CONFOTUR is the closest thing to a free lunch in DR real estate

The Council on Tourism Promotion (CONFOTUR) is a Dominican government incentive that grants developments certified as tourism-promoting a 15-year exemption from IPI property tax, ITBIS sales tax, transfer tax, and import duties on furnishings. For investors, the math is large.

What CONFOTUR actually exempts

For 15 years from project certification:

• IPI (1% annual property tax above the threshold): zero
• ITBIS on rental income (18%): zero on the unit
• Transfer tax at the original sale (3%): zero
• Import duties on furniture for the unit: zero
• Income tax on first 10 years of rental net income: zero

What it does NOT exempt

• Your capital gains when you eventually sell (still 27%)
• HOA fees
• Utilities
• The seller's capital gains (if you buy CONFOTUR resale, the original 3% exemption is already used)

The real-money math

On a $300,000 CONFOTUR condo generating $26,000 rental gross:

• Transfer tax savings at purchase: $9,000
• IPI savings annually: roughly $3,000 (above the IPI threshold) = $45,000 over 15 years
• ITBIS savings on rentals: 18% of $26,000 = $4,680/year = $70,200 over 15 years
• Income tax savings: depends on your bracket, but typically $3,000-$6,000/year for 10 years

Total CONFOTUR benefit: $130,000-$170,000 over 15 years on a single $300K unit.

How to confirm a property is actually CONFOTUR

Ask for:

1. The CONFOTUR resolution number (issued by Council Resolution)
2. The certification date (the 15-year clock starts here)
3. The full list of units covered (some buildings have phased certifications)

Always verify with the actual Council document. Some sellers describe a building as "CONFOTUR" when only common areas were certified, not the residential units.

The catch on resale

The 15-year clock runs from the project's certification, not your purchase. If you buy a CONFOTUR condo 8 years into its 15-year window, you inherit the remaining 7 years. Still valuable, but smaller.

Should you only buy CONFOTUR?

Not necessarily. For high-rental-yield investors, CONFOTUR pays for itself many times over. For pure vacation use with low rental, the savings are smaller and you can sometimes find non-CONFOTUR properties at lower prices that net out similarly.

What we always ask developers

What's the CONFOTUR status, the certification date, and the resolution number. If a developer can't answer in 30 seconds, the building isn't certified and probably won't be.