What is Confotur and how does it benefit you?

Confotur ~ (Tourism investment promotion tax law). It’s a law that provides certain benefits  to promote real estate investments in tourist areas in the Dominican Republic. This benefit applies to both the developer and the first buyer. 

When the law was initially passed, it was mainly focused on providing a benefit to the developers but then amendments were made to benefit the first buyer.

When you purchase a property in the Dominican Republic, the following are the Tax requirements:

1. Transfer Tax on real estate  (3% of the value of the property).
2. Property Tax ~1%

The properties that are part of the Confotur Law are exempt from these tax requirements.

As a developer, you benefit from a tax exemption on the materials purchased to develop the construction or property, which in turn reduces the cost and allows the property  prices to be more competitive. 

As a buyer, you will be exempt from paying that 1% Property Tax for the time determined by the law on your particular purchase, in most cases usually 15 Years.

This tax abatement benefit has undoubtedly achieved the objective of expanding and growing tourist destinations here in the Dominican Republic. The Ministry of Tourism in the Dom. Rep, projects that 7 million tourists will be visiting in 2022. Tourism in the Dominican Republic continues to grow more than ever and you can be a property investor and take advantage of the profitability and benefits the Dominican Republic wants to offer you .

Most of the projects in Bávaro and Punta Cana have the Confotur benefit. Contact me and we can find you one today.

✍️Author of this article – Adys Sanchez