The tax framework that changes your math.
How Dominican Republic tax law — and specifically the CONFOTUR regime — reshapes your math when you buy at Sienna.
The Dominican Republic actively encourages tourism-zone investment through Law 158-01, known as CONFOTUR. For qualifying projects, it removes the three taxes that most affect a foreign buyer’s yield: the property transfer tax at closing, the annual property tax, and the income tax on rental revenue. The exemption period is fifteen years. The math is not subtle.
What CONFOTUR exempts.
Three taxes, waived for fifteen years from project approval. Each applies whether you buy in your own name or through a Dominican company.
Property transfer tax (ITBI)
Standard regime
3% of declared value, paid once at closing
Under CONFOTUR
Waived
On a $500,000 villa this is $15,000 saved at closing.
Annual property tax (IPI)
Standard regime
1% per year on the portion of the property’s value above an inflation-adjusted threshold (set annually by DGII)
Under CONFOTUR
Waived for the qualifying period
Compounds over 15 years — the longer you hold, the more it matters.
Income tax on rental revenue
Standard regime
Progressive rates for individuals (up to 25%) or 27% for corporate owners
Under CONFOTUR
Waived for the qualifying period
Combined with Sienna’s rental program, this materially lifts your net yield.
The standard Dominican tax regime.
For context, here is what a foreign buyer would normally pay on a Dominican property outside the CONFOTUR shelter. These are the numbers Sienna’s exemption removes.
| Tax | Rate |
|---|---|
| ITBI (transfer tax) | 3% |
| IPI (annual property tax) | 1% |
| Income tax on rentals | Up to 27% |
| Capital gains tax | Up to 27% |
| Notary and registry fees | ~1–1.5% |
Notary and registry fees are not taxes per se — included here for a complete picture of closing costs. They apply to every buyer, with or without CONFOTUR.
The math, on a $500,000 villa.
Illustrative only. Your numbers will depend on your declared value, your structure and your personal tax circumstances. We show this so you can see the shape of the advantage.
| Line | Standard regime | Under CONFOTUR |
|---|---|---|
| Villa purchase price | $500,000 | $500,000 |
| ITBI at closing (3%) | $15,000 | $0 |
| Annual IPI (1% on value above the DGII threshold, ~$3,400 at current FX) | ~$3,400 / yr | $0 |
| Income tax on $40,000 net rental / yr | ~$10,800 / yr | $0 |
| 15-year cumulative tax burden | ~$228,000 | $0 |
Income tax estimate assumes ~$40,000 net rental income per year at a blended ~27% effective rate. Actual liability depends on deductions, your ownership structure and applicable tax treaties.
Sienna’s CONFOTUR status.
Sienna sits in Las Terrenas, Samaná — a designated tourism development area under the Ministry of Tourism. The project has been structured from day one to qualify for CONFOTUR benefits, and is currently registered with provisional CONFOTUR status active while final approvals are completed — see the current state on our Permits Status page, with the underlying documents available on request.
The CONFOTUR fifteen-year clock starts at the project’s definitive approval. Early buyers benefit from the full window; that window does not reset on resale, but the remaining years transfer with the property.
Important caveats.
CONFOTUR exempts you from Dominican tax only. Your home country may still tax the same income. Most international buyers offset this through tax treaties or foreign tax credits — talk to your accountant.
Personal-use ownership and rental ownership are treated similarly under CONFOTUR, but the practical benefit varies. If you never rent the villa, the income-tax exemption is moot — the ITBI and IPI savings still apply.
This page is informational, not advice. Dominican tax law evolves, and your circumstances are specific. We work with a local tax counsel and we’ll introduce you before you sign anything.
Run the numbers on your villa.
The savings on this page apply to every Sienna villa. Lock yours in with a refundable hold — or open the ROI calculator to see the CONFOTUR-adjusted yield for the exact villa and ownership share you have in mind.