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The Dominican Republic

The Dominican Republic (DOM) is in the Caribbean, on the eastern two-thirds of the island of Hispaniola, between the Caribbean Sea and the North Atlantic Ocean, east of Haiti. With its friendly and hospitable population of 9 million, the Dominican Republic is the Caribbean's largest democratic country. With a land area of 18,700 square miles, it is larger than the Bahamas, Jamaica, and Puerto Rico, all the Virgin Islands and the entire French West Indies put together.The Dominican Republic enjoys a level of political stability and economic development unique to the region. A constitutional democracy since 1966, with presidential and congressional elections held every four years; it enjoys close ties to the United States government and is one of six Caribbean countries with a tax treaty with the United States. The country has shown the highest economic growth rate of all Latin American and Caribbean countries, marking the fifth consecutive year that the country had broken its own annual growth record. Infrastructure, for the most part, is highly developed. Transportation, both at a local and international level, is excellent, with a domestic road network that is the best in the region. The telecommunications system is one of the most advanced not only in the Caribbean, but in the world.

History

The Dominican Republic was discovered on December 5, 1492, by Christopher Columbus during his first voyage to the New World. At that time, the island of Hispaniola (as Columbus named it) was called "Quisqueya" by the Taino Indians who occupied the land. With a population estimated around 600,000, the Tainos (meaning "the good") were peaceful and hospitable to Columbus and his crew of Spaniards. Columbus himself grew a particular fondness for Hispaniola, describing it in his journal as "a beautiful island paradise with high forested mountains and large river valleys."

Climate

The Dominican Republic enjoys a year round privileged tropical maritime climate. Its 17ª 36' - 19ª 58' latitude places it at the border of the tropical zone. The lowest temperatures occur in the mountain areas near Constanza, where temperatures have dropped to 32 degrees Fahrenhei (degrees Celsius), and record highs have been registered at the frontier with Haiti as high as 102 degrees Fahrenheit (39 degrees Celsius) in the summer. The country enjoys an average annual temperature of 80 degrees Fahrenheit (27 degrees Celsius). The annual average temperature is 79 degrees Fahrenheit (26.5 degrees Celsius). May through November is regarded as the rainy season and averages approximately 29.5 inches (750 mm) of rain per year.

Economy

The Dominican Republic is a low income developing country primarily dependent on natural resources and government services. Although the service sector has overtaken agriculture as the leading employer of Dominicans (due principally to growth in tourism and Free Trade Zones), agriculture remains the most important sector in terms of domestic consumption and is in second place (behind mining) in terms of export earnings. Tourism accounts for more than US$1.3 billion in annual earnings. Free Trade Zone earnings and tourism are the fastest-growing export sectors. Remittances ("remesas") from Dominicans living abroad are estimated to be about US$1.3 billion per year.

Tourism

The Dominican Republic has become a major tourist attraction in the Caribbean. This is due to the fact that the country, apart from having rich natural resources, a consistent tropical climate and places of historical and cultural interest, also offers highly competitive hotel prices all this within a background of security and political stability. Furthermore, the Dominican Republic has important forest and scientific reserves, as well as national parks, where the authorities seek to protect the great variety of endemic flora and fauna of the island. For such reasons, ecological tourism has also been starting to develop during the last years, and the public and private sector promote visits to places of ecological interest such as Lake Enriquillo, and the Shrine of the Humpback Whales in Samana Bay.

An Emerging Golf Mecca

Golf is fast becoming one of Dominican Republic top attractions. With 25 courses available, golfers can include the Dominican Republic as one of the places to go when planning a golfer's holiday. Jack Nicklaus and Tom Fazio have a reputation for creating stunning courses that are both challenging and playable, and continually listed in the top tier of course rankings. Moreover, among other courses designed by other "Signature" designers, Nicklaus and Fazio courses have consistently proven to offer some of the top rankings in economic return potential in categories such as lot price points, lot absorption, total annual real estate sales, lowest years to real estate sell-out, and net present value. Obviously, any world class resort development of any size in the Caribbean would include a golf course for the following reasons:

As most real estate projects include interior land areas without beach frontage (considered the most desirable and highest price location), golf courses provide residential frontage that enhance land values. All of these factors are important in the development of the subject and the addition of a golf course should be an integral part of the land use plan not only for the subject, but also for most resort destination properties.

Local Tax Matters

As an owner at any of the below mentioned opportunities, you might receive preferred tax treatment on your real estate purchase. Typically the real estate transfer tax is waived upon purchase and annual property taxes are waived for a 10 year period within Real Estate Tourist Projects benefiting from Law 158. Residential property is presently taxed at a rate of 0.25% of assessed value for occupied dwellings and 0.50% of assessed value for unimproved lots. The Tax Regulations of the Dominican Republic imposes an income tax of 25% individuals or entities. If you are not a resident of the Dominican Republic you would not be liable for such income