DR Tax Reform is COMING!

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In this edition of the Grubernation Weekly Newsletter:

• DR Tax Reform is Coming!

• Let’s Meet - Coming to New York City

• Airbnb’s BIG MOVE in Dominican Republic

As a reminder, I’m happy to connect you to a realtor or an attorney - simply click on the highlighted word to complete the referral form. I’ve received many requests recently, so I’m just giving a reminder.

Also - get a bedroom set and/or mattress from Colchones Naco and get 2 free pillows with code GRUBER2025.

DR Tax Reform is COMING!

In October 2024, President Abinader created a fiscal reform bill that was presented and withdrawn due to being VERY unpopular.

The plan to attack tax evasion was overshadowed by the increase in consumer costs, which was especially troublesome for the lowest-income citizens.

But its rejection should not be misinterpreted as the issue of reform being dead.

Simply put, DR needs to have a comprehensive plan to expand its tax base to improve its future credit and economic standing.

At the start of 2025, projections were that DR would hit 5% GDP growth. That has cooled to something in the 3-4% range - signs of a bit of a slowdown.

There are a few things I believe Abinader will do:

1. Increase funding to public projects

2. Take on additional debt for that funding

3. Pass a fiscal reform bill

I provided the DR Inner Circle with multiple bullet points on where the DR economy is going from an insider with direct lines to the President.

What I outlined above is just a sample of what else is planned.

Debt in the Dominican Republic is at or about 60% of GDP (World Bank has it in the high 50% range) which is near the top of the comfort zone but is not unhealthy.

With this plan, debt could push closer to 60-65% - a capital infusion to fund future growth - just like a startup.

But there are two other world variables that we may see take place soon that can also kick the economy forward a bit - but DR shouldn’t plan on them.

Here’s the layout:

1. Tax reform bill (we’ve established that above)

2. End of the Russia-Ukraine war

3. US cutting interest rates

Russia-Ukraine War

The Dominican Republic is fully reliant on imports for its oil.

Ending the war and sanctions would put downward pressure on prices.

Markets often price in the impact of potential peace talks, and a real peace agreement would likely put sustained downward pressure on oil prices.

Lower oil prices create lower cost to fuel energy in DR.

Any economic relief is good relief!

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US Cutting Interest Rates

Lower rates on debt would be of benefit to the Dominican Republic, especially as it seeks to take on more debt likely in the near future.

In addition, interest rate cuts likely create relief for the American consumer, or at least confidence in the future of the economy.

The US is wobbly right now - seeing lower than expected inflation after tariff policy was imposed, but recent jobs reports show a slowdown in hiring.

Reducing interest rates definitely gives buyers reason to shop and that can impact the textile, agriculture and medical device industries which are all DR exports mostly to the US.

Tourism and even real estate can be positively impacted in DR as well.

In fact, interest rates on mortgages may dip - especially if banks are seeing a cooling of the economy.

It’s more likely banks roll rates lower to coincide with the US FED cutting rates rather than holding steady. Again, my best guess.

DR Tax Reform

But the grand-daddy is a robust tax reform bill that, while painful for some, provides a clear path to economic prosperity for the entire country.

The bill will need to be clear on plans to eliminate tax evasion, simplify tax collection and incentivize businesses to participate in the ‘formal’ labor market.

I wonder too if the VAT (18% ITBIS) gets adjusted slightly downward (an incentive for businesses to participate in the formal economy) as a result.

We’ll see

But I’m betting that we’ll see a reform bill proposed in 2026 at the latest.

And without debating who wins and loses, economically it’s necessary.

Let’s Meet! I’m Coming to NYC

Mark it down if you’re free…

• Friday September 5

• 7pm EST

• Radegast Biergarten in Brooklyn

No agenda - no plan - just a way for anyone who wants to come hang out, chat, have a drink and meet others in this little ‘Grubernation’ community.

I’m in town for a YouTubers conference and wanted to take some time to meet folks.

A humbling but frustrating request I get often is when I’m asked to go to lunch, dinner or just to meet up with folks that are part of this community.

Humbling because of the honor of being asked and the frequency of the request - I never could have guessed sharing my experiences would garner such interest!

Frustrating because I have to say no to pretty much all. I always feel bad and wish I could meet everyone that asks!

My solution has been a few things:

1. The DR Inner Circle where I can engage on zoom calls weekly and in a private Facebook group

2. Charity mixers in difference cities in DR

3. Happy hours when I’m in different places in the US

Next up NYC!

I’m excited to see you there. No RSVP - Friday Sept 5 at 7pm at Radegast!

Airbnb’s BIG Move in Dominican Republic

I can’t tell you how many messages I got saying ‘Jamie - Airbnb is pulling out of the Dominican Republic .. did you hear?’ 

No - I didn’t hear that .. but there is a BIG move by Airbnb to exit DR in some capacity.

This video explores that in detail. Enjoy!

That’s it for this week - see you next week as we wrap up summer!