Esco Global Strategies
Quick answer: Setting up a Dominican Republic free zone takes 60–90 days for CNZFE approval and 4–6 months to full production. Law 8-90 grants a 20-year full tax exemption — zero income tax, zero import duties, zero export taxes — automatically on approval.
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What Is a DR Free Zone?
A Dominican Republic free zone (zona franca) is a government-designated export manufacturing area under Law 8-90. Companies inside these zones export 100% of production and receive a full fiscal incentive package. As of 2025, the DR has 78 registered free zones with 650+ companies employing 178,000 workers across apparel, medical devices, cigars, electronics, and light manufacturing.
Law 8-90 Incentives
- 100% income tax exemption (20-year term)
- 100% exemption on import duties — raw materials, machinery, equipment
- 100% export tax exemption
- 100% municipal tax exemption
- 0% US tariffs via CAFTA-DR
- Full repatriation of profits and capital
Step-by-Step Setup Process
Step 1: Choose Your Structure (Weeks 1–2)
Multi-tenant free zone (rent space inside an existing park) or single-user free zone (your own facility, min 2,000m²). Most US manufacturers start with multi-tenant — lower capital, faster approval, existing infrastructure.
Step 2: Incorporate a Dominican Legal Entity (Weeks 2–4)
Form a Dominican SRL (LLC) or SA (corporation) with notarized articles, registered trade name, local agent, and RNC tax number. Legal cost: $1,500–$3,000.
Step 3: Secure a Facility Agreement (Weeks 2–6)
Sign a lease with a CNZFE-approved operator. Major parks: Las Américas, Santiago Industrial Free Zone, Itabo, Multimodal Caucedo. Rates: $4–$8/m²/month.
Step 4: CNZFE Application (Weeks 4–12)
File with CNZFE. Required: incorporation certificate, facility contract, business plan, employment projections, environmental plan, financials. Approval: 60–90 days.
Step 5: Operational Setup (Months 3–6)
Fit-out facility, import equipment duty-free, hire staff, complete customs bonding. First production shipment: 4–6 months from incorporation.
2025 Cost Benchmarks
| Item | Cost Range |
|---|---|
| Legal incorporation | $1,500–$3,000 |
| CNZFE application fees | $500–$1,500 |
| Facility lease (per year) | $48–$96/m² |
| Labor — unskilled | $250–$350/month |
| Labor — skilled | $450–$800/month |
| Advisory/setup guidance | $15,000–$40,000 |
How EGS Helps
Esco Global Strategies guides US manufacturers through every stage of DR free zone entry — structure selection, facility sourcing, CNZFE filing, and first-shipment logistics. Hands-on experience with Law 8-90 compliance and operator negotiations across every major DR industrial park.