Tax exemptions for luxury boats in the Dominican Republic approved by the Senate

Santo Domingo.- The Senate has approved a controversial bill in its second reading. This bill offers tax exemptions to a specific category of luxury vessels, including yachts and sailboats.

During an extraordinary session of the Senate, the approved project states that yachts, racing yachts, motor boats, jet skis, sailboats, and similar vessels will be exempt from taxes for ten years. This exemption will start from the date the law is promulgated.

Senators Alexis Victoria Yeb and Ginette Bournigal presented this initiative. It also includes tax benefits for investments in infrastructure developments that promote recreational nautical tourism. Additionally, Article 48 of the project exempts real estate taxes for land and improvements used in nautical activities.

The second paragraph of Article 48 specifically mentions: “Total exemption from import duties, contributions or levies applicable to the importation of materials, equipment, furniture, and accessories used in the construction, renovation, and commercial equipment of the activity of services or products associated with recreational nautical tourism.”

The supporters of the project argue that the Dominican Republic has significant potential for recreational nautical tourism. They highlight the country’s unique geographical advantage, with 75% of its border adjacent to the sea.

The objectives of the bill focus on promoting nautical tourism through regulations that govern navigation and nautical equipment for recreational, private, and commercial purposes.

The legislation does not apply to maritime vessels engaged in commerce, scientific research vessels, artisanal fishing vessels, and auxiliary port vessels.

Now, the proposal will proceed to the Chamber of Deputies for consideration.

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