Republic

Dominican Republic Remittances Withstand New US Tax

Remittances are surviving the new US tax—at least for now.

This article appears in the July/August issue of Global Finance Magazine.

The Dominican Republic isn’t just a tourist paradise; it has a more diversified economy than most Caribbean nations. Yet foreign remittances still reach four in 10 households. Last year, Dominicans abroad sent home a record $11.87 billion, up 10.3% from 2024, according to the Central Bank of the Dominican Republic (BCRD). 

For such a country, 2025 was a banner year. But as of January 1, Washington has been levying a 1% tax on remittances paid by cash, money orders, or cashier’s checks under the One Big Beautiful Bill Act, which President Trump signed last year.

Related: Country Report: The Dominican Republic Is on the Rebound

While the tax has heightened anxiety in migrant communities, the BCRD forecasts a mild impact on the country, with remittance growth slowing to 3.5% in 2026, or roughly $12.2 billion. Manuel Orozco, director of the Migration, Remittances and Development Program at the Inter-American Dialogue, a Washington-based think tank, broadly agrees, though for reasons rooted less in the tax than in how Dominicans send money.

“My estimate is about 4% growth this year,” Orozco says. “I wouldn’t argue that the slowdown is due to the 1% tax, but rather to the precautionary fear factor.”

Patricia Krause,
Coface

Early data supports his analysis. Patricia Krause, economist for Latin America at Coface, a French trade-credit insurance company, says the levy has yet to leave a mark: “Although there was an expectation that it could affect remittance figures, that has not been the case for the Dominican Republic, at least so far. While remittances reached $4.1 billion in the first four months of 2026 — up 4% year over year — the increase was 11% year over year in April,” Krause notes. 

According to Orozco’s analysis, remittances across all of Latin America and the Caribbean are projected to grow by 4.7% in 2026, a growth rate that is down from 6.3% the previous year. This indicates that “the slowdown is regional rather than Dominican,” he says.

The reason the tax has landed softly thus far is the taxing mechanism; it applies only to transfers funded with physical cash or paper instruments, not to those paid from a bank account or card, and most Dominicans in the U.S. are able to avoid it. 

“More than 80% of Dominicans hold a bank account, and 60% were already sending money digitally before the tax arrived,” Orozco says. “That leaves roughly 40% who send cash, and that cash is not informal.”

Where Cash Remains King

Ninety-nine percent of money transfers originate through licensed companies like Western Union, and many of those senders also hold a bank account, he adds: “Instead of using cash, they may just use their debit card and avoid the charges.” At the receiving end of the corridor, cash remains king, with about 70% of transfers still collected as cash, a quarter of them through a home-delivery network Orozco likens to “DoorDash since the ’80s.”

That reflects the makeup of the Dominican diaspora, which is concentrated in the U.S. The fact that the country’s economy is not over-reliant on remittances also helps soften the tax impact. The inflows are worth close to 10% of GDP, Orozco says — 9% in 2024, according to World Bank data — but the country relies on a “much more dynamic” export-manufacturing base than its CAFTA trade partners.

Related: Dominican Republic Tourism Surges

Still, that 1% tax means a lot less cash coming into the country. The loss will total $230.7 million in 2026, according to Helen Dempster, co-director of the Migration and Displacement Program at the Center for Global Development (CGD), a Washington-based think tank. The CGD’s dataset “suggests the Dominican Republic is among the countries most exposed to the U.S. remittance tax,” she added.

However, Orozco’s own survey found that among migrants who send cash, the majority intend to continue doing so and absorb the tax rather than switch. “The impact is on the income of the cash sender,” he says. He ties the levy to the politics of the law that produced it. “It’s part of a broader political agenda aimed at migrant practices the administration deems unacceptable.”

Solly Boussidan is a contributing writer based in Brazil.

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1 dead, 9 injured in Dominican Republic resort fire

June 20 (UPI) — An Italian woman was killed, nine injured and more than 1,700 evacuated from a massive fire at a beachfront resort in the Dominican Republic Friday.

Francesca Valentino, 46, of Italy, died in the fire that broke out around 11 a.m. AST at the Viva Wyndham Dominicus Beach, a four-star resort in Bayahibe in the La Altagracia province, officials said. Three people were taken to medical facilities and six others were treated on site, Juan Manuel Mendez, head of the Dominican Republic’s Emergency Operations Center, said in a press conference.

No cause of the fire has been reported, but the Emergency Operations Center said a preliminary investigation found that portions of the resort’s buildings were made of cane roofs, which are combustible, and windy conditions contributed to the fire’s spread.

The Italian ambassador to the Dominican Republic met the dead woman’s husband at the hospital, the Italian news agency Ansa reported. There were about 285 Italian tourists staying at the resort or nearby, and the embassy in Santo Domingo was working to help them get new passports and arrange flights home.

Wyndham Hotels and Resorts franchises some 8,400 hotels worldwide.

“At this time, we are actively gathering the facts regarding the incident and coordinating with the appropriate authorities and on-site teams,” a spokesperson for Viva Resorts by Wyndham told CBS News. “As this process is ongoing, we will not be providing comment at this time.”

The Emergency Operations Center said in a statement that the about 1,690 guests at the resort were evacuated to other hotels and nearby housing facilities, CBS News reported. It also said that Viva Wyndham’s Dominicus Palace, which is nearby, was not damaged and was operating as normal.

President Donald Trump presents a Medal of Honor to Tom Ripley on behalf of his father, John W. Ripley, during a Medal of Honor award ceremony in the East Room of the White House on Thursday. Photo by Aaron Schwartz/UPI | License Photo

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KHNP chief visits Czech Republic to review $18 billion nuclear project

Korea Hydro & Nuclear Power CEO Kim Hoe-chun (R4) inspects facilities at Doosan Skoda Power in Plzen on Thursday. He visited the Czech Republic to review progress on a project to build two nuclear reactors in the European country. Photo by KHNP

June 19 (UPI) — Korea Hydro & Nuclear Power, or KHNP, said Thursday that its CEO Kim Hoe-chun has traveled to the Czech Republic to review progress on the construction of two nuclear reactors in the European country.

The state-backed utility noted that Kim took part in a meeting of the Dukovany Steering Committee in Prague alongside South Korea’s Minister of Trade, Industry and Resources Kim Jung-kwan and Czech Deputy Prime Minister Karel Havlicek.

Kim’s visit is timed with the first anniversary of the signing of an $18 billion contract to build two 1,000-megawatt reactors in Dukovany, located around 120 miles southeast of the Czech capital.

Groundbreaking is targeted for 2029, with commercial completion expected by 2037. The South Korean consortium includes such industrial partners as Daewoo E&C and Doosan Enerbility.

The two sides also discussed ways to strengthen bilateral nuclear cooperation, while companies from the two countries signed an engineering support agreement related to the project, according to KHNP.

Kim also toured the manufacturing facilities of Doosan Skoda Power in Plzen, situated roughly 55 miles west of Prague. The Czech turbine manufacturer owned by the Doosan Group is expected to play a key role in the Dukovany program.

“The Dukovany project is a monumental endeavor that symbolizes the strategic partnership between South Korea and the Czech Republic,” Kim said in a statement.

“We will work closely with the Czech government, the project owner, local communities, and Czech companies to make this project a model for the safest and most successful nuclear power plant construction in the world,” he added.

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World Cup of Darts: Wales, Republic of Ireland and hosts Germany advance

Wales pairing Jonny Clayton and Nick Kenny continued their impressive start to the World Cup of Darts with a resounding victory over Group C opponents Thailand in Frankfurt, Germany.

Having had to go through group qualifying after Gerwyn Price withdrew, the new Wales pairing opened their campaign by thumping Lithuania 4-1, and then followed that up on Friday by beating Thailand by the same score.

The Welsh duo topped their group to book a Saturday afternoon tie at the Eissporthalle against USA.

Hosts Germany again impressed with a 4-2 win over New Zealand as Martin Schindler and Ricardo Pietreczko secured their place in the second round where they will play the Czech Republic.

Republic of Ireland’s William O’Connor and Mickey Mansell clinched top spot in Group D by beating Gibraltar’s Craig Galliano and Justin Hewitt 4-2, earning a tie against Poland.

The top ranked nations – including England, Netherlands, Northern Ireland and Scotland – enter the tournament in the second round.

England pair Luke Littler and Luke Humphries – the top seeds – face Spain, while defending champions Northern Ireland’s Josh Rock and Daryl Gurney begin their title defence against Belgium.

Scotland duo Gary Anderson and Cameron Menzies face Norway, while Netherlands pairing Michael van Gerwen and Gian van Veen take on Sweden.

France against Latvia completes the round two fixtures.

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France 1-0 Republic of Ireland: Pain in Grenoble but hope for Irish as play-offs loom

Three wins and three defeats to finish third in their qualifying group may not look like much, but there is plenty for Republic of Ireland to be proud of in how they navigated what many said was the ‘group of death’ in League A.

The bottom seeds, who had only won promotion to League A with a last-gasp goal against Belgium in a promotion/relegation play-off last year, were tipped to go straight back down to League B when they were drawn against France, Netherlands and Poland.

Manager Carla Ward always said they wanted to aim as high as possible, and while they fell short of scaling their Everest by narrowly losing to France in their final qualifier to miss out on automatic World Cup qualification, they still have a chance to reach next year’s tournament in Brazil.

They became the first side promoted to League A not to be relegated straight back down and the first to pick up not just two but three wins in the top tier, including that sensational win over Netherlands in Cork on Friday.

Their third-place finish has secured a seeded play-off in the autumn and they will be the team many will want to avoid when the draw is made on 18 June given how they have shocked Poland twice and the Netherlands and run France ever so close.

Ward’s overriding feelings when speaking to RTE were pride tinged with pain that they couldn’t get over the line, although she was philosophical in how far they have come and how far they can go.

“I’m incredibly proud of this group and I said it to them there. We’ve got a special, special group who work unbelievably hard. It shows you everything, the [French] scenes at the end, they didn’t have it easy tonight,” she said.

“France are a top, top side and the fact we are here disappointed tells you an awful lot about where we are.

“You can take so many positives. This campaign we have grown and got better and better. Whether we had won, drawn or lost tonight we wanted to continue on the journey. We are in a really good place going into October and that has to be the focus.”

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Republic of Ireland v Israel: FAI tight-lipped on neutral venue switch

The Football Association of Ireland [FAI] says it will “continue to meet to discuss the operational aspects” of hosting Israel in the Nations League.

On Monday, RTE reported, external the game, scheduled for Dublin on 4 October, is set to be moved to a neutral venue pending Uefa approval – seven days after the teams meet at a neutral venue for Israel’s home Group B3 fixture.

A number of protests in the Republic of Ireland have taken place calling for the team to boycott the fixtures because of the ongoing situation in the Middle East.

A ‘Stop The Game’ campaign has been launched by the pressure group Irish Sport For Palestine, while May’s 1-0 victory over Qatar at the Aviva Stadium was twice disrupted when tennis balls featuring the Palestine flag were thrown onto the pitch.

Republic of Ireland midfielder Jamie McGrath said he expects the protests “will heat up over the next few months” while defender Seamus Coleman has said the issue “should have been dealt with above us”.

In February, the FAI confirmed the team will fulfil the fixtures as “Uefa regulations outline that if an association refuses to play a match then that fixture will be forfeited and further disciplinary measures may follow – including potential disqualification from the competition”.

An announcement on the issue was expected on Monday, but with the Republic of Ireland women’s crunch World Cup qualifier against France in Grenoble on Tuesday, the FAI has said it “will not be releasing a statement on any decision on this matter until after the board meeting scheduled for 11 June, due to the hugely significant game taking place on Tuesday for our women’s national team”.

It looks increasingly likely both games against Israel will now take place on neutral territory, with the FAI stressing its decision will not be swayed by outside opinions.

“The association reiterates that it is the responsibility of the board of the FAI to protect the future interests of football in Ireland,” the statement added.

“Any decision around the game is solely a matter for the association.”

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2 U.S. pilots die after plane crashes in the Dominican Republic

A pilot and co-pilot from the United States have died in a fiery plane crash as they attempted an emergency landing in the Dominican Republic, authorities said.

The incident occurred Sunday near the southern coastal town of La Romana, according to a statement by the Dominican Institute of Civil Aviation, which identified the pilot and co-pilot as U.S. citizens. It wasn’t immediately known what caused the crash. No passengers were aboard.

Major League Baseball All-Star former catcher Yadier Molina said on social media that the plane was bound for Texas to pick him up, along with family and friends.

“My condolences to the pilots and their family!” he wrote. Molina and his group were headed to Puerto Rico.

Officials said the plane had departed from Puerto Rico and landed in the Dominican Republic to refuel before heading to Texas.

The pilot and co-pilot reported an emergency shortly after taking off from the Dominican Republic, authorities said.

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