Selling a CONFOTUR villa? The law gives the exemptions to buyers who purchase directly from the developer, not to later owners. Here's what your resale buyer pays, what you pay, and how to price the sale.
When you resell a CONFOTUR property in the Dominican Republic, your buyer should not expect to inherit your tax exemptions. Law 158-01, as amended by Law 195-13, gives the exemptions to people who invest directly with the developer and excludes later transfers to third-party buyers. In practice, a resale buyer pays the standard 3% transfer tax at closing and standard property tax (IPI) once the property is in their name — so your resale price should rest on the property itself, not on an exemption that stays behind.
The Short Version
- CONFOTUR exemptions benefit the first buyer who purchases directly from the developer, not every later owner.
- Law 195-13 added Paragraph IV to Article 4 of Law 158-01, which excludes later transfers to third-party acquirers from the exemptions.
- A resale buyer should budget for the 3% transfer tax and standard IPI: 1% a year above the RD$10,695,494 threshold for 2026.
- As the seller, your own gain is taxed at a flat 10% for individuals since Law 30-26 took effect in June 2026.
- Sienna holds provisional active CONFOTUR status under Resolution 203-2024; the exemptions apply to what Sienna builds and delivers to its direct buyers.
What Does the Law Actually Say About Resale?
Paragraph IV of Article 4, added by Law 195-13 in 2013, says the exemptions are used by individuals or companies that invest directly with the project's promoters or developers, and that any later transfer to third-party acquirers is excluded from those benefits. The Dominican tax authority applies the same rule: its IPI taxpayer guide lists the CONFOTUR property-tax exemption as belonging to the project's first acquirers.
In plain terms, the benefit rewards the investment that gets a tourism project built. Once a unit moves from the first buyer to someone else, ordinary tax rules apply to the new owner.
What about the 15-year window?
Under Article 7, as amended, the 15-year period runs from the completion of the project's construction. That window keeps running for the project, but the resale exclusion means a third-party buyer is not the person it benefits. Confirm with your lawyer how DGII will treat your specific unit before you list.
What Will My Resale Buyer Pay?
Plan the sale assuming your buyer pays standard Dominican taxes:
| Tax | First buyer from the developer (CONFOTUR) | Resale buyer |
|---|---|---|
| Transfer tax at closing | 0% | 3% of the assessed value |
| Annual property tax (IPI) | 0% during the 15-year window | 1% a year above RD$10,695,494 (2026) |
| Tax on the gain at a later sale | 10% for individuals, unless counsel confirms the CONFOTUR income-tax exemption covers it | 10% for individuals |
On a $300,000 villa, the transfer tax comes to about $9,000 at closing, and annual IPI to roughly $1,300 (1% of the value above the roughly $170,000 threshold). Those are real costs but modest ones by Caribbean standards, and a careful buyer factors them in either way.
Figures are illustrative; actual amounts depend on DGII's assessed value and the exchange rate.
What Do I Pay as the Seller?
Since Law 30-26 was promulgated in June 2026, individuals pay a flat 10% on the capital gain from selling Dominican property, down from up to 25%. Keep your purchase deed and receipts for every improvement: they are what reduce the taxable gain. Your home country may also tax the sale, so bring in a cross-border tax adviser early.
How Should I Price a CONFOTUR Resale?
Price on what the buyer actually gets: the villa, the lot, the view, the rental record and the community, not the exemption you enjoyed.
What you can legitimately point to:
- Your rental history. Years of bookings, net income and occupancy are the strongest evidence a buyer can get.
- Your running costs. Documented utility, maintenance and HOA costs let a buyer model ownership with confidence.
- A clean file. Purchase deed, title certificate, HOA standing and tax receipts speed up the buyer's due diligence. Our due diligence checklist for Caribbean real estate shows what a careful buyer asks for.
What not to do: advertise "remaining CONFOTUR years" to a resale buyer. Their lawyer will check the claim against the law and DGII's records, and one that does not hold up costs you credibility at the negotiating table.
For international sellers who cannot be in the country, a properly drafted power of attorney lets the transfer close remotely. See our guide to remote closing and power of attorney.
Why This Matters When You Buy
The resale rule is also the strongest argument for buying directly from the developer. The exemptions — 0% transfer tax at closing and 0% property tax during the 15-year window on what the developer builds — go to the first buyer. If you buy at Sienna, you are that first buyer. Our CONFOTUR explained guide walks through the full framework, and CONFOTUR timing for pre-construction buyers explains when the 15-year window opens.
Frequently Asked Questions
Does my resale buyer inherit the CONFOTUR exemption?
Not as a rule. Paragraph IV of Article 4 of Law 158-01, added by Law 195-13, limits the exemptions to buyers who invest directly with the developer and excludes later transfers to third parties. Have your lawyer confirm how DGII treats your specific unit.
Will my buyer pay the 3% transfer tax?
Plan on it. The transfer tax exemption applies to the purchase from the developer; a later sale to a third party falls under the standard 3%.
Do I lose anything I already received?
No. The exemptions you used while you owned the property were yours. The rule only decides what the next owner gets.
How much tax do I pay on the gain?
Individuals pay a flat 10% on the capital gain from a property sale since Law 30-26 took effect in June 2026. Companies are taxed at the 27% corporate rate.
Is Sienna's CONFOTUR status final?
No. Sienna holds provisional active status under Resolution 203-2024. The exemptions cover what Sienna builds and delivers; a buyer who builds their own villa on a Sienna lot is exempt on the land value only.
The Bottom Line
CONFOTUR rewards the buyer who invests directly with the developer. When you resell, plan for your buyer to pay standard taxes, price the property on its own merits, and keep your paperwork clean. If you want to be the buyer who gets the exemption, buy from the developer — to see how that works on a Sienna villa, book a Discovery Tour and walk the numbers with our team on the ground.
This article provides general information about property in the Dominican Republic and is not personal financial, legal, or tax advice. Figures such as CONFOTUR benefits, taxes, and returns depend on your circumstances and can change — confirm specifics with a licensed Dominican attorney, tax advisor, or the relevant authority before making a decision.
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Written by
Sienna Terrenas Editorial Team
The Sienna Terrenas editorial team covers buying, owning, and living in Las Terrenas, Dominican Republic — from the purchase process and CONFOTUR tax strategy to villa construction and Caribbean community life, drawing on the team's on-the-ground experience in the area. Meet the Sienna Terrenas team.
