The Italian Legacy in the Dominican Republic

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CONTEMPORARY ITALIAN-DOMINICAN RELATIONS

included Domicem, a cement producer;

Ghella, a leading company in the construc-

tion of major infrastructure projects; and

Bellacasa International, which specializes

in domestic goods.

There is also a substantial level of Do-

minican investment in Italy, in part because

the Italian government has been issuing

visas for investors who make a minimum

investment of €500,000 in Italian projects.

Added to the visa program, the Italian gov-

ernment has changed its laws regarding

taxes on investments from abroad. The

policy stipulates that foreigners who trans-

fer their fiscal residences to Italy will re-

ceive a tax break of being assessed a flat tax

of €100,000 per year on income generated

abroad, regardless of the amount. This tax

policy is viewed in Italy and the Dominican Republic as an opportunity to enhance investment, and Dominican

investors are moving forward with plans to take advantage of the new tax regime.

In line with changes in Italy to its investment tax policy, Dominican President Danilo Medina has joined

with the legislature in formulating reforms to the mining law governing natural resources. The changes in

the mining law lessen the administrative restrictions on investments and provide for new levels of tax relief

on profits of foreign investors. Like the changes in the Italian visa and tax policies, the reforms of Dominican

mining law are designed to expand investment in a key sector of the Dominican economy, investment reforms

from which Italian companies would benefit. Because ferronickel and gold are imports from the Dominican

Republic that are of great interest to Italian investors, the mining law reforms are high on the public policy

agenda. Moreover, and most importantly in terms of Italian investment in mining, there is evidence that the

Dominican Republic is now ranked as less attractive in the area of mining investment, a troubling develop-

ment. Business leaders from nations with mining interests in the Dominican Republic have expressed concern

that the law may not sufficiently address foreign investment in mining. Fernando Gonzalez Nicolas, President

of the Roundtable of Commonwealth countries (a group active in influencing the reform of the mining law),

has stated that changes to the mining law must seek to expand foreign investment, because “mining is a long-

term industry that requires substantial resources for its development.”

One of the central areas of Italian investment in the Dominican Republic is tourism. With more than an

estimated 150,000 Italians visiting resorts on the Dominican north shore in Puerta Plata and the eastern re-

gions around Punta Cana, tourism income in the Dominican Republic totaled US$400 million in 2019.

Italian

airlines have developed a tourist “pipeline” to these resort areas with low-cost fares and hotel packages that

are attractive to Italian tourists. Also, Italian hotel and resort companies play a major role in the Dominican

economy. While it is difficult to determine whether the Italian presence in the tourist industry is connected

to ownership or management, nevertheless there is ample evidence that hotels and resorts have an Italian

influence, especially in terms of restaurants. Some of the finest Italian restaurants in the country can be found

in cities like Sosua, La Romana, and the capital city of Santo Domingo.

On October 3, 2019, the new Dominican-Italian Chamber of Commerce was inaugurated, with Foreign

Minister Miguel Vargas Maldonado, Minister of Industry and Trade Nelson Toca Simó, and the Chamber’s

Board of Directors all present, bringing together several of the most important businessmen in the Dominican

Republic and representing a large part of the Dominican gross domestic product.

Ambassador of Italy

Andrea Canepari

received in the

presidential palace

by Vice President

Raquel Peña in 2021.

de la Republica

Dominicana