Dominican Republic Free Trade Zone
If you are thinking of investing or starting a business in the Dominican Republic, the Dominican Republic Free Trade Zone is the perfect place to invest or start business. The Dominican Republic Free Trade Zone was established to catch the attention of foreign investors all over the world. The Dominican Republic Free Trade Zone provides numerous incentives through levies, tariffs and cost discounts for potential investors of the Dominican Republic.
The Dominican Republic is considered as one of the middle earning developing countries of the world. The economy of the Dominican Republic for the most part depends on its agriculture, trade, services and most of all its tourism industry. However, due to the major intensification of its tourism industry and the creation of the Dominican Republic Free Trade Zone, the service industry of the Dominican Republic has exceeded the agriculture industry as one of the leading employers of the residents of the country.
The Dominican Republic Free Trade Zone profits (along with the tourism industry’s earnings) from the fast growing export industry in the Dominican Republic economy. The Dominican Republic Free Trade Zone’s intention is to attract companies that are engaged in “hard goods” assembly or other types of industries that are involved in light manufacturing. On the other hand, service operation industries (like “call centers”) and other types of administrative activities can also be found on the Dominican Republic Free Trade Zone. These “service related industries” are now acknowledging the substantial tax benefits that are offered by the Dominican Republic.
The Dominican Republic Free Trade Zone is said to be one of the top five Free Trade Zones in the world that offer lots of opportunities. It is considered as one of the top five Free Trade Zones because of the strategic geographical location of the Dominican Republic. Also, it is due to the current trade agreements of the European countries and the United States with the Dominican Republic.
Investors who are doing business in the Dominican Republic Free Trade Zone are offered with numerous advantages by the government. Businesses on the Free Trade Zone are exempted from the following taxes: Municipal Taxes, Export Duties, Incorporation and Capital Gains taxes, property taxes, construction taxes, business taxes, VAT, corporate income taxes and mortgage title transfer taxes.
The Dominican Republic Free Trade Zones have low labor cost and also have low production costs which makes the Free Trade Zone an ideal location for medium sized and large sized business. The Free Trade Zone also has easy access for transporting and shipping the “goods” that the tenants manufacture. But one of the notable aspects of the Free Trade Zone in Dominican Republic is the low cost of labour. The government regulates the rate of the wages of the workforce of the Dominican Republic. The wage rate for its workers depends on the specified labor classification.