Through tourism investment in the Dominican Republic since October 2020, more than 3 billion dollars have been attracted, which will benefit 10 provinces in the country, representing more than 42,000 new rooms.
By María Mercedes
El Inmobiliario
SANTO DOMINGO –With the aim of promoting investment in the country's tourist areas, Law 158-01, enacted by CONFOTUR, establishes tax benefits and incentives for real estate projects, businesses, and commercial activities. A detailed analysis of the law was presented by Brenda Morales, technical director of the Tourism Development Council (CONFOTUR) of the Ministry of Tourism, during her participation in the first edition of the “CENI Expo Forum.”
Morales began his presentation by highlighting that the Technical Directorate of CONFOTUR was created by decree No. 372-14 to handle all technical matters arising from the application of Law No. 158-01.
In that regard, he said that his role at MITUR is guided by organization and efficiency, which speeds up response times; the clarity of ordinances and regulatory parameters; “we also provide legal certainty; we prioritize investment projects to achieve objectives and innovate with new ways of thinking about tourism.”.
“This law benefits any individual or legal entity domiciled in the country that undertakes, promotes or invests capital in any of the activities of article 3 and that has a tourist purpose, as well as individuals or legal entities that develop new projects or complementary offers in tourist centers.”.
Contributions to the real estate sector
Brenda Morales explained that this law aimed to accelerate the development of the tourism industry in all regions with great potential or that meet the natural conditions for their tourist or ecotourism exploitation throughout the national territory (the latter established by Law 195-13) which, having been declared as a tourist pole or not, have not reached the expected level of development.
He noted that tourism investment in the Dominican Republic since October 2020 has exceeded $3 billion, benefiting 10 provinces and resulting in over 42,000 new hotel rooms. These investments originate from six countries.
He reported that, at the end of 2022, the country had 76,236 rooms in hotel complexes and 97,574 in private hotels.
Morales asserted that in the last decade the real estate sector has grown exponentially in the country, and the aforementioned law grants real estate rights that consist of transfer by sales, exchanges, contributions in kind and any other form of transfer on real estate rights, as well as the Real Estate Property Tax (IPI).
Regarding the deadlines for the construction and equipping of projects, he specified that they are three years, counted from the date of delivery of the final classification resolution.
The validity of the exemption period is 15 years, counted from the date of completion of the construction and equipping work of the project; while the deadlines for construction and equipping are three years, counted from the date of delivery of the final classification resolution.
Central unit for tourist procedures
Brenda Morales noted that Confotur guarantees efficiency and response time, while also providing legal certainty for tourism projects under construction or renovation, the latter requiring renewal every five years. “We also innovate with new ways of thinking about tourism, managing institutional processes, and using data.”
Finally, he specified that CONFOTUR is there to help real estate agents, providing them with advice and the information they require so that the projects they work on are carried out legally and with good results.
Fact
The official presentation of the CENI platform was attended by personalities linked to the real estate sector; it was held in commemoration of "International Women's Day", formalized by the United Nations in 1975.
Ana María Ramos, director of the newspaper El Inmobiliario, explained that the first edition of “Expo Foro CENI” was an event prepared with great care and special attention to help meet the training needs of the sector.
