What is CONFOTUR and what taxes does it actually exempt?

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.

How do I verify that a specific development actually has CONFOTUR status?

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.

When does the 15-year CONFOTUR clock start — and how do I find out how much is remaining?

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.

Does CONFOTUR exemption transfer when I sell the property?

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.

What happens after the 15-year CONFOTUR exemption expires?

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.

Are all units in a CONFOTUR development automatically covered by the exemption?

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.

What is CONFOTUR and what taxes does it actually exempt?

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.

How do I verify that a specific development actually has CONFOTUR status?

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.

When does the 15-year CONFOTUR clock start — and how do I find out how much is remaining?

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.

Does CONFOTUR exemption transfer when I sell the property?

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.

What happens after the 15-year CONFOTUR exemption expires?

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.

Are all units in a CONFOTUR development automatically covered by the exemption?

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.

How to Verify CONFOTUR Status in the Dominican Republic

Reviewed on March 2026 by the Compass Abroad editorial team

CONFOTUR is a 15-year package of Dominican Republic tax exemptions (property tax, transfer tax, and first-transfer capital gains tax) available to qualifying tourism developments. Verification requires: (1) requesting the CONFOTUR certificate number from the developer, (2) confirming it with the DGII (DR tax authority), and (3) checking the Consejo de Fomento Turístico registry. The clock starts from the certificate date — not from your purchase date. If you buy a resale property 8 years into the CONFOTUR period, you have roughly 7 years remaining, not 15.

CONFOTUR is one of the primary reasons Canadians choose the Dominican Republic over other Caribbean markets — the combined value of 15 years of zero property tax, zero transfer tax, and zero CGT on first sale can exceed $50,000 USD on a $300K purchase. But the exemption must be verified, not assumed. This guide tells you exactly how.

Key Takeaways

CONFOTUR (Law 158-01 on Tourism Incentive) provides qualifying tourism developments in the Dominican Republic with a 15-year exemption from property transfer tax (3%), annual property tax (IPI), and capital gains tax on appreciation. This is one of the most powerful real estate tax incentive packages in the Caribbean.
NOT all developments qualify. CONFOTUR status must be applied for by the developer and approved by the Consejo de Fomento Turístico (CONFOTUR council). A developer claiming CONFOTUR status without a formal certificate number is marketing, not a legal guarantee.
Verification requires asking the developer for their CONFOTUR certificate number and confirming it with the DGII (Dirección General de Impuestos Internos — the DR tax authority). The DGII maintains the register of approved CONFOTUR developments. This verification takes one phone call or email from your DR attorney.
The 15-year exemption clock starts from the date the CONFOTUR certificate is granted — not from when you purchase. If you buy into a development 8 years after CONFOTUR approval, you have approximately 7 years of exemption remaining, not 15.
After the CONFOTUR 15-year period expires, standard DR taxes apply: the IPI (Impuesto al Patrimonio Inmobiliario) at 1% of registered value above RD$9.5M (approximately USD $165K) annually, and 3% transfer tax on sale.
CONFOTUR exemptions cover the physical development approved — not all phases of a development automatically qualify. If a developer launches Phase 2 or 3 after initial approval, verify that those phases are included in the original CONFOTUR certificate or have received separate approval.
The capital gains tax exemption under CONFOTUR applies only to the first transfer of the property. When a CONFOTUR-exempt property is resold by a buyer who purchased from the developer, the CGT exemption no longer applies to the resale — the seller pays standard DR capital gains tax on any appreciation.
Even within a CONFOTUR-approved development, individual unit titles (Certificados de Título) must be properly registered in your name. CONFOTUR exemption does not automatically transfer to improperly titled units — verify title registration as a separate step.

CONFOTUR: Key Facts for Canadian Buyers

Legal framework: Law 158-01 (Tourism Incentive Law) and its amendments, most recently Law 195-13(Dominican Republic Law 158-01 / 195-13)
Approval authority: Consejo de Fomento Turístico (CONFOTUR) — the Tourism Development Council(Ministry of Tourism (MITUR))
Tax authority verification: DGII (Dirección General de Impuestos Internos) — maintains the register of approved developments(DGII)
Exemption period: 15 years from CONFOTUR certificate date — not from purchase date(Law 158-01)
Taxes exempted: IPI (annual property tax), transfer tax (3%), and capital gains tax on first transfer from developer(Law 158-01 / DGII)
Capital gains CGT exemption scope: First sale from developer only — resale transactions by individual buyers are NOT exempt(Law 158-01 / DGII practice)
Post-CONFOTUR IPI rate: 1% annually on registered value above RD$9.5M (~USD $165K) — applies after 15-year exemption ends(DGII)
Post-CONFOTUR transfer tax: 3% of registered value or sale price on property transfer after exemption expires(DGII)

What CONFOTUR Is and Why Canadians Care About It

The Dominican Republic's Law 158-01 (Tourism Incentive Law) was enacted to attract foreign investment into tourism infrastructure. To make the DR competitive with other Caribbean destinations, the government created a package of tax incentives that are among the most generous in the Caribbean: zero property transfer tax, zero annual property tax (IPI), and zero capital gains tax on the first sale — all for 15 years.

For Canadian buyers of Punta Cana and Dominican Republic real estate, CONFOTUR status is often the single most financially important attribute of a property — worth tens of thousands of dollars over the exemption period. A non-CONFOTUR property in Punta Cana pays the standard IPI of approximately 1% annually on registered value above RD$9.5M — on a $300,000 USD condo, that is approximately $1,350 USD/year, or $20,000+ over 15 years, plus the 3% transfer tax at initial purchase ($9,000 on a $300K purchase).

The problem is that “CONFOTUR approved” is widely used as a marketing claim in DR real estate — by developers who legitimately have it, by developers whose application is pending (not the same thing), and occasionally by developers who are misrepresenting the status of their project. Buyers who close on a “CONFOTUR” development without verifying the certificate often discover years later that they owe back-taxes on a property that never qualified.

The Step-by-Step Verification Process

Follow these steps for any Dominican Republic property purchase where CONFOTUR status is being represented:

Request the CONFOTUR certificate number.Ask the developer or agent specifically: “What is the CONFOTUR certificate number for this development?” A legitimate approval has a specific number. If the response is vague — “it's approved, we are applying” or “it's in process” — the exemption does not currently exist and you should not rely on it in your purchase decision.
Verify the certificate number with the DGII. The DGII (dgii.gov.do) maintains the official registry of CONFOTUR-approved developments and their exemption status. Your DR attorney can query the DGII using the certificate number to confirm: the development is registered, the certificate is valid and active, the certificate date (when the clock started), and the units or phases covered.
Check the Consejo de Fomento Turístico registry.The CONFOTUR council (part of MITUR) maintains its own list of approved developments. Your attorney can submit a formal information request to confirm the project's approval. This is a belt-and-suspenders step but useful if the DGII verification leaves any questions.
Calculate the remaining exemption period. From the certificate date, count forward 15 years. If you are purchasing today and the certificate was issued 10 years ago, approximately 5 years of exemption remain. This is an important number to include in your financial model — particularly for investment properties.
Verify your specific unit is covered. For phased developments, confirm with documentation that your specific building or unit phase is included in the CONFOTUR approval — not just the overall development name.

What Happens After 15 Years: Planning for Post-CONFOTUR Costs

Many CONFOTUR-approved developments in Punta Cana that were built in the 2010–2015 period are approaching or have passed their 15-year exemption expiry. Buyers of these resale properties face a transition from zero annual property tax to the standard IPI regime. This is not a crisis, but it requires advance planning:

Annual IPI cost: 1% of registered value above RD$9.5M (~USD $165K). A property registered at USD $250,000 owes IPI on approximately USD $85,000 = approximately USD $850/year. A property registered at USD $400,000 owes IPI on approximately USD $235,000 = approximately USD $2,350/year.
Transfer tax at resale: If you sell after CONFOTUR expires, the buyer pays 3% transfer tax — reducing the effective net proceeds of your sale (buyers typically factor transfer tax into their offers).
CGT on your resale: Whether CONFOTUR has expired or not, your resale as an individual buyer (not the original developer) is subject to DR capital gains tax. Plan for approximately 10% of net gain or 1% of gross proceeds, whichever is lower.

For long-term investors, factor the post-CONFOTUR holding costs into your return model from day one — don't assume you will sell before expiry and be surprised if you don't.

Buying in the Dominican Republic? Verify CONFOTUR Before You Commit.

Compass Abroad matches Canadian buyers with vetted DR attorneys who verify CONFOTUR status, remaining exemption periods, and title registration as standard due diligence — not an afterthought.

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