By Bernisa Medina | Transaction Manager at RealtorDR
What is CONFOTUR?
CONFOTUR is a government incentive program in the Dominican Republic designed to promote tourism development and foreign investment.
Its official name comes from the Consejo de Fomento Turístico, and it offers important tax exemptions to approved real estate and tourism projects.
In simple terms 👉 CONFOTUR helps buyers save a significant amount of money on taxes when purchasing eligible properties.
What benefits does CONFOTUR offer?
If a property is approved under CONFOTUR, buyers can benefit from:
- ✅ Exemption from Property Transfer Tax (3%)
- ✅ Exemption from Annual Property Tax (IPI – 1%)
- ✅ These benefits usually apply for 15 years
- ✅ Applies to foreign and Dominican buyers
- ✅ Increases long-term return on investment (ROI)
💡 Example: On a USD $300,000 property, you save USD $9,000 upfront just on transfer tax.
Who can apply for CONFOTUR?
CONFOTUR is not applied for by the buyer, but by the developer or project.
✔️ Buyers only need to:
- Purchase a unit within a CONFOTUR-approved project
- Ensure the benefit is clearly stated in the contract
What types of properties qualify?
Typically:
- Condos in tourism zones
- Resort-style developments
- Branded residences
- Eco-tourism and vacation rental projects
Not all properties qualify, which is why professional guidance matters.
Is CONFOTUR safe and legal?
Yes. CONFOTUR is:
- Established by Law 158-01
- Backed by the Dominican government
- Widely used by local and international investors
Why CONFOTUR matters for buyers
- Lower acquisition costs
- Lower holding costs
- Stronger investment performance
- More predictable long-term expenses
👉 CONFOTUR is one of the biggest advantages of buying real estate in the Dominican Republic.
🧩 CONFOTUR – Practical Examples for Buyers & Investors / Frequently Asked Questions (FAQ)
1️⃣ Is the CONFOTUR exemption transferable?
Example: John buys a condo in a CONFOTUR-approved project in 2024. In 2028, he sells the unit to Mark.
➡️ John enjoyed the tax exemptions, but Mark does NOT receive CONFOTUR benefits.
2️⃣ Is CONFOTUR only for first-time homebuyers?
Example: Sarah already owns two properties in the Dominican Republic. She buys another unit in a CONFOTUR project.
➡️ She still qualifies, even though she is not a first-time buyer.
3️⃣ Can CONFOTUR be used when purchasing under a company?
Example: Carlos buys a condo under his LLC for investment purposes. The project is CONFOTUR-approved.
➡️ The company receives the tax exemptions.
4️⃣ If purchased under a company, can the exemption transfer if the company is sold?
Example: An LLC owns a CONFOTUR property. Years later, the owners sell the company to another investor.
➡️ CONFOTUR benefits do NOT transfer to the new owner.
5️⃣ What is the official start date for CONFOTUR?
Example: A project is approved for CONFOTUR in 2023. A buyer purchases in 2025.
➡️ The 15-year benefit period started in 2023, not 2025.
6️⃣ Does CONFOTUR apply to resale properties?
Example: Emma buys a condo from a previous owner, not directly from the developer.
➡️ CONFOTUR does not apply, even if the project originally had it.
7️⃣ Does CONFOTUR cover rental income taxes?
Example: David rents his CONFOTUR condo on Airbnb.
➡️ He does not pay transfer tax or IPI, but must pay income tax on rental earnings.
8️⃣ Do buyers need to apply personally for CONFOTUR?
Example: Lisa buys in a CONFOTUR-approved project. She signs her contract and closes.
➡️ No extra paperwork needed — the benefit applies automatically.