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CONFOTUR - Tourism Incentive Law No. 158-01 

The “Tourism Incentive Law No. 158-01” was created to promote tourism development in areas in the Dominican Republic that have great potential as new or existing tourist destinations.  It is aimed at areas that have not yet reached their expected potential as thriving new communities of international investors. This law and its associated regulations establish incentives for investments in the designated areas and are meant to be a legitimate stimulus to reach the country’s goals and objectives for tourism development.

Normal Taxation Without Confotur Approval

Without approval, all taxes are based on the assessed  value of the real estate.

Transfer Tax – If a property you want to purchase has a value of US$100,000.00, for example, you would have to pay a single payment of 3% of the property value (US$3,000) upon the transfer of title.

Property Tax – This tax is an annual payment of 1% of the property value over and above RD$ 7,438,197.00, which is about $148,000 USD. For example a property valued at US$200,000 would pay an annual tax of $520 USD.

Income Tax – This tax is an annual payment of 20% of Rental Income Earned from renting out the real estate investment.

Taxes with Confotur Approval

  • 0% Transfer Tax – Exempt from paying  3% transfer tax.

  • 0% Transfer Tax – Exempt from paying  1% property tax over the tax base amount.

  • 0% Income Tax – Exempt from paying  20% income tax on rental income received.

  • 15 Year Benefit – The above exemptions run for a period of 15 years.

 

So the benefits of buying a property with Confotur Approval are substantial. 

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