Investing in Dominican Republic Real Estate as a Foreigner — CONFOTUR Law and Tax Benefits

The Dominican Republic is one of the most open real estate markets in the Caribbean for foreign investors, and the CONFOTUR Law (Law 158-01) is the key reason why.

Legal Framework for Foreign Buyers

Since 1998, the country has removed all prior restrictions on foreign investment: no residency, no Dominican partner, and no special visa are required to buy property. A foreigner’s rights over real estate are identical to those of a Dominican citizen, and the property can be registered under a personal name or a company.

What Is the CONFOTUR Law and What Tax Benefits Does It Offer?

It’s the country’s most powerful fiscal tool for attracting capital into the tourism-real estate sector. For buyers, a certified property offers:

• Exemption from the 3% property transfer tax — on a US$200,000 property, that’s an immediate US$6,000 savings at closing.
• Exemption from the annual 1% property tax (IPI) for up to 15 years.
• Exemption from capital gains tax on the first sale of the property.
• The ability to generate rental income (Airbnb or other platforms) with no local tax burden during the exemption period.

The Condition That Shapes Your Entire Strategy

These benefits apply only to the first buyer, who purchases directly from the developer. If you resell a CONFOTUR unit, the next buyer does not inherit the exemptions — they’ll pay the 3% transfer tax and the IPI from day one. That’s why, for an investor building a tax-efficient strategy, certified pre-construction properties tend to outperform resale properties in long-term value.

Minimum Requirements to Qualify

• A minimum investment of US$200,000 in the tourism sector, or US$100,000 for other program-covered investments.
• The project must be registered and currently classified under the Tourism Promotion Council (CONFOTUR) — verification is mandatory before signing any reservation agreement.
• The 2026 IPI exemption threshold sits around RD$6.5 million (roughly US$110,000); below that figure, no IPI is owed, with or without CONFOTUR.

Pairing a high-demand location — Casa de Campo, Punta Cana, or Cap Cana — with a CONFOTUR-certified project remains the most reliable formula today for maximizing the net return on a Dominican Republic real estate investment.