CONFOTUR explained for foreign buyers
If you're looking at new construction in the Dominican Republic from abroad, the word CONFOTUR shows up sooner or later. It's the Tourism Incentive Council, created by Law 158-01 to encourage tourism projects — and for a buyer it can mean real tax savings.
When a project earns CONFOTUR approval, its buyers inherit tax exemptions for the incentive period. The key is in the details: what it covers, for how long, and how to check it.
What the exemption typically covers
Two taxes concentrate the benefit. The first is the real-estate transfer tax — normally 3% of the price — paid when the title moves to your name: in an approved project, you're exempt.
The second is the IPI, the annual property tax: 1% per year on value above the legal threshold. In a CONFOTUR project, the exemption applies for the incentive period, which can run up to 15 years depending on the project's classification.
Who can benefit
Any buyer in the approved project, foreigners included. In the DR a foreign buyer has the same ownership rights as a Dominican: no residency, no local partner, and the title goes in your name.
New construction in the tourist zones is priced and sold in US dollars, so the tax relief adds to an investment that already lives in a currency you know.
How to verify it before reserving
Ask the developer for the project's CONFOTUR approval resolution — a genuinely approved project has one and won't mind showing it. Your lawyer can confirm the scope and the remaining incentive period.
Exact benefits vary by project, and some incentives run from the approval date, not from your purchase: the remaining time can be shorter than the maximum. Our advisors help you verify the CONFOTUR status of any listed building before you move a deposit.
Thinking about investing in the DR?
The invest guide sums up ownership rights, taxes and the off-plan buying process.