How Do CONFOTUR Tax Exemptions Work at Secret Garden?

The Dominican Republic's CONFOTUR law provides significant tax incentives for buyers of qualifying tourism properties, including a waiver of the 3% property transfer tax and a 15-year exemption from the 1% annual property tax (IPI). As a government-approved CONFOTUR project, Secret Garden offers these exact benefits to our first buyers, making ownership here substantially more cost-effective.

Updated 2026-08-29

What is the purpose of the CONFOTUR law?

The CONFOTUR law was created to encourage foreign investment in the Dominican Republic's tourism sector, which is the engine of the national economy. Originally passed in 2001 as Law 158-01 and later amended, it provides a framework of tax incentives for developers and first buyers of properties in designated tourist zones like Bávaro-Punta Cana. By making it more financially attractive to build and buy here, the government ensures the continued growth of high-quality tourism infrastructure.

For a development like Secret Garden to gain this status, it must go through a rigorous approval process with the Dominican Tourism Council (CONFOTUR). Our approval confirms that Secret Garden meets the standards for contributing to the region's tourism appeal. For our buyers, it means you are not only investing in a premier resort community but also benefiting directly from a national strategy to attract capital. This isn't a temporary discount; it's a foundational piece of legislation that makes your investment more secure and profitable from day one.

What are the specific tax savings I get at Secret Garden?

The CONFOTUR benefits for a buyer at Secret Garden are clear and substantial, breaking down into two main advantages:

1. Exemption from the 3% Property Transfer Tax. On most real estate transactions in the Dominican Republic, the buyer is responsible for a 3% tax based on the property's value, paid at closing to transfer the title. For buyers at Secret Garden, this tax is waived entirely. This is an immediate, upfront saving that directly reduces your closing costs.

2. A 15-year exemption from the Annual Property Tax (IPI). The Dominican Republic levies a 1% annual property tax, known as IPI (Impuesto al Patrimonio Inmobiliario). However, the CONFOTUR law exempts our buyers from this tax for 15 years. It is important to understand that this 1% tax is normally charged only on the value of a property that is above an annually-adjusted exempt threshold, not on its entire value. With the CONFOTUR exemption, you are exempt from the entire tax for the full 15-year term.

These two incentives together represent the most significant tax-saving structure available to real estate investors in the country, and they are fully available to eligible buyers at Secret Garden.

Does this tax exemption apply to all properties in Punta Cana?

No, and this is a critical point for any prospective buyer to understand. The CONFOTUR benefits are not automatic for every property in Punta Cana. They only apply to projects that have been formally approved by the government's Tourism Council. This process involves the developer, Gesproin Group in our case, submitting detailed plans to demonstrate the project's quality and its contribution to the national tourism goals.

Many resale properties, and even some new developments, do not have CONFOTUR status. An investment in such a property would be subject to both the 3% transfer tax at closing and the 1% annual IPI tax. Secret Garden's status as an approved project is a significant advantage we offer our buyers. It's a guarantee that your purchase comes with the most favorable tax treatment possible under Dominican law, a benefit that is written directly into the title of your new home.

Who is eligible for the CONFOTUR benefits?

The law is very specific: the tax exemptions are granted to the first buyer of a new property from a CONFOTUR-approved developer. This means the benefits are exclusive to those who purchase their condo or villa directly from us at Secret Garden. The exemptions are not transferable upon resale. If you were to sell your condo in the future, the new buyer would not inherit the remainder of your tax exemption. This makes buying new at an approved project like ours particularly advantageous.

Furthermore, the exemption is not automatic; it must be formally requested and recorded on the property's title. This is a standard part of the closing process that your attorney in the Dominican Republic will handle on your behalf. They will ensure that your title deed correctly reflects the CONFOTUR status, securing your tax benefits for the entire 15-year term. This applies equally to both Dominican and international buyers.

When does the 15-year property tax exemption period begin?

The 15-year clock on the IPI exemption begins upon the official completion of construction, as certified by the relevant authorities. This is a key detail for anyone buying a pre-construction home at Secret Garden, which is targeted for delivery in mid-2027. Your 15-year tax-free period does not start when you sign the contract or make your initial payments. It starts when the project is finished and ready for you to take possession.

This ensures you receive the full benefit of the 15-year term during your actual ownership and use of the property. You are not losing years of the exemption while your home is still under construction. For a buyer at Secret Garden, this means your property tax exemption will extend well into the future, maximizing the financial return on your investment for more than a decade after you receive your keys.

Common questions

Is the CONFOTUR exemption available to foreign buyers?

Yes, the CONFOTUR tax benefits are available to all first buyers of a qualifying property, regardless of their nationality. As a foreign buyer at Secret Garden, you receive the exact same 0% transfer tax and 15-year property tax exemption as a Dominican citizen.

What happens to my property taxes after the 15-year exemption ends?

After the 15-year exemption period expires, your property would then become subject to the standard annual property tax (IPI). This is a 1% tax levied only on the value of your property that exceeds an inflation-adjusted threshold set by the government, not on the total value.

Does my lawyer need to do anything special to get the exemption?

Yes, applying for and registering the CONFOTUR exemption is a standard but essential step in the closing process. Your legal representative in the Dominican Republic will manage this filing to ensure the exemption is correctly recorded on your property's title deed.