The Dominican Republic has become one of the main destinations in the Caribbean not only for travelers who love the beaches and the Caribbean sun but also for investors or those seeking property as a second living place.
The tourist development that has experienced the area of Punta Cana, has not only been fostered by its beaches and paradisiacal landscapes and other attractions offered by the country, but also in government initiatives that promote tourism internationally and by granting significant tax benefits to the investors of the sector.
We speak of the law of CONFOTUR or Law No.158-01 on “Promotion of Tourism Development”.
This law is aimed at projects in tourist real estate destinations in order to encourage tourism development in the area.
Projects, being under the protection of the CONFOTUR Law, are exempt from tax commitments that in other properties you should pay such as:
- Transfer Tax on real estate rights (3% of the value of the property).
- Real Estate Property Tax (IPI). 1% (annual) of the property’s value.
That is, if you have several properties, they add up, and only that which adds that value will be exempt.
As a buyer, you will be exempt from paying that 1% for the time of 15 years.
It can be affirmed that when this law was constituted, there was an important advance in the growth of the tourism and investment sector in the area.