Unveiling the Benefits of Law 158-01 for Sienna
In the Dominican Republic, the enactment of Law 158-01, known as the Act to Promote Tourism Development, marks a significant stride towards enhancing tourism in underdeveloped areas and new potential hubs across provinces and localities. This legislation not only seeks to propel the tourism industry but also introduces the Official Tourism Promotion Fund, paving the way for a more inclusive and widespread tourism development across the nation.
Understanding CONFOTUR
The cornerstone of this initiative, CONFOTUR (Tourism Development Council), is tasked with accelerating the tourism industry's growth in areas rich in natural beauty and potential yet to fully harness their tourism capabilities. Whether previously recognized as tourism poles or not, many regions, such as Las Terrenas in the Samaná province, remain untapped despite their considerable appeal and readiness for tourism development as outlined in Decree No. 91-94 from March 31, 1994.
Law-Driven Benefits
At the heart of Law 158-01 are the incentives aimed at individuals and legal entities willing to invest in the tourism sector, particularly in the specified tourism poles or provinces. The law primarily offers tax exemptions as a compelling reason for investment, covering a wide array of establishments and activities:
- Resorts and Hotels: The backbone of tourism accommodation.
- Complementary Facilities: Including convention centers, cruise activities, theme parks, restaurants, spas, golf courses, sports facilities, and aquariums among others.
- Touristic Residences: Enhancing the living experience for tourists.
- Basic Infrastructure for the Tourism Industry: Ensuring the availability of essential services.
Promoted Projects
The law encourages a diverse range of tourism-related projects:
- Hotels, resorts, and hotel complexes.
- Conventions, fairs, festivals, and congresses.
- Cruise activities.
- Amusement, ecological, and theme parks.
- Marinas and ports.
- Complementary offerings such as aquariums, restaurants, golf courses, and sports facilities.
- Support for small and medium-sized enterprises (SMEs) in areas like handicrafts and tropical fish.
- Basic services including aqueducts, waste collection, and treatment facilities.
Sienna
The Sienna project, our development nestled in the lush landscapes of Las Terrenas, stands as a prime example of the kind of initiative that will significantly benefit from the incentives provided by CONFOTUR. By aligning with the objectives of Law 158-01, Sienna offers prospective buyers an enticing opportunity to invest in a property that not only promises a serene and luxurious lifestyle but also comes with the considerable advantages of tax exemptions and incentives.
These benefits include exemption from the real estate transfer tax, a 15-year property tax exemption for individuals, and exemptions from VAT and import taxes on equipment for the property, provided the acquisition occurs within the stipulated timeframe.
This project embodies the spirit of sustainable tourism development, encouraging investment in the Dominican Republic's vibrant tourism sector while offering substantial financial benefits to buyers under the auspices of CONFOTUR.
Tax Incentives for Buyers
For those investing in property within these tourism projects, the law provides substantial tax breaks:
- Exemption from the real estate transfer tax (3%).
- Property tax exemption for individuals for 15 years.
- Exemptions from VAT and import taxes on equipment for real estate units, provided the acquisition occurs within three years of project approval.
Check the lots availabilities and prices.
Exemption Process for Buyers
To avail of these exemptions, buyers must undergo a due diligence process, including the signing of the final sales contract after the project's definitive classification. They must then obtain the 3% transfer tax exemption from the Treasury and the General Directorate of Internal Taxes (DGII) for the property's first transfer.
Conclusion
Law 158-01 represents a pivotal move towards realizing the Dominican Republic's full tourism potential. By offering attractive incentives for investment in tourism infrastructure and services, the law aims to foster economic growth, create jobs, and promote sustainable development in previously overlooked regions. This legislative framework not only benefits investors and property buyers but also contributes to the country's broader tourism appeal, ensuring a vibrant future for the Dominican Republic's tourism industry.
The source for this article is Santroni Parsons legal firm - https://www.ecourbanlaw.com/
