Purchasing a hotel in the Dominican Republic

There are a lot of them here!  Hotel / resort / tourism industry is huge here. So can be the risks.

Understanding our tax system both personally and corporate.

Do you understand and speak Spanish?

The labor code and human resources are totally different.

Our legal system is based on French law. Totally different.

Let me know if you want specifics. I own and run companies here.

Before you purchase a hotel make sure you are familiar with how the system works in the DR (very different from the US). I think @planner touch bases in some of those details. I recommend you to have a law firm and consulting company that can work with you in advanced on all risk and potential issues related to the management of the hotel (assuming you are spending thousands/millions of dollars buying a hotel that is already operating on in the process).

I'm also considering buying a commercial property in the DR. I will definitely hire an attorney when the time is right; but I would like to know as much as possible beforehand, so I know the right questions to ask.

I would appreciate it if you can share as much as possible about the labor laws, any hospitalization, social security, unemployment compensation, taxes, the legal system.

I would not be willing to do that here. It's way too much information. Feel free to contact me privately!

@Catlover21, being proficient in spanish or having completely trustworthy spanish speaking managers is extremely important in DR if you plan on owning a business or rental.  I have over 35 years experience in Canada as  a residential landlord and builder / renovator and owning and managing substancial asetts and small businesses and after only being in the DR for 3 different seasons i must say the culture and the supply chain management and labor pool in DR is so different from mainstream Canada and USA that i could not possibly do what i was able to do in Canada , down here in the DR without the honest and most loyal assistance of Spanish speaking locally based DR Village specific assistants. I am now certain that one,s business could be sucessful here with key local village people and connections loyally and exclusively in place.

@planner thank you for your response. My Spanish literacy is poor. I will commit to learning ☺️

I will take you up on the offer of gaining insight and specifics.

Please let me know how we can communicate offline.

Thanks much!

@voipnetworks

thank you for your response.

Any good suggestions on attorneys/law firms in Sosua/ Cabarete area?

@delmerbmartin

Thank you for your response. I absolutely agree with everything you said.

I do have a few trustworthy locals that I have dealt with.

Can we chat offline?

I will message you privately.

    @Catlover21, being proficient in spanish or having completely trustworthy spanish speaking managers is extremely important in DR if you plan on owning a business or rental.  I have over 35 years experience in Canada as  a residential landlord and builder / renovator and owning and managing substancial asetts and small businesses and after only being in the DR for 3 different seasons i must say the culture and the supply chain management and labor pool in DR is so different from mainstream Canada and USA that i could not possibly do what i was able to do in Canada , down here in the DR without the honest and most loyal assistance of Spanish speaking locally based DR Village specific assistants. I am now certain that one,s business could be sucessful here with key local village people and connections loyally and exclusively in place.         -@delmerbmartin

This. And that is the hardest part of it all; having trustworthy and dedicated local assistants. Trust is a rare asset in the DR, especially when money is involved. It has been said many times on this forum: "trust has to be earned and maintained".

Some remarks that come to mind when starting your first business in the DR: Start small and learn. When investing your money make sure you can miss it and do not assume a fast return. Make sure there is a market for your business, if you take over an existing business why do they sell it? Do not rely on promises untill they have become reality. Getting the needed legal papers and tax registrations can take a long time, even with a lawyer. If you want a local supervisor I suggest to implement some bonus system to make them more concerned about the succes of your business.

We set up a small local business last year and to DR standards it runs good. There were several conditions to make that happen and to minimize the risks before even considering to proceed: It is on our own property, no other investors, banks or loans are involved. Minimal running costs and overhead. We know the area and the demand. We can match the service and prices clients expect. We arranged the legal requirements. It is run by a direct family member who has earned trust over many years and is also a direct participater. We get daily updates of the balance and activities.

Especially in the DR you need to be prepared and you need to keep total oversight and control of your business or it will go down fast. Do not become one of the many dreamers that leave empty handed and frustrated...

Thanks for this post. It is inspiring, eye opening.