Classification of Tourist Projects

The classification of a tourism project implies compliance with all technical, environmental, and economic feasibility requirements, that is, all the regulations established in the Dominican Republic so that it is in satisfactory conditions to start construction and operations.

Each project must have the approvals of the main authorities involved in its development process, such as: the Municipal Councils, the Technical Department of the Ministry of Tourism (DPP), the Ministry of the Environment and Natural Resources (MIMARENA) and the Ministry of Treasury, in order to be evaluated by the Tourism Promotion Council CONFOTUR.

As for technical authorizations, these are granted by the Ministry of Tourism (MITUR) and are requested through the Technical Planning and Project Office (DPP), which evaluates architectural projects, whether tourist or not, as long as they are located in any of the established tourist poles and on the basis of the regulations outlined in the Tourist Land Management Plan (POTT), as well as those regulations relating to the protection of the environment.

Due to the fact that the aforementioned authorizations are part of individual processes, and that project promoters often obtain them as the project is conceptualized and developed, the Decree No. 372-14 that sets up the regulations for the application of the Law No. 158-01 establishes the Provisional Classification.

This mechanism allows the preliminary evaluation of the project and its approval by CONFOTUR, in accordance with the legal regulations indicated, grants the benefits of exemptions for the constitution of the company and capital increase. The Provisional Classification is granted for a period of twelve (12) months, phase during which the Definitive Classification must be requested.

In accordance with the provisions of Resolution No. 44-2011, an extension to this period may be requested for an additional twelve (12) months. In addition to the incentives that both regulations grant to projects that have obtained the provisional classification, Regulation No. 09-2008 on Exemptions from Payment of Taxes on Real Estate Transfer of Tourist Projects with Provisional Classification, issued by the General Directorate of Internal Taxes (DGII), establishes that an exemption can be granted for the payment of the real estate transfer tax applicable to real estate that is acquired by natural or legal persons who develop tourist activities and who have a provisional classification resolution issued by CONFOTUR.

For this they must present before the General Directorate of Internal Taxes a bond equivalent to 3% of said tax, in order that projects that have not obtained their definitive classification may have a flexible legal tool that allows them to benefit from the tax regime established by this legal body.

Regarding the Definitive Classification, the requirements are the following:

• Environmental authorization approved by the Ministry of Environment and Natural Resources.
• No objection from the Ministry of Tourism, by the Planning and Projects Department (DPP).
• No municipal objection.
• Description of the promoter or investor.
• Economic and financial feasibility analysis.
• Bank and commercial references of the promoter or investor, in addition to other requirements expressly established in article 12 of the Regulation of Application (1125-01) of said law.