If you’re buying property in the Dominican Republic and you haven’t heard of Confotur, you’re about to save yourself a significant amount of money.
Confotur — formally known as Law 158-01, the Tourism Incentive Law — is one of the most powerful financial advantages available to real estate buyers in the DR. It was originally designed to attract tourism investment to the country, and over the past two decades it has quietly become the single biggest tax benefit available to both foreign and domestic property buyers.
The numbers are not small. On a typical Punta Cana property purchase, Confotur can save you anywhere from $15,000 to $50,000 or more in taxes, money that stays in your pocket instead of going to the government.
Yet most foreign buyers either don’t know about it, don’t understand the details, or worse, assume they qualify when they don’t.
After 14 years of closing deals in this market, I’ve seen every version of this story. Here’s the complete breakdown so you can get it right the first time.
What Is Confotur?
Confotur is a Dominican government program that grants tax exemptions to real estate developments classified as tourism projects. The law was enacted in 2001 under Law 158-01 and has been amended several times since — most significantly through modifications that expanded its reach beyond traditional hotels and resorts to include residential condominiums, villas, and mixed-use projects within designated tourism zones.
The core idea is straightforward: the Dominican Republic wants to attract investment in tourism infrastructure. In exchange for building within approved tourism areas, developers receive tax exemptions and critically, those exemptions pass through to the individual buyers who purchase units in those projects.
This isn’t a developer-only benefit. If you buy a condo or villa in a Confotur-certified project, you get the tax exemptions. Directly.
The Tax Exemptions: What Exactly Do You Save?
Confotur-certified properties enjoy two major tax exemptions that can add up to tens of thousands of dollars:
1. No Transfer Tax (3% Savings at Closing)
Normally, every property transfer in the Dominican Republic incurs a 3% transfer tax based on the government-assessed value of the property. This is paid at closing and is one of the largest line items in your purchase costs.
With Confotur, this tax is completely waived.
Real example: On a $400,000 property, the standard transfer tax would be approximately $12,000. With Confotur: $0.
On higher-value properties, a $1.300,000 villa in Cap Cana, for instance that’s a $39,000 savings at the closing table.
2. No Annual Property Tax (IPI) for Up to 15 Years
The Dominican Republic levies an annual property tax called the IPI (Impuesto al Patrimonio Inmobiliario) on properties valued above a certain threshold. The current rate is 1% of the assessed value above approximately RD$9.96 million (roughly $174,000 USD).
For most properties that foreign buyers purchase in Punta Cana, Cap Cana, and Bávaro, where prices typically start at $220,000 and go well into the millions, the IPI is a recurring annual expense.
Confotur exempts qualifying properties from IPI for up to 15 years from the date the tittle is transferred to your name.
Real example: A $500,000 property might owe approximately $3,260 per year in IPI. Over 15 years, that’s roughly $48,900 in property tax savings, before accounting for any increases in assessed value over time.
This is the exemption that most significantly impacts your long-term cost of ownership.
Which Properties Qualify?
This is where most confusion, and most mistakes happen.
Confotur benefits are not automatic. They don’t apply to every property in the Dominican Republic, and they don’t apply just because a property is located in a tourism area.
A property qualifies for Confotur only if it is part of a specific development project that has been formally approved under the Confotur program by the Dominican government’s tourism council (Consejo de Fomento Turístico, or CONFOTUR). The approval is granted to the project, not to individual properties or geographic zones.
Projects That Typically Qualify
- New master-planned developments in designated tourism zones (Cap Cana, Vista Cana, Punta Cana, Las Terrenas, Samaná, Puerto Plata, etc.)
- Resort-style condominiums with tourism infrastructure (pools, reception, rental programs)
- Mixed-use tourism projects that combine residential, commercial, and hospitality elements
- Villas within approved gated communities that meet the tourism development criteria
Properties That Typically Don’t Qualify
- Resale properties where the original Confotur exemption period has already expired
- Individual homes built on private lots outside of certified projects
- Older developments that were built before Confotur existed or that never applied for certification
- Properties in non-tourism zones — even if they’re near tourist areas
The critical point: the Confotur approval belongs to the project, and each project’s exemption has a start date and end date. If you buy a resale property whose Confotur exemption started 10 years ago and runs for 15 years, you only get the remaining 5 years of benefits, not a fresh 15-year clock. (applicable only if the property has the proper LLC structure into place).
The Mistakes That Cost Buyers Their Exemption
In 9 years of working this market, I’ve seen the same Confotur mistakes over and over:
Mistake 1: Taking the Developer’s Word for It
“This project is Confotur approved” is one of the most common claims in Dominican Republic real estate marketing. And in most cases with reputable developers, it’s true. But “most cases” is not “every case.”
Some developers apply for Confotur, are in the approval process, and market the benefit before they actually receive it.
The fix: Ask to see the actual Confotur resolution (Resolución de Clasificación Turística). This is an official government document with a resolution number, the project name, and the specific properties or phases covered. If a developer can’t produce this document, the benefit is not confirmed. However this sometimes these approvals takes time, sometimes years.
Mistake 2: Not Understanding Resale Implications
When you eventually sell a Confotur property, the remaining exemption transfers to the new buyer, which can be a strong selling point and can increase your resale value. However, if the exemption has already expired by the time you sell, the property loses that competitive advantage.
This matters for investment strategy. A property with 12 years of remaining Confotur benefits is worth meaningfully more to a buyer than the same property with 2 years remaining or zero. note; This is only possible if the property is under an LLC.
Mistake 4: Ignoring the Compliance Requirements
Confotur benefits come with conditions. Projects must maintain their tourism classification and comply with the terms of their approval. In rare cases, projects have lost their Confotur status due to non-compliance, and when that happens, individual owners can lose their exemptions retroactively.
This is uncommon with major, established developers, but it’s a risk worth understanding, especially with smaller or newer projects.
How to Verify Confotur Status: A Practical Checklist
Before you commit to a purchase based on Confotur benefits, verify the following:
- Request the Confotur resolution document from the developer — the official Resolución de Clasificación Turística
- Check the classification date to calculate your remaining exemption period in resale cases
- Have your attorney independently verify the project’s current Confotur status with the relevant government bodies
- Get the Confotur benefit written into your purchase agreement — not just a verbal promise
- Verify at closing that the transfer tax exemption is actually being applied (some notaries will charge it by default unless you specifically invoke the exemption)
Confotur in 2026: What’s Changed
The Confotur program has evolved since its original 2001 enactment. Key developments that matter for buyers today:
- Expanded geographic scope: Originally concentrated in traditional tourism poles (Punta Cana, Puerto Plata, Samaná), Confotur now covers developments across a much wider range of DR municipalities
- Residential inclusion: The program initially targeted hotels and resorts. Over time, amendments have clearly included residential condominiums and villas within approved tourism projects, making it directly relevant to individual buyers
- Growing adoption: As the DR real estate market has matured, Confotur has become essentially standard for new development projects in major tourism areas. Most reputable developers in Cap Cana, Bávaro, and Punta Cana now build Confotur certification into their development plans from the start
- Increased scrutiny: The government has become more rigorous about compliance and enforcement, which is actually good news for buyers, it means the certification carries more weight
The Bottom Line: Confotur Is a Competitive Advantage
Confotur isn’t a loophole or a workaround. It’s a legitimate government incentive designed to attract exactly the kind of investment that foreign buyers represent. When used correctly, it reduces your upfront costs, eliminates ongoing tax burdens, and improves your investment returns for up to 15 years.
But like everything in Dominican Republic real estate, the benefit only works if you verify it properly, document it formally, and understand exactly what you’re getting.
The buyers who save the most are the ones who do their homework before they wire money, not after.
Want to understand the complete tax picture — and every other cost — before you buy? Our Punta Cana Real Estate Buyer’s Guide covers Confotur in detail alongside closing costs, legal fees, hidden expenses, and the full step-by-step purchase process. It’s 25 pages of insider knowledge that could save you tens of thousands of dollars.
Already know what you’re looking for? Browse our current Confotur-certified listings or contact Alex directly to discuss which properties maximize your tax benefits.
Alex Bucher is a licensed real estate broker with Coldwell Banker Prime Realty, based in Punta Cana. He has spent +9 years working exclusively in the Dominican Republic market, specializing in foreign buyer transactions across Cap Cana, Bávaro, and the eastern coast.
