What is the CONFOTUR Law in 2026? Everything You Need to Know Before Buying Property in the Dominican Republic

CONFOTUR is the name commonly used for the tourism incentive program created under Law 158-01.

Its goal is to encourage tourism development in the Dominican Republic by offering tax incentives to approved projects. Developers can apply for CONFOTUR approval, and once a project is approved, certain tax benefits become available under the law.

Today, many new developments in popular areas such as Punta Cana, Cap Cana, Las Terrenas, and Miches are marketed as CONFOTUR projects because of these incentives.

One of the biggest reasons buyers choose a CONFOTUR project is because of the potential tax savings.

Depending on the project and the applicable legislation, benefits may include:

• Exemption from the real estate transfer tax.
• Exemption from the annual Property Tax (IPI) for the period established by law.

These incentives can reduce both your upfront purchase costs and your long-term ownership costs.

No.

Not every new development is automatically a CONFOTUR project.

A developer must apply for approval, and the project must be officially approved under the CONFOTUR program before these incentives apply.

If you’re considering buying a property, it’s always worth asking the developer whether the project has official CONFOTUR approval.

No.

Both Dominican citizens and foreign buyers can purchase properties in approved CONFOTUR projects. The law does not limit these incentives to foreigners.

This is one of the questions we receive most often.

The original law granted tax exemptions for 10 years, but this was later amended by Law 195-13, extending many of these incentives to 15 years.

The exact duration and how the exemptions apply depend on the legislation and the specific project. If you’re buying a property, always ask the developer or your legal advisor to explain exactly which benefits apply to your purchase.

Because CONFOTUR has existed for many years, there are hundreds of articles online explaining how it works. Unfortunately, not all of them are still accurate.

During our research, we found websites that still mention outdated tax rates, incorrectly explain how long the benefits last, or make claims that aren’t clearly supported by the official legislation.

That’s why we took the time to compare the information in this article with the official laws published by the Dirección General de Impuestos Internos (DGII). Even then, every project is different, so we always recommend verifying the details with the developer or a qualified legal advisor before making a purchase.

Not necessarily.

The tax benefits are certainly attractive, but they shouldn’t be the only reason to buy a property.

You should also consider:

• The location.
• The reputation of the developer.
• Construction quality.
• Rental demand.
• Long-term resale value.

A well-located property with strong rental demand can often be a better investment than simply choosing a project because it has CONFOTUR benefits.

CONFOTUR has played an important role in attracting investment to the Dominican Republic and continues to be one of the biggest advantages of buying certain new construction properties.

If you’re thinking about buying real estate in the Dominican Republic, ask whether the project has official CONFOTUR approval and make sure you understand exactly which tax benefits apply to your purchase.

Taking a few extra minutes to verify the details today could save you time, money, and surprises later.