Overview – CONFOTUR in the Dominican Republic
The Dominican Republic offers a highly lucrative program of tax incentives for overseas property buyers known as CONFOTUR. Established under Tourism Incentive Law 158-01, CONFOTUR is designed to stimulate the development of hotels, resorts, condominium developments and other tourism infrastructure projects across the country, including areas such as Punta Cana, Cap Cana, Puerto Plata, Las Terrenas, and more. The program incentivizes developers with import duty benefits. Even more compelling, it provides international real estate investors who purchase property in approved projects with tremendous tax advantages which last for up to 15 years. In short, CONFOTUR provides a win-win, fueling tourism growth across the Dominican Republic’s while delivering major tax perks to international property buyers. Read on to find out more about CONFOTUR and the benefits you could enjoy.
Invest in Dominican Republic real estate and reap the benefits of CONFOTUR
Introduction – What is CONFOTUR?
CONFOTUR, also known as Tourism Incentive Law No. 158-01, is a Dominican government program designed to boost tourism development across the country by encouraging foreign investment in new construction tourism-related development projects. The program offers attractive incentives to developers and investors in qualifying new construction projects in locations including the leading destinations of Punta Cana and Cap Cana, Sosua and Cabarete in Puerto Plata, Las Terrenas in Samana and other areas.
Specifically, CONFOTUR provides import duty exemptions to developers on machinery, materials and equipment. It also extends significant tax benefits to international investors who purchase property in CONFOTUR-approved projects. But not all investors can benefit – the perks are only available to those investing into new construction developments that meet stringent requirements and are officially approved under the incentive legislation.
For a tourism project to gain approval, it must be able to demonstrate solid financing, financial viability and profitability between 20 to 25%. It must also adheren to international quality standards.
CONFOTUR Benefits for International Property Buyers
As an investor purchasing property in a CONFOTUR-approved development, you can enjoy noteworthy tax exemptions for up to 15 years. Benefits include:
- Exemption from Transfer Tax – Usually 3% of a property’s value upon transfer of ownership to a new owner,
- Exemption from annual Property Tax – Known as IPI (Impuesto Patrimonio Inmobiliari), Property Tax is normally 1% per year on properties valued above US $150,000,
- Exemption from Income Tax – Exemption from paying the 20% annual income tax on rental income received.
These considerable tax breaks remain in place for approximately 15 years. The countdown starts from the completion of construction work and/or the completion of equipment installation at the property. Exact tax exemption timeframes vary slightly between projects, but, in all cases, buying into new tourism infrastructure approved under the legislation provides years of formidable tax savings as an overseas property owner.
Next Steps – Invest in Dominican Republic Real Estate & Reap the Benefits
With its generous tax breaks lasting for up to 15 years, CONFOTUR provides a compelling incentive package for investors considering purchasing property in select new resort development projects across the Dominican Republic.
To find out which new construction projects in the Dominican Republic benefit from CONFOTUR, please contact 7th Heaven Properties. We would be delighted to discuss your requirements and to introduce you to a variety of investment opportunities which qualify for the program and meet your investment goals.
Alternatively, browse Dominican Republic real estate listings on our website and discover the full range of current property for sale across the country.