If you are considering purchasing a tourist property in the Dominican Republic, you’ll be pleased to know that there are a number of benefits and incentives available to you. Thanks to Law 158-01 on Tourist Incentives and the CONFOTUR Law, buyers of tourist homes are exempt from certain taxes and fees that would otherwise apply. I will provide a brief description of these two laws and how they can save you money when buying a tourist property in the Dominican Republic.
Tourist Incentives Law 158-01:
Under this law, buyers of tourist properties are exempt from paying the 3% Property Transfer Tax on real estate property rights. This exemption applies to properties used for commercial or mixed-use purposes and located in designated tourist zones. For more information about these zones, consult with a qualified lawyer or real estate professional.
CONFOTUR Law:
The CONFOTUR Law provides exemptions from the Real Estate Tax (IPI) for buyers of tourist properties. The IPI is a 1% annual tax on properties with a value above or around RD $8,150,000. However, if you have multiple properties, they will be summed up to determine the IPI. The exemption from this tax applies for a period of 10 to 15 years, depending on the approval of the law for each individual project.
If you are considering buying a tourist property in the Dominican Republic, be sure to take advantage of the benefits and incentives offered by Law 158-01 on Tourist Incentives and the CONFOTUR Law. These laws can save you a significant amount of money on taxes and fees, making your purchase more affordable.
For more information about these laws and how they can benefit you, feel free to reach out to me, and I will be happy to assist you.
