CONFOTUR Tax Exemptions for Tourism Real Estate in the Dominican Republic: 15 Years, Nationwide — With New Limits in 2026

A condominium buyer in Punta Cana who chooses a CONFOTUR-approved project over an identical unapproved one can avoid the 3% real estate transfer tax at closing and the annual property tax for years afterward. That difference — invisible in the sales brochure’s price — is the product of the Dominican Republic’s tourism incentive regime, and it is the first question a well-advised buyer of tourism real estate should ask.

The framework rests on Law 158-01 on Tourism Promotion, substantially amended by Law 195-13 of December 2013. The 2013 reform made two structural changes. It extended the incentives to tourism and ecotourism projects across the entire national territory, eliminating the old restriction to designated ‘tourism poles.’ And it lengthened the exemption period from 10 to 15 years, counted from the completion of the project’s construction and equipment — a change that also benefited projects already classified at the time.

The exemptions under Article 4 of Law 158-01 are broad: a 100% exemption regime for qualifying investments in tourism activities, hotels and complementary offerings. Renovation projects qualify too — investments in existing hotel facilities at least 5 years old receive 100% ITBIS (VAT) exemption on machinery, equipment and materials for the renewal, while remodeling of more than half of a facility at least 15 years old accesses the full Article 4 regime. Critically for the real estate market, individuals and companies who invest directly with promoters or developers in classified projects share in the same exemptions — the legal basis for the buyer-level benefits marketed with CONFOTUR projects.

The conditions are strict and unforgiving. Projects must obtain municipal and urban planning approvals before construction, hold classification from the Tourism Development Council (CONFOTUR), and begin operating within 3 years — after which the acquired exemption right is automatically lost. Buyers should verify a project’s classification resolution directly, not rely on marketing materials.

The 2026 fiscal reform adds a new layer of diligence. Law 30-26, enacted in June 2026, did not repeal CONFOTUR benefits, but it introduced a Tax Code rule barring taxpayers from combining more than one special incentive regime over the same activity or investment, and gave the Ministry of Finance a formal role in objecting to beneficiary classifications. For developers who layer CONFOTUR with trusts or other regimes, the structure now needs review before — not after — classification.

Our tax and real estate team verifies CONFOTUR status for buyers, structures classifications for developers, and models the post-reform exemption position of tourism projects. Before you close on tourism real estate in the Dominican Republic, let us confirm what the incentives actually deliver.

Do you want more information about our services for obtaining Confotur Tax Exemptions for Tourism Real Estate in the Dominican Republic? Contact Us.

ABOUT THE AUTHOR: Maria Arthur Rodger is a Partner leading the Private Client, Successions and Tax areas at Arthur & Castillo Advisers and Consultants in the Dominican Republic. She specializes in private client, successions, tax, real estate valuation and advisory (Master in Tax and Finance Studies from Georgetown University in Washington, D.C. & Universitat Pompeu Fabra in Barcelona) with more than 20 years of experience. She is also a Certified Public Accountant (CPA), Certified Valuator, Business Bankruptcy Expert and English and Spanish Interpreter.

Email: marthur@aclaw.com

Disclaimer: This publication is not intended to provide advice or suggest a guaranteed outcome as individual situations will differ and the situation may have changed since publication. For specific advice on the information provided and related topics, please contact the author.

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