CONFOTUR explained: the DR's tax incentive for buyers

CONFOTUR is the Dominican Republic's tourism-incentive regime, created by Law 158-01. For property buyers, its appeal is simple: qualifying purchases can be exempt from the 3% real-estate transfer tax and from the annual IPI property tax for up to 15 years.

The benefit attaches to the project, not the buyer. Developments in designated tourism zones apply to the CONFOTUR council for approval; once granted, units sold within that project pass the exemption to their buyers. That is why two similar condos can carry very different closing costs: one inside a CONFOTUR-approved project, one not.

Before you sign, ask the developer for the project's CONFOTUR resolution and confirm it is current and covers the specific unit. Those exemptions add up: on a US$300,000 purchase, waiving the 3% transfer tax alone saves US$9,000, before years of property-tax relief on top.

CONFOTUR mainly applies to new and pre-construction developments in tourism areas, so it is most relevant to buyers of new-build condos, villas, and projects rather than resale homes. Contact us if you'd like help confirming a specific project's status.