July 2026 · 7 min read
CONFOTUR eliminates the 3% transfer tax entirely.
The Dominican Republic imposes a 3% transfer tax (Impuesto a la Transferencia Inmobiliaria) on every property sale, calculated on whichever is higher: the agreed purchase price or the DGII (tax authority) appraised value. This single line item is typically the largest component of DR closing costs.
How the Transfer Tax Exemption Works
The 3% Impuesto a la Transferencia Inmobiliaria is collected by the DGII and must be paid before title can transfer to the buyer. Without payment, the Registro de Títulos will not register the transfer.
For CONFOTUR-certified properties, the developer's certificate covers an exemption from this tax for all unit transfers within the certified project during the active certification period. The notary preparing the closing documents submits the CONFOTUR certificate to the DGII as evidence of exemption, and the transfer proceeds without the tax being assessed.
The exemption is not automatic in practice — your attorney and notary must ensure the CONFOTUR certificate is current and properly referenced in the closing documents. This is a standard part of closing practice for certified properties and takes no additional time when handled correctly.
What You Actually Save
The transfer tax is calculated on the HIGHER of: (a) the agreed purchase price, or (b) the DGII assessed value. This is an important distinction — if the DGII values your property higher than your purchase price, you pay tax on the DGII value.
| Purchase Price | Without CONFOTUR | With CONFOTUR |
|---|---|---|
| USD 150,000 | USD 4,500 | USD 0 |
| USD 250,000 | USD 7,500 | USD 0 |
| USD 400,000 | USD 12,600 | USD 0 |
| USD 600,000 | USD 18,000 | USD 0 |
Does the Exemption Apply on Resale?
Yes — as long as the CONFOTUR certification is still active, the transfer tax exemption applies to every sale of the property during the certification period. If you buy a CONFOTUR property and sell it 5 years later while the certification is still valid, the buyer also benefits from the exemption.
This has two practical implications: first, it makes CONFOTUR properties more attractive to subsequent buyers, supporting resale value. Second, when comparing two similar properties — one CONFOTUR, one not — the CONFOTUR property's resale price can command a premium because the buyer saves 3% at closing.
Common Pitfalls to Avoid
⚠ Assuming all properties in a CONFOTUR zone are certified
Location in a designated tourism zone is not the same as CONFOTUR certification. The specific project must have been certified.
⚠ Not checking the certificate expiration date
If a project has 6 months left and closing takes 3 months, you may lose the exemption if the certificate expires before notarized transfer.
⚠ Relying on verbal confirmation from the developer
Verify independently with your attorney before signing the promesa de venta.
⚠ Forgetting that transfer tax returns on certification expiry
If you sell after the CONFOTUR certification has expired, the buyer will owe the full 3% transfer tax.
Frequently Asked Questions
The 3% exemption is worth verifying carefully
The transfer tax exemption is the most immediately tangible CONFOTUR benefit — it shows up directly in your closing statement. Confirming the certificate is valid, covering your specific unit, and will remain active through your closing date is a one-hour task for your attorney that can protect thousands of dollars.
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