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Confotur Law: what it is and its benefits for investors.

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If you have considered investing in real estate in the Dominican Republic, it is almost certain that you have heard of the Dominican Republic. Confotur Law.

And if you still don't know what it consists of, it is very important that you read this article, because if you focus your investment strategy well, you could be able to save 15 years of taxes living on a Caribbean island.

Yes, as you are reading it. It's not a dream, or maybe it is: fifteen years tax-free.

Fortunately, in this world there are still paradisiacal places where you can enjoy the highest quality of life and pay little taxes. If you were looking for information on tax benefits for investors in Punta Cana and the Dominican Republic, take note of all the key points of the Confotur Law.

What is the Confotur Law? The law that turns the Dominican Republic into an investor's paradise.

We are going to tell you a little about the Confotur Law and where it comes from.

This rule has been in force since October 9, 2001, when the National Congress of the DR approved Law No. 158-01. It is better known as the Confotur Law (in reference to the Council for the Promotion of Tourism).

This legislation is aimed at promoting tourism development in "provinces and localities of great potential" and in places with "little development". Today, the Dominican Republic is one of the jewels of the CaribbeanThe country has a vigorous and attractive tourism industry, which is also the country's main source of income.

The objective of the Confotur Law in the Dominican Republic is to promoting the tourism industryAnd that is why it is very important for the country to attract investors from abroad, because although it is a country with an incredible quality of life, the average salary of a Dominican is barely around US$375 per month.

Foreign investments are turning the Dominican Republic into a Caribbean tourism powerhouse, with more than 10 million tourists by 2023.

Who can benefit from the Confotur Law?

Pursuant to Article 2 of said Law, all individuals and legal entities domiciled in Dominican Republic and invest in the country can benefit from the Confotur Law.

To do so, they must invest in this type of property:

  • Hotel facilities, resorts or hotel complexes
  • Facilities for fairs, conventions, festivals, shows, concerts or international congresses.
  • Companies related to the cruise sector that have DR ports as their port of origin.
  • Theme, ecological or amusement parks
  • Port and maritime infrastructures.
  • Tourism infrastructures, such as restaurants, golf courses, sports facilities, etc.
  • Small and medium-size tourism-related companies
  • Companies providing basic services for tourism, such as garbage collection or environmental sanitation.

But not only that, you can also buy apartments that are part of Confotur projectsThe property can be used either to live in or to rent to third parties, which would allow you to access the best tax incentives.

Discover the benefits of the Confotur Law and increase your profitability

These are some of the benefits that you could benefit from with the Confotur Law if you decide to make real estate investments in the tourism sector or buy a home.

  • You would be exempt from personal income tax. or legal entities for a maximum of 15 years.
  • You would also be exempt from Real Estate Property Tax (IPI).
  • The transfer of real estate rights, such as sales or exchanges, would be tax exempt.
  • You would also not have to pay import taxes on construction materials for the development of the project.
  • On the other hand, consultancies, preparation of plans, studies, supervision and construction of works for the tourism project would be exempt.
  • ITBIS would not be paid either (Tax on the Transfer of Industrialized Goods and Services), so that the machinery, materials and furniture necessary for the construction would be tax free.
  • In addition, you would have an easier time obtaining legal residency in the country.

These great advantages make the Dominican Republic one of the ideal places in the world for the development of tourism projects or real estate investments.

Requirements to access the Confotur program benefits

You may think this all sounds too good to be true. And that the requirements for obtaining the benefits of the Confotur Law can be demanding.

But nothing could be further from the truth. The truth is that being eligible for the Confotur program is very easy and affordable for the small or medium-sized investor.

  • You must invest at least $200,000 in the tourism sector, or $100,000 if it is some other investment covered by the program (such as self-catering apartments).
  • If you are going to start a business, you must submit a viable business plan and show that you have sufficient capital for the execution of the project.
  • The development of the tourism construction project must comply with the deadlines established in the program.
  • The project must have been approved by the Ministry of Tourism of the Dominican Republic.
What are the possibilities of the Dominican Republic for the real estate investor?

As you can see, investing in projects under the Confotur Law can have great advantages for the real estate investor.

On the one hand, it can be a great option for small investors who wish to moving to live in the Dominican Republic. But it can also be a very attractive option for the professional investor, who wishes to develop tourist projects as a business (hotels, golf courses, parks...), or to buy apartments for rent.

Would you like to have more information for your investments in projects with Confotur? We invite you to request a free meeting with us..