Individual investors can take advantage of Tourism Incentive Law CONFOTUR
Confotur, otherwise known as the Tourism Incentive Law 158-01, was created by the Ministry of Tourism in October 2001 to jumpstart real estate development and infrastructure projects related to tourism in the country.
This law establishes certain benefits and tax incentives for real estate projects, shops, and commercial activities in order to encourage investment in tourist areas of the Dominican Republic.
Developers and builders benefit from tax exemption for building materials, which makes construction more efficient and profitable. This, in turn, translates into a better price for the final consumer.
It also offers benefits for the first buyer of a property located in a project developed under the CONFOTUR Law, which applies to most projects in tourist areas of Punta Cana, Dominican Republic.
These benefits are:
1. Exemption from payment of 3% of the property value for the registration and transfer of the property in your name (Transfer Tax on Real Estate Rights)
2. Exemption from annual payment of 1% of the property's value for Real Estate Property Tax (IPI). The length of this exemption can vary depending on the project and is usually between 10 to 15 years.
For the most part, only large-scale developers and hotel groups could take advantage of the tax exemptions and benefits of the Confotur legislation.
The Ministry of Tourism expanded the law to allow foreign nationals who purchase property with a Confotur certification to benefit from the tax exemptions on transfer taxes and property taxes.
FIND A PROPERTY WITH CONFOTUR
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