Invest Miches

Why Was CONFOTUR Created?

Tourism is one of the Dominican Republic’s most important economic sectors. The government recognized that encouraging private investment in hotels, resorts, residences, and tourism infrastructure could accelerate growth and create long-term economic benefits. CONFOTUR was designed to help achieve that goal by making qualified developments more attractive to both developers and buyers.

What Are the Main CONFOTUR Benefits for Property Buyers?

While benefits can vary depending on the project and approval status, there are three incentives that attract the most attention from real estate investors. 1. Exemption from the 3% Property Transfer Tax Normally, buyers in the Dominican Republic pay a transfer tax equal to 3% of the assessed value of the property. For qualifying CONFOTUR developments, this transfer tax may be exempt.

How Long Do CONFOTUR Benefits Last?

The length of the exemption period depends on the specific approval granted to the project. Historically, many qualifying developments have received property tax exemptions for extended periods, often measured in years rather than months. A popular term for Confortur is 15 years. The exact terms should always be confirmed directly with the developer and your legal advisor before purchasing.

Does Every Property in Miches Qualify for CONFOTUR?

No. This is one of the most common misconceptions among buyers. CONFOTUR approval applies to qualifying developments, not entire regions. Simply because a property is located in Miches does not automatically mean it benefits from CONFOTUR incentives. Some developments qualify. Others do not. That is why buyers should always verify the status of a project before relying on projected tax savings.

What Happens When the Exemption Period Ends?

Eventually, CONFOTUR benefits expire. When that happens, owners become subject to the standard tax rules applicable at that time. For most investors, this is not a major concern because: The exemption period often spans many years. Significant savings have already been realized. Property appreciation may outweigh future tax obligations.