¿Qué es CONFOTUR?

What it is

CONFOTUR (Consejo de Fomento Turístico) is the council created by Law 158-01 — the Dominican Republic's Tourism Development Incentive Law. It is the legal regime that grants tax exemptions to new, certified tourism projects — and, by extension, to people who buy a unit directly within one of those projects.

What exactly does it exempt

• IPI (the annual real estate property tax) — 100% exempt for 15 years from the start of the project's operation.
• ITBIS (18% VAT) on materials and equipment needed for construction and initial operation.
• Transfer tax (3% of the property value) on the first purchase directly from the developer.
• Taxes on company formation and on issuing construction permits.

Who does it apply to

To NEW projects certified by CONFOTUR, purchased directly from the developer (first buyer). It generally does not apply to a second-hand resale, nor to projects that never requested the certification — so the first thing worth confirming, before anything else, is whether the specific project you are looking at actually holds a CONFOTUR certificate.

How long do the benefits last

The exemption period runs 15 years, counted from the start of the project's operations. The project itself has up to 3 years after approval to begin operating.

What this page is not

This is general information, not legal or tax advice. Every project and every purchase has particular details — certification date, whether the benefit was already used, the specific structure of the sale — that only a Dominican lawyer or accountant can confirm for your exact case.

Already bought (or about to)?

If you own, or are about to own, a property in Cap Cana, Bávaro, Punta Cana or the Zona Colonial and want someone to manage and rent it out while you sort out the paperwork side, let's talk — property management is what we do, published commission and all.