What is the CONFOTUR Law, and how does it reduce costs for property investors?

What is the CONFOTUR Law, and how does it reduce costs for property investors?

What is the CONFOTUR Law, and how does it reduce costs for property investors?

The CONFOTUR Law (Law 158-01 for Tourism Incentive) is a tax exemption incentive created by the Dominican government to stimulate real estate and infrastructure development in designated tourism zones, including Punta Cana, Bávaro, and Cap Cana.

When you purchase a pre-construction or newly built property in a project with CONFOTUR certification, you receive major tax savings:

  • 0% Property Transfer Tax at Closing: You are completely exempt from paying the standard 3% Title Transfer Tax (Impuesto de Transferencia Inmobiliaria) on the property value.
  • 0% Annual Property Tax (IPI) for up to 15 Years: You are 100% exempt from the annual 1% Real Estate Property Tax (Impuesto al Patrimonio Inmobiliario – IPI) for the duration approved for the development (up to 15 years from initial project approval).
Example Savings on a $250,000 USD Purchase:
  • Transfer Tax Savings: ~$7,500 USD saved upfront at closing.
  • Annual IPI Tax Savings: ~$2,500 USD saved per year for up to 15 years.

Note: CONFOTUR benefits apply to the property itself and automatically transfer to the next owner if you decide to sell before the exemption period expires.

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