Many of us have heard about the tourism investment promotion law Confotur, a law that helps to promote investments in this sector bilaterally to both the builder and the final consumer.
The developer and builder benefit from an exemption of taxes on the materials of the constructions, which makes the cost much more efficient and profitable. This translates into a better price for the final consumer.
In the beginning, the law was conceived for the builders, but then benefits were passed to the initial buyer.
These benefits are very good, they have undoubtedly achieved their task of promoting the growth of our tourist destinations.
The properties that are protected by 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).
- Property Tax (IPI). It is equivalent to 1% of the annual surplus tax RD $ 6,750,000. That is, if you have several properties, they add up and only what that value adds will be exempt.
You, as a Buyer with Confotur, will be exempt from paying that 1% for the time determined by the approval of the law in that project. Which is usually between 10 and 15 years.
With the transfer tax, you save 3% of the value of the property at the time of selling.
But if you have acquired it via the company you can make a change of shareholders and pass this benefit to its new owner.
All our projects in the area of Bávaro and Punta Cana have this benefit.