Confotur: what it is and how it helps you

Confotur in a nutshell

"Confotur" is what everyone calls Law 158-01, the Dominican law that promotes tourism development. Strictly speaking, CONFOTUR is the Tourism Promotion Council, the body that decides which projects get the law’s benefits.

The law aims to attract tourism investment to certain parts of the country. To do that, it offers tax exemptions to the projects it approves. Here’s the part that matters to you: some of those benefits can pass on to people who buy a unit in an approved project.

1. Law 158-01 Tax breaks for tourism projects
2. Project approved CONFOTUR issues the resolution
3. You buy your unit The benefit can pass to you
4. Verification & closing Exemption applied at the DGII

Benefits for buyers

The two that matter most:

• 3% Exemption from the property transfer tax (example data)
• 1% Exemption from IPI above the exempt threshold (example data)
• 15 years Typical length of the IPI benefit (example data)

That period usually runs from the date the project was approved, not the day you buy. If the project was approved years ago, you’ll have fewer years of benefit left.

What does that mean in dollars?

Picture a USD 150,000 (example data) apartment. Without Confotur you’d pay about USD 4,500 (example data) in transfer tax. With the exemption, you don’t. Add to that the IPI you save each year for as long as the benefit lasts, if your property is above the exempt threshold.

The most important warning

These are the most common traps:

• The project applied for Confotur but hasn’t been approved yet.
• It has a provisional classification that expired or never became final.
• The approval covers one phase, but not the tower or lot where your unit is.
• The project has only a few years of benefit left.
• The property is a resale, and the transfer tax exemption doesn’t apply to that second sale.

Verify before you sign

Here’s the checklist your lawyer should complete before you sign anything:

• Get the Council’s approval resolution, with its number and date.
• Confirm whether the classification is provisional or final, and how long it’s valid.
• Check that your unit, phase or lot is covered by the approval.
• Verify it independently with the Ministry of Tourism, not just with the paperwork the seller hands over.
• Work out how many years of IPI exemption you’ll actually get.
• Add a clause to the contract stating who pays if the exemption isn’t recognized at closing.

At closing, the exemption is applied at the DGII (the tax authority) using the project’s documents. Ask your lawyer to confirm in writing that this was done.

What properties qualify

The law is designed for tourism projects: condo complexes, villas inside resorts, hotels, marinas and golf developments, among others, located in areas the government wants to grow for tourism. That’s why you’ll mostly see it in places like the east coast or the Samaná peninsula, and rarely on a house in a regular city neighborhood.

A standalone property doesn’t qualify on its own, even if it sits right on the beach. The benefit comes from the approved project, not the location.

If you resell later

It depends. In many cases, whoever buys from you won’t get the transfer tax exemption, which can make your property a little less attractive when you sell. The IPI exemption may continue until the project’s period ends, but check with your lawyer. Don’t assume anything.

Is it a better investment?

Not on its own. The savings are real, but sometimes the benefit is already baked into the price.

It also doesn’t guarantee the project will be delivered on time or to the promised standard. Legal checks and the developer’s track record are still essential.

Your next step

To see what you’d really save, compare scenarios with and without the exemption using our tools, and review the other costs in our guide to taxes and closing costs. If you have a specific project in mind, tell us about it in the free 15-minute advisory call and we’ll tell you which documents to ask for.