CONFOTUR law and its benefits
“The Tourism Incentives Centre (Confotur) is the government body responsible for examining and approving applications from companies wishing to benefit from the provisions of Law 158-01, and, in general, for supervising compliance with these provisions. Upon approval of the application by Confotur, the investor who wishes to benefit from the incentives established in the law must begin work on the approved project continuously and uninterruptedly, within a period of three years. Failure to do so will result in the loss of all the benefits prescribed by the law.
Due to the Covid 19 pandemic, Confotur has extended the three-year deadline with an additional two years for the start of construction of certain tourism projects that were definitively classified during the year 2020 or that, as of January 2020, were within the initial three-year deadline.”
Properties covered by the CONFOTUR law are exempt from the tax obligations you would normally have to pay, such as:
- Transfer tax on property rights (3% of the value of the property).
- Property tax (IPI). This is equivalent to 1% of the annual tax on the amount exceeding 7 140 000 RD$. In other words, if you have several properties, they are added together and only the added value is excluded.
As a buyer, you will be exempt from paying this 1% for the period determined by the approval of the law for this project, which is usually between 10 and 15 years.
We can say that, since the implementation of this law, the tourism and investment sector in the Dominican Republic has progressed considerably.