LAW 8-90 · ZONAS FRANCAS

Free zones & manufacturing in the Dominican Republic

The zona franca regime is the DR’s standing offer to export manufacturers: near-total tax exemption, duty-free machinery and inputs, and treaty access to the U.S. market and beyond. We take you from site shortlist to operating license — one local counsel, end to end.

Regime: Law 8-90 · CNZFEIncome tax: 100% exemptLocal sales: up to 20% of outputMarket access: FTAs with 40+ countries

Why manufacturers are moving production here

Global supply chains are reshuffling, and the Dominican Republic has emerged as one of the most attractive platforms in the Americas for export-oriented manufacturing — particularly for companies targeting the United States, with natural reach into Canada and Latin America. Free-trade agreements with more than 40 countries — DR-CAFTA with the U.S. and Central America, the EPA with the European Union, and Caribbean accords — give preferential access to over a billion consumers, from a stable, openly pro-investment jurisdiction with a motivated, specialized industrial workforce and a location few can match.

What the Law 8-90 regime exempts

Companies licensed under Law 8-90 and supervised by the CNZFE (National Free Zones Council) operate with 100% exemption from:

  • Income tax on free-zone operations.
  • Import duties and customs charges on machinery, equipment and raw materials.
  • ITBIS — the Dominican VAT.
  • Construction and real-estate transfer taxes for the facility.
  • Corporate formation and capital-increase taxes.
  • Municipal, export and re-export taxes, and asset and net-worth taxes.

The regime also allows sales of up to 20% of production into the Dominican market (paying only the applicable duties on that portion) and purchases of national raw materials free of export taxes — in practical terms, a cost structure significantly more competitive than most comparable jurisdictions.

How we set up your operation

  1. Site selection and facility evaluation — leasing an industrial building within an existing free zone or industrial park, or acquiring land and developing a dedicated facility; we run the legal review on either path.
  2. Free-zone strategy and CNZFE application — operating within an existing park, developing a private free zone, or another legally optimized structure; we prepare and prosecute the license before the CNZFE.
  3. Corporate structuring and investment entry — the operating company, the holding arrangement and Law 16-95 investment registration.
  4. Regulatory permits and government coordination — construction, environmental and sector permits, sequenced so nothing blocks the timeline.
  5. Labor and workforce onboarding — compliant contracts and payroll for the DR’s specialized industrial workforce, plus immigration files for expatriate managers.
  6. Customs and export logistics planning — the customs regime, bonded flows and export documentation set up before the first container ships.
  7. Ongoing liaison — a standing line to the CNZFE, customs and the key institutional stakeholders around your operation.

One authorized local representative, end to end

For a manufacturer entering a new jurisdiction, the scarcest resource is a single accountable counterpart. That is the role we take: your trusted, authorized local representative — one point of contact coordinating every element of market entry, from the first feasibility assessment through to full operational launch, on written fixed-fee phases.

Frequently asked questions

Which taxes do Dominican free-zone companies actually pay?

Very few. The Law 8-90 exemption covers income tax, import duties on machinery and inputs, ITBIS (VAT), municipal, transfer, incorporation and asset taxes. What remains are ordinary employer obligations — payroll and social security for your workforce — and duties on the portion of production sold into the local market.

Can we sell into the Dominican market from a free zone?

Yes — up to 20% of production may be sold locally, paying only the applicable duties on those sales. Free-zone companies may also purchase Dominican raw materials exempt from export taxes, which strengthens local supply chains.

Should we lease inside an existing park or develop our own free zone?

It is a trade-off between speed and control. An existing park offers immediate infrastructure and a faster start; a private or special free zone gives large operations full control over the facility and its expansion. We model both routes — including the CNZFE pathway and the site’s legal review — before you commit capital.

Let’s put your production inside the zona franca regime

Free feasibility consultation, plain-English answers, and written fixed-fee phases from site assessment to operating license.

Assess my free-zone project