Starting a hotel business

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shoeless

New member
Jul 18, 2012
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Hey everyone,

I have a dream of starting a hotel business in the DR
And it?s now or never for me to get going.
Basically I am planing to visit the DR as a tourist and look for a suitable building and rent/lease/buy it and turn it into the hotel of my dreams.

I am not sure about the legal steps that need to be taken, and that?s why I am writing this post.

The embassy mentioned that I could enter with a tourist card and then apply for a business visa once I am inside the country.

But do I also need to apply for a residence visa, or it is sufficient with just the ( one year) business visa?
Will I be permitted to undertake any commercial activities while my application is being processed?
How long will the process take?

And finally, is there a significant advantage to obtain the business visa in advance ( in Europe)? It takes about two weeks here according to the embassy and is valid for 60 days only.

Any information regarding this subject would be greatly appreciated
Thans in advance!
 
S

shoeless

New member
Jul 18, 2012
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0
ctrob said:
Welcome to DR1 & Good Luck...

What part of the country?
Click to expand...

Thanks ctrob.
At this stage it is too early to exclude any particular part of the country.
So I am theoretically open to all possibilities.
I will hopefully arrive within a month and start looking around at properties.

What concerns me most right now are the legal steps that need to be taken, and the time it will take.
The permits that need to be secured ( ie; business visa, residency, work permit, hotel permit) .
And not the least, in order in which the legal steps need to be taken!

Is it preferable to secure a ( 60day) business visa before I arrive, or can it easily be taken care of once I am inside the country? Are there a lot of things that need to be legalized, if I choose to apply inside the coountry?
Do I need a temporary residence permit as well, or is it sufficient to operate with a business visa only?
Which comes first?

Answers to any of these questions would be greatly appreciated.

I speak, read and write fluent Spanish, although I am not a native speaker. I have previously successfully secured residency in Argentina, on my own, so I am not easily overwhelmed by dealing with immigration officials.
 
D

Deyvi

*** I love DR1 ***
Dec 23, 2009
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Even if you lease and manage a hotel the tax man will visit often to a gringo. I knew acouple that did this and finally gave up. Think again!! DR is not a place to go and fit in unless you have lots of money.
 
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shoeless

New member
Jul 18, 2012
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The tax man would be welcome! Everyone would be welcome.

I?ve visited and lived in many contries and figured out that this is the place that I want to invest in, for a variety of reasons.
But I don?t understand your reasoning behind being wealthy and fitting in. Usually these two are mutually exclusive phenomena. Is everyone in the DR wealthy?
But please let me not stray from the main topic. :)
 
G

Givadogahome

Silver
Sep 27, 2011
4,397
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Exactly how much time have you spent in the country, where and for how long?
This might help people understand where you are, and how prepared you are, where your mind is in all this.
 
C

Chip

Platinum
Jul 25, 2007
16,772
429
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Santiago
Call the migracion office in Santiago and ask for the licenciada. 809-971-1333

Also, as far as having your own business here in the DR it is very doable. Don't be dissuaded by naysayers what you need most of all is a good business plan and how to handle permitting and taxes. Given that you speak the language and have some experience in this area you won't be an easy target for gov't officials trying to make you pay more than required by law.

Also, in the event you want to build instead of buying a hotel with good finish and around 30 rooms or so will be around RD25-30k per sm. This does not include the price of the land nor the permitting. The permitting won't be difficult unless the property is within a historical or protected district. This is my opinion based on the fact that I am an engineer/contractor.
 
Castellamonte

Castellamonte

Bronze
Mar 3, 2005
1,764
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Cabrera
www.villa-castellamonte.com
Go to where there are a lot of tourists; Sosua, Cabarete, Las Terrenas, Punta Cana, La Romana and stay away from the others as you won't make enough money to make it worth your while. You need "butts in beds" to turn over a lot so you can charge tourist rates and not lower long term rates. Each of these areas attracts different types of people with different budgets, accommodation expectations and so forth.

I would stay in no fewer than 2 hotels in each area to get the "lay of the land" so you can develop a good idea of what you will do. THEN and only then would I worry about getting a visa.
 
E

Expat-in-Cabarete

Bronze
Jan 17, 2009
1,622
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Totally agree with Castellamonte. I have no clue what another poster meant by "Even if you lease and manage a hotel the tax man will visit often to a gringo." My husband and I own a hotel. Never had a visit from the tax man. We pay our taxes. We made a mistake once, were told to correct it, end of story. Do you need to be wealthy? Probably not, but you need to have enough savings and good cash management to make sure you stay open in low season.

You should come over, visit the different tourists area, check properties, and once you make a decision, consult with a real estate lawyer about any legal requirements, including a visa. You can come and stay for 30 days (maybe it is 60 now with the new law) on a tourist visa. If you need to apply for residency later because you decide on your investment and are going to stay, you will need to return to your country to get your residence visa. I wouldn't go through this process before making a decision that the DR is indeed the right place for your dream hotel.
 
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shoeless

New member
Jul 18, 2012
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0
Sure, both Castellamonte and E-i-C offer sound advice.
The fact that my idea needs a reality check before being put into practice is also beyond any doubt. I will go back to the DR soon ( only visited as a tourist so far), and see if it is really feasible.
So, I thank you for the sound advice there. However, that is not primarily what I am asking here.

It is the legalities of the matter , which I am not 100% sure of yet ( IN CASE I decide to proceed).
E-i-C, you mention that one has to return to ones country of origin for the residence visa. Today I was at the embassy and they told me explicitly that both the business visa and the residency can be applied inside the country.

What I am most confused is the concept of the business visa and the residence visa.
The business visa appears to be easier to secure.
The question is; Do I have to apply for both at the same time, or can I start with applying only for a business visa? And can one initiate commercial activities once the business visa has been granted? Or does one have to wait for the residency visa to be granted as well? And is there the concept of the "Visa en tramite" here? In Argentina/Chile that is a permission that you buy to to conduct commercial activities/work, until the main work visa has been granted. Is there something similar to that here?
 
G

Givadogahome

Silver
Sep 27, 2011
4,397
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Yes, it seems a sneaky change has been made. The UK Dominican embassy website now states that residency visas must be applied for in the Dominican republic while on a tourist visa.
 
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donP

Newbie
Dec 14, 2008
6,942
178
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For Sale Signs

Castellamonte said:
Go to where there are a lot of tourists; Sosua, Cabarete, Las Terrenas, Punta Cana, La Romana and ....
Click to expand...

... check out the hotels, their occupancy rate and whether there is a 'for sale' sign.
There may not be one but many, very many are for sale (in LT at least).
That alone would make one think.... :rolleyes:
Good luck.

donP
 
C

CaptnGlenn

Silver
Mar 29, 2010
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one cautionary note. I don't mean to be a nay-sayer... in fact I think with the right know-how and a big bank account there are opportunities for success.... BUT... I think you have your cart in front of your horse. You seem to be ready to roll into the D.R. with a fist full of dinero ready to forge ahead without knowing anything at all about the country. You've made a very complicated decision based on ... hmmm. I'm not sure exactly what you've based it on, but you've made your decision and are now in the process of learning the facts you need to know to make it a reality. You might be better served by learning first, and deciding second... then acting on the decision.

There can be no harm whatsoever in putting your decision on hold, taking some time and exploring the country and possible locales, and once you have some experience and first hand knowledge then deciding IF and where to start your business.

I'm speaking from experience... not regarding a business per se... but making a decision without full knowledge. In my case it worked out OK, but only with a healthy dose of luck. There are certain factors that I didn't know about and assumptions I made, that I might have taken into consideration. Would I have still decided to buy??? Yes, I think so; but it would have been nice to have made a more informed decision.
 
Y

yopote

New member
Jan 22, 2012
39
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0
go ahead

invest guy so why ask?
shoeless said:
The tax man would be welcome! Everyone would be welcome.

I?ve visited and lived in many contries and figured out that this is the place that I want to invest in, for a variety of reasons.
But I don?t understand your reasoning behind being wealthy and fitting in. Usually these two are mutually exclusive phenomena. Is everyone in the DR wealthy?
But please let me not stray from the main topic. :)
Click to expand...
 
S

shoeless

New member
Jul 18, 2012
13
0
0
CaptnGlenn said:
. You seem to be ready to roll into the D.R. with a fist full of dinero ready to forge ahead without knowing anything at all about the country.
Click to expand...
I?m shoeless, where?s my dinero,amigo? :)

CaptnGlenn said:
You've made a very complicated decision based on ... hmmm. I'm not sure exactly what you've based it on
Click to expand...

Who said that I made the decision? And I certainly did not intend to discuss the thoughts behind my decision publicly.
I?m just trying to gather some facts about the legalities amigo.


Let me quote myself;
shoeless said:
( IN CASE I decide to proceed).
Click to expand...
 
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donP

Newbie
Dec 14, 2008
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Unique for an Investment

shoeless said:
I?ve visited and lived in many contries and figured out that this is the place that I want to invest in, for a variety of reasons.
Click to expand...

Yes, the Dominican Republic is unique...

donP
 
S

shoeless

New member
Jul 18, 2012
13
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0
jrhartley said:
I have just the place for you as a starter business with room to expand
Click to expand...

?

Once again guys, I appreciate your concerns and input regarding the hotel business, but the reason I posted in the "legal" forum is that I am PRIMARILY looking for some clarification regarding the visa situation.
See earlier posts for details.
 
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