Maximize your tax benefits
The Free Trade Zone regime offers exemptions of up to 100% on major taxes. However, accessing and maintaining these incentives over time requires impeccable corporate structuring and strict regulatory compliance.
Free Trade Zones offer 100% tax exemptions on major taxes for up to 20 years, but the qualification process before the National Council of Free Trade Zones and Export (CNZFE) requires specialized legal advice.
Errors in the corporate structure can cause your company to lose the benefits of the Free Trade Zone regime.
Labor compliance in free trade zones is not only legal, but also: Operational, Reputational and Financial.
Benefits of the Free Trade Zone regime
Tax exemptions — 100%
— Income Tax (ISR)
— Import and export taxes
— ITBIS (IVA)
— Taxes on company formation and capital increases
— Municipal taxes
— Assets and wealth tax
— Tariffs on machinery, equipment, raw materials and supplies
Duration of exemptions
— Industrial Free Zones: 20 years renewable
— Free Trade Zones for Services: 20 years renewable
— Special Free Zones (border zones): up to 30 years
Operating benefits
— Libre repatriación de utilidades y capital
— Sin restricciones cambiarias
— Possibility of selling up to 20% of production in the local market, after payment of corresponding tariffs
— Access to skilled labor at competitive costs
— Infrastructure available within the parks (energy, water, telecommunications)
Location Advantages and Market Access
— Preferential access to markets under the DR-CAFTA (United States and Central America)
— Economic Partnership Agreement with the European Union (EPA-CARIFORUM)
— Strategic geographic position in the Caribbean as a logistics hub
Types of permitted activities
— Manufacturing and light industry
— Services (call centers, BPO, technology)
— Logistics and distribution/span>
— Health sciences and pharmaceuticals
— Tobacco and textiles
— Jewelry and footwear
— Agroindustry
Our key services
Services included
— Consulting services for qualifying as a free trade zone company
— Approval before the National Council of Special Free Zones (CNZFE)
— Corporate Structuring and Incorporation in a Free Trade Zone
— Selection and negotiation of industrial parks
— Comparative analysis of tax benefits ZF vs ordinary regime
Servicios incluidos
— Specialized labor consulting in free trade zones
— Collective and individual employment contracts
— Compliance with CNZFE regulations
— Payroll and benefits management under FTZ regulations
Services included
— Specialized labor consulting in free trade zones
— Tax planning for Free Trade Zones
— Import/export consulting services free of tariffs
— Compliance with change controls
Our specialists
Team with extensive experience in the Dominican free zone regime, working with manufacturing, textile, logistics and global services companies.
Isabel Andrickson
Special Counsel
Montserrat Viñals
Asociada Senior
AccuMED / Lear Corp
Advising on the transfer of 100% of the shares of a medical device manufacturer located in the Itabo Industrial Free Zone to Lear Corp. for more than US$150 million.
MVC Capital / AccuMED
Advising on the acquisition of assets of AccuMED, a medical device manufacturer, in the Itabo Industrial Free Zone, Haina.
Technical Precision Plastics
Advising a medical device manufacturer in a free trade zone on the sale of a local subsidiary to Intrapac Canada for US$8 million.
Edwards Lifesciences
Asistencia legal a empresa de tecnología médica en las implicaciones fiscales de Unidades de Acciones Restringidas (RSUs).
Empresa Farmacéutica Global
Advising on the installation of two free zone companies in the PIISA Industrial Park in Haina, with an investment of more than US$2.5 million and more than 800 employees.
Medtronic
Ongoing labor advice during the Covid-19 pandemic on eligibility and regulatory requirements of the FASE scheme, achieving the suspension of 4,500 employees under the government program with savings of almost US$1 million.
Encore Repair Services
Representative of a leading US electronics retailer located in the Las Américas Free Zone, signing a Memorandum of Understanding (MOU) with the Dominican government for the manufacture and assembly of tablets, laptops, and electronic devices for the education sector.
ACE Wireless Group
Advising a global distributor of cell phone accessories on the installation of operations in a free trade zone for the manufacture of telecommunications parts.
GlowTouch LLC
Advising a US-based outsourcing provider on the installation of a call center in the Herrera Technology Free Zone.
Talk2Rep
Colaboración en el establecimiento de un centro de llamadas en zona franca en la República Dominicana.
Carnival Cruise Lines
Consulting on the development and construction of a new US$65 million seaport in Puerto Plata, including free zones, shops, restaurants and marina berthing facilities.
Orion Marine Group
Advice on obtaining free zone status, permits and legal and tax structuring for the import of construction equipment for Carnival’s cruise port.
Language Line Solutions
Advising the world’s leading interpretation and translation company on corporate, labor, tax and free zone matters related to the acquisition of Pacific Interpreters.
Johnson & Johnson
Advice on local compliance and representation before the Chamber of Commerce, the National Council of Free Zones and the DGII within the framework of a global reorganization.
Ron Álvarez
Advice on the purchase of real estate for the establishment of a special free zone for the installation of rum production and export.
Knights Apparel
Collaboration in the acquisition of a plant in the Altagracia Free Zone for a manufacturer of school and professional sportswear.
Hanesbrands
Management of the closure of the free trade zone plant in Villa Mella, including handling staff reductions under special conditions: pregnant women, medical leave, and unions.