If you are buying property in the Dominican Republic, three letters can save you tens of thousands of dollars: CONFOTUR. Many buyers in Las Terrenas, Punta Cana and the North Coast have never heard of it until they see two similar condos where one costs noticeably less to own. Here is how the program works and how to make sure your purchase qualifies.
What is CONFOTUR?
CONFOTUR is the Dominican Republic’s Tourism Development Council (Consejo de Fomento Turístico), created under Law 158-01 to encourage investment in tourism zones. When a real estate project is approved by CONFOTUR, the buyers of its units receive significant tax exemptions — a direct incentive the government uses to attract foreign investment to areas like Samaná, Las Terrenas, Punta Cana, Sosúa and Cabarete.
The Two Big Tax Benefits for Buyers
1. No 3% Transfer Tax
Normally, every property purchase in the Dominican Republic pays a 3% transfer tax to register the title in your name — the single largest closing cost for most buyers. On a CONFOTUR-approved property, this tax is waived. On a US$250,000 condo, that is US$7,500 saved at closing.
2. No Annual Property Tax (IPI) for up to 15 Years
The IPI (Impuesto al Patrimonio Inmobiliario) is an annual tax of 1% on the property value above roughly RD$10 million (about US$170,000, adjusted each year). CONFOTUR-approved properties are exempt for up to 15 years. On that same US$250,000 condo, the exemption is worth roughly US$800 per year — around US$12,000 over the life of the benefit.
Combined, a CONFOTUR purchase at US$250,000 can mean close to US$20,000 in total tax savings compared to a non-approved property at the same price. Projects under the program may also enjoy other incentives for developers, which often translates into better pricing and payment plans for early buyers.
Which Properties Qualify?
The developer — not the buyer — obtains CONFOTUR approval for the project. You will typically find it in new developments and pre-construction projects in tourism zones. To confirm a property qualifies:
- Ask the developer or your agent for the project’s CONFOTUR resolution number and approval documents.
- Have your attorney verify the approval and its remaining exemption period during due diligence.
- Remember the 15-year clock usually starts when the project is approved, not when you buy — so newer approvals mean more years of benefit left.
You can browse current CONFOTUR and pre-construction projects here, or use the CONFOTUR filter in our property search.
Why It Matters in Las Terrenas and Samaná
Samaná was recently declared an ecotourism province, and Las Terrenas continues to attract strong tourism growth, new flight routes into El Catey airport, and international buyers. That is exactly the kind of development the CONFOTUR program was designed to support, which is why several of the area’s newest condo and villa projects come with approval — a real advantage for investors planning to rent their property.
Frequently Asked Questions
Do foreigners get the same CONFOTUR benefits as Dominicans?
Yes. Foreign buyers enjoy the same property rights and the same CONFOTUR exemptions as Dominican citizens.
Does CONFOTUR apply to resale properties?
Generally the benefits attach to the approved project for a set period. A resale within an approved project may still have years of IPI exemption remaining — your attorney can confirm exactly what transfers.
Is there a catch?
No hidden catch, but approval, scope and remaining years vary by project. Always verify the resolution documents before signing.
This article is general information, not legal or tax advice. Rules and thresholds change — confirm the details of any specific property with a qualified Dominican real estate attorney.
Talk to Us
Want a list of CONFOTUR-approved properties that match your budget? Contact our team or message us on WhatsApp at +1 829 525 1782 — we know which projects qualify and how many years of exemption each one has left.
