Walk through any sales office in Cap Cana, Bávaro, or Downtown Punta Cana and you will see CONFOTUR referenced in nearly every brochure. For foreign buyers, understanding what CONFOTUR actually provides, and how to claim it, can translate into tens of thousands of dollars in savings.
CONFOTUR stands for the Consejo de Fomento Turístico, the government body that approves tourism projects under Law 158-01 (as amended by Law 195-13). Because Punta Cana is the country’s main tourism hub, the overwhelming majority of new developments here are CONFOTUR approved or applying for approval.
The two main benefits are significant. First, buyers of a CONFOTUR-approved unit are exempt from the 3% property transfer tax at closing. On a US$400,000 apartment, that is US$12,000 saved immediately. Second, the property is exempt from the 1% annual real estate tax (IPI) for up to 15 years from the project’s CONFOTUR approval date. Over a decade of ownership, this typically saves an additional US$30,000 to US$50,000, depending on property value.
Foreign buyers in Punta Cana should understand several nuances. The exemption formally benefits the first buyer acquiring from the developer. For resale CONFOTUR units, the remaining years of IPI exemption generally transfer with the property, but this depends on the specific resolution’s terms. Always request the CONFOTUR resolution number, the approval date, and the remaining exemption period as part of due diligence.
Claiming the exemption is not automatic in practice. After closing, a formal request must be filed with the DGII, supported by the Deed of Sale, the CONFOTUR resolution, and related documentation. Buyers who skip this step often find the DGII later demanding the 3% transfer tax despite the project’s approved status.
A final warning that applies specifically to Punta Cana, where marketing can move faster than paperwork: not every project advertised as “CONFOTUR approved” actually has an active resolution. Some are in the application phase, some have expired resolutions, and some were approved under conditions that do not cover every unit in the project. Verifying the resolution directly with the competent authorities is part of standard due diligence at AlterLegal, and it is a step no foreign buyer should skip.
If you are buying in Punta Cana, CONFOTUR is one of the strongest reasons to engage independent legal counsel before signing. Capturing the exemption requires proper filing, and verifying the project’s status requires documentation the developer may not volunteer.
