Confotur is a 15-year exemption from the 3% transfer tax, IPI (annual property tax), and import duties on materials, granted under Ley 158-01 to projects the Ministerio de Turismo (MITUR) classifies and CONFOTUR approves. It applies only to participating projects, the 15 years runs from the completion of the project’s construction and equipment (not from your purchase), and the benefit attaches to the project’s enrollment, not to you personally.
This page covers what Confotur exempts, who qualifies, what to verify with the developer and MITUR before signing an LOI, and how the savings flow through a US or Canadian tax return.
For broader DR context, see /dominican-republic/. For the closing process, see /dominican-republic/how-to-buy-property/.
What Confotur is
CONFOTUR (Consejo de Fomento Turístico) is the inter-ministerial council that approves tourism-development projects under Ley 158-01, modified by Ley 195-13. The Ministerio de Turismo (MITUR) houses CONFOTUR’s technical direction and issues the classification resolutions that grant the exemption. Approved projects extend the 15-year exemption package to units bought directly from the developer.[DGII, Ley 158-01 sobre Fomento al Desarrollo Turístico, 2026-04][Guzmán Ariza, Ley de Incentivo Turístico 158-01 (Mod. por Ley 195-13), 2026-04][DGII, Ley 195-13 que modifica la Ley 158-01, Art. 7 (adds Art. 4, Párrafo IV: the exemptions go to buyers who invest directly with the developer, and any later transfer to a third-party buyer is excluded), 2026-10]
The exemption package:
- IPI (Impuesto al Patrimonio Inmobiliario), the Dominican annual property tax (1% of the owner’s total property value above RD$10,695,494 in 2026), exempted for 15 years[DGII, Guía 17: Impuesto al Patrimonio Inmobiliario (IPI) (2026: 1% on the excess over RD$10,695,494 for individuals), 2026-10]
- 3% transfer tax at acquisition, exempted (saves you 3% of purchase price at closing)
- Import duties on construction materials and furnishings during the development phase, exempted (a developer-side benefit, often baked into pricing)
- Income tax on tourism-related earnings generated through the project: Article 4 exempts 100% of the income tax on the income the incentives cover, and Article 4, Párrafo IV (restored by Ley 195-13) extends the law’s exemptions to buyers who invest directly with the developer. Whether your unit’s rental income is covered depends on the project’s classification resolution, so confirm with Dominican counsel[DGII, Ley 158-01 sobre Fomento al Desarrollo Turístico, Art. 4 (100% income-tax exemption on the income covered by the incentives; Párrafo IV extends the exemptions to buyers who invest directly with the developer), 2026-09][DGII, Ley 195-13 que modifica la Ley 158-01 (Art. 9, amending Ley 158-01 Art. 7: 15-year exemption period counted from completion of the project's construction and equipment; Art. 7 and Disposición Primera restore Art. 4, Párrafo IV), 2026-09]
The 15 years runs from the completion of the project’s construction and equipment, not from your purchase date.[DGII, Ley 195-13 que modifica la Ley 158-01 (Art. 9, amending Ley 158-01 Art. 7: 15-year exemption period counted from completion of the project's construction and equipment; Art. 7 and Disposición Primera restore Art. 4, Párrafo IV), 2026-09] This is the most-misrepresented detail in sales offices. If a development was completed in 2015 and you’re buying in 2026, you have roughly 4 years remaining on the exemption, not 15.
Classified projects only. CONFOTUR classification is granted project by project. Most classified projects sit in the established tourism areas (most of Punta Cana, Bávaro, Cap Cana, Samaná including Las Terrenas, Puerto Plata, and selected North Coast and Barahona corridors). Since Ley 195-13, the law’s scope reaches tourism projects across the national territory, but each project still needs its own CONFOTUR classification, regardless of how the marketing reads.[DGII, Ley 195-13 que modifica la Ley 158-01 (Art. 9, amending Ley 158-01 Art. 7: 15-year exemption period counted from completion of the project's construction and equipment; Art. 7 and Disposición Primera restore Art. 4, Párrafo IV), 2026-09][CONFOTUR, ¿Qué es CONFOTUR? — Consejo de Fomento Turístico, Ministerio de Turismo, 2026-04]
What the diligence looks like
Before assuming a specific unit qualifies for Confotur, verify:
- The development holds a valid CONFOTUR classification resolution. Get a copy. The resolution is a numbered MITUR document (provisional or definitive) with an explicit issue date and a list of the parcels or phases it covers.
- The classification date. Get it, along with the date construction and equipment were completed, which is when the 15-year clock starts; it does not run from your closing.
- Your specific unit sits inside the resolution’s scope. Many developments hold CONFOTUR approval for an original phase but not for later phases, expansion blocks, or new amenity buildings. Match your unit’s parcel ID and phase to the resolution.
- What the resolution exempts. Some resolutions cover the full IPI, transfer, and import package; others are narrower. The text controls. Read it.
- Whether the developer is current on its CONFOTUR obligations. Benefits flow through the project’s enrollment. If the developer lapses on reporting requirements or the classification expires before you receive title, the exemption can be denied at closing.
- Whether the benefit transfers to a resale buyer. The law says it does not: the exemptions go to buyers who invest directly with the developer, and any later transfer to a third-party buyer is excluded.[DGII, Ley 195-13 que modifica la Ley 158-01, Art. 7 (adds Art. 4, Párrafo IV: the exemptions go to buyers who invest directly with the developer, and any later transfer to a third-party buyer is excluded), 2026-10] If you are buying a resale unit, budget for the transfer tax and the IPI unless your attorney shows otherwise in writing.
- Any extension or renewal. A few projects have pursued extensions beyond the original 15 years. Treat any extension claim as unverified until you see the resolution.
Your Dominican attorney does this work, not the sales office. A few hundred USD in verification is trivial against an exemption that can run into the tens of thousands.
What Confotur saves you, in dollars
On a $350,000 USD qualifying Punta Cana condo:
- 3% transfer tax savings at closing: $10,500 USD
- IPI savings each year the exemption runs: 1% of the amount by which the total value of your Dominican real estate exceeds RD$10,695,494, the 2026 threshold, which DGII adjusts each year for inflation[DGII, Guía 17: Impuesto al Patrimonio Inmobiliario (IPI) (2026: 1% on the excess over RD$10,695,494 for individuals), 2026-10]
The transfer-tax saving is fixed at closing. The IPI saving depends on DGII’s valuation of all your Dominican real estate and on how many years are left, so ask your attorney to work out the figure for the unit you are looking at.
If only 5 years remain on the project’s CONFOTUR clock, closing savings stay the same, but the IPI saving covers only those 5 years.
How Confotur shows up on a US tax return
The piece that surprises buyers: the Dominican exemption doesn’t reduce your US tax bill on rental income.
US persons owe US income tax on worldwide income, including Dominican rental income. The standard mechanism for avoiding double taxation is the foreign tax credit (FTC), claimed on Form 1116. You credit Dominican tax paid against the US tax owed on the same income.
With Confotur, you pay reduced or zero Dominican tax. So there’s reduced or zero foreign tax credit available. The full US tax burden applies to the rental income, with no Dominican-tax offset.
The IPI exemption is a real savings against a real Dominican bill. The income-tax piece is mostly an illusion for US filers, because the credit you would otherwise have claimed shrinks by the same amount.[IRS, About Form 1116, Foreign Tax Credit (Individual, Estate, or Trust), 2026-04]
Canadian persons see the same dynamic with CRA: reduced Dominican tax means reduced foreign tax credit on the Canadian return.
How Confotur interacts with rental property economics
If you’re using the property as a tourism rental (the implicit assumption in most CONFOTUR-marketed developments), the income side works like this:
- Dominican income-tax side: reduced or exempted during the qualifying period (verify specifics in the resolution)
- US or Canadian income-tax side: full taxation on net rental income, with reduced FTC offset
- Operating costs: management fee (typically 25-40% of gross), HOA, utilities, insurance, maintenance reserve
Headline yields developers cite (8-12% gross) usually don’t account for the home-country tax layer. Net to a US or Canadian buyer after taxes and operating costs typically lands in the 3-6% range in a good year, lower in a soft one. Confotur improves the picture; it doesn’t transform it.
When Confotur matters and when it doesn’t
Worth weighting when:
- Buying early in the project’s Confotur clock (8+ years remaining)
- Holding for a longer horizon (5+ years post-purchase)
- The location and amenity stack are independently strong (Confotur doesn’t fix a weak project)
- The 3% transfer-tax savings is material against your purchase size
Marginal when:
- The clock has 3-5 years left
- Buying as a primary residence (you save IPI, but you don’t have rental income to need the income-tax piece)
- The development has issues that Confotur is being used to paper over
Treat Confotur as a tax line item, not the reason to buy. If the property and price work without it, Confotur is a bonus. If Confotur is the investment thesis, the project usually has other problems.
Common pitfalls
- Assuming Confotur runs from your purchase date. It runs from the completion of the project’s construction and equipment.
- Assuming all phases carry the same status. Confotur enrolls projects, often phase by phase. Verify your unit’s phase.
- Assuming the benefit follows the property forever. It’s tied to the project’s enrollment and the 15-year window. A buyer on a resale does not inherit it, because the law excludes later transfers to third-party buyers.[DGII, Ley 195-13 que modifica la Ley 158-01, Art. 7 (adds Art. 4, Párrafo IV: the exemptions go to buyers who invest directly with the developer, and any later transfer to a third-party buyer is excluded), 2026-10]
- Assuming Confotur applies to non-tourism use. The framework is tourism-oriented. Primary residence use shifts the income-tax math.
- Underestimating the home-country tax layer. Confotur doesn’t shield you from IRS or CRA.
- Skipping attorney verification. Sales-office representations are not a legal opinion.
- Trusting “extended” or “renewed” Confotur claims without paperwork. Ask for the resolution.
Next step
Before you sign an LOI on any project marketed as “Confotur-approved”:
- Ask the developer for a copy of the CONFOTUR classification resolution (provisional or definitive), with its number and date.
- Have your Dominican attorney confirm the resolution is current and that your specific unit and phase fall inside its scope.
- Calculate remaining years from the resolution date, and price the exemption against that, not against the marketed 15.
- Confirm in writing how the benefit transfers at closing and how it would handle a future resale.
For broader DR context, see /dominican-republic/. For the closing process, see /dominican-republic/how-to-buy-property/. For the home-country tax layer, see /dominican-republic/taxes-american-buyers/ or /dominican-republic/taxes-canadian-buyers/.
Confotur rules and approved-zone designations shift on regulatory action. The Brief newsletter at /newsletter tracks DR regulatory changes alongside North Coast and Punta Cana inventory.
Disclaimer
This article is for informational purposes only and does not constitute legal, tax, or investment advice. The Dominican Confotur framework involves project-specific Ministerio de Turismo resolutions, evolving regulatory practice, and significant interaction with US/Canadian home-country tax filings. Engage a Dominican attorney to verify any specific Confotur status and a cross-border tax advisor for the home-side treatment.
Current as of 2026-05-21. We review legal content quarterly and update on rule changes. To report an error, contact us.