Film Industry in the Dominican Republic: Legal Framework and Investment Opportunities
Over the past decade, the Dominican Republic has emerged as a major hub for the international film industry. Beyond its paradisiacal landscapes and vibrant culture, the country has successfully positioned itself as a first-class filming destination through the implementation of an innovative and highly competitive legal framework. Law No. 108-10 on the Promotion of Cinematographic Activity (Ley de Fomento de la Actividad Cinematográfica), together with its implementing regulations, has become the cornerstone of this transformation, offering tax incentives that not only stimulate local production but also invite foreign producers and capital to explore the vast opportunities the Caribbean has to offer.
This article examines the key pillars of this legal framework, the fundamental role of the Dirección General de Cine (DGCINE – General Directorate of Cinema), the tax incentives that make the Dominican Republic an ideal destination for film investment, and the pathways available to both national and international producers to capitalize on this growing ecosystem.
The Legal Framework: Law 108-10 and Its Impact
Law No. 108-10 is not merely a regulatory instrument; it represents a clear statement of intent by the Dominican State to position cinematography as a strategic industry. This law, together with its Implementing Regulations (Decree No. 370-11), has been the driving force behind unprecedented growth in the Dominican audiovisual sector. Its primary objective is to promote sustained, equitable, and progressive development of national cinematographic and audiovisual activity.
To achieve this goal, the law addresses several critical areas:
- Stimulating sustained growth: encouraging investment and the development of infrastructure, talent, and production capacity within the country.
- Streamlining procedures: simplifying customs and administrative processes, eliminating bureaucratic barriers that often discourage film productions.
- Special customs regime: establishing exemptions and tariff benefits for the importation of equipment and goods required for film production, which is essential to maintaining competitive costs.
- Attracting capital: designed to attract both domestic and foreign investment through tax incentives that make production in the Dominican Republic financially viable.
Within this legal ecosystem, three entities play a crucial role:
Dirección General de Cine (DGCINE)
DGCINE is the central pillar of Law 108-10. It is a decentralized entity with technical, administrative, and financial autonomy, responsible for implementing national film policy. Its functions range from promoting and fostering cinematographic activity to supervising and validating compliance with the requirements to access incentives. DGCINE serves as the main point of contact for all industry stakeholders, overseeing everything from filming permits to project qualification and validation of eligible expenses. Its role is essential for successfully accessing any tax benefit.
Sistema de Información y Registro Cinematográfico Dominicano (SIRECINE – Dominican Film Information and Registry System)
Managed by DGCINE, SIRECINE is the official database of the industry. It maintains a comprehensive and up-to-date registry of individuals and legal entities, cinematographic and audiovisual works, exhibition venues, and service providers operating in the Dominican Republic. Registration with SIRECINE is not a mere formality; it is a mandatory requirement for participating in the Dominican film industry and, critically, for accessing the incentives provided under Law 108-10. It functions as a transparency and compliance mechanism, ensuring that only qualified actors and productions benefit from the law.
Fondo de Promoción Cinematográfica (FONPROCINE – Film Promotion Fund)
Also under DGCINE’s administration, FONPROCINE’s primary mission is to finance educational programs, training, and local talent development, as well as to support the production of Dominican cinematographic works. It is important to note that FONPROCINE is exclusively aimed at fostering national production; foreign films or co-productions that do not qualify as Dominican under the law are not eligible for these funds. Its existence complements the tax incentive regime by promoting the industry’s development from the ground up.
Tax Incentives: The Key Attraction for Investors
The true appeal of Law 108-10 lies in its robust tax incentives, designed to position the Dominican Republic as an economically viable and highly competitive destination for audiovisual production. Key incentives include:
25% Transferable Tax Credit (Crédito Fiscal Transferible – CFT)
This is the flagship incentive and the most relevant for international producers. The CFT allows individuals and legal entities—Dominican or foreign—that produce cinematographic and audiovisual works in the Dominican Republic to obtain a tax credit equivalent to 25% of all “qualified expenses” incurred locally, effectively recovering one-quarter of eligible local investment.
Monetization and Transferability
One of the most attractive features of the CFT is its transferability. Once issued by the Dirección General de Impuestos Internos (DGII – Internal Revenue Directorate), the tax credit certificate may be used to offset the beneficiary’s own corporate income tax obligations in the Dominican Republic or, alternatively, assigned or sold to third parties. This flexibility provides essential liquidity, particularly for producers without direct tax liabilities in the country. The law establishes that such transfers may not occur at a value below 60% of the nominal credit amount, ensuring a minimum recovery margin. The monetization process—from application to issuance—is estimated at approximately 58 days, which is comparatively efficient relative to other incentive regimes.
Minimum Expenditure Threshold
To qualify for the CFT, a project must incur qualified expenses in the Dominican Republic of at least US$500,000. Projects below this threshold are not eligible for this specific incentive. Nevertheless, other benefits—such as the Permiso Único de Rodaje (PUR – Single Filming Permit) and the exemption from the Impuesto sobre Transferencias de Bienes Industrializados y Servicios (ITBIS – VAT)—may still justify production in the country.
ITBIS Exemption and Temporary Admission of Equipment
The acquisition and leasing of goods and services directly related to pre-production, production, and post-production phases of an approved work are exempt from ITBIS (18%). This exemption represents a substantial reduction in operational costs. Additionally, the law allows the temporary admission of equipment, materials, and goods required for production for up to six months, with possible extensions, provided they are re-exported after completion. This significantly simplifies logistics for international productions requiring specialized equipment.
Income Tax Exemption for Technical Services
An additional benefit is the exemption from Income Tax (ISR) for income earned by individuals or entities domiciled in the Dominican Republic that provide specific technical services—such as sound, lighting, editing, and visual effects—to approved productions during pre-production and post-production phases. This incentive promotes the development and hiring of specialized local talent.
Requirements and Qualifications to Access Incentives
To qualify for incentives under Law 108-10, productions must meet certain core requirements:
- Permiso Único de Rodaje (PUR): a mandatory permit that must be requested from DGCINE at least 30 days prior to filming, consolidating multiple authorizations into a single process.
- Civil liability insurance: coverage issued by a recognized insurer established in the Dominican Republic.
- Minimum local expenditure: at least 20% of the total budget must be spent locally, or Dominican capital investment must represent at least 20% of the total budget.
- Hiring of Dominican personnel: foreign productions seeking the CFT must ensure at least 25% Dominican or resident participation in key production roles.
Opportunities for National and International Producers
For International Producers
Foreign producers may access incentives through two main avenues:
- Direct establishment: incorporating a legal entity in the Dominican Republic to directly incur qualified expenses and apply for the CFT.
- Dominican Executive Producer model (Production Services Agreement): the most common and efficient structure, whereby a Dominican production company registered with SIRECINE incurs expenses and applies for the CFT on behalf of the foreign producer.
Advantages of the service model: this structure allows foreign producers to retain 100% ownership and rights to the work, which is critical for global distribution and monetization, while benefiting from local incentives without establishing a subsidiary or sharing IP through co-production schemes.
For National Producers
Law 108-10 also strengthens the local industry. Dominican producers may access FONPROCINE funding and benefit from incentives applicable to all productions, while also qualifying for national content status, which may unlock additional benefits related to exhibition quotas and distribution support.
Qualified Expenses and CFT Monetization
“Qualified expenses” under Law 108-10 include a broad range of costs across all production phases, subject to certain caps (e.g., producer fees limited to 6% of total budget; development costs capped at 3%). Marketing, distribution, and promotion expenses are excluded.
Once production is completed and all required documentation and audits are submitted to DGCINE and DGII, the tax credit certificate—valid for four fiscal periods—is issued and may be used directly or sold at no less than 60% of its nominal value.
Conclusion
The Dominican Republic offers not only exceptional locations and skilled labor but also a robust legal framework that converts geographic appeal into tangible economic value. Law 108-10, with its emblematic 25% Transferable Tax Credit, positions the country as a premier destination for international film production and a key player in the global audiovisual landscape. Maximizing these opportunities requires a thorough understanding of the regulatory framework and strategic collaboration with local stakeholders.
If you are a producer, investor, or production company interested in filming in the Dominican Republic, expert legal counsel is essential to optimize investment, mitigate risks, and secure access to incentives under Law 108-10.
Our team provides comprehensive legal support to national and international film projects—from structuring to tax credit monetization—ensuring regulatory compliance and financial efficiency.
Contact us to evaluate your project and learn how to maximize the tax incentives available to the film industry in the Dominican Republic.