CONFOTUR Law, explained.
The Dominican law that exempts qualifying tourism real-estate projects from property tax, transfer tax and income tax on rentals — for fifteen years.
What CONFOTUR actually is.
CONFOTUR is the popular name for Law 158-01, the Dominican Republic’s Tourism Promotion Law. Passed in 2001 and updated several times since, it is the government’s primary instrument for attracting foreign investment into tourism-zone real estate.
The name itself comes from the body that administers the law — the Consejo de Fomento Turístico, or Tourism Development Council, which sits inside the Ministry of Tourism (MITUR). When a developer says a project “has CONFOTUR,” they mean the Council has approved the project under Law 158-01.
The mechanics matter, because the law is the difference between the headline price of a Dominican villa and what the same villa actually costs you to own over fifteen years.
The four exemptions.
Each one is granted for fifteen years from the project’s definitive approval.
| Tax | Standard regime | Under CONFOTUR |
|---|---|---|
| ITBI — Property transfer tax | 3% of declared value at closing | Waived |
| IPI — Annual property tax | 1% per year on value above the DGII threshold | Waived for the 15-year period |
| Income tax on rental revenue | Up to 25% (individuals) or 27% (corporate) | Waived for the 15-year period |
| Corporate tax on the developer | 27% on profits of the qualifying entity | Waived for the 15-year period |
For the buyer-side math — how this changes the cost of owning a specific villa — see our Tax & Incentives page, which works the example on a $500,000 purchase.
Which projects qualify.
CONFOTUR is not automatic. A project earns the benefit by meeting three conditions and going through formal review.
The project must be in a designated tourism zone
Set by the Ministry of Tourism (MITUR). Samaná, Puerto Plata, La Romana, Bayahibe and others are all included. Las Terrenas qualifies.
The project must be tourism-oriented
Hotels, condo-hotels, residential complexes with rental components, eco-tourism projects and related infrastructure. The project has to be approved as a project before individual buyers can benefit.
The buyer must purchase under the approved structure
The benefit attaches to the property within the CONFOTUR-approved development. Individual lots inside a non-qualifying project do not get CONFOTUR; lots inside an approved one do.
How the 15-year window works.
The clock starts on the date of the definitive CONFOTUR resolution — not on the date you sign a reservation, and not on the date you close. This is important when you compare projects.
A villa in a project that was approved five years before you arrived has ten years of shelter left, not fifteen. A villa in a brand-new project that has just received definitive status starts your clock at the full fifteen.
The remaining years transfer with the property. If you sell in year eight, your buyer inherits seven years of exemption. That residual exemption tends to support resale value, especially for buyers shopping the Dominican market specifically for the tax advantage.
The approval and registration process.
From the developer’s dossier to your title document, four steps run in sequence.
Provisional classification
The developer files the project dossier with the CONFOTUR Council. Provisional status lets the project proceed while the file is reviewed.
Definitive classification
After review, the Council issues the definitive resolution. This is the document that starts the 15-year clock.
Buyer registration
When you buy, the closing documents reference the project’s CONFOTUR resolution number, and the exemptions flow to your title.
Annual filings
For the IPI exemption, an annual filing keeps your property out of the property-tax assessment for the duration of the 15-year window.
Common misconceptions.
CONFOTUR is described loosely in a lot of brochures. A few corrections.
“CONFOTUR exempts me from tax in my home country.”
It does not. CONFOTUR is a Dominican tax exemption only. Your home jurisdiction may still tax your rental income or capital gains. A tax treaty or foreign tax credit usually offsets some or all of it — but that is a conversation with your own accountant.
“The 15-year clock starts when I buy.”
It starts at the project’s definitive CONFOTUR approval. If you buy three years in, you inherit the remaining 12 years. The window does not reset on resale, but it transfers with the property.
“CONFOTUR covers every Dominican tax I might pay.”
No. Notary fees, registry fees, and customs duties on imported furniture are outside CONFOTUR. So is the 18% ITBIS (VAT) on services. The shelter is narrow but very valuable on the three taxes it does cover.
“Only the original buyer benefits.”
Wrong. The exemption is attached to the property within the approved project. If you sell during the 15-year window, the next owner gets the remaining years.
Frequently asked questions.
The questions buyers ask before signing.
What is CONFOTUR?
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CONFOTUR is the popular name for Dominican Law 158-01, the Tourism Promotion Law. It allows qualifying tourism real-estate projects to be exempted from several Dominican taxes for fifteen years from the date of definitive approval.
Which taxes does CONFOTUR exempt?
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Four: the 3% ITBI transfer tax at closing, the 1% annual IPI property tax, the income tax on rental revenue (up to 27%), and the corporate tax on the qualifying developer entity. Notary, registry and customs duties are not covered.
How long does the CONFOTUR exemption last?
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Fifteen years from the date of the project’s definitive CONFOTUR resolution. The clock does not reset on resale — remaining years transfer with the property.
Do individual buyers apply for CONFOTUR?
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No. The developer obtains CONFOTUR status for the project. Buyers inherit the benefit by purchasing inside the approved project; the closing documents reference the project’s resolution number.
Does CONFOTUR exempt me from tax in my home country?
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No. CONFOTUR is a Dominican exemption only. Your home jurisdiction may still tax your worldwide income or capital gains, though tax treaties and foreign tax credits typically offset much of the overlap.
Is Sienna a CONFOTUR project?
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Yes. Sienna is registered under Law 158-01, with provisional CONFOTUR status active while final approvals are completed. Current status, resolution numbers and the underlying documents are tracked on our Permits page.
Going deeper.
The articles that take the law into specific buyer scenarios.
Sienna is a CONFOTUR project.
Sienna is registered under Law 158-01, with provisional CONFOTUR status active while final approvals are completed. The current state, the resolution numbers and the underlying documents are tracked on our Permits page.