Do CONFOTUR Benefits Transfer to the Second Buyer? A 2026 Resale Guide

Do CONFOTUR Benefits Transfer to the Second Buyer?

If you're shopping for a turnkey rental in Punta Cana, Las Terrenas, Cap Cana, or Bávaro in 2026, you've almost certainly seen the phrase "CONFOTUR approved" stamped across glossy brochures. Developers love to highlight the tax savings — no transfer tax, no annual property tax, no income tax on rental income for a window of years. But here's the question almost every resale buyer asks (and that almost every listing agent answers vaguely): do those CONFOTUR benefits actually transfer to you, the second buyer?

The short, honest answer: partially, and not the headline benefit you probably care most about. Below is what you need to understand before you sign a promise of sale on a resale CONFOTUR unit.

What CONFOTUR Actually Is

CONFOTUR is the Consejo de Fomento Turístico, an inter-ministerial council that grants tourism-incentive status under Law 158-01 (the Tourism Incentive Law), administered with the Ministry of Tourism (MITUR) and DGII. When a developer's project is certified, the project itself receives a defined window of tax exemptions, typically including:

• Exemption from the 3% transfer tax (ITI) on the initial sale.
• Exemption from the annual property tax (IPI) for a defined period.
• Exemption from income tax on certain revenues generated by the project for a defined period.
• Certain import-duty exemptions on construction materials and FF&E.

The exemption window is project-specific and time-limited (commonly described as up to roughly 15 years from the project's certification, but the exact term varies by resolution — always confirm the project's specific CONFOTUR resolution date and remaining term in writing).

Laws, terms, and tax rates change. Always confirm current CONFOTUR rules with MITUR/CONFOTUR and DGII, and have an independent Dominican attorney (not the developer's lawyer) review the certificate and remaining benefit period before you commit.

The Core Distinction: Project Benefits vs. Buyer Benefits

This is the part developers and resellers tend to blur. CONFOTUR confers benefits on the certified project, and certain pass-through benefits attach to the first sale from the developer to the original buyer. When the unit is resold on the secondary market, you need to separate the benefits into two buckets:

Benefits that tend to follow the property (and may benefit you):

• Annual IPI exemption during the project's remaining benefit window — because the exemption is tied to the certified asset, second buyers commonly continue to enjoy IPI relief until the project's window expires. Confirm with DGII for your specific Catastro/RNC file.

Benefits that typically do NOT transfer to you as the second buyer:

• The 3% ITI transfer-tax exemption. This is generally treated as a first-transaction incentive — the developer-to-original-buyer transfer. When the original buyer sells to you, you are usually treated as a normal resale buyer and owe ITI on the higher of the contract price or the DGII appraisal value, paid by you to DGII.
• Income-tax exemptions on rental income are project-level and structured around the original ownership and operational model. Whether you can continue to benefit depends on how the unit is held (e.g., inside a rental pool operated by the project) and the specific resolution language. Many secondary buyers lose this benefit; some preserve a portion through the rental program. Do not assume — read the resolution.

In other words: the headline tax break (no 3% transfer tax) is almost certainly gone for you as the second buyer. The ongoing IPI exemption likely remains for the rest of the project's window.

Why the 3% Transfer Tax Almost Always Applies to You

The ITI (Impuesto de Transferencia Inmobiliaria) is a 3% tax paid by the buyer to DGII, calculated on the higher of the declared contract price or the DGII's official appraisal of the property. CONFOTUR's transfer-tax shield was designed to make the initial absorption of new tourism inventory more attractive — not to create a permanent tax holiday on the asset forever.

When you buy resale:

1. The seller (the original CONFOTUR buyer) signs the deed transferring to you.
2. Your attorney files the transaction with DGII to obtain the tax assessment.
3. You pay the 3% ITI, plus the usual registration and stamp fees, before the Registro de Títulos issues your new Certificado de Título.

Budget for this. A common mistake is buyers assuming "CONFOTUR project = no transfer tax ever," then being surprised at closing.

Confirming What Actually Transfers — A Practical Checklist

Before you sign a Promesa de Venta on a resale CONFOTUR unit, your attorney should obtain and review:

• The CONFOTUR resolution for the project, including issuance date and stated benefit term.
• The original developer's MITUR/CONFOTUR classification letter.
• DGII's current status for the parcela/Catastro number — is IPI currently being assessed? Is there a Constancia exempting the property?
• The Certificado de Título and the certificación de cargas y gravámenes from the Registro de Títulos (Law 108-05 framework).
• The condominio declaration and HOA standing, plus confirmation of any rental-program contract that may carry tax structure with it.
• A DGII tax-clearance on the seller (so unpaid IPI or income tax doesn't follow the asset to you).

Ask your attorney for a one-page memo summarizing which specific CONFOTUR benefits remain, for how long, and under what conditions — in writing, with citation to the resolution and statute.

How This Should Affect Your Offer Price

If a seller is marketing a unit as "CONFOTUR" and pricing it like a first-hand sale, push back. As a resale buyer, you are typically:

• Paying the 3% ITI the original buyer didn't pay.
• Receiving a shorter remaining IPI window than the original buyer had.
• Possibly losing income-tax shelter on rental revenue, depending on structure.

Those are real economic costs that belong in your negotiation, not in the developer's brochure language repeated by the agent.

Capital Gains: The Seller's Side (And Why It Matters to You)

The seller's gain on the resale is not taxed at a flat 27% for individuals — that's a persistent myth and the corporate rate. For individuals, the gain is taxed as ordinary income on a progressive scale (roughly 0–25%), computed on the inflation-adjusted acquisition cost. The exact brackets and indexation factors are set by DGII and updated periodically; confirm current numbers with a Dominican contador.

Why does this matter to you as buyer? Because some sellers try to push you to under-declare the price on the deed to reduce their gain. Don't. Under-declaration:

• Exposes you to DGII reassessment and penalties.
• Lowers your future cost basis, increasing your gain (and tax) when you eventually sell.
• Can complicate source-of-funds compliance for your wire transfer.

Declare the real price. Pay the real ITI. Sleep well.

Common Pitfalls Specific to Resale CONFOTUR Units

• Assuming the rental-pool contract transfers automatically. It usually requires the operator's consent and a new agreement on your terms.
• Inheriting unpaid HOA dues or utilities — get current statements in writing.
• Furniture and inventory disputes — list every item in the addendum with photos.
• Title still in the developer's name if the original buyer never completed deslinde or registration. You cannot buy clean title from someone who doesn't yet hold it.
• Promises of "we'll renew CONFOTUR for you" — CONFOTUR is not renewed unit-by-unit for resale buyers. Treat any such promise as fiction.

Mini-FAQ

Do I still get the IPI exemption as a second buyer? Often yes, for the remaining window of the project's certification — but confirm with DGII for the specific parcel before relying on it.

Do I still skip the 3% transfer tax? Generally no. ITI is paid by you, the buyer, on the higher of contract price or DGII appraisal.

Does CONFOTUR require Dominican residency? No. There is no residency or nationality test, and foreigners' right to own property comes from constitutional equal treatment (Articles 25 and 221) — not from any "Foreign Investment Law" framework. The often-cited 50/60 km Haiti-border ownership ban is a myth; the only true coastal restriction is the 60-meter maritime public zone under Law 305 of 1968.

Can a second buyer ever get full CONFOTUR benefits? In narrow cases — for example, buying a still-unsold inventory unit from the developer during the certified absorption window — yes. From a private reseller, almost never on the transfer tax.

Who should I trust on this? Your own independent abogado, DGII for tax confirmations, MITUR/CONFOTUR for the resolution, and the Registro de Títulos for the title. Not the seller's lawyer. Not the listing agent.

Bottom Line for 2026 Buyers

A resale CONFOTUR unit can still be an excellent rental investment — but price it like resale, not like a developer launch. Expect to pay ITI, expect to inherit the remaining IPI window, and verify every income-tax claim in writing against the actual CONFOTUR resolution. The savings are real, but they shrink the further you are from the first sale, and anyone telling you otherwise is selling, not advising.