If you’re considering investing in property in a paradise like Punta Cana, the key term you need to know is the CONFOTUR Law. This is the Dominican Republic’s great strategy for attracting both foreign and local investment, offering tax incentives that maximize your profitability.
At RE/MAX Ocean Punta Cana, we want your money to work as efficiently as possible. That’s why we explain in a simple way what the CONFOTUR Law is and how it turns you into a privileged investor.
What Is CONFOTUR?
CONFOTUR is not just a program—it is a law. The CONFOTUR (Tourism Promotion Council) is the body in the Dominican Republic responsible for implementing Law 158-01, whose goal is to promote tourism development in emerging destinations and areas with high potential.
In simple terms, it is the legal tool the Dominican government uses to encourage the construction of hotels, resorts, and tourism real estate projects—such as apartments and villas—by offering significant tax incentives to developers and, consequently, to the buyers of the first unit.
How Does It Work for Buyers and Investors?
When you purchase a property within a project that has been approved and classified by CONFOTUR, you automatically receive all the tax benefits granted by the law. These incentives are designed to encourage investors to hold the asset, which helps ensure the stability of the sector in the Dominican Republic.
The 3 Tax Benefits That Boost Your Profit
CONFOTUR incentives are designed to save you thousands of dollars and significantly increase the return on your investment. Here are the three key benefits of investing in Punta Cana under Law 158-01.
A. Transfer Tax Exemption (3%)
Normally, when purchasing property in the country, buyers must pay 3% of the total value as a real estate transfer tax. With CONFOTUR, you are exempt from paying this 3% on the first purchase of your property, representing a significant upfront saving.
B. Property Tax Exemption (IPI) 💰
The IPI (Property Tax) is an annual 1% tax on the value of the property that owners are usually required to pay. CONFOTUR-approved projects exempt you from paying this 1% IPI for a period of 10 to 15 years, creating consistent long-term savings.
C. Other Incentives (Depending on the Project)
Although the most direct benefits are the IPI exemption and the transfer tax exemption, in some approved projects you may also receive:
Income Tax (ISR) exemption on rental income generated by the property during the benefit period (up to 15 years).
Customs benefits and exemptions from the ITBIS (VAT) related to construction, which ultimately translate into better final prices for buyers.
Ideal Buyer Profile for CONFOTUR
Projects approved under CONFOTUR are perfect for:
Visionary Investors:
Those looking to maximize long-term profitability by taking advantage of years of tax exemptions.
Second-Home Buyers:
People who want a vacation home with the peace of mind that the property can pay for itself by generating passive rental income when it’s not being used.
Foreign Investors:
The law does not discriminate—both Dominicans and international buyers can benefit equally in the Dominican Republic.
Ready to Invest Tax-Free?
At RE/MAX Ocean Punta Cana, we offer an exclusive portfolio of apartments, villas, and developments in Punta Cana with CONFOTUR certification and other unique financial benefits.
Click here or contact a RE/MAX Ocean Punta Cana advisor to explore our catalog of tax-exempt properties and schedule your visit. Your luxury investment in the Caribbean is waiting for you!
