, receiver of commissions, exclusive distributor, licensee or under any denomination. However, if the individual or corporation that is to engage in this activity has maintained a commercial relationship with local licensees, he or it must agree to and deliver beforehand and in writing the fair and complete indemnities for the losses and damages produced by such cause, on the basis of the factors and in the manner described in article 3 of this law."
Art. 11.- This law repeals Law Number 861, dated 22 July 1978, and Law No. 138 dated 24 June 1983. In like manner, it repeals item d) of article 3 of Law No. 251 of 11 May 1964 on International Fund Transfers.
Art. 12.- (Transitional). In the case of accumulated profits from previous periods retained as a consequence of the limitations on remittances established by Law No. 861, each company shall have the right to request the approval of a program for gradual repatriation, with a minimum of 5 years for fully effecting it.
The reassessment surpluses registered in the capital accounts of companies that have reassessed their assets will not be regarded as foreign investment for the purposes of repatriation of capital, except when said revaluation profits have been converted into liquid assets for the sale to third parties or parties related to the company.
Art. 13.- This law repeals any other express legal provision contrary to it

Ten Easy Steps to a Smart Purchase
Follow these 10 steps for a smooth purchase and rest assured your real estate transaction will be protected.

Buying real estate is one of the most important investments a person or company can make.
That is why it’s essential that you take into account several precautions before signing a contract. Our experts recommend the following steps before buying property:

1. Research the Title Certification.

Although the law and government establish conditions of judicial security, we recommend that the buyer or a legal representative examine the document’s authenticity.

2. Check the property’s legal standing.
Consult the legal situation of the property at the Title Registration offices, the Land Court and the General Internal Revenue Directorate (DGII). This simple step will reveal any restrictions, embargoes or outstanding taxes that may interfere with the purchase.

3. Find out where to go for all required procedures.
The office in charge of the property’s legal procedures and investigations will vary depending on its location within the national territory. For instance, if the property is located in Sosúa, the buyer should go to the Title Registration office in the province of Puerto Plata.

4. Hire a lawyer.
Dominican law grants all individuals the right to access the Title Registration offices for real estate information; however, given the complexity of the process and land jurisdiction system, we recommend you hire a local lawyer or land surveyor.

5. Research zoning laws.
The use or development of property may be regulated or limited according to its location. It is very important to examine environmental, urbanization, public embellishment or other municipal regulations.

6. A sk about other related payments.
Find out about all utilities and private services related to the property like maintenance, water, electricity, garbage recollection, cable television, as well as the payment to employees (construction workers and contractors) if you plan to build.

7. Inspect the property.
Once the legal status of the property has cleared, it’s important to examine key factors of its physical condition:
a. Actual appearance.
b. Location.
c. Current use of the property.
d. Size.
e. Boundaries and adjacent properties.

8. Speed up the selling/buying process.
The closing of the real estate transaction can be done more efficiently if both the buyer and seller provide all the documents and information needed on time.

9. Double check the sales/ purchase contract.
Because every sales/ purchase agreement is different (various payment arrangements, participants, subject matter, place where it is signed, selling price, etc.), you must always verify that all the information is clear and accurate.

10. Register your purchase quickly.
It is best to transfer the property immediately after the closing of the transaction. That way you will avoid hassles or even fraud.

Law and Regulations: Guidelines that Make Better Neighbors


The Condominium Law (number5038) was approved 49 years ago, on November 21, 1958, in a context that was very different to today. However, we don’t currently need a change in the law, but rather the creation of clear and specific regulations for the good relations between co-owners.

Traditionally, property registered under the Condominium law has only complied with the minimum requirements established in its text:

• Provide a description of the apartments or establishments.
• Determine the percentage of common costs.
• Number of votes required for decision-making.

However, in the current context, where the vertical growth of the city more than a reality is a necessity, the Condominium Law takes on renewed importance. It is the moment to create new regulations to the law so that, in an effective and real manner, we can have the adequate mechanisms for the prevention and solution of problems faced everyday by co-owners of these properties.

To this end, we need to reform the Condominium law, since the problems faced by co-owners are not caused by the lack of a legal framework, but to its incorrect application. Law number 5038 creates the action framework in which the parts are free to create their own rules of coexistence, as long as, of course, they fulfill the minimum requirements established by the law.
Under this system, it is perfectly possible to establish the rules in a way that is clear and specific, so that every person interested in investing in a condominium can learn ahead of time the regulations that will rule the daily living conditions.

This means, for example, setting clear aspects such as external aesthetics, security mechanisms, colors, curtain design, garbage pickup service, moving hours, etc.

Golden rules

The law establishes two fundamental principles for the payment of common expenses and compliance to other condominium norms:

• First, the possibility of limiting the use and enjoyment of common areas.
• Second, the enjoyment of privileges by co-owners who are up to date with the payment of common expenses.

Therefore, those co-owners that cover the common expenses of debtors have the right to register for a privilege in their favor over the property of the non-paying co-owner.

Although some could interpret that the application of these principles limits the right over property, we must remember that in every agreement in society the ultimate goal is to make sure that individual rights don’t interfere with the rights (individual or collective) of other people. Unfortunately, in most cases, this goal can only be accomplished through the establishment of punishments that obligate the parts to comply to the agreement.

In this sense, more developers, owners and investors are interested in protecting their rights and investment. They dedicate time and effort to the creation of condominium regulations that adjust to the project and the common interests of co-owners.

This is an example that should be followed, since good condominium guidelines can guarantee the enjoyment of the investment in an environment where it is possible to live in peace and harmony with all co-owners.

Dominican Republic with endless potencial

Investment in real estate for tourism purposes can have an impressive multiplying effect on the national economy. However, in order to successfully achieve it, we must first overcome the short sighted idea that these constructions merely support tourism.

Our country’s tourism potential is well known. In fact, during the last few years we have witnessed aggressive advertising campaigns publicizing the many virtues of the Dominican Republic.

Countless media cable, television, magazines, airlines, documentaries, surround us with the paradise, like images of our country.

Without a doubt, the industry’s growth is known by even the most absent minded Dominican, since it is currently the motor behind our economy.

However, what happens with the tourism real estate potential?

In the beginning, Dominican businessmen in the home construction industry remained indifferent, even ignorant, to the potential of the real estate business linked to tourism. Undeniable proof of this is that the majority of the projects in the previous decades started with foreign capital.

Probably, the vast majority of these investors came for the first time as tourists and, once in the country, identified a market niche completely unexplored and decided to invest in modest residential projects. That demand grew as the Dominican Republic consolidated as a tourism destination.

Real estate takes off

After those first projects, came the planned communities, which responded to the great demand for rooms generated by the tourism explosion. This became known as the “tourism real estate boom” in many areas, most of them linked to the hotel industry.

The growth of the tourism industry and demand for real estate grew so impressively, that in many areas the price of real estate skyrocketed.

Although late, Dominican businessmen opened their eyes to tourism real estate investment, especially in the eastern part of the country. This alternative played
an important role for the local investor, in light of the economic crisis that the country experienced.

Dominican investment involved not only agents directly linked to the construction industry. Other professionals and experts (builders, carpenters, dentists, salesmen, doctors, bankers, etc.) also took advantage of the trend, creating a highly productive chain of economic benefits.


With time, and due to the profitability and continuous growth of real estate demand, other projects of high investment requirements were conceived and targeted towards a more sophisticated and demanding clientele.

These, in turn, helped modest residential projects increase their value and consolidate the market, for the benefit of the entire population.

The key: planning
The real estate boom is not necessarily 100% positive, since it also generated a rise in non planned constructions.

Unfortunately, today we can see these supposedly residential areas located next to a bar, disco, restaurant or entertainment venue.

This goes to show that the initiatives for zoning in certain communities or areas have failed. However, sectors that support the hotel industry feel these zoning efforts could be enough to mitigate the problems we currently face.

IT IS OUR OPPORTUNITY TO DIVERSIFY PRODUCTS AND INCOME!

The tourism real estate sector is an endless source for people who want to find a second home (not to mention that the Dominican Republic offers countless benefits for whoever chooses to live here).

The Law for Foreign Investment, for example, allows the attainment of fresh capital, which is why it’s important that they be placed not only in products, companies or hotels, for instance and be geared towards other interesting aspects of the business. In this sense, the tourism real estate sector not only offers the multiplying effect of tourism – income, jobs, products, trade, etc., but also moves other sectors, such as construction, exports and financial.

Multiplying effect

When a foreigner buys property in the country, his transaction has a positive effect in many ways. The builder and seller, for example, receive the income from the purchase; the government obtains tax money; the lawyer offers his professional services; home furniture stores sell their stock; jobs are created for maintenance personnel for the homes (gardeners, plumbers, maids); etc.

In addition, when these foreigners spend a season in the country, their stay usually extends for a few months, they shop in local stores, visit entertainment venues, open bank accounts to manage their money and invite friends and family to visit them (some of which may end up buying property too). In other words, if we add what remains in the national economy after just one transaction, we can reach the conclusion that its multiplying effect is vital for the entire population.

For that reason, we are all responsible for not limiting our potential. The tourism real estate sector should not be considered a mere support for tourism, or just construction and exports. This is one of the main motors behind national economy!

It is important to plan, because otherwise we are hindering our potential. If we plan to just support the tourism sector, we are focusing in the tree and loosing sight of the forest. When creating new laws, determining densities, permits, zoning, advertising, incentives, etc. we must take into consideration the needs of the real estate sector can both support tourism and developed on its own.
The sky is our limit! After all… we have endless potential!

Meeting with the communities of the Dominican Republic

President Leonel Fernandez proposed a strategic alliance between the State and the different sectors from the country to be able successfully to meet the communities social demands.

Speaking at the start of a meeting of his Cabinet gathered in the northern city, the chief executive said the solution to the current problems isn’t just the Government’s responsibility, in reference to the strikes staged in several provinces across country in the last few weeks.

The meeting with senior officials began at 11 a.m. in the Offices of Provincial Governor, where the ministers of the Economy, Temistocles Montas, and of Hacienda, Vicente Bengoa and Taxes director Juan Hernandez of the measures taken to face the affects of the world financial crisis of the country.

The Cabinet has sparked expectations among business leaders who expect the chief executive to announce the restart of construction on several currently stalled works.

Cut taxes to allow return of Dominican capital

The tax agencies will submit a bill that allows the entrance of capitals that Dominicans hold abroad, by paying only a 1% tax instead of the current 25%.

Hacienda minister Vicente Bengoa and Internal Taxes director Juan Hernandez, made the announcement in a press conference yesterday, where they said the measure aims to make it easy for Dominicans to bring their capitals to invest them here and withdraw them from the international financial sector, where massive bankruptcies have occurred.

Bengoa clarified that the measure implies some conditions, such as that the funds must be deposited in foreign banks and not of doubtful origin, to keep the tax break from being used as a source of money laundering.

He said the suggestion responds to the interest by Dominican businesspersons who’ve expressed their desire to bring their capital abroad, but haven’t done so because of the high taxes they would have to pay.

The legislation would be submitted to Congress as soon as president Leonel Fernandez approves the suggestion.

Dominican Government submits to reduce taxes

The government submitted to the Senate to reduce taxes:

The first is to deduct all education expenses from income taxes if the students are nonworking minors; the second to lower from 5 percent to 0.5 percent the advance payment companies pay, and the third is to renegotiate mortgage loans with other banks without additional fees.

Hacienda minister Vicente Bengoa, Internal Taxes director Juan Hernandez, and the Presidency’s Legal advisor Abel Rodriguez del Orbe handed the bills to Senate president Reinaldo Pared, who said Congress will give them priority because they benefit the population.

Bengoa said the bills were the result of the dialogues held in the recent national summit and that measures are being adopted that merit Congressional approval.

He said the proposed legislation means a sacrifice of revenues for the government, which it will assume given the international recession and the country’s economic slowdown.
The official added that the measures give companies more liquidity and less need to dismiss more workers.

"For the country to fail the world would have to fail first,” says, Fernandez

President Leonel Fernandez said in the context of the global financial crisis, even in the worse case scenario, "for the country to fail the world would have to fail first.”

The chief executive said Dominican Republic’s challenge is to maintain economic growth with low inflation, and stability in the exchange rate and external accounts, and affirmed that the Government doesn’t plan to raise taxes.

He said it’s somewhat surprising that in last year’s fourth quarter, inflation was 4.5% from a projected 12%.

On the 2009 projections Fernandez said the Central bank projects a growth of three percent, compared with that of The Economist, which places it at a more moderate 1.0%.

Fernandez spoke on the topic Vision and priorities for the next five years, in the “Table of Businesses in the Dominican Republic, responding to the economic crisis global," organized by the The Economist Group, with the attendance of business leaders, specialists in international business and Government officials.

Dominican Republic remains in demand for tourism investors

As other hotel markets suffer, planned resorts indicate Dominican Republic remains desirable as Philadelphia-based AMResorts has announced that plans to develop two new luxury resorts at Cap Cana at a cost of US$200 million.

Located on the eastern tip of the Dominican Republic, Cap Cana is a new 30,000-acre Caribbean resort development endeavor. The master planned destination, dotted with premier golf courses, upscale retail options and other amenities, is on target to become home to the Caribbean's largest in-land marina for mega yachts.

AMResorts will build Zoëtry Pearl Sands Cap Cana and Pure Secrets at Cap Cana along beaches within close proximity to the Punta Cana International Airport. The lifestyle property Zoëtry Pearl Sands will, in addition to its upscale accommodations, feature restaurant and entertainment venues, as well as elements focused on feeding visitors' emotional and physical health.

Pure Secrets at Cap Cana will be designed specifically to accommodate adults and couples, and will offer entertainment options and a spa. Both resorts, which will target the affluent set in the U.S., are on schedule to open their doors in 2010.

Statistics reveal that the country's pipeline of ground-up new hotel construction, condo-hotels and real estate conversion projects consists of 16 projects with an aggregate 5,981 rooms.

In terms of Latin American countries with the most hotel construction activity, the Dominican Republic ranks fourth, trailing leader Brazil, followed by Mexico and Argentina.

Austria Development Bank announces soft, long-term financing for Dominican Republic

To provide a response to the need for funding of projects in developing countries such as Dominican Republic, Austria’s Development Bank, Oesterreichische (OeEB) Entwicklungsbank AG, partners with the private sector to develop businesses and an effective, properly working economy.

“Economies in many developing countries are growing vigorously. Yet large numbers of people there still live in great poverty. What they frequently lack is access to education, to employment and to modern infrastructure,” the enhtity says, citing research published by the OECD’s Development Assistance Committee (DAC). “An economy that is working properly is a crucial factor in fighting poverty.”

It notes that to allow the building and spreading of business expertise, only functioning cycles of economic processes and a prospering private sector create lasting employment and incomes.
“Austria wants to provide special support for the close partnering of business and development cooperation,” it says, for which its support is extended both to activities in Austria and in developing countries.

The OeEB’s says that as part of its government-appointed mission and expertise, its mandate is to facilitate and support private sector projects with development benefits and to effectively advance Austria’s goals for international development and foreign trade, and benefits from the international know-how of the OeKB Group.

The OeEB is a member of European Development Finance Institutions (EDFI), the network of bilateral European development banks, and supports the private sector in developing countries, on commercial terms. “As key criteria, projects must be commercially viable and create lasting benefits for regional economic development.”

The Austrian entity stresses that the market regions it serves are regarded as relatively risky by investors and suppliers. “As a result, tailored financing solutions for a wide range of long-term investments are typically not available in these countries through regular commercial channels, and its special mandate allows OeEB to accept higher of amount, tenor and country risk.”

As to its services the OeEB clarifies that it’s a complement to the respective offerings of the Austrian Development Cooperation of the Foreign Ministry, the Austrian Development Agency (ADA) and the Austrian Ministry of Finance, and can also support projects in countries for which no financing from Austrian partners has been possible in the past.

“The services of OeEB are both subsidiary and complementary to those of the commercial banking sector – in other words, OeEB products fill gaps between the products of the commercial banking sector,” it said, whereas to provide additional support to projects, funds from Austria’s federal budget are earmarked for so-called “Advisory Programs,” with funds aimed at concrete and targeted support for projects that boost development.

Canadian doctors attend to improve medical services in the Dominican Republic

Canada Doctors of the World, an international charity organization, supports the Municipal Hospital of San Luis, in the outskirts of the capital, improving the medical services for women and infants of its adjacent communities.

The launch of the project “Improving the Health of the Population of San Luis and Adjacent Zones” marks the start of the work in that hospital, including the construction of areas for surgery and a delivery room.

In response to the high demand for health services in this community and at their request, the project “Voluntary Sector Program” was approved and developed by the Canadian International Development Agency (CIDA) and the Government of Quebec (MRI), with a financing of C$650,000 for three years, to benefit more than 50,000 people in different areas, bases in the Hospital San Luis.

Present in the event were International Cooperation secretary America Bastidas; Canada ambassador Patricia Fortier; Doctors of the World president Dr. Nicolas Bergeron, and main director André Bertrand, Country Coordinator Dr. Marie Gessy Richard, and Government, Santo Domingo Province, and San Luis City Council officials.

Also present in the event, which coincides with the Doctors of the World’s 10th Anniversary, were the famous Canadian comedians Natalie Brawn and Suzanne Clément, both appointed the organization’s good will ambassadors, who took part in the tour of the facilities.

Doctors of the World Canada (MdM) is a non-governmental organization whose primary goal is to provide medical assistance and help vulnerable populations in situations of poverty, natural disasters, military crisis and exclusion around the world, and currently develops projects in Canada, Nicaragua, Haiti and Zimbabwe.

Project to establish how much Dominican property's are worth

The National Cadastre Agency (DGCN) negotiates with two companies, a Spanish and another Israeli, to conduct the first mapping of the entire country’s real estate divisions.

DGCN director Bolivar Marte said the companies would be paid 25 million dollars for the project, that would have to be approved by Congress.

He said the mapping is of great importance, since the country’s real estate includes areas for farming, tourism, commercial and water sources, and in the course of two years all citizens will be able to know “how much the Dominican Republic is worth in each of its areas.”

The Cadastre director said the mapping would help solve the serious problem of land titling, in the sense that each property, regardless its size, will be in a cartographic system in which anyone will be able to see, thanks to satellite communications where a house, a building or a piece of land are located.

Marte said the companies that would conduct the mapping assure that it would be concluded in two years, with minimum errors, and includes an ad campaign in all the media to inform the population about the project.

Dominican Telecomm builds antenna towers to improve phone service

Dominican Telecomm Institute (Indotel) president Jose Rafael Vargas said the installation of antennas and towers expands the coverage and improves the quality of landline and wireless telephone service across the country.

The official, speaking with community organizations and leaders prior to inaugurating 15 Informatics Training Centers (CCI) in San Juan de la Maguana and Elías Piña, said the facilities contribute to technologically develop this zone.

Vargas, who was recognized by San Juan’s authorities during the activity held in provincial government offices, thanked those present for their support of the official program to provide Internet access of the youngsters and adults.

"If you see many antennas, many towers and many excavations being done everywhere, blame Indotel, we are to blame; it’s the only way we have to solve the communication problem in communities," Vargas said.

Palmera de Cabarete Resort & Spa to open Dominican Republic 2011 in

Palmera de Cabarete Resort & Spa, opening in 2011 as the first luxury resort on Dominican Republic's north coast, has named KWE group, a Miami-based travel, hospitality and lifestyle marketing firm, to handle global marketing and sales.

The $200 million, 138-suite resort is located on 19.5 beachfront acres on 1,000 feet of private shoreline, part of the largest expanse of uninterrupted beach in the Caribbean.

The announcement was made by Darren Law, President and Chief Executive Officer of NID Holdings LLC, developers of Palmera de Cabarete.

KWE group specializes in luxury lifestyle with a focus on destinations, resorts and real estate, and is recognized as a thought leader in luxury lifestyle trends. The firm is headed by President and Chief Strategist Karen Weiner Escalera, who will be responsible for the international marketing and public relations for Palmera.

Ms. Escalera was recently named one of the "Top 25 Most Extraordinary Minds in Sales & Marketing" by the Hotel Sales and Marketing Association International (HSMAI).

KWE group's real estate division is directed by Vice President Sandy Carrier, a top real estate sales and marketing professional in the luxury market. The firm's program for Palmera de Cabarete includes international real estate marketing and sales including analysis and planning, sales strategies, development of an elite broker network program, and hands-on involvement in the entire sales process.

Ms. Carrier is a Certified International Specialist (CIPS), a charter member of the Broward Master Broker Forum, and an active member of the Urban Land Institute (ULI), South Florida/Caribbean Council. Her accomplishments include marketing and sales for Ocean Reef Club in Key Largo, Fla., Arvida's Weston luxury home community in Weston, Fla., EarthMark Companies' Mariner's Club in Key Largo, Fla., and the DUO luxury property on the Diplomat Golf Course in Hallandale Beach, Fla.

Palmera de Cabarete's management and design team enjoy a pedigree of the world's finest resorts, from Ventanas al Paraiso in Los Cabos to The Regent Palms in the Turks and Caicos.

Plans include 138 one- to three-bedroom suites ranging from 2,000 to more than 4,500 square feet. Three expansive, oceanfront freshwater infinity pools provide a focal point for Palmera de Cabarete Resort & Spa, and will be ensconced in eco-friendly garden landscaping.

Amenities will also include a full-service branded spa and wellness facility, tennis, gourmet dining, conference facilities, room service, 24 hour concierge, and children's activity program.

Palmera de Cabarete Resort & Spa will offer the first five-star luxury living experience in Cabarete, the adventure sports capital of the Caribbean, offering world-class windsurfing, kite boarding, surfing, mountain biking, hiking, canyoning, and white water rafting.

Dominican Republic strengthens commitment to renewable energy

The Dominican government has further demonstrated its commitment to sustainable development by signing an agreement with U.S. firm Sunovia Energy Technologies for the installation of the country's first solar energy plant.

The contract, signed within the scope of a Dominican law providing incentives for foreign investment, will involve an investment of roughly $200 million and provide jobs to some 2,500 workers.

"President Leonel Fernandez and his team have shown a tremendous passion for solving the country's energy difficulties; they've realized that having a bilateral focus, including the responsible production of renewable energy, and adopting practices that conserve energy are critical steps that must be taken if the country is to achieve energy independence in the long term," Sunovia Energy Technologies CEO Carl Smith said.

For his part, Eddy Martinez, secretary of state and executive director of the Dominican Republic's Export and Investment Center, said the agreement "is the result of the intense work we've carried out for years, in keeping with the worldwide trend of reducing dependence on crude and, at the same time, creating new jobs and attracting new investment to the (country)."

The contract signed with Sunovia Energy Technologies is part of a wave of new investment in renewable energy in the Dominican Republic that also involves other U.S. companies such as Masada Resource Group, STC Engineering and Burbano Recycling, which have set up electricity and bio-fuels plants.

Martinez said, meanwhile, that his country not only wants to attract investors in renewable energy, but also to expand investment in the stem-cell research and genetically modified foods sectors and in the development of hybrid vehicles.

Tourism Ministry says ‘Dominican Republic…Has it All’

“Dominican Republic… Has it All” is the Tourism Ministry’s (Sectur) slogan to promote the country locally and abroad, as “a mature” destiny, with potential attractions far beyond sun and beach.

Speaking of the slogan in Dominican Republic’s stand in the International Tourism Fair Fitur 2009, Tourism minister Francisco Javier Garcia said it’s a new concept to project the country’s diversity of attractions including nature, adventure, historical and cultural tourism.

“This slogan will mark the start of an aggressive international ad campaign for the world to know that the only thing Dominican Republic lacks is snow.”

He said adventure and cultural tourism will be re-launched, and the design of the plan “Tourism is for all” is in the works, to spur Dominicans to be tourists within their own country.

Garcia Also noted that Sectur develops several projects, such as the National Road Signs Plan and an inventory of the entire country’s tourist attractions, to publish literature of easy access for foreign as well as local visitors.

“We want Dominicans to do internal tourism, just like the tourists who visit us.”

Canada ambassador expects more tourists, investments to Dominican Republic

Canada's ambassador Patricia Fortier said the growth perspective in the flow of tourists and investments from her country to Dominican Republic are promissory for 2009.

The diplomat, who met with Tourism minister Francisco Javier Garcia to discuss the bilateral tourism agenda, stated her country’s interest in bolstering agreements on Canadian cooperation and investments.

Fortier said there’s currently “an umbrella of concrete possibilities” to expand the cooperation with the Tourism Ministry (Sectur), given the country’s increasing importance as a tourist destination, as shown by the sharp increase in Canadian tourists in the last five years.

The ambassador said she shares Garcia’s optimism with the increase of tourists from Canada, despite the economic crisis in the international market.

Only the United States surpasses Canada in the number of tourists, and posted a 17.9% jump last year, with 561,534 at the close of November, according to recent figures of the Central Bank.

Dominican financial system posts gains of more than RD$12B

Dominican Republic’s financial system posted after-tax gains of more than RD$12 billion, or RD$2.6 billion more than the previous year, said a Banks Superintendence report released today.

“Of the total of these gains after taxes, multiple banks made RD$10.2 billion, almost RD$2.0 billion more than 2007, and equal to a yield of 39.1% on paid capital. The savings and loans associations poster gains of RD$1.2 billion, equal to a yield of 8.3% with respect to their asset reserves," it said.

The report, Dominican Financial System During 2008, notes that the world’s economy underwent “an atmosphere of great turbulences in international the financial markets, which brought about the deceleration of the majority of the developed countries, the fall of the demand for goods and services, the contraction of international credit, as well as the increase the financing costs.”

“This international financial conjuncture presented some challenges at the local level. Those challenges were faced by measures of economic policy,” adds the report, released in a press conference headed by Banks Superintendent Rafael Camino.