CONFOTUR Explained: Tax Perks In Cap Cana

Buying in Cap Cana and wondering if the advertised “tax perks” are real? You are not alone. Many resort residences in Punta Cana mention CONFOTUR, but the benefits and timelines can vary by project. In this guide, you will learn what CONFOTUR is, how the savings typically reach you as a buyer, and the exact steps to verify them before you sign. Let’s dive in.

What CONFOTUR means in Cap Cana

CONFOTUR is the Dominican government’s tourism incentive framework. When a developer’s project is approved, the project may receive fiscal and customs benefits that reduce costs during construction and, in many cases, reduce taxes for you on purchase and ownership. Cap Cana is a master‑planned resort area where many residences are designed for tourism and second‑home use, so developers frequently seek these incentives.

Typical benefits that a CONFOTUR‑approved project may include:

• Waiver or reduction of transfer taxes on the initial sale of a unit.
• Partial or full exemptions of annual property taxes for a defined period.
• Exemptions from VAT or customs duties on imported construction materials, furniture and equipment for the project.
• Corporate or income tax benefits that can help developers control pricing.
• Possible municipal tax waivers in certain cases.

Each project’s benefits are defined in a formal government instrument. This is the controlling document that lists which taxes are covered, where, and for how long.

How the benefits reach you

The approval instrument

A developer applies for incentives. If approved, the government issues a decree, resolution or ministerial order that defines the benefits, geographic boundaries, qualifying activities and duration. This instrument is the primary legal proof that the project has CONFOTUR benefits.

Where benefits attach

Benefits are generally granted to the project as a whole. Whether exemptions attach to each individually deeded unit depends on the wording of the approval and on whether the developer recorded the benefit in the public Property Registry. Many developers provide buyer packets showing unit coverage, but you should confirm registration so the exemption is effective when you close and when you later sell.

Transfer and annual tax scope

Transfer‑tax exemptions commonly apply to initial sales. Some approvals cover subsequent transfers, but many do not. You should not assume resale tax treatment without confirmation from the approval instrument and the registry. Annual property‑tax exemptions can be full or partial for a fixed number of years or while the project retains a specific classification. The exact duration is written in the instrument.

Administrative steps you can expect

The developer secures the incentive and should provide a certified copy of the approval. For buyer protection, the incentive or a reference to it should be recorded where titles and encumbrances are registered. You should obtain and keep copies of the approval instrument, any agency certificates, and a sales contract that references the incentives clearly by name and scope.

Your due diligence checklist

Essential documents to request

• Certified copy of the government decree or resolution granting the incentive.
• Any ministry or agency certificate showing tourism‑project registration.
• Evidence that the incentive is recorded in the Property Registry for the project and, if applicable, for individual units.
• Sales contract language that names the incentive and lists the specific taxes waived and for how long.
• A written statement from the developer confirming whether exemptions apply to resale or only to the initial transfer and which filings are required.
• Current municipal and national tax status for the unit to confirm exemptions are reflected in local records.

Authorities and records to verify

• Ministry of Tourism (Ministerio de Turismo) for tourism classification and to confirm the approval instrument.
• Tax authority (Dirección General de Impuestos Internos, DGII) for tax treatment and whether exemptions are recorded for the property or taxpayer.
• Property Registry (Conservaduría de Bienes Raíces in La Altagracia) to verify title and any registered references to the incentive.
• Local municipality or ayuntamiento to confirm municipal tax status.

Questions to ask the developer or seller

• Please provide the official decree or resolution and a certified translation if needed.
• Does the incentive waive transfer taxes for initial sales only or also for resales? Show the clause citation.
• Are annual property‑tax exemptions automatic for each owner or subject to filings? Provide registry evidence.
• Has the incentive been recorded against the title? Share copies of registry entries.
• Are there sunset clauses or conditions that could terminate benefits, such as completion deadlines?

Professionals to involve

• A local real estate attorney with tourism‑project experience in Punta Cana and La Altagracia.
• A tax advisor or accountant who can interpret the instrument and outline ongoing compliance.
• A real estate broker experienced with Cap Cana resort and branded residences.

Common questions and real‑world risks

Do incentives transfer on resale?

Sometimes yes, sometimes no. Transferability depends on the wording of the government instrument, ownership type, and on whether the benefit was recorded to bind future owners. You should confirm both in writing and in public records before you rely on any resale assumption.

Will lenders accept a CONFOTUR unit as collateral?

Generally yes. Banks review the instrument and registration to ensure clear title and that the incentives do not create obligations that affect enforceability. Expect the lender to request copies of the approval and registry entries as part of underwriting.

Are HOA fees or insurance covered by the incentive?

Rarely. CONFOTUR targets taxes and import duties. HOA dues, insurance, utilities and operating costs are separate unless the project explicitly states otherwise. You should model these costs independently when comparing residences.

What if the law changes?

Incentives are issued under current law and practice. While future legislation could change programs, projects already approved are normally governed by their issued instrument. You should verify the instrument’s duration and any clauses that reference legal changes.

How does CONFOTUR affect resale value?

Initial buyers often value transfer‑tax and property‑tax savings. Resale buyers may be less motivated if those exemptions do not transfer. Be precise in your valuation and marketing plan. State which taxes are exempt, for how long, and whether the exemption remains with the unit after you sell.

What should foreign buyers know?

Foreign nationals can own property in the Dominican Republic. Eligibility for CONFOTUR benefits depends on the project’s classification rather than your nationality. You should still engage local legal and tax advisors to confirm filings and compliance.

Timing pitfalls to avoid

Developers sometimes market CONFOTUR benefits early in a project’s life cycle. Before you rely on advertised exemptions, require the formal approval instrument and evidence of registration. If the developer is still in process, consider contract language that conditions your closing on delivery of the final instrument.

Put CONFOTUR to work in your Cap Cana plan

Use these steps to make tax incentives part of a disciplined purchase strategy:

1. Define your total cost of ownership. Model the transaction with and without the advertised exemptions so you understand the true savings over the period you plan to hold the property.
2. Verify coverage at the unit level. Ask for the approval instrument and registry entries, then have your attorney confirm that the exemptions attach to your specific unit.
3. Clarify timeframes. Note start dates, end dates, and any conditions that maintain eligibility, such as completion milestones.
4. Confirm resale treatment. If you expect to resell within a few years, understand whether a future buyer will enjoy the same exemptions and how that might influence price and time on market.
5. Coordinate with your lender. Share the instrument and registry evidence with your bank early so financing stays on schedule.
6. Document everything. Keep certified copies of approvals, registry extracts, tax confirmations, and contract clauses that reference the incentive.

How we support your search in Cap Cana

You deserve a clear, curated path to the right residence. Our team prioritizes projects where the developer can produce the official approval and registry evidence. We request certified instruments, summarize the specific tax items and durations, and confirm whether benefits are recorded at the unit level. With that foundation, you can compare Cap Cana options by price, lifestyle and verified tax impact.

If you would like a short list of CONFOTUR‑eligible residences, we can prepare it once we have the official documents in hand and a concise summary for each project. We can also introduce you to trusted local attorneys and tax advisors so you move forward with confidence and a complete view of your obligations.

Ready to explore CONFOTUR‑qualified opportunities in Cap Cana or to vet a project you already like? Connect with the senior advisors at Christie’s International Real Estate Dominican Republic to receive a curated, verified selection and private guidance from offer to closing.

FAQs

What is CONFOTUR in the Dominican Republic?

• CONFOTUR is a government incentive regime for approved tourism projects that can reduce certain taxes and import duties, sometimes benefiting buyers of units in those projects.

Which taxes can CONFOTUR reduce for Cap Cana buyers?

• Projects often offer waiver or reduction of transfer taxes on initial sales and partial or full exemptions of annual property taxes for a defined period, as stated in the approval instrument.

How do I confirm a unit is covered by CONFOTUR?

• Request the official decree or resolution and evidence of registration in the Property Registry, then have your attorney confirm the benefit attaches to your specific unit.

Do CONFOTUR benefits apply to resales in Cap Cana?

• Sometimes. Transferability depends on the wording of the approval and whether the developer recorded the benefit to bind future owners, so verify in writing and in public records.

Does CONFOTUR affect HOA fees or insurance costs?

• No, not typically. Incentives focus on taxes and import duties, while HOA dues, insurance and utilities are separate operating costs.

Will my bank finance a CONFOTUR property?

• Generally yes. Lenders review the instrument and registry to ensure clear title and standard enforceability, and may request copies during underwriting.

How long do CONFOTUR property‑tax exemptions last?

• Duration varies by project and is specified in the approval instrument. Some are for a fixed number of years or tied to a project classification period.