Learn the essential mechanics of CONFOTUR, from transfer tax elimination to the fifteen-year property tax exemption, and how it changes the math on a Punta Cana purchase.
Buying & Selling
Few incentives change the math on a Caribbean property purchase as much as CONFOTUR, yet most outside buyers have never heard of it.
CONFOTUR is the Dominican Republic's tourism development incentive law, and it can materially change the economics of a purchase in Bávaro or Punta Cana. Properties within CONFOTUR-approved projects are exempt from the transfer tax typically due at closing, and qualifying properties are also exempt from the annual property tax for fifteen years from the project's approval date. On a mid-size condo purchase, that combination can represent tens of thousands of dollars in savings over a typical hold period. Not every project qualifies, and eligibility is tied to the specific development rather than the buyer, so it's essential to confirm a project's CONFOTUR status before signing anything. The exemption also has a time horizon: it's calculated from the project's original approval, not your purchase date, so buying into an older CONFOTUR project may leave fewer years of exemption remaining than a newer one. Working with an advisor who checks this before you commit — and who coordinates with a qualified attorney on the paperwork — is the difference between buyers who capture the full benefit and buyers who assume they have and find out otherwise at tax time.
