CONFOTUR is one of the most frequently cited — and most frequently misunderstood — aspects of Dominican real estate investment. This guide explains exactly what Law 158-01 offers, how it works, and what it does not cover. Understanding the distinction can save you from costly assumptions.
What Is CONFOTUR?
CONFOTUR stands for Consejo de Fomento Turístico, the Dominican Tourism Promotion Council. The program is established under Law 158-01 (Law on Tourism Incentives Promotion) and its associated regulations. It was created to attract foreign investment into Dominican tourism infrastructure by offering substantial tax exemptions to qualified tourism projects.
The Incentives
For tourism projects that receive official CONFOTUR approval, Law 158-01 offers a package of incentives:
- 15-year IPI exemption: Approved projects are exempt from the annual property tax (Impuesto al Patrimonio Inmobiliario) for 15 years from the date of approval.
- Transfer tax waiver: The 3% Impuesto de Transferencia Inmobiliaria is waived for the initial purchase of property within an approved CONFOTUR development.
- Income tax exemption (20 years): Income generated from tourism operations (hotel revenues, rental income from units within the project) is exempt from Dominican income tax for 20 years.
- Import duty exemptions: Construction materials, equipment, and furnishings imported for use in the approved project are exempt from customs duties.
- ITBIS exemption: The Dominican equivalent of VAT is waived on construction services for the approved project.
The Critical Disclaimer: Raw Land Does NOT Auto-Qualify
This point is essential and frequently glossed over in property marketing materials. Purchasing a raw, undeveloped plot of land does not automatically entitle you to CONFOTUR benefits.
CONFOTUR incentives apply specifically to:
- A specific tourism project (hotel, resort, villa complex, eco-lodge, marina, etc.) that has been submitted to and approved by the CONFOTUR authority.
- Properties purchased as part of that approved project's designated footprint — not land purchased independently, even if located near an approved project.
If you are buying raw land with the intention of eventually developing a tourism project, you would need to:
- Develop detailed project plans meeting CONFOTUR's requirements (scale, tourism classification, investment thresholds).
- Submit a formal CONFOTUR application to the Ministerio de Turismo and CONFOTUR council.
- Receive an official Resolución (Resolution) approving your project and granting the incentive regime.
Only after receiving this approval would your project benefit from CONFOTUR incentives on a going-forward basis. Past costs (including the land purchase) are generally not retroactively exempt.
Who Benefits From CONFOTUR?
CONFOTUR is designed for institutional and large-scale individual investors building tourism infrastructure. Typical beneficiaries:
- Resort and hotel developers.
- Boutique hotel operators.
- Residential tourism developments (villa complexes sold as vacation rental units within a certified tourism project).
- Marina and eco-tourism facilities.
The program has been used extensively in established Dominican tourism corridors (Punta Cana, Cap Cana, Cabarete) and is increasingly being applied in emerging areas like the north coast.
Amanera and Playa Grande as CONFOTUR Examples
The Playa Grande area near Río San Juan includes Amanera resort (a CONFOTUR-approved development) and the announced Discovery Land Company project. Projects of this scale are typically CONFOTUR-registered — but buyers of individual plots in the surrounding area do not automatically inherit those approvals.
What This Means for Raw Land Buyers
If you are considering buying undeveloped land at Río San Juan:
- Your purchase will be subject to the standard 3% transfer tax.
- If you hold the land undeveloped, you pay zero IPI (undeveloped land is IPI-exempt regardless of CONFOTUR).
- If you later develop a qualifying tourism project and obtain CONFOTUR approval, future benefits could apply — but this requires a formal approval process.
- Do not assume CONFOTUR benefits apply to your purchase unless you have seen the official CONFOTUR Resolution covering that specific parcel and project.
Ask any seller specifically: "Is this parcel within a formally CONFOTUR-approved project? Can I see the Resolution number?" A legitimate answer is a document, not a verbal assurance.
Legal disclaimer: This guide is for informational purposes only. CONFOTUR law and its implementation can change. We make no representations regarding the availability of CONFOTUR benefits for any specific parcel or project. Consult an independent Dominican attorney and tax advisor before making any investment decision based on expected tax incentives.