CONFOTUR Due Diligence for Dominican Property Buyers

A property advertised as “CONFOTUR approved” may belong to a classified tourism project. That statement alone does not establish that your exact unit, phase, buyer or transaction receives a particular tax treatment.

CONFOTUR classifies specific projects under Law 158-01 and its amendments. Proper due diligence connects the official classification to the complete resolution, developer, cadastral parcel, construction phase, unit, purchase structure and applicable dates.

The analysis must also account for Law 30-26. Among other changes, it prevents simultaneous use of more than one incentive regime for the same activity, investment or operation and expands government review of classifications under special incentive laws. It does not state that every existing CONFOTUR classification is cancelled, but it makes transaction-specific tax verification especially important. Law 195-13 amended the statutory incentive period to 15 years for qualifying investments; that figure does not tell a buyer how much time, if any, remains for a particular project or whether the buyer’s transaction is covered. The resolution, project chronology and current tax route control that analysis.

Who this service is for

Proxario’s CONFOTUR review is for buyers who have been told that a project, villa, apartment or lot is “CONFOTUR approved” and want independent evidence before reserving, paying or closing. It is equally useful for lenders, investors and family offices assessing a development, and for owners preparing a resale where the original incentive claim may not follow the later transfer.

• Buyers comparing several tourism projects or phases.
• Off-plan purchasers asked to pay before all individual titles exist.
• Buyers deciding whether to own personally, through a company or through a trust.
• Purchasers relying on a represented transfer-tax or property-tax treatment.
• Resale buyers who need to separate the original developer’s position from their own transaction.
• Investors who need title, permit, construction and incentive findings in one report.

What Proxario’s review delivers

The service tests the claim at four levels: the official classification, the land and project, the exact unit and seller, and the buyer’s transaction. Findings are reported as documents confirmed, open evidence requests, contract protections and conditions that should be satisfied before a payment or closing.

How the engagement works

1. Initial claim map. We record the project, legal seller, parcel, unit, phase, transaction type and every tax or permit statement made to the buyer.
2. Official and seller file. We compare the CONFOTUR lookup and complete resolution with documents supplied by the seller, developer and relevant authorities.
3. Real-estate and permit review. We run the title, CEJI, cadastral, corporate and applicable permit workstreams independently of the incentive classification.
4. Written findings. We identify confirmed links, missing records, inconsistent names or dates, transaction-specific tax questions and proposed contract protections.
5. Contract and closing support. If instructed, we negotiate the reservation or promise, coordinate tax advice and official applications, and condition payment or closing on the agreed evidence.

Documents to send at the start

• Project name, website, developer’s legal name, unit, building or lot and advertised phase.
• Reservation, offer, promise of sale and payment schedule.
• The complete CONFOTUR resolution, annexes and amendments supplied by the seller.
• Title or mother-parcel information, CEJI, plans and proposed condominium documents.
• Construction, environmental, municipal or tourism approvals provided.
• Written sales material identifying the claimed exemption, saving or incentive period.
• Buyer name and proposed holding structure, including any company or trust.

1. Verify the project in the official CONFOTUR database

Search the official CONFOTUR register, then obtain the complete classification resolution and every referenced annex or later amendment. A developer brochure, logo, screenshot or search result is not a substitute for the underlying resolution.

The first identity check is simple but important: the legal name in the official record should match the seller named in the reservation agreement or promise of sale, or the seller should provide documentary authority from the classified entity.

• Record the application number and the project’s exact registered name.
• Record the promoter or developer’s complete legal name.
• Confirm the province and location shown in the official record.
• Confirm whether the classification is provisional or definitive.
• Record the Council decision, current status and decision date.
• Request the complete resolution, annexes and every later amendment.

2. Confirm whether the classification is provisional or definitive

The distinction matters. A provisional application may include an architectural concept and acknowledgments showing that regulatory approvals have been requested. It does not necessarily mean that final environmental, municipal, tourism or construction authorizations have been issued.

CONFOTUR’s published requirements for definitive classification include current corporate records, evidence of ownership or a legal right to use the development land, current environmental authorization, municipal and other competent-agency approvals, MITUR land-use no-objection, plans with UTM coordinates, and economic and financial feasibility documentation.

Do not translate “provisional” as “fully permitted.” Ask for the separate approval issued by each responsible authority.

• Compare the classification shown in the database with the complete resolution.
• Check whether a provisional classification has since been replaced, amended, postponed, suspended or rejected.
• For a definitive classification, verify that the supporting approvals remain current and match the project being sold.

3. Match the classification to the exact property being purchased

Due diligence must establish a continuous documentary link from the classified project to the unit you are buying. Similar project names, related companies or a shared marketing brand are not enough.

Law 195-13 distinguishes investments made directly with the promoter or developer from later transfers to third-party purchasers, which its text excludes from those benefits. A resale should therefore never be marketed as receiving the same treatment without a transaction-specific analysis.

• Confirm that the developer and seller are the classified entity or have documented authority from it.
• Match the cadastral designation across the title, project plans, resolution and sales contract.
• Confirm that the building, phase, lot or condominium component is within the approved project scope.
• Check whether expansions, renamed phases or substituted parcels were separately approved where required.
• Confirm that the offered unit has not been moved to another parcel or phase.
• Determine whether the transaction is an original purchase from the promoter or developer, an assignment, or a later resale.

4. Verify the claimed tax treatment under current law

Ask the seller to identify each claimed tax treatment separately and state the legal and factual basis for it. “CONFOTUR approved” is not the same as a DGII determination that a particular buyer, transfer instrument, ownership structure or later resale is exempt.

Law 30-26 adds a restriction against simultaneous benefits from more than one incentive regime for the same activity, investment or operation. It also strengthens government review of classifications under special incentive laws. The law does not by itself establish that every CONFOTUR classification has been cancelled.

Obtain a written, current opinion addressing the actual transaction and check for later regulations, DGII guidance, project amendments, suspension or revocation before signing or closing.

• Identify the specific tax, charge or filing treatment being claimed.
• Identify the person or entity said to qualify and the exact transaction said to be covered.
• Cite the relevant statutory language and the applicable provision of the project resolution.
• Verify the project’s relevant commencement and expiration dates.
• Distinguish treatment claimed for the developer, contractor, original buyer, ongoing ownership and later transfer.
• Account for whether the buyer will own personally, through a company or through a trust.
• Determine whether another incentive regime is also being claimed for the same investment or transaction.

5. Complete independent title and cadastral due diligence

CONFOTUR classification is not a certificate of title, cadastral approval or lien search. Obtain a fresh Certificación del Estado Jurídico del Inmueble and repeat the legal-status check before releasing closing funds or submitting the transfer for registration.

For a pre-construction purchase, review the mother parcel, the developer’s registered rights and the proposed subdivision or condominium regime. The future unit may not yet have an individual certificate of title.

• Review a fresh Certificación del Estado Jurídico del Inmueble (CEJI).
• Review the certificate of title or constancia anotada and the approved cadastral plan.
• Check mortgages, liens, notices, restrictions, litigation and other current entries.
• Confirm the developer’s ownership or registered right to use the project land.
• Verify the seller’s corporate records and the authority of the person signing.
• Compare physical boundaries, occupation and access with the survey and project plans.

6. Verify every project permit separately

Even a definitive CONFOTUR classification does not replace approvals issued by other agencies. Compare the project name, developer, parcel, phase and plans across every document.

A permit application or acknowledgment of filing is not permission to build. Confirm the validity, renewal history and exact phase covered by each issued authorization.

• Municipal land-use and no-objection approvals.
• MITUR land-use no-objection and approved tourism plans.
• Current environmental authorization and compliance status.
• MIVHED construction license and the stamped, approved plans.
• Coastal, navigable-river or road right-of-way approvals where applicable.
• Utilities, water treatment and other infrastructure approvals.
• Inspection records and material deviations from approved plans.

7. Put the verification into the purchase contract

Material CONFOTUR representations should appear in the reservation agreement or promise of sale, not only in marketing materials. The contract should allocate the risk if the represented treatment is denied or the required classification, permit or title condition is not satisfied.

Have the contract reviewed by independent Dominican counsel rather than relying only on counsel acting for the developer.

• Attach or identify the complete CONFOTUR resolution and current project status.
• Identify the exact unit, phase, parcel and seller.
• Describe each specific tax treatment represented by the seller.
• State which party pays if the claimed treatment is denied.
• Require delivery of current title, cadastral, corporate, environmental and construction records.
• Tie payment milestones to identifiable permits and verifiable construction progress.
• Provide refund or termination rights if material approvals, coverage or title conditions fail.
• Prevent movement of the unit to another phase or parcel without the buyer’s consent.

8. Watch for red flags

Pause the transaction when the evidence does not support the sales presentation. Independent verification should occur before a nonrefundable reservation payment, not after it.

• Only a logo, brochure or screenshot is supplied, with no complete resolution.
• “CONFOTUR in process” is presented as an approved classification.
• A provisional classification is described as definitive.
• Project, company, parcel or phase names differ across documents.
• The seller refuses to provide the complete resolution or permits.
• Marketing promises that every tax is exempt for the entire statutory period without identifying the taxpayer, transaction, tax and relevant dates.
• A resale is promoted as automatically receiving original-purchase treatment.
• Environmental or construction documents are expired.
• The buyer is pressured to transfer nonrefundable funds before independent review.

Illustrative scenario: classified project, unconfirmed phase

A buyer receives a database screenshot for a well-known tourism project and a promise of sale for a unit in its newest phase. The official entry confirms that a project of that name was classified, but the resolution supplied covers an earlier cadastral parcel and the seller is a different related company. Marketing states that the buyer will not pay transfer tax, yet it does not identify the resolution provision or current exemption route. The appropriate response is not an immediate yes or no. Counsel requests the complete amendments linking the new parcel and phase, documents the seller’s authority, checks whether the unit is an original developer sale or a later transfer, and conditions the contract on written support for the tax treatment. If the links cannot be established, the parties can reprice, restructure or end the proposed purchase under the negotiated conditions. The example illustrates method, not a guaranteed result.

Professional fees, official charges and timing

Proxario scopes and quotes professional fees in writing after reviewing the project, unit, transaction stage and documents available. A targeted resolution-and-unit review differs from a full off-plan purchase engagement with title, permit, contract, tax and closing workstreams. Government certifications, registry services, translations, technical reports, survey work, notarization and tax or exemption applications are separate items.

Official charges and agency response times can change and may depend on the selected service, project status, completeness of the submission and observations from the responsible authority. We confirm current amounts and the available filing route for the specific matter instead of publishing a generic project budget or deadline.

Frequently asked questions

Does CONFOTUR approval automatically eliminate transfer tax or annual property tax for my purchase?

No automatic conclusion should be drawn from the project label alone. The current law, complete resolution, transaction type, buyer, parcel, phase, effective dates and DGII treatment must all be reviewed. Ask for a written analysis of each claimed tax treatment.

Is provisional CONFOTUR classification enough to begin construction?

Not by itself. CONFOTUR's provisional requirements may accept evidence that other permit applications have been filed. Construction requires the applicable authorization from MIVHED and every other competent authority.

Does a resale receive the same treatment as an original developer sale?

Do not assume so. Law 195-13 distinguishes direct investments with promoters or developers and excludes later transfers to third-party purchasers from those benefits. The exact contract and transaction structure require current legal and tax review.

Did Law 30-26 cancel CONFOTUR?

Law 30-26 does not state that all CONFOTUR classifications are cancelled. It introduces a restriction on combining incentive regimes for the same activity, investment or operation and strengthens government review of classifications under special incentive laws. Its application to a particular project or purchase should be checked under current regulations, agency guidance and the project's complete resolution.

What should I send for a CONFOTUR due-diligence review?

Send the project and developer names, unit and phase, reservation or promise of sale, title or mother-parcel information, the complete CONFOTUR resolution and amendments supplied, the tax treatment represented, and all permits provided. Missing records can then be identified and requested through the appropriate workstream.

Disclaimer: General information, not legal, tax, immigration, customs, regulatory or investment advice. Requirements and outcomes depend on the facts, responsible authorities and current law.