(2025) Investment Incentives Comparative Analysis: Haiti, Dominican Republic, and Puerto Rico
Summary — This study compares investment incentive policies between Haiti, Dominican Republic, and Puerto Rico to highlight Haiti's lag in attracting manufacturing investments. The document details specific tax exemptions and incentives offered by each territory to stimulate economic development.
Key Findings
- Haiti significantly lags behind Dominican Republic and Puerto Rico in investment incentive policies despite security challenges.
- Dominican Republic offers 30-year comprehensive tax exemptions through Special Border Development Zones.
- Puerto Rico provides 4% fixed corporate tax rates and up to $5,000 job creation incentives under Act 60.
- Haiti faces severe humanitarian crisis with over 1 million displaced persons and 5.5 million needing aid.
- Six consecutive years of negative economic growth highlight urgent need for decisive industrial policy.
Full Description
This comparative analysis examines investment incentive policies across Haiti, Dominican Republic, and Puerto Rico, emphasizing Haiti's significant disadvantages in attracting long-term manufacturing investments despite ongoing security crises. The study reveals that Haiti lags behind not only in infrastructure and political stability but also in implementing effective investment incentive strategies.
The Dominican Republic offers comprehensive incentives through Law No. 12-21, establishing Special Border Development Zones with 100% income tax exemptions, full import duty waivers, and 30-year benefit periods. Puerto Rico provides robust manufacturing incentives under Act 60, including 4% fixed corporate tax rates, 75% property tax exemptions, and job creation incentives up to $5,000 per position.
Haiti's investment framework, governed by the Investment Code of 2002, offers various sectoral incentives including 10-year customs and fiscal exemptions for different industries, free zone benefits, and agricultural investment support. However, with over one million displaced persons, 5.5 million needing humanitarian aid, and six consecutive years of negative economic growth, the country faces significant challenges.
The document calls for urgent action from the Government of Haiti and international partners including the World Bank, IDB, and IFC to develop a decisive industrial policy and organize roundtable discussions to support economic recovery efforts.