CONFOTUR Explained: Tax Incentives for Foreign Property Buyers in the Dominican Republic (2026)

CONFOTUR is one of the main reasons foreign buyers look at new tourism developments in the Dominican Republic. For a qualifying project, it can remove the 3 percent transfer tax at purchase and waive the annual property tax for years. Understanding exactly what it covers, and how to confirm a project actually has it, protects you from paying for a benefit that was never really there.

What CONFOTUR is

CONFOTUR stands for Consejo de Fomento Turístico, the Tourism Development Council. It is the state body, presided over by the Minister of Tourism, that applies Law No. 158-01 on tourism development incentives.

Law 158-01 was created to encourage tourism investment in regions the government wants to develop. Rather than a blanket benefit, it works project by project. A developer applies, and CONFOTUR grants a classification, either provisional or definitive, that makes that specific project eligible for the law's tax incentives and benefits.

The main benefits for a buyer

For a property buyer, two exemptions stand out.

- Transfer tax exemption. Normally the transfer of real estate carries a 3 percent tax at closing, applied on the value assessed by the tax authority. In a CONFOTUR classified project, that transfer tax is waived, which is a direct saving at purchase.

- IPI property tax exemption. The annual property tax, IPI (Impuesto sobre la Propiedad Inmobiliaria), is normally 1 percent on value above an exemption threshold. Under CONFOTUR the property can be exempt from IPI for a period commonly cited as up to 15 years from the project's approval.

Beyond these, Law 158-01 also provides exemptions that primarily benefit developers, such as relief from certain customs duties on equipment and materials, and income tax relief on qualifying tourism operations for a period. Some of the developer level benefits do not flow directly to an individual unit buyer, so it is worth being clear about which exemptions actually apply to you.

Which projects qualify

CONFOTUR is aimed at tourism oriented development in designated areas, historically poles with strong tourism potential. Qualifying projects tend to be hotels, resorts, and residential tourism developments such as condominiums and villa communities in tourism zones like Punta Cana and La Altagracia, Samana, and Puerto Plata, which regularly appear among approved projects.

The key point is that the classification attaches to the project, not to real estate in general. An ordinary resale house outside an approved development does not carry CONFOTUR benefits. Approval also has to be in place, and the strongest position for the transfer tax exemption is being the first buyer purchasing directly from the developer within a project that holds an active classification.

How to confirm a project is CONFOTUR approved

Developers advertise CONFOTUR status heavily because it sells units, so do not take a brochure at face value. Confirm it.

- Ask the developer for the CONFOTUR resolution or classification document for the specific project, including whether it is provisional or definitive.

- Cross check against the Ministry of Tourism. CONFOTUR maintains an official presence through MITUR, and the ministry's transparency portal publishes information on classified projects.

- Have your independent attorney verify that the classification is active and that it covers the specific unit you are buying, not just the developer's broader brand.

- Confirm in writing, in your purchase contract, that the transfer tax and IPI exemptions apply to your unit and who is responsible if they do not materialize.

Caveats worth knowing

- The benefit is time limited. The IPI exemption runs for a defined period tied to the project's approval, not forever. Once it lapses, normal IPI rules apply, so factor the eventual annual tax into a long term hold.

- Provisional versus definitive. A provisional classification is an earlier stage than a definitive one. Understand which your project holds and what conditions remain.

- Resale nuances. Whether a resale still enjoys the exemptions depends on the original classification still being active and how the benefit transfers. Confirm this specifically rather than assuming it carries over.

- It is not a substitute for title due diligence. CONFOTUR is a tax incentive, not a guarantee of clean title. A project can be CONFOTUR classified and still have title or deslinde issues on a given unit. Verify the Certificate of Title and legal status regardless.

CONFOTUR is a genuine and substantial incentive, and it is a large part of why new tourism projects are attractive to foreign buyers. The discipline is the same as with any Dominican purchase: confirm the paperwork independently. Transparency platforms such as Bektu can help buyers check whether a project's CONFOTUR status and title records line up before committing.

When the classification is real and active, the savings are real. Verify first, then enjoy them.