The short version
- CONFOTUR is the Dominican tourism incentive program created by Law 158-01.
- Buyers in approved projects can be exempt from the 3% transfer tax and the annual IPI property tax.
- The exemption period is generally 15 years, and it belongs to the project, not to each new owner.
- It's project-specific. Always ask to see the actual approval (resolution) for the project.
What is CONFOTUR?
CONFOTUR stands for the Consejo de Fomento Turístico, the council under the Dominican Ministry of Tourism that administers the country's tourism incentive law, Law 158-01. To encourage tourism development, the law lets qualifying projects (hotels, resorts, condo and villa developments with a tourism component) apply for tax exemptions. When a project is approved, some of those benefits pass through to the people who buy units in it.
The North Coast, including Puerto Plata, Sosúa and Cabarete, is one of the areas where projects can qualify. That doesn't mean every property here does. CONFOTUR is granted project by project.
What CONFOTUR saves a buyer
1. No 3% transfer tax
On a qualifying purchase in an approved project, the buyer can be exempt from the 3% transfer tax. On a US$300,000 villa, that's about US$9,000 saved at closing.
2. No annual IPI property tax during the exemption period
The IPI is 1% a year on the value of your Dominican real estate above the annual threshold (RD$10,695,494 in 2026). For owners of higher-value properties, or of several properties, exemption from IPI adds up to a meaningful saving over a decade or more. For owners whose holdings fall below the threshold anyway, this part of the benefit matters less. See how IPI is calculated.
Approved projects can also carry other exemptions tied to the development and its operation. Your attorney can tell you exactly what a specific approval covers.
How long does the exemption last?
The benefit period is generally 15 years. The important detail is when the clock started. The exemption is tied to the project, so the period is counted from the date and terms set in that project's approval, not from the day you buy. If you buy a unit in a project that was approved years ago, you get what's left.
What happens when you resell?
Because the exemption follows the property rather than the owner, a later buyer can generally benefit from whatever years remain. That can be a genuine selling point. Whether a resale buyer also gets the transfer-tax exemption, and exactly how the remaining period applies, depends on the specific approval and current rules, so have your attorney confirm it for the unit you're considering.
"Approved" vs. "expected": how to check
This is the part that matters most. Developers sometimes market a project as CONFOTUR when the application has only been filed, or has provisional classification but not final approval. Those are not the same as a finished approval, and your tax savings depend on the difference.
Before you rely on CONFOTUR, ask for:
- The resolution number and a copy of the approval issued for the project
- Whether the approval is provisional or definitive, and what's still required
- Confirmation that your specific unit is included in the approved project
- The start date of the exemption period and how many years remain
- What happens to your purchase terms if approval is delayed or not granted
Your attorney should verify all of this independently. If a seller can't produce the paperwork, treat the property as not CONFOTUR when you run your numbers.
Is a CONFOTUR property the right choice?
It can be a real advantage, especially for higher-value properties and investors, but it shouldn't be the only reason to buy. Location, build quality, the developer's track record, HOA costs and rental rules all matter more over the long run. And CONFOTUR properties are mostly newer developments, so the usual pre-construction checks apply.
If you're looking at a specific project in Sosúa, Cabarete or Puerto Plata, send it to us. We're happy to tell you what we know about it and what to ask the developer.
Frequently asked questions
What does CONFOTUR mean in the Dominican Republic?
CONFOTUR is the tourism incentive council that administers Law 158-01. Properties in approved tourism projects can be exempt from certain taxes, including the 3% property transfer tax and the annual IPI property tax, for a set period.
How long does the CONFOTUR exemption last?
Generally 15 years, counted according to the project's approval rather than from the date you buy. If the project was approved years ago, you receive the remaining years.
Does CONFOTUR transfer to the next buyer if I sell?
The exemption is tied to the project, so a later buyer can generally benefit from the remaining period. Exactly what carries over depends on the project's approval, so have your attorney confirm it for the specific unit.
Is every new development in Sosúa or Cabarete CONFOTUR approved?
No. CONFOTUR is granted project by project. Always ask for the resolution number and a copy of the approval, and check whether it is provisional or definitive.
How much does CONFOTUR save?
At closing, the 3% transfer tax, which is about US$9,000 on a US$300,000 property. Every year after that, the 1% IPI on any value above the annual threshold, for the remaining exemption period.
This page is general information for buyers, current to the best of our knowledge as of September 2026. It is not legal, tax, immigration or financial advice. Dominican laws, tax thresholds and procedures change, so confirm the details of your own purchase with an independent Dominican attorney and a qualified tax advisor.