CONFOTUR: what it is and how to verify that your project qualifies

Some tourism projects in the Dominican Republic are classified by the Tourism Promotion Council (CONFOTUR) under Law 158-01. For those who purchase directly from the developer in one of these, that can mean not paying the real estate transfer tax and being exempt from the Real Estate Property Tax (IPI) for several years. However, the benefit belongs to the approved project, not to just any property on the coast, and it is wise to verify this before counting on it.

What the law and DGII say

Topic	What is established
Transfer tax	The DGII includes among the exemptions "real estate transfer, through sales, exchanges, contributions in kind and any other forms of transfer" (DGII, query ID 4070)
IPI	The DGII confirms the IPI exemption "for the property acquired in tourism projects" (DGII, query on first purchasers)
Who benefits	Those who invest directly with the promoters or developers; "any subsequent transfer in favor of third-party purchasers" is excluded (art. 4, paragraph IV, according to the law that amended Law 158-01 in 2013)
Duration	Fifteen years "starting from the completion date of the construction works" of the project (art. 7, according to the same amendment)
Project condition	Must begin operations within a period not exceeding three years; if it fails to comply, it loses the exemption (art. 7)

An illustrative example: in a purchase of US$250,000, a 3% transfer tax would equal US$7,500 which, if the project and the transaction qualify, would not be paid.

A recent change you should know about

Law 30-26, approved by Congress in June 2026, added a general rule to the Tax Code: one cannot benefit "simultaneously from more than one incentive regime regarding the same economic activity, investment, or operation." The law does not expressly mention Law 158-01. Therefore, if your purchase could qualify for more than one incentive, ask your attorney to confirm which one applies in your case.

How to verify before paying

1. Ask the developer for the CONFOTUR resolution. According to Law 158-01 (art. 11), approved projects are formalized through a resolution that sets forth their technical and economic characteristics.
2. Have your attorney confirm that the resolution corresponds to the project you are purchasing, that it is current, and on what date the exemption period began to run.
3. Ask how the exemption is processed. The DGII indicates that the application is processed through the Ministry of Finance, which then issues the authorization (DGII, query on first purchasers).
4. Review the purchase contract. It must indicate who assumes each tax and what happens if the exemption does not apply.
5. Keep the resolution and the authorization. You will need them for your IPI obligations and for a potential resale.

What to keep in mind

• It is for those who purchase directly from the developer. If you resell, the law excludes subsequent transfers to third parties from the benefit.
• The benefit has an expiration date. It runs from the completion of the project's construction, not from the time you purchase. In a project completed years ago, you may have little time left.
• Laws change. Ask your attorney to confirm the project's current regime on the day you sign.

My advice

Do not accept "this project has CONFOTUR" as a verbal answer. Ask for the document, and have your attorney read it before you hand over any money.

Informational content, does not constitute legal or tax advice; consult your attorney or accountant before deciding. Data from Law 158-01 and its amendments, Law 30-26, and the DGII, verified on November 9, 2026.