If you are considering an investment property in Punta Cana, understand one acronym before you sign anything: CONFOTUR. For foreign buyers, a CONFOTUR-certified property is a real financial advantage.
What is CONFOTUR?
CONFOTUR (Consejo de Fomento Turístico) is Law 158-01, the Dominican government's main incentive program for tourism real estate. Qualifying developments receive tax exemptions for up to 20 years from certification, and the law has helped drive Punta Cana's growth for two decades.
What tax exemptions does it provide?
Certified properties receive exemptions from:
- Transfer tax, normally 3% of the purchase price
- Annual property tax (IPI), normally 1% of the value per year
- Import duties on furniture, equipment and materials to furnish and operate the property
- Income tax on rental income, for qualifying tourism rental operations
- Capital gains tax on a sale during the exemption period
On a $200,000 property, the transfer tax exemption saves $6,000 at closing and the IPI exemption saves $2,000 every year. Over the full period, savings can exceed $40,000.
Which properties qualify?
Not every property is certified. Certification is granted to specific developments, most often new construction condos, villas and mixed-use resort developments in Bávaro and Punta Cana. Always confirm the certification with the developer and your attorney before buying.
How does CONFOTUR affect rental income?
CONFOTUR properties are designed for tourism rental use, so they suit Airbnb, Booking.com and other platforms. Tax-free rental income, no annual property tax and strong year-round tourist demand make a very attractive rental profile.
CONFOTUR properties through Sonia Realtors
We offer a selection of new construction condos and villas with flexible payment plans, and our bilingual team guides you through the CONFOTUR verification and the legal and tax documents before closing. Message us on WhatsApp to request our current list.
Frequently asked questions
What does CONFOTUR stand for?
Consejo de Fomento Turístico, the Dominican tourism promotion council, under Law 158-01.
How long do the exemptions last?
Up to 20 years from the date of certification.
