Taxation in Punta Cana: incentives and tax benefits for investors

Economic and Tourism Context of Punta Cana

Punta Cana continues to establish itself as a leading destination in the Caribbean, driven by strong tourism growth that directly impacts the local economy. In 2025, the Dominican Republic received a record approximately 11.6 million visitors, including air arrivals and cruise passengers, reflecting strong international demand. This dynamic has led to sustained expansion of hotel supply, which exceeded 90,000 rooms that same year, with average occupancies close to 80% in key months.

Tourism growth in Punta Cana translates into a significant increase in foreign direct investment, which reached over US$5 billion in 2025, with an annual growth rate above 11%. This favorable environment, combined with continuous improvements in airport infrastructure — such as international certifications of Punta Cana International Airport (PUJ) — strengthens investor confidence.

Additionally, tourist spending is mostly concentrated on accommodation, food, and beverages within hotel complexes, generating a direct economic impact on residential and commercial supply in the region. This context provides a solid framework for those seeking real estate investment opportunities in Punta Cana.

Source: inmobiliario.do Source: inmobiliario.do Source: inmobiliario.do Source: diariolibre.com

Tax Framework for Real Estate Investors in the Dominican Republic

Taxation in Punta Cana for real estate investors falls within the general regime applicable in the Dominican Republic, with particularities that favor tourism and residential development. Real estate taxes in the DR include the annual property tax payment as well as levies on real estate transfers, which vary depending on the type of transaction and property category.

Additionally, legislation provides specific tax incentives for tourism and residential projects under the CONFOTUR framework, granting temporary exemptions on income tax, taxes on the transfer of movable and immovable property, and other related taxes. This structure aims to boost foreign direct investment, which reached US$5,032.3 million in 2025, reflecting sustained growth in the sector.

Investors should also consider local and municipal tax obligations, including service fees and special contributions, although in tourist areas such as Punta Cana these charges tend to be moderate to encourage development.

Overall, taxation in Punta Cana offers a competitive environment for real estate investment, supported by tourism dynamics and the country’s economic growth.

Source: Central Bank of the Dominican Republic (FDI 2025) Source: inmobiliario.do Source: Presidency of the Dominican Republic

Current CONFOTUR Incentives and Expectations for 2026

The current CONFOTUR incentives provide an attractive tax framework for tourism and real estate projects in Punta Cana, promoting foreign investment and sustainable development. This regime includes key benefits such as:

• Exemption from income tax (ISR) for up to 15 years for qualified tourism activities.
• Exemption from the tax on the transfer of industrialized goods and services (ITBIS) on the acquisition of goods and services linked to the project.
• Exemption from municipal and import taxes for goods used in construction and tourism operations.
• Facilitation of capital and profit repatriation.

These conditions are subject to approval and registration with the Ministry of Tourism and the General Directorate of Internal Taxes (DGII), ensuring that projects contribute to local tourism and economic development.

Looking ahead to 2026, the CONFOTUR framework is expected to remain in force with possible adjustments to adapt incentives to new sector trends and strengthen Punta Cana’s competitiveness as a leading Caribbean destination.

Source: Ministry of Tourism DR, General Directorate of Internal Taxes, inmobiliario.do

Tax Implications of Real Estate Investment in Punta Cana

Taxation in Punta Cana for foreign investors is characterized by a tax framework designed to encourage real estate investment in the tourism sector. Key aspects include the exemption from income tax on revenues derived from operating tourism projects registered under the CONFOTUR regime, which includes real estate developments linked to hotel activity.

Additionally, investors must consider the application of the real estate transfer tax (ITBI) and the property tax (IPI), whose treatment may vary depending on the nature and use of the property. Compliance with local tax obligations, such as declaration and payment of municipal and national taxes, is essential.

The Dominican Republic offers a stable environment for investment, supported by sustained growth in foreign direct investment and an expanding tourism sector. The quality and efficiency of Punta Cana International Airport reinforce the destination’s accessibility and appeal, factors that influence the profitability of real estate investments.

Source:

• Foreign Direct Investment reached US$5,032.3 million in 2025, with 11.3% growth (inmobiliario.do)
• Punta Cana International Airport handled over 11 million people in 2025 (diariolibre.com)

Investment Prospects and Real Estate Market Growth

Tourism and hotel expansion in Punta Cana drive clear trends in the local real estate market. Sustained tourism growth, which reached a record 11.6 million visitors in 2025, along with stable hotel occupancy around 75%, creates growing demand for residential properties. The expansion of hotel supply, with more than 90,000 rooms available, reflects investor confidence in the destination’s capacity to absorb new infrastructure.

This context favors residential appreciation in Punta Cana, especially in established and developing areas where the real estate supply caters to an international profile seeking not only vacation homes but also assets with rental potential. Foreign direct investment, which grew 11.3% in 2025, reinforces the perception of stability and attractiveness for foreign capital.

Moreover, the international recognition of Punta Cana International Airport as one of the most efficient in the region helps consolidate connectivity and accessibility, key elements for real estate dynamism.

Key factors:

• Record tourism growth.
• Hotel expansion and solid occupancy.
• Increase in foreign direct investment.
• Top-tier airport infrastructure.

Source: inmobiliario.do Source: inmobiliario.do Source: diariolibre.com

Frequently asked questions

What are the main tax incentives for investors under CONFOTUR?

CONFOTUR offers significant tax exemptions, including exemption from ITBIS (VAT) and income tax for certified tourism projects, facilitating foreign investment in the real estate and tourism sector.

What real estate taxes apply in the Dominican Republic for foreigners?

Foreign investors must consider the real estate transfer tax and property tax, both with general rates applicable to properties regardless of nationality.

How does tourism expansion affect taxation in Punta Cana?

Tourism growth drives the update and strengthening of tax incentives under CONFOTUR, promoting investments in infrastructure and real estate developments with specific tax benefits.

What benefits does local taxation offer for luxury real estate projects?

Local taxation facilitates the reduction of tax burdens through exemptions and deductions applicable to luxury real estate developments, encouraging investment in tourist areas such as Punta Cana.

The indicators are public data from cited sources. They do not represent the performance of any project nor constitute investment advice. Documentation under NDA.