CONFOTUR Tax Benefits: What Casa de Campo® Buyers Need to Know

If you're researching property in the Dominican Republic and have heard the word "CONFOTUR," you've already encountered the single most important tax incentive available to foreign buyers in this market. It can save a buyer six figures over the life of a property — but only if the property qualifies, and only if you understand what's actually exempt. Most buyers we work with have heard the term used loosely. This guide explains it precisely.

What Is CONFOTUR?

CONFOTUR is the Consejo de Fomento Turístico (Tourism Promotion Council) — the council within the Ministry of Tourism that applies the Dominican Republic’s Tourism Incentive Law (Law 158-01), as amended by Law 195-13. The law was designed to attract investment into tourism infrastructure by offering substantial, long-dated tax exemptions to qualifying projects.

For real estate buyers, the practical effect is this: properties inside a CONFOTUR-approved project can be acquired with significant exemptions from transfer tax, annual property tax, and certain import duties — for a period of up to 15 years from the date the project received its CONFOTUR designation.

What Exactly Is Exempt?

A CONFOTUR-qualified property carries three primary tax benefits:

• Property transfer tax (the 3% closing tax): Waived for the buyer of a qualifying property. On a US$2,000,000 villa, that's US$60,000 saved at closing.
• Annual property tax (IPI): Waived for the duration of the exemption period. For a high-value property, this saves USD 10,000+ per year over the 15-year window.
• Import duties: Certain imports related to furnishing or completing the property — appliances, fixtures, certain construction inputs — may be eligible for duty exemption, depending on the project.

The benefits attach to the project’s CONFOTUR resolution, not to a specific owner. Whether any remaining exemption carries over when a CONFOTUR property is resold depends on the terms of that resolution — have your attorney confirm it before relying on it.

What CONFOTUR Is Not

A few things buyers commonly misunderstand:

• It is not automatic. A property is only CONFOTUR-eligible if it sits inside a project that applied for and received CONFOTUR approval from the Ministry of Tourism. The vast majority of Casa de Campo® resale villas in established neighborhoods (Punta Minitas, Punta Aguila, Las Lomas) are not CONFOTUR-eligible.
• It is not permanent. The exemption runs from the project's CONFOTUR approval date, not from your purchase. If you buy a CONFOTUR property in year 10 of a 15-year exemption, you get 5 years of benefits — not 15.
• It does not exempt income tax on rentals. If you rent the property out, Dominican rental income is still taxable. CONFOTUR addresses transfer and property tax, not income tax.
• It does not waive HOA dues, utilities, or maintenance. CONFOTUR addresses government taxes only. Resort dues and operational costs continue as normal.

Which Casa de Campo® Projects Qualify?

CONFOTUR status is project-specific, and the list changes over time as new developments come online and existing exemptions expire. As a general framework:

• Newer, master-planned condo and villa projects inside Casa de Campo® and surrounding the resort are the most likely to carry CONFOTUR status. Several newer developments — particularly those built within the past 10 years — were structured specifically to benefit from the law.
• Resale villas in established neighborhoods (Punta Minitas, Punta Aguila, Vista Chavón, Las Lomas) generally do not carry CONFOTUR benefits.
• Future-build projects announced today are often pursuing or have already secured CONFOTUR designation as part of their financing.

Always verify CONFOTUR status with the project developer in writing and have your attorney confirm the designation directly with the Ministry of Tourism before signing the Promesa de Venta.

How CONFOTUR Affects the Buying Math

Consider two example purchases, each at US$1,500,000:

Non-CONFOTUR resale villa:

• Transfer tax at closing: US$45,000
• Annual IPI (registered value of US$1,200,000, less the 2026 exemption of about US$175,000): approximately US$10,250/year
• 15-year IPI cost: ~US$154,000
• Total government tax burden over 15 years: ~US$199,000

CONFOTUR-qualified equivalent:

• Transfer tax at closing: US$0
• Annual IPI for the duration of the exemption: US$0
• Total government tax burden over the exemption window: ~US$0

The delta is substantial — but it does not mean a CONFOTUR property is always the better buy. CONFOTUR-eligible projects often price the benefit into the asking price. Whether you actually capture the savings depends on the spread between the CONFOTUR-priced unit and a comparable non-CONFOTUR resale.

The Trade-Offs of CONFOTUR Properties

A few realities worth weighing:

1. You're usually buying new construction or off-plan. Most CONFOTUR projects are new builds, which means you're betting on the developer's delivery and the project's eventual quality. Resale properties have a track record; new builds don't.
2. Pricing often reflects the benefit. Developers know what CONFOTUR is worth and price accordingly. Doing your own math on the post-tax cost — not just the sticker price — is essential.
3. Inventory is concentrated in specific projects. If you want a specific neighborhood, lot size, or architectural style, CONFOTUR may not be available in that segment.
4. The exemption clock is running. A property that's already 8 years into a 15-year exemption has substantially less benefit than one that just received approval.

How to Verify CONFOTUR Status

Before signing anything, your attorney should:

1. Request the project's CONFOTUR resolution document from the developer.
2. Verify the resolution date and confirm how many years remain in the exemption window.
3. Confirm the specific unit is included in the resolution's scope (some resolutions cover only certain phases or unit types within a larger project).
4. Check current standing — exemptions can be revoked if the project fails to meet conditions imposed by the Ministry of Tourism.

This is not optional due diligence. Without independent verification, you are taking the developer's word on a benefit worth tens to hundreds of thousands of dollars.

CONFOTUR vs Residency by Investment

These are often confused. They are separate programs.

• CONFOTUR is a tax exemption attached to the property.
• Residency by Investment is a residency status granted under Migration Law 285-04 and Regulation 631-11 to a foreign investor with a registered investment of US$200,000 or more — real estate counts. (Law 171-07 is a separate program for pensionados and rentistas.)

You can have one without the other. Many CONFOTUR property buyers also pursue Investor Residency; many Investor Residency buyers purchase non-CONFOTUR property. The two programs are complementary but independent.

Questions to Ask Before Buying a CONFOTUR Property

Use this short list when evaluating any property marketed as CONFOTUR-qualified:

• What date did the project receive CONFOTUR approval? How many years remain?
• Is the specific unit I'm buying included in the CONFOTUR resolution?
• Can my attorney see the original Ministry of Tourism resolution?
• Are there any pending compliance issues that could revoke the designation?
• What's the price of a comparable non-CONFOTUR property in the same area? Is the CONFOTUR premium fair?
• If I sell after 5 years, will the remaining exemption transfer cleanly?

If a developer can't answer these in writing, treat the CONFOTUR claim as marketing, not as a confirmed benefit.

Get a CONFOTUR-Specific Property Review

If you're evaluating a CONFOTUR-marketed property in Casa de Campo®, we can run an independent review — confirm the resolution date, the remaining exemption period, the unit's inclusion in scope, and how the asking price compares to non-CONFOTUR alternatives.

Schedule a conversation or email info@caribbeanparadisehomes.com.

Frequently Asked Questions

Can I claim CONFOTUR benefits on a resale property?

Only if the property is inside a CONFOTUR-approved project and within the exemption period. Most resale villas in established Casa de Campo® neighborhoods are not CONFOTUR-eligible because they predate the law or sit in projects that never sought designation.

Does CONFOTUR exempt me from Dominican income tax on rental income?

No. CONFOTUR addresses property transfer tax and annual property tax (IPI). Dominican income tax on rental income is governed separately and is not exempted by CONFOTUR.

What happens to my CONFOTUR exemption when I sell?

It depends on the project’s CONFOTUR resolution. A later buyer may benefit from the remaining exemption period, but this is not automatic — your attorney should confirm the treatment for the specific project.

Can my attorney confirm CONFOTUR status independently?

Yes. A qualified Dominican real estate attorney can request the resolution from the Ministry of Tourism or verify it through CONFOTUR's official records. Don't rely on the developer's claim alone.

Is CONFOTUR available outside the Dominican Republic?

No — CONFOTUR is a Dominican Republic-specific program. Other Caribbean jurisdictions (Bahamas, Cayman, Turks and Caicos, etc.) have their own tax incentive frameworks, but they are distinct programs with different rules and benefits.

Are CONFOTUR properties a better investment than non-CONFOTUR properties?

Sometimes. The CONFOTUR benefit has real value, but developers price it in. The right answer depends on the specific property, the asking price, the remaining exemption period, and how it compares to non-CONFOTUR alternatives in the same area. Don't assume "CONFOTUR" means "better deal" — do the math.

Sources: Law 158-01 (DGII), as amended by Law 195-13 · DGII — IPI exempt threshold 2026 · DGII Guide 18 — property transfers. Last verified October 2026 by Caribbean Paradise Homes. General information, not legal or tax advice — confirm your situation with a Dominican attorney.

Caribbean Paradise Homes is a real estate agency specialising in Casa de Campo®, La Romana. We routinely audit CONFOTUR claims on behalf of clients. For an independent CONFOTUR review, contact us at info@caribbeanparadisehomes.com.

What is CONFOTUR?

The Consejo de Fomento Turístico, the council within the Ministry of Tourism that applies the Tourism Incentive Law. Qualifying projects can receive exemptions from transfer tax, annual property tax (IPI) and certain import duties. (Source: Law 158-01, as amended by Law 195-13.)

Is CONFOTUR the same as residency by investment?

No. CONFOTUR is a tax exemption attached to a property's project. Investor residency is a separate status for a foreign investor with a registered investment of US$200,000 or more, and real estate counts. You can have one without the other. (Source: Migration Law 285-04 and Regulation 631-11.)