CONFOTUR: The Tax Break That Reshapes the Maths on Dominican Property

Most buyers discover CONFOTUR halfway through their research and wonder why nobody led with it. It is the single biggest reason a new-build in the Dominican Republic can cost less to own than an equivalent home almost anywhere else in the Caribbean.

In short: qualifying new developments are exempt from the property transfer tax and the annual property tax for up to 15 years. For a foreign buyer, that turns a meaningful line item into zero, both at the closing table and every year after. Here's how it works and, just as importantly, how to make sure the development you're looking at actually qualifies.

What CONFOTUR is

CONFOTUR is the Tourism Promotion Council, and the incentive takes its name from the law behind it: Law 158-01, the Tourism Development Incentive Law. It was created to channel investment into tourism infrastructure and property across designated areas of the country, and it works by removing the main taxes that would otherwise apply to a qualifying development and its buyers.

The original 2001 law granted a 10-year exemption. Since the 2013 amendment (Law 195-13), approved projects receive tax relief for up to 15 years, counted from the date the project is granted CONFOTUR status. That timing detail matters, and we come back to it below.

What CONFOTUR actually exempts

Two taxes, and they're the two that hit a foreign buyer hardest.

The first is the property transfer tax, normally 3% of the appraised value, paid when title passes into your name. On a CONFOTUR-approved development, that 3% is waived. On a US$400,000 purchase, that's US$12,000 saved at the point of sale.

The second is the annual property tax, known locally as IPI, normally 1% per year on value above the exemption threshold. On a qualifying development, IPI is waived for the exemption period. Some projects also carry exemptions on rental income tax, which strengthens the case for buyers planning to let the property. The exact package is set per project, so it's worth confirming which exemptions apply.

What it means in real money

Picture a US$500,000 beachfront condo in an approved development.

At closing, you save the 3% transfer tax: US$15,000 you simply don't pay. Then, each year you hold it, you're exempt from the 1% IPI on the value above the threshold. Over a decade of ownership, the combined saving runs comfortably into the tens of thousands of dollars, money that stays in your return rather than going to tax. This is why CONFOTUR stock is central to the investment case we set out in our investor brief, and why it changes the yield calculation in our rental yields guide.

Interested in stock that carries the exemption? Browse CONFOTUR-eligible developments or tell us your budget and we'll shortlist the ones that qualify.

Which developments qualify, and which don't

This is the part to get right. CONFOTUR is not automatic and it is not universal. It applies to specific projects that have been approved, generally new tourism-related developments in designated areas, not to resale homes and not to every new build.

A development either has CONFOTUR status or it doesn't, and the exemption clock started when that status was granted, not when you buy. So two things follow. First, always ask for proof of a development's CONFOTUR approval rather than taking a marketing claim at face value. Second, ask how much of the 15-year window remains, because on an older approved project some of it may already have elapsed.

Every development Propuno lists is new construction, and we confirm CONFOTUR status as part of vetting a project, so you're not left to verify it alone. Our legal and due diligence guide explains how this check fits into the wider process.

How CONFOTUR fits the rest of your purchase

CONFOTUR is a reason to buy new-build, but it doesn't replace the other decisions. You still choose a region, a developer and a property type, and you still run full due diligence. What the incentive does is tilt the economics decisively towards approved new developments over resale, which is exactly the segment a foreign buyer benefits most from anyway. For the full journey, start with our guide to buying property in the Dominican Republic.

Frequently Asked Questions

What is CONFOTUR in the Dominican Republic?

CONFOTUR is the country's tourism investment incentive, established under Law 158-01. It grants approved new tourism-related developments (and their buyers) exemption from the 3% property transfer tax and the 1% annual property tax, for up to 15 years from the date the project receives CONFOTUR approval. Some projects also include rental-income-tax relief. It exists to encourage investment in tourism property and infrastructure, and it's a major reason foreign buyers favour new construction in the Dominican Republic.

How many years does the CONFOTUR exemption last?

Up to 15 years. The original 2001 law provided 10 years; the 2013 amendment (Law 195-13) extended it to 15. The exemption period runs from the date the development was granted CONFOTUR status, not from when you buy, so on an older approved project part of the window may already have passed. Always confirm how many years remain on the specific development you're considering.

Does every new-build development qualify for CONFOTUR?

No. CONFOTUR status is granted to specific approved projects, typically new tourism-related developments in designated areas. It does not apply to resale property and not to every new build. Because the benefit is significant, it's worth asking for documented proof of a development's CONFOTUR approval rather than relying on a sales claim. Propuno confirms CONFOTUR status as part of vetting the new developments we list.

Do foreign buyers get the CONFOTUR benefit too?

Yes. The exemptions attach to the qualifying development and apply to its buyers regardless of nationality. Foreign owners already have the same property rights as Dominican nationals and pay the same tax rates, so a foreign buyer of a CONFOTUR-approved unit receives the same transfer-tax and annual-tax relief as a local buyer would.

The takeaway

CONFOTUR is the reason new-build stacks up in the Dominican Republic: no 3% transfer tax at closing, no annual property tax for up to 15 years, and in some cases rental-income relief on top. The one rule to remember is to verify it, project by project, and check how much of the window remains.

Want to see developments that carry the exemption? Browse CONFOTUR-eligible new builds, or speak to a Propuno adviser and we'll confirm the status and remaining term on any project you're considering.

This is general information, not tax or legal advice. CONFOTUR eligibility, exemptions and remaining terms vary by development and must be confirmed for your specific purchase.