Confotur Explained: Dominican Republic Real Estate Tax Benefits (Law 158-01)
What Is Confotur? Understanding the Dominican Republic’s Tourism Incentive Law (158-01)
If you’re researching real estate investment in the Dominican Republic, you’ve likely come across the term Confotur. But what exactly is Confotur, and why is it so important for investors and developers?
In this guide, we’ll explain what the Confotur Law (Tourism Incentive Law 158-01) is, how it works, and the key benefits for foreign investors and property buyers in the Dominican Republic.
What Is Confotur?
Confotur (Law 158-01), officially known as the Tourism Incentive Law, was created to promote tourism growth in the Dominican Republic. It gives tax exemptions and financial benefits to real estate developers and investors who build or purchase properties in designated tourism development zones.
Originally designed to attract investment for hotels, resorts, and large-scale tourism projects, Confotur now plays a major role in making Dominican real estate attractive to foreign buyers.
In short: Confotur is a win-win—it boosts the local economy through job creation and infrastructure development, while also saving investors significant amounts of money on taxes.
What Are the Benefits of Confotur?
Investing in a property that qualifies for Confotur comes with major tax advantages. Here are the most important ones:
1. Title Transfer Tax Exemption
Normally, buyers must pay a 3% transfer tax when registering a property in their name. With Confotur, this fee is waived.
- Example: On a $300,000 condo, you would save $9,000.
2. Property Tax Exemption for 15 Years
Owners are exempt from paying the annual 1% property tax (applied to properties over RD$ 9,520,861, or approx. US$168,000) for up to 15 years. This means thousands of dollars in savings during ownership.
3. Investor Visa and Residency Benefits
Foreigners investing in Confotur-approved projects can use their investment to apply for Dominican residency through an Investor Visa. Until recently, this was only available for investments above $200,000 USD, making Confotur properties a more attractive gateway to residency.
4. Tax Savings for Developers = Better Prices for Buyers
Developers receive tax exemptions on construction materials and project costs. This reduces overall expenses, allowing them to offer better pricing to buyers.
Where Is Confotur Applied in the Dominican Republic?
Confotur has been especially impactful in Punta Cana, where large resorts and luxury developments benefit from the law. Currently, there are no active Confotur projects in Sosúa or Cabarete, but this is expected to change soon.
👉 One of our new developments in Sosúa will soon be Confotur-approved, offering buyers the chance to invest early and take advantage of these benefits.
Why Confotur Matters for Investors
For anyone considering buying property in the Dominican Republic, Confotur-approved projects are among the smartest investments. They provide:
- Significant tax savings (both upfront and long-term)
- Better resale value since future buyers also benefit from exemptions
- Government-backed incentives that increase investor security
- Residency opportunities for foreign buyers
However, laws can evolve. Before making a purchase, always consult with a real estate expert or lawyer in the Dominican Republic to confirm the current Confotur conditions.
Final Thoughts
Confotur (Tourism Incentive Law 158-01) has transformed the Dominican Republic into one of the Caribbean’s most attractive destinations for real estate investment. By combining tax exemptions, investor incentives, and strong tourism growth, it continues to drive interest from foreign buyers worldwide.
If you’re planning to invest in Dominican real estate, keep an eye out for Confotur-approved projects—they could save you thousands of dollars and make your investment even more profitable.
