What is the CONFOTUR Law in the Dominican Republic?

Law No. 158-01 on Tourism Development Promotion, known as the CONFOTUR Law, is the main tax incentive for tourism real estate investment in the Dominican Republic. Enacted on October 9, 2001, it allows the development of projects with broad tax exemptions for up to 15 years.

Benefits of the CONFOTUR Law for Investors

Exemptions for Buyers

• Exemption from the 3% real estate transfer tax
• Exemption from Property Tax (IPI)
• Reduced closing costs
• Higher returns from vacation rentals

Exemptions for Developers

• Exemption from Income Tax (ISR)
• VAT (ITBIS) exemption on construction
• Exemption from import duties
• Tax incentives on financing

How Long Do CONFOTUR Exemptions Last?

Tax benefits can extend up to 15 years of full tax exemption.

• Punta Cana
• Cap Cana
• Samaná
• Miches
• Puerto Plata
• Las Terrenas
• Pedernales

Requirements to Qualify for CONFOTUR

• Located in an approved tourism zone
• Approved environmental impact study
• Technical and financial feasibility
• Tourism-oriented development focus

Procedure to Obtain CONFOTUR Approval

1. Application submission to the Ministry of Tourism
2. Evaluation by the CONFOTUR Council
3. Provisional classification
4. Project development
5. Final classification
6. Issuance of resolution

Why Invest in CONFOTUR Projects?

Investing under this regime allows you to purchase properties with unique tax advantages, generate income in US dollars through vacation rentals, and achieve high returns in a growing market.