Tax Exemption for New Developments in Touristic Areas:
The Tourism Incentive Law of the Dominican Republic, also known as the CONFOTUR Law (158-01), aims to boost the country’s tourism industry by providing tax incentives to developers and buyers of properties located in areas with high tourism potential or natural beauty. If you’re a real estate investor interested in a development advertised under CONFOTUR Law, it’s a positive sign as you may be eligible for tax exemptions. As a buyer, you may be exempt from paying certain property taxes such as the 3% property transfer fee and the 1% Real Estate Property Tax (IPI) for 10-15 years.
Qualifying developers, businesses, and companies can receive a 100% exemption from certain taxes, including income tax, construction permit, and import duties, for up to 10 years after completing their project. It’s important to note that these exemptions are subject to change and can be periodically revised by the Government. Additionally, not all properties or projects are eligible under the CONFOTUR Law, so it’s important to seek guidance from a local attorney or professional before making a purchase.
Overall, the CONFOTUR Law can be a significant advantage for real estate investors seeking properties in high-potential tourism areas in the Dominican Republic. By potentially offering tax exemptions for both buyers and developers, it can result in considerable savings over time. Hence, it is advisable to confirm whether a specific property is eligible for these incentives before making a purchase.
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