Many international buyers focus solely on the price of a property, unaware that they could save thousands of dollars simply by choosing a project with tax benefits.
In the Dominican Republic there is a system called CONFOTUR that can represent savings of between US$6,000 and US$30,000 or more, depending on the value of the property.
If you’re thinking about investing in Punta Cana, this is one of the most important factors you should consider before making a decision.
What is CONFOTUR?
CONFOTUR (Tourism Development Council) is the tax incentive system created by Law 158-01 for the Promotion of Tourism Development in the Dominican Republic, enacted in 2001 and subsequently amended by Laws 184-02 and 195-13.
Its objective is to incentivize investment in tourism projects located in areas declared to be of national interest. The program is administered by the Tourism Development Council, under the Ministry of Tourism (MITUR).
Punta Cana is one of the main tourist areas designated by this law.
Simply put: if you buy a property within a project approved under CONFOTUR, you can access significant tax exemptions for a period of up to 15 years.
What are the tax benefits of CONFOTUR?
✅ 100% Exemption from Real Estate Transfer Tax (3%)
This is, for most buyers, the most significant benefit.
Normally, when transferring a property to your name in the Dominican Republic, you must pay a tax equivalent to 3% of the property value, as established by the DGII (General Directorate of Internal Taxes).
When you buy the first transfer of a property in a project approved under CONFOTUR, that tax is waived.
Examples of savings from transfer exemption:
| Property Value | Approximate Savings (3%) |
| US$150,000 | US$4,500 |
| US$200,000 | US$6,000 |
| US$350,000 | US$10,500 |
| US$500,000 | US$15,000 |
| US$800,000 | US$24,000 |
✅ Exemption from Property Tax (IPI)
The IPI is an annual tax of 1% that applies to the value of properties that exceed the threshold established by law.
Properties covered by the CONFOTUR regime are exempt from this tax during the period of validity of the incentive (up to 15 years), in accordance with Law 158-01.
This can represent cumulative savings of thousands of additional dollars over the life of your investment.
✅ Tax benefits on Income Tax (ISR)
Law 158-01 provides incentives related to Income Tax for projects under the CONFOTUR regime.
Depending on the project and the activity carried out, the income from its tourist exploitation (such as holiday rental or long-term rental) may benefit from the exemptions provided for by current legislation.
✅ No withholding on financing
If you finance the purchase through national or international loans, no withholdings apply to the interest on those loans within the framework of CONFOTUR.
Who can benefit from CONFOTUR?
Both Dominican and foreign buyers can acquire a property in a project approved under CONFOTUR.
You don’t need:
✔️ Be a resident of the Dominican Republic
✔️ Have Dominican nationality
✔️ Establish a local company to make the purchase
✔️ Do not have a special visa or a Dominican partner
The important thing is that the property belongs to a project with active CONFOTUR certification, since the benefit is associated with the project and the conditions established by law.
How can you tell if a project has CONFOTUR?
The CONFOTUR certification is granted directly by the Ministry of Tourism (MITUR). Not all real estate projects in Punta Cana have it.
Before buying, it is essential to check:
- That the project is effectively approved under the CONFOTUR regime.
- Ensure the certification is valid at the time of your purchase.
- Ensure the exemption is processed correctly when registering the property in your name.
Important: the benefit is associated with the project, not the buyer. However, the exemption process must be completed. Some buyers assume that because it’s a CONFOTUR project, they automatically receive the benefit, only to discover years later that no one applied for it.
That’s why it’s crucial to have local support that understands the process.
That’s why it’s crucial to have local support that understands the process.
Not all properties in Punta Cana have CONFOTUR.
Two similar properties, in nearby areas and with similar characteristics, can have a very different tax cost at the time of purchase and during the following years.
The difference between buying with CONFOTUR and without CONFOTUR can exceed US$20,000 to US$50,000 in accumulated savings over 15 years, depending on the property value.
How to take advantage of it?
If you are considering investing in Punta Cana, the most important thing is:
- Confirm that the project has active CONFOTUR before signing any contract.
- Make sure the exemption is processed correctly at the time of registration.
- Work with a local real estate advisor who knows which projects qualify and how the process works.
At Solucasa, we work exclusively with projects that hold this current certification. If you’d like to learn more about the options we have available with active CONFOTUR certification and which one best suits your investment goals, please contact us.
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