CONFOTUR Laws
Law 158-01 — the Tourism Incentives Law — is one of the most favorable property investment frameworks in the Caribbean. Here's how it works.
What is CONFOTUR?
CONFOTUR (Comité de Fomento Turístico) administers Law 158-01, which grants tax exemptions to qualifying tourism-related property investments in the Dominican Republic. Originally designed to attract hotel and resort development, the law has expanded to cover individual villa and condominium purchases within designated tourism zones.
What exemptions apply?
- 100% exemption on property transfer taxes (normally 3% of purchase price)
- 100% exemption on annual real property taxes (IPI) for the exemption period
- 100% exemption on income tax on rental income from the property
- 100% exemption on import duties on furniture and equipment for the property
- 100% exemption on taxes on mortgage interest
Does my property qualify?
Most new construction within designated tourism zones qualifies. To be eligible, the property must be within a CONFOTUR-designated tourism zone, be a new construction or substantially renovated project, and be registered with the Ministry of Tourism prior to sale. Re-sale of previously CONFOTUR-exempt properties can transfer the remaining exemption period to the new buyer.
Our attorneys verify CONFOTUR eligibility before you commit to any purchase. If a developer claims CONFOTUR status, we confirm it directly with the Ministry of Tourism.
How to apply
CONFOTUR certification is filed by the developer on behalf of the project. As a buyer, you receive the exemption certificate as part of your title documents. Our legal team can file supplemental certifications and ensure your individual unit is properly registered under the project's umbrella exemption.
Check your property's CONFOTUR status
Send us the property address or developer name and our attorneys will confirm whether it qualifies for CONFOTUR exemptions.