CONFOTUR and Law 30-26: What the Dominican Republic's 2026 Tax Changes Mean for Buyers

For years, CONFOTUR has been the single most attractive reason to buy tourism real estate in the Dominican Republic, letting qualifying buyers skip the transfer tax and annual property tax for up to 15 years. In June 2026 the country passed a broad new tax reform, Law 30-26, and many buyers have understandably asked what it changes. The short answer is reassuring: CONFOTUR remains fully in place, some buyer costs are actually going down, and the main new measure is manageable with good planning.

This guide explains how CONFOTUR works, what Law 30-26 introduced, and what the combination means in practice for international buyers and investors. It is general information rather than legal or tax advice, and because the details of any individual situation matter, the specifics should always be confirmed with a qualified Dominican attorney or tax advisor.

CONFOTUR: still the biggest advantage

CONFOTUR, established under Tourism Development Law 158-01, is the incentive that has powered so much of the country's coastal property growth, and Law 30-26 did not repeal it. For a property that is part of a CONFOTUR-certified project, the benefits remain substantial: a full exemption from the 3% real estate transfer tax at purchase, a waiver of the 1% annual property tax (IPI) for up to 15 years, and, for qualifying tourism projects, an exemption on income tax that can extend for up to 10 years.

In practical terms, that means the largest costs of buying and holding property can still be reduced to almost nothing on a certified project, which is exactly why so many buyers in Punta Cana, Samaná, and Las Terrenas prioritize CONFOTUR status. We cover how this shapes a purchase budget in our guide to the cost of buying property in the Dominican Republic. The important headline for 2026 is that this core advantage is unchanged.

What Law 30-26 actually is

Law 30-26, enacted on June 18, 2026, is a broad pro-growth tax reform. It amends the Tax Code and several related laws with the goals of simplifying taxes, broadening the base, and modernizing collection. For the real estate sector it introduced a handful of specific changes, some of which lower costs for buyers, one of which is a genuinely new tax to be aware of, and one of which increases government oversight of incentive programs.

Rather than a threat to property investment, the fairest reading is that Law 30-26 refines the tax framework while leaving the country's core attraction, including CONFOTUR, intact. Here is what matters most for a buyer.

Good news: some transaction costs are falling

One of the more overlooked parts of the reform is positive for buyers. The 2% tax that applies to certain real estate operations, tied to the older mortgage and registration laws, is being phased down: it drops from 2% to 1% starting in 2027 and is scheduled to be eliminated entirely from 2028. For anyone buying in the next couple of years, that means transaction costs on affected operations are set to fall, not rise.

There is a second cost saving aimed at families. The tax on donations between close relatives, such as a parent transferring property to a child, was cut dramatically from 27% to 3%. For owners thinking about passing Dominican property to the next generation, that change makes estate and family planning far more affordable than it used to be.

The new measure to plan for: a capital gains tax on sales

The most significant new item is a capital gains tax on the sale of real estate. Law 30-26 introduced a single, definitive rate of 10%, applied to the gain on a property sale rather than the full sale price. Importantly, the gain is calculated as the difference between the sale value and the acquisition cost adjusted for inflation, and the tax is settled within six months of the transfer.

For many sellers this is actually a simpler and lower approach than the capital gains treatment that applied before, and there are meaningful exemptions built in. The sale of a primary residence can be exempt when the proceeds are reinvested in another primary residence within six months, in full if the entire amount is reinvested and proportionally otherwise. Individuals over 65 are exempt on the sale of their primary residence without that reinvestment condition. Because this tax applies at exit rather than purchase, it does not affect your cost of buying, but any investor should factor it into an exit plan, and the exact calculation, including the inflation adjustment, is something to work through with a tax advisor.

Why careful due diligence matters more than ever

For a serious buyer, careful due diligence is what protects the value of an incentive like CONFOTUR. It is more important than ever to buy into projects whose CONFOTUR certification is genuine and properly documented, and to have experienced legal guidance confirm it rather than take a marketing claim at face value. That discipline has always been part of a sound purchase, and it is central to how we help buyers evaluate a property, a theme we return to across the best places to invest in Dominican Republic real estate.

What it all means for buyers and investors

Taken together, the picture is encouraging. CONFOTUR, the country's headline incentive, is intact, and its transfer-tax and property-tax exemptions remain the single biggest financial advantage of buying certified tourism property. Several transaction and family-transfer costs are actually being reduced over the next two years. The one genuinely new consideration, the 10% capital gains tax, applies only when you sell, is calculated on inflation-adjusted gains, and comes with primary-residence and senior exemptions.

For an international buyer, the sensible response is not to hesitate but to plan well: choose properties with authentic CONFOTUR certification, model rental and exit numbers with current rules in mind, and work with professionals who track these changes. Done that way, the Dominican Republic remains one of the most attractive and buyer-friendly markets in the Caribbean, as it has been throughout, including for Punta Cana investment properties.

If you would like to understand how CONFOTUR and Law 30-26 apply to a specific property or investment plan, the best next step is a conversation tailored to your goals. Contact Samana Real Estate and we will help you find the right property and connect you with the right legal and tax guidance, or browse our current property listings to begin.