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 Dominican Republic’s Tourism Promotion Law, Law 158-01. Tourism real-estate projects classified under it can be exempt for 15 years from the 3% transfer tax, the 1% annual property tax and income tax on rental revenue. Exact coverage depends on each project’s classification.
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 classified the project under Law 158-01: first provisionally, then definitively once its final review is complete.
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 completion of the project’s construction.
| 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 applies to units within the CONFOTUR-qualified development, for buyers who purchase directly from the developer. Individual lots inside a non-qualifying project do not get CONFOTUR; lots inside a qualifying one do. If you build on the lot yourself, the exemption covers the land value only.
How the 15-year window works.
Under Article 7 of Law 158-01, as amended by Law 195-13, the clock starts when construction and equipment of the project are completed — 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 completed five years before you arrived has ten years of shelter left, not fifteen. In a project still under construction, as with a pre-construction purchase, the full fifteen years lie ahead of you.
The exemptions go to buyers who invest directly with the developer. Paragraph IV of Article 4, added by Law 195-13, excludes later transfers to third-party buyers, so if you sell, your buyer should expect to pay the standard 3% transfer tax and annual property tax. Price a resale on the property itself, not on remaining exemption years.
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 confirms the project’s classification; the 15-year period itself runs from the completion of construction.
Buyer registration
When you buy from the developer, the closing documents reference the project’s CONFOTUR resolution number, and the exemptions apply to you as the first buyer.
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 when construction of the project is completed, under Article 7 of Law 158-01 as amended by Law 195-13. In a project completed three years before you buy, twelve years remain.
“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.
“My buyer will inherit my remaining exemption years.”
Not as a rule. Law 195-13 limits the exemptions to buyers who invest directly with the developer and excludes later transfers to third parties. A resale buyer should expect standard taxes.
“Whatever I build on the land is covered too.”
Not automatically. The exemption follows what the classified project builds and delivers. At Sienna, a buyer who puts up their own villa outside our construction contract keeps the exemption on the land value only — the 3% transfer tax and the 1% annual property tax — while the villa and the income it earns fall under the standard regime.
Frequently asked questions.
The questions buyers ask before signing.
What is CONFOTUR?
+
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 completion of the project’s construction.
Which taxes does CONFOTUR exempt?
+
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?
+
Fifteen years from the completion of the project’s construction and equipment, under Article 7 of Law 158-01 as amended by Law 195-13. The exemptions go to buyers who purchase directly from the developer and do not carry over to a later resale buyer.
Do individual buyers apply for CONFOTUR?
+
No. The developer obtains CONFOTUR status for the project. Buyers who purchase directly from the developer inside the classified project receive the benefit; the closing documents reference the project’s resolution number.
Does CONFOTUR exempt me from tax in my home country?
+
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?
+
Provisionally. 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 holds provisional CONFOTUR status.
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.