Understand the law behind the label
CONFOTUR is the Consejo de Fomento Turístico, which applies the Dominican Republic's tourism development incentive framework under Law 158-01. The term in a sales advertisement should lead you to the project's official documentation.
Law 195-13 modifies Law 158-01. It is an amendment to that framework, rather than a separate package of benefits to add to an advertised offer. Read references to the two laws together.
Separate the project's status from your eligibility
MITUR's official lookup distinguishes provisional and definitive classification, as well as the council's decision and project status. A general statement that a development is 'under CONFOTUR' leaves those details unanswered.
Ask for the resolution number, project name and relevant documents. Have your adviser compare the official record with the development, phase and unit you are considering. If names differ between marketing material and formal paperwork, ask someone to explain the connection in writing.
Identify the specific benefit being advertised
MITUR's benefits page lists several categories, including real estate transfer taxes and the annual real estate property tax known as IPI. It also lists incentives concerning tourism investment, construction and equipment, subject to legal requirements.
Ask which benefit is relevant to you, who qualifies for it and what procedure establishes it. A description of incentives available to a project does not resolve the treatment of your proposed purchase. Separate the developer's position from the buyer's position in your questions.
Check the dates instead of assuming a new 15-year term
Article 9 of Law 195-13 replaces Article 7 of Law 158-01. It sets a 15-year fiscal exemption period for enterprises carrying out the qualifying tourism activities in Article 3 of Law 158-01, starting from completion of the project's construction and equipment. It also includes conditions concerning the start of operations.
Have a qualified adviser establish which dates and conditions govern the case you are considering. Ask for a written explanation of any remaining period. Do not build a budget around the assumption that your purchase starts a fresh term.
Bring a short document checklist to the conversation
Use these questions before relying on an advertised saving:
- What is the exact project and resolution number, and what classification does the official record show?
- Does the documentation identify the development phase and property I intend to buy?
- Who is the beneficiary of each claimed exemption, and how would my transaction qualify?
- Which dates support the advertised period, and how much time would remain?
- What changes if I buy from an existing owner or hold the property through a company?
- What approval or confirmation would I need, and who will obtain it?
- Which taxes, fees and ongoing ownership costs remain in my budget?
Keep the property decision broader than the incentive
Compare the property against your intended use, preferred location and overall spending plan. Keep the advertised tax saving separate until your adviser has checked the relevant documents. Ask for the assumptions behind a seller's illustration rather than treating it as your own tax calculation.
Jean can help you organize your Las Terrenas property search and the questions you want to raise. Discuss your property type, approximate budget and timing with him in English or Spanish. Take questions about eligibility and tax treatment to a qualified Dominican lawyer or tax professional.