I am pretty sure that you have seen at least once, while looking for real estate investment in Dominican Republic, the CONFOTUR law as a benefit in your purchase.
What exactly is this Dominican Law? Is it really a plus for my investment? How does it work?.. I know you have all these doubts, thats why i want to break this though for you in the most simple way.
Lets get learning!
Confotur is the Tourism incentive law of the Dominican Republic. Therefore its purpose is to increase the pace of the development process of the tourist industry in the country, focusing in the regions with high potencial or amazing natural conditions for tourism development though-out the Dominican Republic.
But.. How exactly does it work?
As a Buyer, you will find in the Real Estate market many New developments advertising as they are under the CONFOTUR law.
This is definitely a PLUS for your investment.
All developments under the protection of the CONFOTUR Law, are exempt from properties Taxes such as:
- Property tax transfer. This tax is paid when you are transferring the title of your new property, it is the 3% of the property value.
- Real Estate Property Tax (IPI). It is the 1% of the property’s value every year. As a buyer of a Confotur property you will be exempt from paying that 1% for 10 – 15 years.
As a developer, it gets even better!. All Businesses domiciled in the country and qualifying for the incentives and benefits established in this law are exempted one hundred percent (100%) from paying the taxes listed below:
- The income tax subject to incentives.
- National and municipal taxes levied on the use and issuance of construction permits, including land purchase documents, provided that such land is used for one of the purposes.
- Import duties and other taxes, such as tariffs, fees, late charges, including the Tax on Transfer of Industrial Goods and Services (ITBIS) that are applicable to the equipments, materials and furnishings needed for initially equipping and putting into operation the tourist resort concerned.
- The tax-exemption period for every tourist resort, business or company shall be ten (10) years from the date of completion of the construction work and the furnishing of the project subject of these incentives.
Now that you know everything about this incentive law for tourism investment in Dominican Republic, always take a moment to check out if you can be a beneficiary of these great tax exemptions in your next condo purchase.
Altea Real Estate Owner / Broker