Law on Incentives for the Development of Renewable Energy Projects
(Decree No. 52-2003)


The purpose of this Law is to promote the development of renewable energy projects and to establish fiscal, economic and administrative incentives for this purpose.

  1. Exemption of customs duties for imports, including Value Added Tax -VAT-, charges and consular duties on the importation of machinery and equipment, used exclusively for the generation of energy in the area where the renewable energy projects are located. This incentive will be in effect exclusively during the pre-investment period and the construction period, which shall not exceed ten (10) years. 
  2. Exemption from the payment of Income Tax. This incentive will be in effect exclusively as from the FIE, for a period of ten (10) years. 
  3. Exemption from the Tax on Mercantile and Agricultural Companies -IEMA-. This incentive will be in effect exclusively as from the FIE, for a period of ten (10) years.

In order to take advantage of the incentives indicated, the interested party must submit the following information to the competent body: 

The request must be addressed to the Ministry of Energy and Mines. During the pre-investment and construction periods, extensions may be submitted following the same procedure. 

– The general documentation of the project clearly indicating the schedule for the pre-investment period, the construction period and the operation period. 

– Statement that it has complied with the provisions of the General Electricity Law, as applicable. – Total or partial list of the materials, equipment and others associated to these periods, and the type of incentive or incentives requested, specifying the period to which they correspond.