How to Verify CONFOTUR Status in the Dominican Republic

CONFOTUR is the Consejo de Fomento Turístico, the Dominican Republic's Tourism Development Council, which administers Law 158-01 (the Tourism Incentive Law). The law creates a package of tax incentives to encourage investment in tourism infrastructure in designated development zones — primarily the areas around Punta Cana, Bávaro, Puerto Plata, Samaná, La Romana, and other tourism corridors. For qualifying property buyers, CONFOTUR provides: (1) Exemption from the IPI (Impuesto al Patrimonio Inmobiliario) — the annual property tax of 1% on property value above RD$9.5M — for 15 years. On a $300,000 USD property, this saves approximately $3,000 USD/year in property tax that would otherwise apply. (2) Exemption from the 3% property transfer tax on the initial purchase from the developer. On a $300,000 purchase, this saves $9,000 USD at closing. (3) Capital gains tax exemption on the first transfer (sale from developer to first buyer). Combined, these exemptions represent a substantial financial advantage — particularly the ongoing IPI exemption over 15 years and the transfer tax saving at purchase. The total value of CONFOTUR exemptions over 15 years on a $300K property can exceed $50,000 USD in avoided taxes, making it one of the most significant tax incentives in the Caribbean property market.

There are three verification steps, each providing increasing confidence. Step 1 — Ask the developer for their CONFOTUR certificate number: A legitimate CONFOTUR-approved development has a specific certificate number issued by the Consejo de Fomento Turístico. Ask the developer or agent for this number in writing. Any developer with genuine CONFOTUR approval will provide it without hesitation. Step 2 — Verify with the DGII: The DGII (Dominican tax authority) maintains a register of CONFOTUR-approved developments and their exemption status. Your DR attorney can verify the certificate number directly with the DGII — either through an online query at dgii.gov.do or by contacting the DGII's taxpayer services. This confirms: the development is registered, the certificate is valid, and its expiry date. Step 3 — Check the CONFOTUR council: The Consejo de Fomento Turístico (part of MITUR, the Ministry of Tourism) maintains its own list of approved developments. Your attorney can submit a formal query to confirm the project's approval status. For resale purchases (buying from an existing owner, not the developer), request the title certificate (Certificado de Título) and verify that the CONFOTUR registration number appears in the property records at the Registro de Títulos. The CONFOTUR exemption should be noted in the property's record — if it is not, investigate before closing.

The 15-year CONFOTUR exemption begins on the date the CONFOTUR certificate is granted by the Consejo de Fomento Turístico — not on the date you purchase, not on the date you close, and not on the date you take possession. This is critical for resale buyers: if you are purchasing a property that is already 7 years into its CONFOTUR period, you only receive approximately 8 years of remaining exemption, not 15. To find the start date: the CONFOTUR certificate held by the developer states the approval date. The DGII registration also records the certificate date. For resale purchases where you cannot get the certificate directly from the developer, your attorney's DGII query will return the certificate date and the development's registration, from which the remaining exemption period can be calculated. Many developers and agents advertise 'CONFOTUR approved' without specifying how many years remain — always ask specifically: 'What is the CONFOTUR certificate date and how many years of exemption remain?' A development that received CONFOTUR approval in 2015 and is marketed in 2025 has approximately 5 years remaining, not 15.

The annual IPI property tax exemption continues to run with the property during the 15-year period, regardless of how many times the property changes hands. If there are 10 years remaining on the CONFOTUR exemption when you sell, the buyer receives 10 years of remaining IPI exemption. The property's CONFOTUR registration does not restart on resale — the clock continues from the original certificate date. However, the capital gains tax exemption under CONFOTUR applies only to the first transfer — the initial sale from the developer to the first buyer. When you (as a resale seller) sell the property to a subsequent buyer, you owe standard Dominican Republic capital gains tax on any appreciation in value. Dominican CGT for non-residents on real property is typically 10% of the net gain or 1% of the gross sale price (whichever is lower). Many Canadian buyers who purchased CONFOTUR property as investments assume they will sell CGT-free — this is incorrect for all sellers other than the original developer. Only the developer's first transfer to you is CGT-exempt. Your resale is subject to standard tax.

After the 15-year period ends, standard Dominican Republic property taxes apply. For the IPI (Impuesto al Patrimonio Inmobiliario): properties with registered value above RD$9.5M (approximately USD $165,000 at current exchange rates) pay 1% annually on the value above the threshold. The threshold is indexed periodically. A condo registered at USD $300,000 is above the threshold by approximately USD $135,000 — generating approximately USD $1,350/year in IPI. For transfer tax: any subsequent sale of the property after the CONFOTUR exemption expires is subject to the standard 3% transfer tax on the registered value. Planning for the post-CONFOTUR period is important for investment property owners: the holding cost increases meaningfully when the IPI kicks in, and future sellers should factor the 3% transfer tax into their net sale proceeds calculations. Some investors plan to sell before the CONFOTUR period expires to maximize their net return. Others hold for the long term and simply budget the future IPI. The right choice depends on your investment horizon and return expectations.

Not necessarily — and this is an important nuance for buyers of phased developments or large-scale resorts. The CONFOTUR approval is granted for a specific project as defined in the application to the Consejo de Fomento Turístico. The approved project typically covers specific buildings, lots, or units identified in the application. If the developer later launches Phase 2, Phase 3, or additional parcels that were not included in the original application, those new phases are NOT automatically covered by the original CONFOTUR approval. They must file a separate application, or request that the original approval be amended to include the additional phases. Many large resort developments have done this correctly and have multi-phase CONFOTUR approval. But some developers market later phases as 'CONFOTUR approved' based on the original development's status without verifying that the specific phase has its own approval. For buyers of Phase 2+ units: specifically verify that the phase you are purchasing is included in the CONFOTUR approval by asking the developer for documentation that identifies your specific building or unit in the certificate. Your DR attorney can verify this through the DGII registration.