Confotur is a range of tax incentives instituted by law 158-01 to benefit developers and buyers interested in investing in tourism facilities and accommodation in the Dominican Republic. Through Confotur, the first buyers of Confotur-eligible properties will be exonerated from the payment of property transfer taxes and up to 15 years of property tax exoneration.
About Confotur
Benefits of Confotur
- Transfer tax exoneration
- In the Dominican Republic, property transfer tax is 3% of the purchase price. First buyers of properties eligible for Confotur will benefit from the exoneration of property transfer taxes.
- Property tax-free for the first 15 years
- In the Dominican Republic, property tax is 1% of the purchase price. First buyers of Confotur-eligible properties will benefit from the exoneration of property taxes for the first 15 years starting from when Confotur was approved to the developer.
- No reassessment
- Properties with Confotur will benefit from no reassessment of their register values for the duration of the property tax exoneration.
Who Can Benefit from Confotur
Individual: Any individual who purchases a Confotur-eligible property, regardless of immigration status, can benefit from the tax exemptions offered by the Confotur law.
Companies: Local and foreign companies and entities can acquire properties with the benefits offered by the Confotur law.
Transferability of Confotur
The benefits offered by the Confotur law are not transferable; these benefits only apply to the first buyer, a company, or an individual.
Common Questions
What exactly is Confotur about?
Confotur is a tax incentive program created by law 158-01. Properties eligible for Confotur will be fully exonerated from property transfer taxes and property taxes for 15 years, starting from when the Confotur was granted to the developer.
If I buy under a company, will I still get the Confotur?
Absolutely, yes, the benefits of Confotur are equally in place for companies and individuals.
What is my liability when Confotur is over?
When the Confotur expires, the property will be subject to property taxes.
Can I buy multiple properties with Confotur?
Confotur is a benefit that falls into the property; as a result, buyers can own multiple Confotur-eligible properties, and all of them will benefit from the tax exonerations in place.
Can I buy a property under my foreign company and still get the Confotur?
Absolutely, yes. In the Dominican Republic, foreign entities have the same rights and obligations as Dominican entities.
What happens to Confotur if you sell the property?
Confotur is only in place for the first buyer, meaning that the property loses the benefits the minute that the property is sold to a second buyer.
How long is Confotur good for?
The benefit of property tax exoneration by Confotur is good for 15 years. However, it is crucial to understand that 15 years will start when the resolution is granted to the developer.
