Matthias KöglJune 12, 2024
The Confotur Law - 0% Tax in the Dominican Republic
What is Confotur?
The Confotur law has a lot of different advantages but the main reason of (Tourism Incentive Law 158-01) is of course to push the tourism in the dominican republic. The law is a blessing for all developers as they make their projects such as hotels, resorts, etc. very interesting for foreign investors through benefits to businesses and tax savings. The developers benefit from tax savings when purchasing the materials and this in turn means that they can sell for better prices, which has a positive effect on the buyer side. The law not only saves taxes but also creates many new jobs for the country and thus promotes the entire economy.
This law is currently mainly applied to very large facilities, especially in Punta Cana, as they have a real impact on the economy. There is currently no project in Sosua that has the Confotur regulation. However, one of our developments with Confotur will be published soon.
What are the benefits of Confotur ?
Title transfer tax exemption
Confotur saves you from paying 3% of the property´s value when you transfer the title to your name. For example, if you buy a condo for 300.000 USD, you will save 9.000 USD.
Property tax exemption for 15 years
Exemption from a tax equivalent to 1% of the property’s assessed value over RD$ 9,520,861 (approximately US$ 168,000) is applicable for up to 15 years.
Foreigners are able to use their investments as expenses to save taxes. They are also able to apply for an Investor Visa to get their residency after buying a property with Confotur. Up to now this was just available for an investment of minimum 200.000USD.
In summary, one can say that the Confotur regulation is a very promising law for the economy in the Dominican Republic and will have a major impact on the development of the country. In addition, this greatly increases the interest of foreign investors in investing. However, it is always possible that a law changes over time and therefore, before making a purchase with the Confotur regulation, you should make sure that you are up to date with experts.
