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Tax Savings Tool

CONFOTUR Savings Calculator

CONFOTUR-certified properties in the Dominican Republic qualify for significant tax exemptions — including the 3% transfer tax, annual IPI property tax, and income tax on rental revenue. This calculator shows you exactly how much you save over the life of the exemption, so you can see the real financial advantage of buying CONFOTUR.

Using reference rate: 1 USD = 58 DOP
Auto-estimated from 2BR seasonal revenue model
Resale properties may have fewer years remaining
Total CONFOTUR Savings
$92,580
Over 15 years on a $300,000 property
Annual Tax Savings
$5,572
IPI + rental income tax exemptions
Savings as % of Price
30.9%
Total savings relative to purchase price
Savings at Purchase
Transfer tax waived (3%)$9,000
Total purchase savings$9,000
Annual Tax Exemptions
Annual IPI saved (1% above $170,000)$1,300
Rental income tax saved (27% of net rental income)$4,272
Total annual savings$5,572
Lifetime CONFOTUR Savings (15 Years)
Transfer tax + closing cost savings$9,000
Total IPI savings (15 yr)$19,500
Total rental income tax savings (15 yr)$64,080
Grand total savings$92,580

Year-by-Year Savings Schedule

See how your CONFOTUR savings accumulate over 15 years on a $300,000 property.

What is CONFOTUR?

CONFOTUR Tax Exemptions (Law 158-01)

CONFOTUR (Consejo de Fomento Turístico) is a Dominican government incentive program that grants significant tax exemptions to qualifying tourism-sector real estate developments. Properties with CONFOTUR certification receive:

  • Transfer tax exemption (3%): Waived at purchase — saves thousands at closing
  • IPI property tax exemption (1%): No annual property tax for 15–20 years
  • Income tax exemption (27%): Rental revenue is tax-free during the exemption period
  • Import duty exemption: Construction materials for qualifying developments are duty-free
What Qualifies for CONFOTUR?
  • Must be part of a tourism-sector development (resorts, condotels, vacation villas within certified projects)
  • The project must have an official CONFOTUR resolution from the government
  • Must meet minimum investment thresholds and be in a designated tourism zone
  • Standalone resale villas without project certification, raw land, and properties with expired exemptions generally do not qualify

Always verify independently: Request the CONFOTUR resolution number, confirm the resolution date (to calculate remaining exemption years), verify your unit type is covered, and have a local attorney confirm the status directly with the CONFOTUR office. Never rely solely on a developer or agent's claim of CONFOTUR eligibility.

Frequently Asked Questions

What is CONFOTUR and how does it work?

CONFOTUR (Consejo de Fomento Turístico) is a Dominican government program under Law 158-01 that grants tax exemptions to qualifying tourism-related real estate developments. Properties with CONFOTUR certification are exempt from the 3% transfer tax at purchase, the annual IPI property tax, and income tax on rental revenue for 15–20 years from the date of the government resolution.

How do I verify a property's CONFOTUR status?

Always verify independently: (1) Request the official CONFOTUR resolution number from the developer or seller, (2) Confirm the resolution date and calculate remaining exemption years, (3) Verify your specific unit type is covered in the resolution — some resolutions only cover certain phases or unit types, (4) Have a local attorney (abogado) verify the resolution status directly with the CONFOTUR office.

Does CONFOTUR transfer when I resell the property?

Yes, CONFOTUR benefits transfer to the new owner upon resale, but only for the remaining exemption period. If the original resolution was granted in 2015 with a 15-year term and you buy in 2025, you only receive 5 years of remaining benefits. The transfer tax exemption also applies to the resale transaction itself, as long as the exemption period hasn't expired.

What happens when the CONFOTUR exemption expires?

Once the exemption period ends, you become subject to all standard DR property taxes: the annual IPI property tax (1% on assessed value above ~$170,000 USD), the 27% income tax on rental revenue, and the 3% transfer tax on any future sale. Plan your investment model accounting for these costs after expiration.

Is rental income really tax-free under CONFOTUR?

Yes, during the active CONFOTUR exemption period, rental income generated by the certified property is exempt from income tax (ISR). Without CONFOTUR, non-resident property owners pay a 27% withholding tax on gross rental income. However, you should still maintain proper records and file declarations — the exemption must be documented, not assumed.

What's the difference between CONFOTUR and Law 171-07?

CONFOTUR (Law 158-01) is a property-level benefit: the property itself is certified, and any owner during the exemption period receives the tax benefits. Law 171-07 is an investor-level benefit: it grants expedited residency and a 50% reduction on property and capital gains taxes to individuals investing $200,000+ in Dominican real estate. They are separate programs and can sometimes be combined.

Do I still need to file taxes during the CONFOTUR period?

Yes. Even with CONFOTUR exemptions, you should file tax declarations with the DGII (Dominican tax authority) and reference your CONFOTUR resolution number. The exemption reduces your liability to zero, but the filing obligation remains. A local accountant familiar with CONFOTUR can ensure compliance and protect your exemption status.

This calculator provides estimates for informational purposes only and does not constitute tax, legal, or investment advice. CONFOTUR eligibility and exemption periods must be independently verified with a licensed Dominican attorney. Tax rates and thresholds are based on current DR tax law and are subject to change. Rental income estimates are projections, not guarantees.

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