CONFOTUR, the trust behind off-plan payments, the operator contract, fees, exit and title: a checklist with the risks stated plainly.
Much of the new resort supply in the Dominican Republic is sold as branded residences or hotel-managed units, often off plan with instalments through the build. The format can suit a buyer who wants no day-to-day management, but its terms decide the outcome more than the brand does. This is what to check, with the risks stated plainly.
1. The CONFOTUR resolution
CONFOTUR (Law 158-01) can exempt an approved tourism project from the 3% transfer tax and the annual IPI for up to 15 years. Three things buyers often get wrong:
- it applies only if the project was approved in advance by the tourism ministry; a marketing line saying CONFOTUR is not proof;
- ask the seller for the resolution number and have a lawyer check its status in the ministry's registry, because lapsed approvals are common in older resale properties;
- on resale the benefit does not automatically pass to the next buyer.
Sources also differ on when the 15 years start. Law 195-13 ties the period to completion of the project's construction and fit-out; read the resolution for the specific project. Law 30-26 added a bar on using more than one incentive regime for the same activity, and how it applies in practice is not yet clear.
2. Where your instalments go
For a project under construction, the main structural protection is a trust under Law 189-11: buyers' payments go to a trustee supervised by the Superintendency of Banks, not to the developer's account, and are released as work progresses. Not every project is built this way. Ask:
- is there a trust, and who is the trustee;
- are payments tied to construction milestones;
- what happens to your money if the project stalls.
3. The operator contract
Branded management has real advantages: a recognised name, professional operation, an existing distribution channel. It also has costs and limits worth reading before you commit:
- royalties and management fees come out of income, and they reduce what you receive;
- hotel rules usually set pricing and standards and often restrict renting the unit yourself;
- you depend on the operator: how long is the contract, who can end it, and what happens to your unit if it ends;
- how income is calculated and paid, and what costs are deducted first.
4. Service charges and running costs
Resort complexes carry annual service charges. They reduce net income and affect resale, so ask for the actual figure, how it is set, and the last year's accounts. Add IPI (unless exempt) and insurance.
5. Yield and price claims
Presentations quote expected yield and price growth. Treat them as the developer's expectations, not a guarantee, and ask on what occupancy and what costs they are based. A figure given as an average over many years, or at a stated occupancy, is not comparable with one given gross.
6. Exit
Think about resale before you buy. The 2026 reform set a 10% tax on individuals' gains from real-estate sales, but the taxable base is still undefined, and a CONFOTUR benefit does not pass to the buyer on its own. Ask whether the operator contract passes to a new owner and whether the developer or operator offers any resale support.
7. Title
Ownership is documented by a certificate of title issued by the Title Registry (Property Registry Law 108-05). For off plan, ask when and how title is transferred to you per unit, and have a lawyer confirm it before the final payment. A foreigner owns on the same terms as a citizen, but the first 60 metres from the high-tide line are public land and cannot be bought.
Facts checked in October 2026. The tax reform is new and parts of it are still being clarified; confirm thresholds, rates and programme terms with a Dominican lawyer before you sign.