How Makai's CONFOTUR Status Impacts Your Purchase

As a CONFOTUR-registered project, Makai offers significant tax advantages to its buyers, including an exemption from the 3% property transfer tax and the 1% annual property tax (IPI). These benefits, established under Dominican Law 158-01, are designed to encourage tourism development and apply to your purchase here regardless of your nationality.

What does it mean that Makai is a 'CONFOTUR-Registered' project?

When a property is described as 'CONFOTUR-registered,' it means the project has been approved by the Dominican government's Council for Tourism Promotion (CONFOTUR) under Law 158-01. This law provides significant tax incentives to developers and first buyers of properties in designated tourist zones to encourage high-quality tourism infrastructure. Makai, a project by Duna Development, holds this important designation.

For a buyer at Makai, this isn't just a label; it's a direct financial benefit that reduces the cost of acquisition and ownership. The status confirms that the project meets the government's criteria for contributing to the country's tourism appeal. It's a key element of the investment case for purchasing a residence in our Cap Cana community, which begins delivery in 2028.

Which taxes are waived when I buy a residence at Makai?

The CONFOTUR law provides two primary tax exemptions for the first buyer of a new property like a residence at Makai. First is the exemption from the Property Transfer Tax, and second is the exemption from the annual Property Tax (IPI) for a set period.

1. 2028 Phase 1 Delivery The CONFOTUR exemption period for the project is tied to the completion of construction.
2. During Ownership IPI Exemption Applies For the duration of the project's exemption term, owners do not pay the annual 1% property tax.
3. At Resale Exemption Does Not Transfer The CONFOTUR benefits apply only to first buyers from the developer, not to subsequent owners.

How does the annual property tax (IPI) exemption work?

The annual property tax, or IPI, is a 1% tax levied on the value of a property. Crucially, this tax is only charged on the value that exceeds an annually adjusted exemption threshold set by the tax authority. However, as an owner at a CONFOTUR-approved project, you benefit from a broader exemption.

The law provides a fifteen-year IPI exemption for qualifying projects. This term is granted to the development itself, starting from the completion of construction. How that project-level exemption applies to a particular residence and owner, and for how long, is a question for your attorney rather than something we can state for your title. With Phase 1 delivering in 2028, the benefits are aligned with the newest residences in Cap Cana. Your attorney will confirm the exact terms and duration of the exemption as it applies to your specific title during the purchase process.

Are taxes on rental income from my Makai residence also exempt?

This is a common and important question. The tax benefits of CONFOTUR apply specifically to property taxes: the one-time 3% transfer tax and the annual 1% IPI. What the law is documented to exempt is the transfer tax and the IPI; rental income is taxed separately under its own rules.

Rental income in the Dominican Republic is treated separately and is subject to its own tax regulations. For non-resident owners, rental income is typically subject to a 27% withholding tax on gross rental revenue, with no deductions. Rates change, so confirm the current figure before you rely on it. CONFOTUR is a property-tax exemption, so it should not be read as improving what a rental earns after tax; how the two interact for you is a question for your tax advisor. Your tax advisor can provide precise guidance based on your personal circumstances and country of residence.

What is the process to ensure I receive the CONFOTUR benefits?

Receiving the CONFOTUR benefits is not automatic; they must be correctly filed and recorded with your property's title. This is a standard part of the legal process when purchasing new construction in the Dominican Republic, and it is a service handled by your attorney.

1. Engage Legal Counsel
   A reputable Dominican real estate attorney will represent your interests throughout the purchase. This is a critical first step.
2. Due Diligence
   Your attorney will conduct due diligence, which includes verifying the property's title and confirming Makai's active CONFOTUR registration.
3. Title Registration
   At closing, your attorney submits the deed of sale to the Dominican Title Registry Office. They ensure the CONFOTUR exemptions are formally recorded on the new title issued in your name.
4. Receive Final Title
   You receive the definitive property title, which serves as official proof of your ownership and the associated tax exemptions.

Common questions

Does my nationality affect my eligibility for CONFOTUR?

No, the CONFOTUR benefits are tied to the project (Makai), not the buyer. Any purchaser, regardless of nationality or residency status, is eligible for the tax exemptions when buying a new residence here.

What happens to the tax exemption if I sell my Makai residence?

The CONFOTUR tax benefits are for the first acquirer of the property from the developer. The law specifies that these exemptions do not transfer to subsequent buyers in a resale.

Is CONFOTUR the same as residency or citizenship?

No, CONFOTUR is a tax incentive law for tourism projects. It is completely separate from Dominican residency or citizenship programs. While purchasing a property may be a component of a residency application, the CONFOTUR benefits themselves do not grant any immigration status.