July 2026 · 10 min read
CONFOTUR — formally Consejo de Fomento Turístico, the Tourism Promotion Council — administers Law 158-01, the Dominican Republic's primary tourism investment incentive framework. For foreign property buyers, CONFOTUR certification is one of the most significant financial variables in a purchase decision.
A CONFOTUR-certified property can save you thousands of dollars at closing, reduce your annual holding costs, and increase your net rental yield. This guide explains exactly how it works, what benefits apply, and what to verify before buying a property marketed as CONFOTUR-certified.
USD 9,000
Transfer tax saved at closing
USD 1,400/yr
IPI property tax exemption
USD 5,000+/yr
Rental income tax exempt
What CONFOTUR Actually Is
Law 158-01 was enacted in 2001 to stimulate tourism infrastructure development in the Dominican Republic. It grants tax incentives to developers and buyers of qualifying tourism-related properties — hotels, resorts, and associated residential properties in designated tourism development zones.
The certification is issued to the developer for a specific project. Buyers of units within a certified project inherit the incentive benefits for the remaining certification period. The standard certification period is 10 years from the start of operations, extendable under certain conditions to 20 years.
CONFOTUR is not automatic. A developer must apply, meet minimum investment thresholds, build in designated zones, and maintain compliance. Not every property in Punta Cana or Las Terrenas is CONFOTUR-certified — and a property marketed as 'tourism-zone' is not the same as CONFOTUR-certified.
The Four Main CONFOTUR Benefits
1. Transfer Tax Exemption (3% savings)
CONFOTUR-certified properties are exempt from the 3% Impuesto a la Transferencia Inmobiliaria. On a USD 300,000 purchase, that is USD 9,000 saved at closing — the single largest closing cost eliminated.
⚠ Applies to the buyer at each transaction during the certification period.
2. Property Tax Exemption (IPI)
Full IPI exemption for the certification period. For a USD 300,000 property, this saves approximately USD 1,400/year.
⚠ IPI exemption applies only during the active certification period. Check expiration date.
3. Rental Income Tax Exemption
Rental income from CONFOTUR properties is fully exempt from Dominican income tax for the certification period. For Punta Cana investors generating USD 20,000–40,000/yr, this saves USD 3,000–7,000/year.
⚠ US citizens must still report this income to the IRS. CONFOTUR eliminates Dominican tax, not global obligations.
4. Import Duty Exemption (developer benefit)
Developers receive exemptions on import duties for construction materials. Flows primarily to developers but can translate into better finishes or lower unit prices.
⚠ Does not directly apply to buyers after purchase.
Where CONFOTUR Certification Is Available
Punta Cana / Bávaro
Highest density of certified projects. Cap Cana, Grand Bavaro, and numerous condo developments.
Las Terrenas (Samaná)
Active CONFOTUR market with boutique developments.
Puerto Plata / Playa Dorada
North coast tourism zone with certified developments.
La Romana / Casa de Campo
High-end resort adjacent properties with selective certification.
Barahona / Pedernales
Emerging zone under recent legislative expansion.
How to Verify a Property Is Actually CONFOTUR-Certified
Do not rely solely on developer or agent marketing. Verify independently:
Request the CONFOTUR certificate number
Every certified project has an official certificate number. Ask for it and verify against the CONFOTUR registry at confotur.gob.do.
Check the certification start date and expiration
2 years remaining on a 10-year certificate is fundamentally different from 18 years remaining. The remaining period determines your benefit horizon.
Confirm your specific unit is covered
Some mixed-use developments have partial CONFOTUR coverage. Confirm your specific unit type is included.
Have your attorney verify at CONFOTUR
A qualified Dominican attorney can verify certification status directly with CONFOTUR before you sign anything binding.
Check renewal eligibility
Ask whether the project has applied for or received a certification extension under 2020 legislative updates.
How CONFOTUR Affects Your Mortgage and Total Cost
CONFOTUR does not directly change your mortgage terms — interest rates, LTV, and bank eligibility criteria are the same regardless of certification. But it significantly changes your total cost of acquisition and ownership:
| Item | Without CONFOTUR | With CONFOTUR | Saving |
|---|---|---|---|
| Transfer tax (3%) | USD 9,000 | USD 0 | USD 9,000 |
| Annual IPI (est.) | USD 1,400/yr | USD 0/yr | USD 1,400/yr |
| Annual rental income tax | USD 5,000/yr | USD 0/yr | USD 5,000/yr |
| 10-year total savings | — | — | USD 73,000+ |
Based on USD 300,000 property with USD 30,000/yr gross rental income.
Frequently Asked Questions
CONFOTUR is a real financial advantage — verify it before buying
The combination of transfer tax savings, annual IPI exemption, and rental income tax exemption can add up to over USD 70,000 in savings on a mid-range Punta Cana investment property over a 10-year period. Verification takes a day and costs nothing. Always confirm certification status independently before committing.
Check Your Eligibility →