What is Confotur and how does it benefit you?

9 March, 2022

<strong>What is Confotur and how does it benefit you?</strong>

Santo Domingo, Dominican Republic

If you have heard of Confotur and not sure what it is, please  continue to read my article. 

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. The 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 our  projects in the area of Bávaro and Punta Cana have the Confotur benefit. Contact us for more information.

✍️Author of this article-Adys Sanchez