Law on Tourism Investments and Credit for the Tourism Sector
Decree No. 1,443 was published in Official Gazette No. 6,153 Extraordinary of November 18, 2014. Through said Decree, the President of the Republic enacted the Decree with the Status, Value, and Force of Law of Tourism Investments and Credit for the Tourism Sector (the “Decree-Law”). The purpose of the Decree-Law is to promote sustainable tourism development, by means of the timely granting of financing for tourism projects, establishing incentives for the investors. The Decree-Law creates a Catalogue of Tourism Projects under the administration of the Ministry of the Popular Power for Tourism (“MINTUR”), which will compile such type of initiatives in order to maximize the financing capacity of the credit portfolio of the tourism sector. The Decree-Law creates a Catalogue of Tourism Investment Options fed by the Catalogue of Projects, which is addressed to foreign or local investors and will seek to benefit from their financing capacity.
Following are some of the incentive for the investors in the tourism projects referred to in the Decree-Law: (i) total or partial income tax (“IT”) exemptions, in proportion to the new investments made in the tourism establishments constructed by them; (ii) preferential rates for ships and airplanes used for tourism; or (iii) special rates for the provision of public services entrusted to the State to the providers of tourism services. The incentives mentioned under (ii) and (iii) will require MINTUR’s prior approval and all incentives require MINTUR’s certification. The credit portfolio for the tourism sector will be funded by a percentage to be established by the National Executive on a yearly basis on the credit portfolio of banks, which will in no case be less than 3% of the aggregate amount of the same. MINTUR may, together with the Ministry of the Popular Power for Economy, Finance, and Public Banking, supervise and monitor the banks in the correct execution of the credits granted from the said credit portfolio.
The Decree-Law repeals the Law of Credit for the Tourism Sector published in Official Gazette No. 39,251 of August 27, 2009.
The Decree-Law became effective upon its publication in the Official Gazette.
In order to access the Decree-Law, please click here.
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