Countries › Dominican Republic › Guide › 3. Investing › Tourism incentives in the Dominican Republic: CONFOTUR classification and 15 years of tax relief

Tourism incentives in the Dominican Republic: CONFOTUR classification and 15 years of tax relief

Last verified: 2026-10-30 · Status: Stable

Ley 158-01 gives approved tourism projects 100% relief from income tax and from taxes on setting up, land transfer and first equipment, for 15 years from the end of construction. Since 2013 the regime covers the whole country, and hotels over 15 years old can qualify when rebuilding more than half of the property. CONFOTUR decides, with a provisional step first and a final one that needs the environmental licence and the Hacienda cost benefit analysis.

USD figures use the Banco Central de la República Dominicana reference selling rate of RD$60.9007 per US dollar for 29 October 2026, the latest row in its published rate file on the verification date, rounded to the cent.

Key facts

Exemption term from completion of works	15 yearsLey 158-01 art. 7 as replaced by Ley 195-13, as of 2026-10-30 · in force
Time to begin sustained operation	3 yearsLey 158-01 art. 7, as of 2026-10-30 · in force
Term for CONFOTUR to decide	60 daysLey 158-01 art. 10, as of 2026-10-30 · in force
Investor deduction, yearly cap	20 % of net taxable incomeLey 158-01 art. 4 paragraph II, as of 2026-10-30 · in force
Bond for transfer tax relief on provisional classification	3 % of property valueDecreto 372-14 art. 16, as of 2026-10-30 · in force

The rule

1. The law covers all regions with tourism or ecotourism potential in the country, whether or not declared tourism poles. Ley 195-13 repealed the list of named areas.Ley 158-01 art. 1 paragraph I as amended by Ley 195-13, Ley 195-13 arts. 3 and 4, 2013-12-13 official text · verified 2026-10-30 · changed: Ley 195-13 of 13 December 2013 replaced the regional list with national coverage and raised the exemption term from 10 to 15 years.

2. Eligible activities are hotels and resorts; convention and event venues; cruise home port promotion; amusement, ecological and theme parks; marinas; aquariums, restaurants, golf and sports facilities; small businesses that live mainly from tourism; and basic service infrastructure such as water, treatment plants and waste collection.Ley 158-01 de Fomento al Desarrollo Turístico, art. 3, 2001-10-09 official text · verified 2026-10-30

3. New investment gets 100% of the regime. Hotels at least 5 years old get ITBIS and other tax relief on goods for modernization. Hotels at least 15 years old that rebuild more than 50% of the facility get the full regime.Ley 158-01 art. 1 paragraph III as replaced by Ley 195-13, Ley 195-13 art. 5, 2013-12-13 official text · verified 2026-10-30

4. Approved companies have 100% relief from income tax; national and municipal taxes on forming companies, raising capital and real estate transfers; the tax on luxury housing and vacant land; fees for plans, studies and construction supervision; and import and other taxes, including ITBIS, on goods needed for construction and first equipment.Ley 158-01 art. 4 as amended by Ley 184-02, art. 4, 2002-11-23 official text · verified 2026-10-30

5. Domestic and foreign financing and its interest bear no tax or withholding.Ley 158-01 de Fomento al Desarrollo Turístico, art. 4 paragraph I, 2001-10-09 official text · verified 2026-10-30

6. Individuals and companies may deduct their investments in covered projects from net taxable income, up to 20% of it each year and over no more than five years.Ley 158-01 art. 4 paragraph II as amended by Ley 184-02, art. 4 paragraph II, 2002-11-23 official text · verified 2026-10-30

7. The exemption lasts 15 years from completion of construction and equipment. Sustained operation must begin within three years, or the right is lost at once.Ley 158-01 art. 7 as replaced by Ley 195-13, Ley 195-13 art. 9, 2013-12-13 official text · verified 2026-10-30

8. Exemptions reach those who invest directly with the promoters. Later transfers to third party buyers are excluded.Ley 158-01 art. 4 paragraph IV as added by Ley 195-13, Ley 195-13 art. 7, 2013-12-13 official text · verified 2026-10-30

9. CONFOTUR, chaired by the Minister of Tourism, must approve or reject files within 60 days in total. Projects need the approval of the municipal and planning bodies and CONFOTUR.Ley 158-01 arts. 8 and 10; art. 14 paragraph as replaced by Ley 195-13, arts. 8, 10 and 14, 2013-12-13 official text · verified 2026-10-30

10. CONFOTUR can give provisional classification to an investor still setting up. It covers company formation and capital taxes, real estate transfer taxes and municipal taxes, on condition that the project goes on to final classification. It lasts one year and may be extended one more year.Decreto 372-14, Reglamento de la Ley 158-01, art. 15, 2014-10-09 official text · verified 2026-10-30

11. To apply the transfer tax exemption under provisional classification, DGII requires a bond of 3% of the property value or the current rate of that tax.
Example: Land valued at RD$60,000,000 needs a bond of RD$1,800,000. / Land of US$985,210.35 needs a bond of US$29,556.31.Decreto 372-14, Reglamento de la Ley 158-01, art. 16, 2014-10-09 official text · verified 2026-10-30

12. Provisional filing needs corporate documents, a project description, a preliminary design and location, and the title. Final classification needs the environmental licence and the Hacienda cost benefit analysis showing economic viability and the tax cost.Decreto 372-14, Reglamento de la Ley 158-01, arts. 17 and 18, 2014-10-09 official text · verified 2026-10-30

13. Projects needing more than three years must be presented in stages. The term runs from receipt of the final classification.Decreto 372-14, Reglamento de la Ley 158-01, art. 8 paragraphs I and II, 2014-10-09 official text · verified 2026-10-30

14. Before building, every infrastructure project must post a bond or bank guarantee for environmental recovery. No incentive can be granted without the environmental licence.Ley 158-01 de Fomento al Desarrollo Turístico, art. 15; art. 17 paragraph II, 2001-10-09 official text · verified 2026-10-30

15. Incentives are lost for breach of tourism rules, of the land use plan, or for an established environmental offence. Violation of the law means automatic loss and payment of amounts not paid. Rights can be transferred only with CONFOTUR approval, decided within 60 days, except sales of lots and units to buyers.Ley 158-01 arts. 13 and 18, arts. 13 and 18 and paragraphs III and IV, 2002-11-23 official text · verified 2026-10-30

16. No new taxes, charges or fees may be set during the exemption period.Ley 158-01; Decreto 372-14, art. 5; art. 13 paragraph III, 2014-10-09 official text · verified 2026-10-30

Point	Provisional	Final
For whom	Investor still setting up	Project with permits in hand
Needs	Corporate papers, description, design, title	Environmental licence, Hacienda cost benefit analysis, CONFOTUR documents
Relief	Company, transfer and municipal taxes	Full art. 4 regime
Life	One year, plus one	15 year exemption from completion
Security	Bond of 3% of property value for transfer tax	Environmental recovery guarantee before works

Provisional and final classification

Worked example

A developer buys land for RD$304,503,500 (US$5,000,000.00) under provisional classification and posts a 3% bond of RD$9,135,105 (US$150,000.00) instead of paying transfer tax. It then gets the environmental licence and the cost benefit analysis, and final classification. Works end in 2029, so income from the classified hotel is exempt until 2044, if operation starts within three years.

Step by step

Check that the activity is in art. 3 and that land use and municipal rules allow it.
File for provisional classification if the company or permits are not ready.
Start the environmental process early, as the final step depends on it; see investing/project-permits-and-one-stop-shop.
Send the feasibility study so Hacienda can run the cost benefit analysis.
Get approval of the goods list before importing first equipment.
Keep the works within the timetable, and present stages if over three years.

Common traps

The DGII copy of Ley 158-01 prints the old 10 year term in art. 7. Ley 195-13 replaced it with 15.
Older commentary still separates La Altagracia and Santiago. Ley 195-13 removed that paragraph and applied the regime nationally.
A buyer of a unit in a classified project takes the relief only when buying from the promoter. A resale does not carry it.
Classification does not replace the environmental licence. Under art. 17 paragraph II no incentive is granted without it.
Ley 30-26 bars a second regime on the same activity, so check any plan that mixes tourism with a free zone or film regime.

Sources

← Free zones in the Dominican Republic: how to get in, what it costs and how long the exemptions lastThe border zone regime in the Dominican Republic: 100% income tax relief in seven provinces under Ley 12-21 →

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