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RE/MAX Next Door
CONFOTUR (Ley de Incentivo al Desarrollo Turistico, Law 158-01) is a Dominican Republic government program that eliminates property taxes for up to 15 years. For a $500,000 property, it saves approximately $15,000 at closing in transfer tax plus $5,000-8,000 annually in property tax -- a lifetime benefit of $90,000 to $135,000 USD. The program is administered by the Ministry of Tourism (MITUR) and applies to approved tourism-related real estate developments across the country.
What is CONFOTUR?
CONFOTUR stands for Consejo de Fomento Turistico (Council for Tourism Promotion), established under Law 158-01 ("Ley de Incentivo al Desarrollo Turistico") enacted on November 9, 2001, and regulated by Decree 974-01. Its purpose is to attract foreign and domestic investment into tourism-related real estate by eliminating key taxes for qualifying projects.
The program has been one of the most successful investment incentives in the Caribbean. According to the Dominican Republic Central Bank (Banco Central de la Republica Dominicana), foreign direct investment in tourism real estate grew 34% year-over-year in 2026, with CONFOTUR-approved projects accounting for the majority of new developments in Punta Cana, Cap Cana, and the eastern coast.
Source: Banco Central de la Republica Dominicana, "Flujos de Inversion Extranjera Directa" Q1 2026 Report; MITUR Annual Statistics 2025-2026.
Tax Savings Breakdown
CONFOTUR eliminates three separate taxes for up to 15 years from the date MITUR grants the Resolucion de Clasificacion to the developer:
Three Taxes Eliminated
- Title Transfer Tax (3%) -- Normally, buyers pay 3% of the assessed property value to DGII (Direccion General de Impuestos Internos) when registering a new title. On CONFOTUR properties, this is 0%.
- Annual Property Tax / IPI (1%) -- The Impuesto a la Propiedad Inmobiliaria applies at 1% annually on properties valued above RD$9.86 million (~$168,000 USD at 2026 exchange rates). CONFOTUR eliminates this for the exemption period.
- Rental Income Tax (0%) -- Income generated from short-term vacation rentals in approved condo-hotel configurations is tax-exempt under CONFOTUR. Per standard tax law (Law 11-92), rental income would otherwise be taxed at 25-27%.
Source: DGII, "Impuesto a la Propiedad Inmobiliaria" updated January 2026; Law 158-01, Articles 3-5; DGII Resolution DDG-AR1-2026-00002.
Eligible Areas and Properties
CONFOTUR approval is granted to individual development projects, not entire cities or regions. The developer applies to MITUR for classification. Once approved, all units within that project inherit the tax exemption. Key areas where CONFOTUR-approved developments are concentrated:
- Punta Cana / Bavaro -- Largest concentration of approved projects. Condos from $200,000 to villas at $5M+
- Cap Cana -- Premium gated resort community. Average $3,000-4,500/m2. Nearly all projects carry CONFOTUR
- Bayahibe -- Emerging area with furnished apartments from $145,000. Strong dive-tourism rental demand
- Las Terrenas -- North coast with European buyer market. Beach condos from $180,000
- Puerto Plata / Sosua / Cabarete -- Active adventure-tourism market. Pre-construction from $150,000
- Samana -- Boutique eco-tourism developments. Villas from $300,000
- Jarabacoa / Constanza -- Mountain tourism projects. Select eco-lodge developments
- Santo Domingo (select projects) -- Urban tourism-classified developments near the Colonial Zone or Malecon
Important: Not every property in these areas has CONFOTUR. You must verify that the specific development holds a current Resolucion de Clasificacion from MITUR. Harold at RE/MAX Next Door verifies CONFOTUR status as part of every transaction's due diligence.
How CONFOTUR Works (Step by Step)
For the Developer
- Developer submits project plans to MITUR for tourism classification
- MITUR evaluates: location in tourism zone, project scope, amenities (pool, common areas, reception)
- MITUR issues Resolucion de Clasificacion -- the 15-year clock starts on this date
- Developer registers the resolution with DGII to activate tax exemptions
For the Buyer
- Purchase a unit in a CONFOTUR-approved development
- Your attorney verifies the active CONFOTUR resolution during due diligence
- At closing, your attorney registers the CONFOTUR exemption with DGII on your title
- You pay 0% transfer tax, 0% annual IPI, and 0% rental income tax for the remaining exemption period
You do not apply for CONFOTUR individually. The benefit is project-level. If the development is approved, you automatically receive the exemptions when you close.
Savings Calculator by Property Price
The following table shows estimated total savings over a 15-year CONFOTUR exemption period, assuming the full benefit is available from purchase date. IPI is calculated at 1% of value above RD$9.86 million (~$168,000 USD).
| Property Price | Transfer Tax Saved (3%) | Annual IPI Saved | 15-Year Total Savings |
|---|---|---|---|
| $200,000 | $6,000 | $320/year | $10,800 |
| $300,000 | $9,000 | $1,320/year | $28,800 |
| $500,000 | $15,000 | $3,320/year | $64,800 |
| $750,000 | $22,500 | $5,820/year | $109,800 |
| $1,000,000 | $30,000 | $8,320/year | $154,800 |
| $2,000,000 | $60,000 | $18,320/year | $334,800 |
Calculations based on DGII IPI formula: 1% of assessed value above RD$9.86 million threshold. Exchange rate: 1 USD = 58.6 DOP (Banco Central reference rate, June 2026). Rental income tax savings not included -- these vary by occupancy and revenue.
Real example: A buyer purchasing a $500,000 Cap Cana apartment with 12 years remaining on the CONFOTUR clock saves $15,000 at closing (transfer tax) + $3,320/year x 12 years = $54,840 in IPI. Total: $69,840 in tax savings -- enough to furnish the property and cover 3+ years of HOA fees.
Resale and Transferability
One of CONFOTUR's most valuable features: tax exemptions transfer to the next buyer on resale.
- Per Article 4 of Law 158-01, if you sell after the first 5 years, the remaining exemption period passes to the new owner
- The new buyer also pays 0% transfer tax on the purchase (since the property remains under CONFOTUR)
- If a project was approved in 2020 with a 15-year exemption, a 2026 buyer receives the remaining 9 years of benefits
- This transferability makes CONFOTUR properties more attractive on the secondary market, supporting higher resale values
Restriction: Selling within the first 5 years may trigger a clawback of previously exempted taxes. Always consult with a Dominican real estate attorney before selling a CONFOTUR property within the initial 5-year period.
Limitations and Common Mistakes
What CONFOTUR Does NOT Cover
- HOA / maintenance fees (these are private, not government taxes)
- Legal fees at closing ($1,500-3,000)
- Notary and title registration fees
- Capital gains tax on resale (10% of profit per Law 11-92, regardless of CONFOTUR)
- Municipal taxes (garbage collection, etc.)
Common Mistakes Buyers Make
- Assuming all properties in Punta Cana have CONFOTUR -- They do not. Each development must hold its own resolution. Always verify.
- Not checking the remaining years -- The 15-year clock starts when MITUR approves the developer, not when you buy. A project approved in 2018 has only 7 years remaining in 2026.
- Ignoring the 5-year resale restriction -- Selling before 5 years can trigger tax clawback.
- Confusing CONFOTUR with general tax-free status -- Capital gains, municipal fees, and closing costs still apply.
Frequently Asked Questions
Do I need residency to get CONFOTUR benefits?
No. CONFOTUR benefits apply to all property owners regardless of nationality or residency status. Foreigners buying under the Dominican Republic's Foreign Investment Law 16-95 receive the same CONFOTUR exemptions as Dominican citizens.
Can I use CONFOTUR for a property I rent on Airbnb?
Yes, if the development is classified as a condo-hotel under its CONFOTUR resolution. Most approved developments in Punta Cana and Cap Cana qualify. The rental income tax exemption applies to short-term vacation rentals managed within the project's hotel/rental program. Independent long-term rentals may not qualify -- confirm with your attorney.
What happens when the 15 years expire?
Standard Dominican tax rates resume: 1% annual IPI on value above the threshold, 3% transfer tax on any future sale, and 25-27% income tax on rental revenue. Many investors plan to sell before expiration to capture the transferability premium or reinvest in a newer CONFOTUR project.
Is CONFOTUR being renewed or extended?
As of 2026, Law 158-01 remains active with no announced sunset date. The Dominican government has consistently extended the program since 2001 due to its success in attracting foreign investment. MITUR continues approving new projects. However, there is no guarantee of future extensions, making current CONFOTUR properties especially valuable.
Source: MITUR Resolution Registry 2026; Dominican Republic Congress, Law 158-01 as amended; ProDominicana Foreign Investment Guide 2026.
How do I verify a property has CONFOTUR?
Request the Resolucion de Clasificacion number from the developer or seller. Your attorney can verify its validity with MITUR and confirm the exact expiration date. RE/MAX Next Door includes CONFOTUR verification in every transaction's due diligence at no additional cost.
Find CONFOTUR-Approved Properties
Harold at RE/MAX Next Door has access to 50+ CONFOTUR-approved developments across Punta Cana, Cap Cana, Bayahibe, and Santo Domingo. Get a personalized list of qualifying properties matching your budget and investment goals.
WhatsApp Harold: +1-809-426-2269Or email: harold@remaxnextdoor.com
Related Resources
Disclaimer: This article is for informational purposes only and does not constitute legal or tax advice. Tax laws are subject to change. Consult with a qualified Dominican Republic attorney and tax advisor before making investment decisions. All figures are estimates based on publicly available data as of July 2026.