CONFOTUR LAW
158-1

Individual investors can take advantage of Tourism Incentive Law CONFOTUR

CONFOTUR Law – Tax Benefits for Real Estate Buyers in the Dominican Republic

One of the most valuable advantages of buying property in Punta Cana is a government incentive most buyers don’t fully understand until we explain it. CONFOTUR (Law No. 158-01) is a Dominican government program that grants significant tax exemptions to buyers of approved tourism real estate projects. If the property you’re buying qualifies, the financial impact on your investment is substantial.

What Are the CONFOTUR Tax Benefits?

For up to 15 years, buyers of CONFOTUR-certified properties are exempt from:

  • ✅ No 3% property transfer tax at purchase
  • ✅ No annual property tax (IPI) for the duration
  • ✅ No capital gains tax when you sell
  • ✅ No income tax on rental earnings
  • ✅ No import duties on construction materials and furnishings

The last two are the ones that matter most to investors. No tax on your rental income. No capital gains tax when you exit. In most markets those two points alone would significantly change your net return.

Does CONFOTUR Apply to Resale Properties?

No, and this is one of the most important things to understand. CONFOTUR benefits apply to the first buyer of a qualifying property only. If you buy a resale unit in a CONFOTUR-approved development, you do not inherit the tax exemptions from the previous owner. This is exactly why buying at the right stage matters, and why we always clarify this upfront.

Which Properties Qualify?

A property qualifies when the developer has received official CONFOTUR certification from the Ministry of Tourism. The project must be located within a designated tourism development zone and meet specific development standards. Most new developments in Punta Cana, Cap Cana, and Bávaro qualify, but not all. Certification must be verified independently before you rely on it.

Can I Buy Under a Company Name and Still Get CONFOTUR?

Yes. CONFOTUR benefits apply regardless of whether you purchase in your personal name or through a corporate structure such as a Dominican SRL. This makes it flexible for investors who prefer to hold assets through a company.

Does CONFOTUR Give Me Residency?

No. CONFOTUR is strictly a tax incentive program. It has no connection to residency or immigration status. If residency is part of your goal, that is a separate conversation, and one we are happy to guide you through.

How Do We Handle CONFOTUR Verification?

We verify CONFOTUR status on every property we present. You won’t be discovering after the fact that a project doesn’t qualify. If it’s in our listings, it’s been checked. When the time comes, your attorney will also confirm the certification in writing before you sign anything.

Want to See CONFOTUR-Approved Properties in Punta Cana?

Complete the buyer form below. It helps us understand your goals, budget, and timeline, so we know from where to start and in which stage you are to help you the best way possible. We will personally review your submission and get back to you shortly.