CONFOTUR, without the sales gloss
Every listing in the country seems to shout "TAX FREE!" — and behind most of them is the same law: CONFOTUR. Here's what it actually exempts, for how long, what survives a resale, and the three-word status question that separates real savings from marketing.
What CONFOTUR actually is
CONFOTUR is the Dominican Republic's tourism development council (Consejo de Fomento Turístico), created by Law 158-01 in 2001 to pull investment into tourism real estate. The mechanism is simple: developers apply to have a project certified, and a certified project can pass two tax exemptions on to its buyers.
The two exemptions are the ones that matter in any purchase budget. First, the 3% transfer tax normally due when a property is registered in your name — waived. Second, the 1% annual property tax (IPI) charged on value above a government-set threshold — waived for up to 15 years.
Two details make it better than the usual tax gimmick. Foreign buyers qualify on exactly the same terms as Dominicans, with no residency requirement. And the exemption attaches to the property's certificate, not to the first buyer — sell in year six, and the next owner inherits the remaining nine years, which is a genuine resale argument.
What it's worth in dollars
3% of the price, once
On a USD 400,000 condo, the waived transfer tax is USD 12,000; on USD 650,000, it's USD 19,500. This is usually the single biggest closing cost in a Dominican purchase — and with certification, it simply doesn't exist.
~1% of excess value, up to 15 years
The IPI runs at roughly 1% of the value above a threshold the government adjusts annually, assessed per person. Fifteen exempt years on a mid-six-figure property adds up to tens of thousands of dollars — your lawyer runs your exact case.
The remaining years transfer
Whatever is left of the 15-year window passes to your buyer with the property. A certified unit with a decade of exemption left is measurably easier to sell than the identical unit without it.
Three states, and only one of them saves you money
Every project exists in one of three CONFOTUR states: certified, in process, or not applying. Marketing tends to blur the first two. Don't let it — "in process" means an application, not an approval, and applications can stall or fail.
Our standing advice is boring on purpose: budget as if the exemption didn't exist, and let certification be good news when it lands. If a listing's numbers only work with the tax break included, the listing's numbers don't work.
Where our featured project stands, stated plainly: Reef & Golf Residences has its CONFOTUR certification in process — not yet granted. That's exactly the kind of sentence you should demand, in writing, from any project you're considering. For the full purchase process around it — the five steps, the promise of sale, the lawyer question — see the buying guide.
Asked most often
What is CONFOTUR?
CONFOTUR is the Dominican Republic's tourism development council, created under Law 158-01 in 2001. It certifies tourism-related real-estate projects, and certified projects can pass two tax exemptions to buyers: no 3% transfer tax at closing, and no 1% annual property tax (IPI) for up to 15 years.
How much does CONFOTUR actually save?
Two numbers. At closing: 3% of the property value — USD 12,000 on a USD 400,000 condo. Annually: roughly 1% of the value above the government-set threshold, for up to 15 years. On mid-six-figure properties the combined saving commonly reaches tens of thousands of dollars.
Do foreigners qualify for CONFOTUR?
Yes, on the same terms as Dominican citizens. There's no residency requirement — the exemption attaches to the certified property, not to the buyer's nationality.
Does the CONFOTUR exemption survive a resale?
Yes — the exemption is tied to the property's certificate, so a new buyer inherits the remaining years of the 15-year window. That remaining runway is worth real money and belongs in any resale negotiation.
How do I check whether a project has CONFOTUR?
Ask for the certification in writing and have your lawyer verify it. Projects come in three states: certified, in process, or not applying — and "in process" is a plan, not a guarantee. Budget as if the exemption didn't exist and let it be good news if it lands.
Got a listing shouting "TAX FREE"?
Send it over. We'll tell you which CONFOTUR state it's actually in and what that means for your numbers.