The CONFOTUR Law – Tax benefits when investing in the tourist area

Law 158-01 or CONFOTUR law establishes certain benefits and tax incentives for real estate projects, businesses and commercial activities in order to encourage investment in the country’s tourist areas.

The promoter and builder benefits from tax exemption on construction inputs, which makes the cost much more efficient and profitable, this, in turn, translates into a better price for the end consumer.

It also offers benefits for the first buyer of a property located in a project developed under the Law of Promotion of Tourism Development, as is usually the case with most projects in tourist areas of the Dominican Republic.
These benefits are:

1. Exempt from paying 3% of the value of the property for the registration and transfer of the property in your name (Transfer Tax on real estate rights)
2. Exempt from the annual payment of 1% of the value of the property Real Estate Property Tax (IPI). The time of this exemption may vary depending on the project and is usually between 10 to 15 years.

Consult your real estate agent to find out all the benefits for you.