The Dominican Republic’s CONFOTUR law (Law 158-01) offers some of the most attractive fiscal incentives for real estate investment in the Caribbean — including full exemption from property transfer tax, annual property tax, and income tax on rental earnings for up to 10 years.
What Is CONFOTUR?
CONFOTUR — the Council for the Promotion and Support of Tourist Investments — was established under Law 158-01 to stimulate foreign and domestic investment in Dominican tourism infrastructure and real estate. Projects approved under CONFOTUR receive a package of tax exemptions that make the Dominican Republic one of the most cost-efficient markets in the hemisphere for property acquisition.
Key Benefits for Buyers
- Property Transfer Tax (3% ITP) — 100% exempt for CONFOTUR-approved developments
- Annual Property Tax (1% IPI) — 100% exempt for up to 10 years from the date of purchase
- Income tax on rental earnings — exempt for the duration of the CONFOTUR certificate
- Import duties on construction materials and equipment — exempt for developers, potentially reducing construction costs
Which Properties Qualify?
Not every property in the Dominican Republic carries CONFOTUR approval — the designation must be applied for by the developer and granted by the government. Many premium developments in La Romana, Casa de Campo, Punta Cana, and Cap Cana carry active CONFOTUR certificates. When evaluating a purchase, buyers should verify whether the project’s certificate is still active and transferable.
Calculating the Savings
On a $1,500,000 villa purchase in a CONFOTUR-approved development, a buyer saves approximately $45,000 in transfer tax alone at closing. Combined with 10 years of property tax exemption (typically 1% of assessed value annually), total savings over a decade can easily exceed $150,000 on a mid-range property.
Working with the Right Advisor
CONFOTUR benefits require proper documentation at the point of purchase. Our team at Luxury Villa Group specializes in CONFOTUR-approved properties throughout La Romana and Casa de Campo and can guide buyers through the qualification process from initial inquiry through closing.
