If you're planning to buy a pre-sale property in Punta Cana, Bávaro, or Cap Cana, you've surely heard the term "Confotur" at some point. This is no small matter: it can affect how much you pay in taxes when you buy and every year you own the property.
Confotur is the short name for Law 158-01 on the Promotion of Tourism Development, administered by the Ministry of Tourism (MITUR) of the Dominican Republic. A project with Confotur status is exempt from real estate transfer tax, IPI (annual property tax), and import duties on materials and equipment used in its construction. Not all projects have this designation: it depends on whether the developer applied for it and the government approved it for that specific project through a public decree issued by the Council for Tourism Promotion. Therefore, before signing a reservation contract in Punta Cana, Bávaro, or Cap Cana, it’s always worth asking whether the project is certified, requesting the decree number that confirms it, and verifying its validity with a local attorney, since the actual savings depend on each individual case and should never be taken for granted without that document in hand.
What exactly is Confotur Law 158-01?
Law 158-01 on the Promotion of Tourism Development was enacted to attract investment to areas with tourism potential, such as Punta Cana, Bávaro, Cap Cana, and the Coral Golf Resort, among others. The mechanism is simple: the government provides tax incentives to qualifying projects in exchange for their contribution to development, job creation, and infrastructure in those areas.
The Council for Tourism Promotion (Confotur), an agency under MITUR, is responsible for evaluating and approving eligible projects. Approval is formalized through a decree, and that decree is the document a buyer must be able to see if they want to confirm that the benefit is real and not just a sales pitch.
You can view the complete legal framework of Law 158-01 directly on the website of the Tourism Promotion Council (MITUR).
What exemptions does Confotur actually grant?
A project with a valid Confotur designation may exempt the buyer and the developer, in whole or in part, from three specific tax obligations:
- Real Estate Transfer Tax (ITBI): This tax is typically 3% of the property’s registered value, according to the General Directorate of Internal Revenue (DGII). In a qualifying project, this tax may be waived on the initial transfer.
- IPI (Real Estate Property Tax): the annual tax levied on the value of real estate that exceeds a certain threshold. Confotur projects are typically exempt from IPI for a period specified in the approval decree.
- Import Duties: Construction materials and tourism equipment imported for the project (air conditioners, furniture, pool systems, among others) may be exempt from import duties, which in theory helps keep the final construction cost down.
It’s important to be precise here: the exact amount you save varies depending on each project, its specific decree, and the scope of the approved exemption. There is no fixed dollar amount that applies to all cases—you must always check the decree for the project you’re interested in, which is why at Garrigó Real Estate we’ll help you confirm that information before you make a decision.
It's worth understanding each exemption separately, because not all of them carry the same weight in your purchasing decision.
Transfer Tax (ITBI): The Most Noticeable Savings at Closing
Real estate transfer tax is a one-time tax you pay when the property is transferred into your name. According to the DGII, the general rate is 3% of the property’s registered value. In a Confotur project, this 3% is waived as established in the relevant decree, which directly reduces the closing costs of your purchase.
IPI: Savings That Come Around Every Year
The Real Estate Property Tax (IPI) is paid annually on properties whose value exceeds an exemption threshold set by the DGII. If the project has a valid Confotur designation, this annual obligation may be waived for the period specified in the decree—typically several years following the project’s approval. This is important because, unlike the ITBI, the IPI is a recurring cost that affects your net return every year you own the property.
Import Duties: Savings You See Indirectly
This tax exemption directly benefits the developer, not you as a buyer. But it does benefit you indirectly: by reducing the cost of imported materials and equipment (HVAC, furniture, pool systems, technology for amenities), the developer has more leeway to keep the selling price competitive or invest in higher-quality finishes. It is the least visible of the three exemptions, but it is part of the same package of incentives.
Confotur vs. Purchasing Without Exemption: A Comparison
To understand the impact, this table compares what a buyer pays for a property in a Confotur-certified project versus one without that certification, using the ITBI as a reference (DGII data, 3% of the registered value):
| Concept | SIN Confotur Project | CON Confotur Project |
|---|---|---|
| Transfer Tax (ITBI) | 3% of the recorded value | Exempt (by decree) |
| Annual IPI | Applies to the amount exceeding the tax-exempt threshold | Exempt for the period covered by the decree |
| Import Duties (Materials/Equipment) | Applied according to tariff line | Exempted from the project |
| Requirements for the buyer | Not applicable | Check the decree and its validity before purchasing |
The actual savings depend on each project: its value, the exact scope of the decree, and whether the exemption covers 100% or a percentage. Never assume a savings figure is guaranteed without reviewing the official document.
Confotur and the total cost of purchasing during the presale
When evaluating a presale in Punta Cana, Bávaro, Cap Cana, or Coral Golf Resort, the list price is only part of the equation. Closing costs typically include the ITBI tax (or an exemption from it, if Confotur applies), legal fees, title registration fees, and, in some cases, the developer’s administrative fees. Knowing in advance whether the project qualifies for Confotur allows you to build a much more realistic closing budget before committing to your initial deposit.
This is particularly relevant in the price range of the properties in our portfolio, which ranges from US$104,000 for commercial projects like The Point or The Plaza to US$326,000 for developments like Makai Residences in Cap Cana. In that range, a 3% non-exempt ITBI tax represents a real difference in the capital you need to have available at closing, which is why confirming Confotur eligibility is one of the first steps we review with you—along with the rest of the project’s legal structure—when you’re exploring an investment in Punta Cana.
What happens if the project loses its Confotur certification?
That’s a reasonable question, and the short answer is: it depends on the decree. The Confotur designation is granted for a specific period and under specific conditions (for example, meeting construction deadlines or adhering to the project’s declared tourist use). If the developer fails to meet those conditions, in theory the government could review or revoke the benefit.
For a buyer, this underscores the importance of working with reputable developers with a proven track record in the area, and of reading the full decree—not just the summary provided by the sales team. A legitimate and valid Confotur decree is a public document, and your attorney should be able to verify it independently before you sign.
How can I tell if a specific project qualifies for Confotur?
Before booking a unit, there are specific steps you can take to confirm your reservation:
- Ask the developer for the number and date of the decree approving the project's Confotur classification.
- Verify that the decree is still in effect and that it covers the phase or unit you are purchasing (some decrees apply only to certain phases of a development).
- Check with your attorney or advisor to see if the exemption applies to 100% of the ITBI or to a partial percentage.
- Review how your title will be registered once the purchase is complete—a process regulated by the Dominican Republic’s Real Estate Registry under Law 108-05 on Real Estate Registration.
If you purchase through a project such as Coral Lake Residences at Coral Golf Resort, this type of verification is part of the support we provide before you sign any reservation contract.
Why does this matter to a foreign investor who buys remotely?
If you’re buying from the United States, Canada, or Europe and are unable to visit the project frequently, any tax burden you can anticipate will help you plan your investment more effectively. Confotur directly addresses two key moments:
- When buying: The exemption from the ITBI reduces the closing costs at the time of the initial transfer.
- As a homeowner, every year: being exempt from the IPI reduces the cost of maintaining the property, which is important if you plan to rent it out while you’re not using it. You can see how this model works in our guide on how much an Airbnb yields in Punta Cana.
In addition, many projects with a Confotur rating are typically located in areas with well-established tourism infrastructure. Punta Cana, Bávaro, Cap Cana, and Coral Golf Resort are clear examples of this, which also ties into the area’s medium-term appreciation in property value.
Does Confotur replace a trust or other legal protections?
No. Confotur is a tax benefit, not a mechanism to protect your investment. That protection typically comes from a trust, regulated by Law 189-11 on the Development of the Mortgage and Trust Market, which safeguards buyers’ funds during the construction phase. These are two distinct mechanisms that can coexist within the same project. If you want to understand how the trust works in detail, it’s definitely worth reading the documents carefully before signing.
Common Mistakes When Evaluating the Benefits of Confotur
These are the most common mistakes we see among buyers coming from outside the country:
- Assuming that “all projects in Punta Cana have Confotur approval”: that’s not the case; it depends on each developer and each decree.
- Do not ask for the decree number in writing before signing the reservation contract.
- Confusing the ITBI exemption with a total exemption from all property-related taxes.
- To treat a figure for “savings in dollars” as definitive when it is not supported by the decree for the specific project.
- Don't forget to check whether your IPI exemption has an expiration date, or you might be surprised years later by a tax you weren't expecting.
- Assuming that the project trust and the Confotur rating provide the same legal protection.
Checklist of Documents You Should Request Before Buying
If you're making a remote purchase and want to verify your Confotur benefit properly, here is the documentation you should request from the developer or your advisor before signing:
- A copy of the Confotur certification decree, including the number and date of issuance.
- Exact scope of the decree: which phases, towers, or units of the project it covers.
- Term of the IPI exemption.
- Confirmation of whether the project trust is established under Law 189-11, and who administers it.
- Status of the project's registration with the Real Estate Jurisdiction, in accordance with Law 108-05.
At Garrigó Real Estate, this checklist is part of what we go over with you before you reserve a unit in any of the projects in our portfolio, whether at Coral Golf Resort, Cap Cana, or Downtown Punta Cana.
Frequently Asked Questions About the Confotur Act
What is Confotur, in a nutshell?
This is the tax benefit provided by Law 158-01 on the Promotion of Tourism Development to projects approved by MITUR, exempting them from transfer tax, IPI, and import duties on tourism-related materials and equipment.
How can I confirm whether a project has Confotur?
Ask the developer for the number and date of the zoning decree, and verify its validity and scope before signing the reservation agreement.
Does Confotur exempt me from the IPI forever?
Not necessarily. The IPI exemption is usually subject to a specific time period set forth in the decree approving the project, so you need to check that specific time frame.
Exactly how much money will I save with Confotur?
There is no single figure: it depends on the value of the property, the scope of the decree, and whether the exemption is total or partial. The correct approach is to calculate it on a case-by-case basis with the draft decree in hand.
Does Confotur apply only to pre-sales or also to properties that have already been built?
It depends on the terms of each project. Some cover different phases or stages of construction, so you should always check to see if your specific unit is included.
At Garrigó Real Estate, we're with you every step of the way, from choosing a project to the transfer of title.
Let's talk about your next investment, or message us directly on WhatsApp.