CONFOTUR: The Dominican Republic's Real Estate Tax Incentive Program Explained

If you've been researching property in the Dominican Republic, you've probably seen "CONFOTUR certified" or "Law 158-01 benefits" in listing descriptions. These claims can be worth tens of thousands of dollars over the life of your investment — or nothing, if the project doesn't actually qualify.

This guide explains exactly what CONFOTUR is, what it exempts, who qualifies, and how to verify a project's status before you commit.

What Is CONFOTUR?

CONFOTUR stands for Consejo de Fomento Turístico — the Tourism Development Council of the Dominican Republic. It administers Law 158-01, passed in 2001 and subsequently extended, which grants significant tax exemptions to qualifying tourism-sector real estate investments.

The program was designed to attract foreign capital into DR's tourism infrastructure. It has worked — projects from Punta Cana to Samaná have been developed with CONFOTUR backing, and the incentives remain among the most generous in the Caribbean for real estate investors.

What Does CONFOTUR Actually Exempt?

A qualifying CONFOTUR property receives the following exemptions:

Property Transfer Tax (3%) — Fully exempt. In a standard DR real estate transaction, the buyer pays 3% of the property's assessed value to transfer title. With CONFOTUR, this is waived entirely. On a $300,000 property, that's $9,000 back in your pocket at closing.

Annual Property Tax (IPI — 1%) — Fully exempt for the duration of the incentive period. DR's Impuesto al Patrimonio Inmobiliario applies at 1% annually on the portion of value exceeding approximately $182,000 USD (RD$10,695,494 for 2026, adjusted annually for inflation). CONFOTUR eliminates this for qualifying properties, typically for up to 15 years depending on the resolution. (See our Dominican Republic property tax guide for exactly how IPI works without the exemption.)

Income Tax on Rental Revenue — Exempt during the incentive period. Rental income generated by a CONFOTUR-certified property is not subject to Dominican income tax for the duration of the exemption.

Import Duties on Construction Materials — Qualifying developers are exempt from import duties on materials used in construction of the project. This benefits the developer directly, but often translates to more competitive pricing for buyers.

How Long Do the Exemptions Last?

The standard CONFOTUR incentive period is up to 15 years, calculated from the date of the government resolution — not from your purchase date.

This matters. If a project received its CONFOTUR resolution in 2015 and you buy in 2025, you may have only 5 years of exemptions remaining, not 15. Always ask for the resolution date, not just confirmation that the project is certified.

Who Qualifies for CONFOTUR?

CONFOTUR is not available on all properties. Eligibility depends on the project, not the individual buyer. The requirements are:

• The property must be part of a tourism-sector development (residential complexes, hotels, villas, condotels intended for vacation rental use)
• The project must have received an official CONFOTUR resolution from the government before or during construction
• The development must meet minimum investment thresholds set by the council
• Projects must typically be located in designated tourism zones or areas actively targeted for tourism development

Individual resale properties — a standalone villa that was never part of a certified project — generally do not qualify. CONFOTUR applies at the project level, and the exemptions reach the buyers who purchase their unit directly from that certified project.

Does CONFOTUR Transfer When You Sell?

No. Ley 158-01 (Art. 4, Párrafo IV) gives the exemptions to whoever invests directly with the promoter or developer and expressly excludes "cualquier transferencia posterior a favor de terceros adquirientes" — any later transfer in favour of third-party acquirers. In practice DGII grants the benefits only to that first acquirer, and the exclusion covers the other exempted taxes too, not just the 3% transfer tax. If you buy a CONFOTUR unit and sell it five years later, your buyer does not inherit the remaining years, and you should not market the property as though they will.

Decreto 372-14 (Art. 33) does allow the rights a resolution grants to be transferred with prior CONFOTUR approval, applied for jointly by both parties — but that is an application that can be refused, not an automatic inheritance, and it does not change how DGII treats a straightforward resale.

There is a legitimate structure worth knowing about: where the unit is owned by a Dominican company (an SRL), the developer sells to that SRL, which receives the exemptions and the title. The partners can then sell or cede their shares to a new investor. Because the property itself never changes hands, the exemption stays with the company. This is common and lawful, but it is a corporate transaction with its own due diligence — confirm it with your own Dominican attorney before relying on it, and be aware that pre-completion contract assignments designed to sidestep the third-acquirer exclusion can be treated as simulated acts and expose the seller to tax-evasion liability.

After the exemption period ends, the property becomes subject to standard DR tax obligations: 3% transfer tax on future sales and 1% annual IPI on value above the exemption threshold.

What to Verify Before You Buy

This is where most buyers make mistakes. "CONFOTUR certified" in a listing description is a marketing claim, not a legal guarantee. Before signing anything, verify the following:

1. Request the resolution number. Every CONFOTUR-certified project has an official government resolution with a unique number. Ask your attorney or the developer to provide it. If they cannot, the certification may not exist or may not apply to your specific unit.
2. Confirm the resolution date. Calculate how many years of exemption remain. A project from 2008 may have expired its CONFOTUR benefits entirely.
3. Verify it covers your unit type. Some resolutions apply to hotel rooms or specific building phases but not individual residential units. Confirm your specific unit is covered.
4. Check whether you are actually the first acquirer. The exemptions attach to the buyer purchasing directly from the certified project. If you are buying from a previous owner rather than the developer, assume you will pay the full 3% transfer tax and the annual IPI, and treat any claim to the contrary as something your attorney must confirm with DGII in writing.
5. Have a local attorney confirm in writing. Your real estate attorney should verify the CONFOTUR status independently — not accept the developer's word — and include confirmation in their due diligence report.

Key Takeaway: CONFOTUR does not transfer automatically in an informal transaction. If you buy through a handshake deal or informal promesa without proper title work, you may lose access to the benefits even on a certified project.

CONFOTUR vs. Law 171-07 — What's the Difference?

You may also encounter references to Law 171-07, which grants expedited residency and separate tax advantages (including a 50% reduction on property and capital gains taxes) to investors who place $200,000 or more into the Dominican economy.

These are two separate programs. Law 171-07 benefits accrue to the investor and relate to residency and broader tax treatment. CONFOTUR benefits accrue to the property and relate specifically to real estate taxes within certified tourism projects. Some investors qualify for both simultaneously; others qualify for only one.

Is CONFOTUR Still Worth It?

For a buy-and-hold vacation rental investor, yes — materially. The IPI exemption alone on a $400,000 property saves approximately $2,180/year (after the ~$182K threshold). Over 15 years, that's about $32,700 in tax savings. The transfer tax waiver saves another $12,000 at purchase. The rental income tax exemption adds further value depending on your yield.

Stat: $44,700+ Total potential tax savings on a $400,000 CONFOTUR property over 15 years (transfer tax + IPI exemption)

The risk is overpaying for a CONFOTUR label. Some developers and agents market the certification as a premium that inflates list price beyond the actual tax savings. Run the numbers with our CONFOTUR Savings Calculator — it totals all three exemptions on your price, hold period, and remaining years. If a competing non-CONFOTUR property is priced $40,000 lower and the remaining exemption is only 4 years, the math may not favor the certified project.

CONFOTUR in the Samaná / Las Terrenas Market

Several active developments in the Las Terrenas and Samaná peninsula area hold current CONFOTUR certifications, including a CONFOTUR-certified villa development in Las Terrenas. These tend to be newer construction projects (2015 onward) in designated tourism zones. If you're evaluating a specific project in this market and want to know whether its certification is current and legitimate, that verification should be part of your due diligence process before any deposit is paid.

Frequently Asked Questions

Can a resale property have CONFOTUR benefits?

Not for you as the resale buyer. The exemptions go to whoever bought directly from the certified project; Ley 158-01 (Art. 4, Párrafo IV) excludes later transfers to third-party acquirers, so budget for the full 3% transfer tax and the annual IPI on a resale purchase. If a seller tells you the benefits come with the unit, ask them to put it in writing and have your own attorney verify it with DGII before you rely on it.

Does CONFOTUR apply to land purchases?

Generally no. CONFOTUR applies to built tourism-sector properties within certified projects. Raw land does not qualify.

Is the rental income exemption automatic?

You should still report rental income to Dominican tax authorities and reference the CONFOTUR resolution. Operating as though you have no tax obligations without proper documentation creates risk.

What happens when CONFOTUR expires?

Standard DR tax rates apply immediately: 1% IPI annually on value above ~$182K, and 3% transfer tax on any future sale.

Can I check CONFOTUR status myself?

The CONFOTUR council is part of the Ministry of Tourism. In principle, resolutions are public record. In practice, the most reliable verification route is through a qualified Dominican real estate attorney who can check directly.