Buying Pre-Construction with CONFOTUR: Verify It's Really Registered

A developer's sales deck says "CONFOTUR approved." The broker repeats it on the call. The reservation contract even has the word CONFOTUR printed in bold on page one. None of that is a legal fact. A CONFOTUR exemption exists only when the Consejo de Fomento Turístico has issued a specific resolution number for that specific project — and until you've seen it, you're buying a promise, not a tax break.

This matters more with pre-construction than with any other purchase type, because the thing you're being sold — the exemption — often doesn't exist yet in enforceable form when you sign the reservation agreement. The building isn't finished. Sometimes the paperwork isn't finished either.

01What Does "CONFOTUR Verified" Actually Mean?

A project's CONFOTUR status is verified when you can name the resolution number issued by the Consejo de Fomento Turístico approving that specific development, and confirm — ideally via your own attorney, not the seller's — that the resolution is current and covers the unit you're buying. Anything short of that is a claim, not a verification.

CONFOTUR isn't a designation a location carries. It isn't a stamp a developer can self-apply. Under Ley 158-01, Articles 6, 8, 9, 10 and 11 (as amended by Ley 195-13), classification is granted project-by-project, by a formal resolution of the Council, chaired by the Minister of Tourism. The law gives the Council 60 days to approve or reject a filed application, and a rejection has to come with reasons. If a developer tells you "we're CONFOTUR, all our projects in this town get it," that's marketing language standing in for a document that either exists or doesn't.

02Why Pre-Construction Buyers Face More Risk Than Resale Buyers

Resale buyers are looking at a finished, occupied building with a track record. Pre-construction buyers are often asked to pay a deposit — sometimes 10-30% of the purchase price — based on renderings and a promise that classification is "in process" or "expected shortly." That gap between promise and paperwork is where most CONFOTUR disputes originate.

There's a second layer specific to pre-construction: even a genuinely approved resolution can lapse. Decreto 372-14, Article 8, Párrafo II, gives a developer a maximum three-year window from receipt of the Definitive Classification Resolution to start construction. Miss that window, and the classification is exposed. Article 13 of Ley 158-01 goes further — violation of the law, the tourism regulations, or the zone's territorial-ordering plan triggers automatic loss of incentives, plus repayment of every tax the project was exempted from. A buyer who closed two years into a stalled project could be sitting on a unit that no longer carries the exemption they paid a premium for.

None of this means pre-construction is a bad idea — CONFOTUR-classified pre-sales are one of the more genuinely attractive parts of the DR market, and the tax math (see our CONFOTUR decomposition breakdown) can be worth tens of thousands of dollars over 15 years. It means the verification step isn't optional paperwork — it's the difference between buying the tax break and buying a rumor of one.

03The CONFOTUR Registered Project Checklist

Before signing anything with financial commitment attached, confirm each of these five items. Treat this as a floor, not a formality.

1. Ask for the resolution number in writing. Every legitimately classified project has one. A developer who can't produce it, or who says "it's coming," is asking you to fund a bet on a future approval.
2. Confirm the resolution names this specific project and phase. Developers sometimes run several legal entities or phases under one brand. A resolution for Phase 1 doesn't automatically extend to Phase 3 next door.
3. Check the classification date against the construction timeline. If more than three years have passed since the resolution with no construction start, ask your attorney whether the classification is still valid under Decreto 372-14 Art. 8.
4. Verify whether you are the first acquirer. CONFOTUR benefits, per Ley 158-01 Art. 4, Párrafo IV (added by Ley 195-13), belong only to whoever invests directly with the developer. If you're buying a resale unit or a reassigned pre-construction contract from someone else, the exemption very likely does not transfer to you — more on that below.
5. Have your own attorney request confirmation from CONFOTUR or review the resolution text directly — not a summary from the sales team. This is the single step buyers skip most often, usually because they're relying on the same attorney the developer recommended.

04Can You Buy a Resale Unit and Still Get CONFOTUR?

No — not automatically, and this trips up more buyers than any other part of the program. Ley 158-01, Article 4, Párrafo IV, added by Ley 195-13, explicitly excludes "any subsequent transfer to third-party acquirers" from the exemptions. DGII applies this literally: the benefits attach to the person or entity that invested directly with the developer, and a resale buyer does not inherit them.

This isn't a gray area anymore. Dominican counsel has confirmed how DGII treats it in practice: the exclusion covers all the exempted taxes, not just the 3% transfer tax, and it applies whether the resale happens before or after the project is finished. If a seller or agent tells you "the CONFOTUR exemption transfers with the deed," budget for the alternative — the full 3% transfer tax and ongoing IPI — and treat any inherited-benefit claim as unverified until your attorney confirms it in writing.

There is one legitimate structure worth knowing: where the unit is held by an SRL, the developer sells the unit to that company, which holds both the title and the exemptions. The SRL's shareholders can then sell their shares to a new buyer without the underlying property changing hands. Evalúa has seen this used correctly — but it needs to be set up correctly from the start, confirmed with your own attorney, not the developer's. Do not treat a pre-completion "contract assignment" (a cesión de contrato signed before the actual Acto de Venta) as an equivalent shortcut — counsel has flagged these as risking treatment as simulated acts designed to dodge the third-acquirer exclusion, which can expose the seller to tax-evasion liability rather than just a lost tax break.

05What Happens If the Exemption Never Gets Registered?

If the CONFOTUR resolution never materializes, you own a standard property subject to the standard tax regime — 3% transfer tax at purchase and annual IPI on the value above the ~$182,000 threshold, with no 15-year exemption window. Practically, this means your total cost of ownership over the exemption period could run tens of thousands of dollars higher than what was pitched, depending on the property's value and rental income.

Run the numbers before you sign, not after. For a $350,000 unit, the fully-decomposed CONFOTUR savings (transfer tax waiver, 15-year IPI exemption on value above threshold, and rental income tax exemption if the unit is rented) can total in the neighborhood of $60,000–$80,000 depending on rental performance — see the full breakdown in our CONFOTUR decomposition article. Losing that isn't a rounding error on a $350,000 purchase; it can be a meaningful share of your total return.

06How the 2026 Tax Reform Changes the Calculus

Ley 30-26, promulgated 18 June 2026, is phasing in changes to several of the taxes CONFOTUR exempts — including a reported restriction on stacking multiple incentive regimes for "the same economic activity." No implementing regulation had defined that scope at the time of writing, and CONFOTUR itself has not been cut or repealed. Still, if you're weighing a pre-construction purchase that leans on both CONFOTUR and another incentive structure, get written confirmation from your attorney on how the current framework applies to your specific project — the reform is real and in force, even where the details are still being worked out.

07What This Means for Buyers Comparing Projects

A resolution number is a two-minute question that can save a six-figure miscalculation. If you're comparing two similarly priced pre-construction units — one with a confirmed resolution, one with a "pending" one — treat the pending status as a real price difference, not a technicality, and negotiate accordingly. Developers with genuine approval in hand should have no hesitation sharing the resolution number; hesitation itself is information.

Before committing a deposit, run the property's numbers — including what the exemption is actually worth given the price and expected rental income — through the Evalua Property Analyzer or our CONFOTUR Savings Calculator, which shows the year-by-year breakdown rather than a single inflated total. For the broader buying process, our buying guide category covers due diligence steps beyond CONFOTUR specifically, and our legal articles go deeper on ownership structures.

08Common Mistakes to Avoid

1. Accepting "CONFOTUR approved" without a resolution number. Ask for it in writing and have your attorney confirm it matches the project and phase you're buying, not a sister project under the same brand.
2. Assuming a resale unit keeps the exemption. Ley 195-13 excludes third-party acquirers from the benefits. Unless the unit is held through an SRL share structure your attorney has confirmed, budget for full transfer tax and IPI.
3. Ignoring the three-year construction start deadline. A resolution issued years ago with no groundbreaking may be at risk of losing its classification under Decreto 372-14, Art. 8.
4. Using the developer's recommended attorney for verification. Independent counsel has no incentive to soften bad news about a stalled or nonexistent classification.
5. Treating a pre-completion contract assignment as a workaround. Counsel has warned these can be viewed as simulated transactions designed to evade the resale exclusion, creating liability for the seller.
6. Skipping the math on what the exemption is actually worth. A round "$50K in savings" claim from a broker means little without the transfer tax, IPI, and rental income tax broken out separately for your specific purchase price.

09Frequently Asked Questions

How do I confirm a project's CONFOTUR status before signing?

Ask the developer for the CONFOTUR resolution number in writing, then have your own attorney verify the resolution names your specific project and phase and remains current. Never rely solely on marketing materials or a summary from the seller's team.

Does CONFOTUR transfer if I buy a resale pre-construction contract?

Generally no. Ley 158-01, Article 4, Párrafo IV, excludes subsequent transfers to third-party acquirers from the exemptions. The one recognized exception is when the unit is held by an SRL and you acquire shares in that company rather than the property directly — confirm this structure with your own attorney.

What happens if the developer's CONFOTUR application is rejected after I've paid a deposit?

Your reservation or purchase contract should specify what happens in this scenario — ideally a refund or contract exit clause. Review this clause with an attorney before signing, since Dominican contract law won't automatically protect you if the agreement is silent on the issue.

How long does CONFOTUR approval typically take?

The Consejo de Fomento Turístico has a maximum of 60 days to approve or reject a submitted file under Ley 158-01, Article 10. A developer citing much longer delays may have an incomplete or problematic application.

Can a CONFOTUR exemption be lost after it's granted?

Yes. Ley 158-01, Article 13, provides for automatic loss of incentives if the project violates tourism regulations, the zone's land-use plan, or environmental rules, with back taxes becoming payable. Classification also depends on meeting construction start deadlines under Decreto 372-14.

Is CONFOTUR only available in certain tourist zones?

No — since Ley 195-13, CONFOTUR classification is available nationwide, not restricted to a fixed list of tourism poles. Each project still requires individual approval regardless of location.

10The Bottom Line

CONFOTUR is one of the strongest tax incentives in the Caribbean when it's real — and worthless marketing copy when it isn't. The gap between those two outcomes is a single document: the resolution number. Ask for it, verify it independently, and treat any hesitation to produce it as the answer to your question. The buyers who get burned aren't the ones who asked too many questions before signing — they're the ones who didn't ask this one.