For two decades, the Dominican Republic has been one of the fastest growing economies in the Latin American and the Caribbean region, and continues its upward trajectory since the pandemic, with growth of 5.1% expected for 2024 according to the World Bank. Key to maintaining this trend will be addressing climate challenges and embracing digitalisation.
Given the ever-accelerating digital transformation in the country – driven by the government’s Agenda Digital 2030 initiative – consumer protection legislation is expected to be further expanded to provide enhanced security in digital commercial transactions. Another notable trend is the focus on energy storage – and renewable energy storage in particular. The government continues to incentivise investments in the wind and power sectors through fiscal credits, as the country aims to meet 25% of its energy needs with renewables by 2025.
The real estate market continues to grow at a fast rate, with an increasing number of US hotel chains looking to expand into the country. This also reflects the continued strength of the Dominican tourism industry, which has been one of the leading sources of foreign direct investment over the past few years (boosted by incentives such as tax deductions).
The country also houses a booming entertainment sector – 120 films (including international productions) were made in the Dominican Republic in 2023, thanks to tax breaks for productions that spend at least half a million dollars locally, as well as the diverse locations on offer.
Unsurprisingly, the majority of law firms’ work in the Dominican Republic stems from the real estate, tourism and energy sectors. In addition to advising on investments and related tax issues in these sectors, firms have been handling a rising number of disputes in the real estate sector in relation to hardship clauses in contracts, which has threatened housing security in the country in recent months. In the banking and finance sphere, lending from banks has remained very active – more so than the M&A market – despite concerns that it would decrease from previous years. Key areas of work have included advising on the implementation of a new law, which came into force in January 2023, overhauling the way that moveable assets are registered in the country, acquisition finance and export financing, with an emphasis on acting for lenders.
Turning to the legal landscape, full-service domestic firms Pellerano & Herrera and Headrick Rizik Alvarez & Fernández remain dominant. Dominican firms Castillo y Castillo, Pereyra & Asociados, OMG, Guzmán Ariza, DMK Abogados and Jiménez Peña also have a significant market share, while Pellerano Nadal is continuing to strengthen its presence (with an emphasis on the energy and environmental spheres) and Medina Garnes Abogados remains well regarded, particularly for its litigation and tax practices. International firm Squire Patton Boggs, which is able to offer services in multiple Latin American jurisdictions, is another strong competitor. The market is also home to notable boutiques, such as environmental law-focused Santroni Parsons.