Buying pre-construction and wondering when your CONFOTUR tax exemption actually begins? Here's exactly when the 15-year clock starts — and why you don't lose years while your villa is being built.
If you buy a pre-construction property in the Dominican Republic, your CONFOTUR 15-year exemption clock does not start on the day you sign the reservation. Under Article 7 of Law 158-01, as amended by Law 195-13, the 15-year exemption period runs from the completion of the project's construction. For a Sienna buyer, that means the exemption is a project-level benefit you inherit, and the months you spend waiting for construction do not eat into your 15 years.
That distinction confuses a lot of investors, so let's take it apart properly.
What You Need to Know
- CONFOTUR is granted to the project, not the buyer — under Law 158-01, the developer applies and the exemption attaches to qualifying units.
- The 15-year clock runs from completion of the project's construction, not from the day you sign or close.
- Pre-construction buyers inherit the exemption already registered on the development — you don't reapply from scratch.
- The core benefits: 0% property tax (IPI) for 15 years and 0% transfer tax on the first transfer, saving $50,000+ over the period.
- Sienna's legal team handles the CONFOTUR paperwork as part of the turnkey purchase, so the timing works in your favour.
How Does CONFOTUR Actually Assign the 15-Year Window?
The exemption is a project-level benefit under Law 158-01, and it's the developer — not each individual buyer — who secures it.
Here's how that works in practice. The developer files an application with the Ministry of Tourism (MITUR) through the CONFOTUR council, covering the tourism project as a whole. Once classified, a resolution is issued for the project; Sienna holds a provisional classification (Resolution 203-2024, extended by Resolución 61-2026); the definitive classification was filed in July 2026 and is pending. The exemption period runs 15 years from the completion of the project's construction, as the Ministry of Tourism states, not from when any single owner takes possession.
So when you buy a covered unit directly from the developer at a project like Sienna, you step into the project's exemption, which is provisional until the definitive resolution is issued. You receive it when your title transfers, and it does not pass to a later buyer. That's a fundamentally different mechanic from, say, applying for a personal tax credit where the clock starts with your paperwork.
At Sienna, CONFOTUR isn't something you chase after closing — it's tied to the project's provisional classification (definitive one pending) and registered for you at transfer. Our legal team registers your benefit as part of the transfer, not as a separate hurdle months later.
For the full picture of how the program works end to end, our complete CONFOTUR guide for Dominican Republic investors breaks down eligibility, savings math, and the application flow.
Do Pre-Construction Buyers Lose Years While the Villa Is Being Built?
No — and this is the fear that keeps buyers up at night, so let's address it directly.
The worry goes like this: "If my villa takes 18 months to build, am I burning a year and a half of exemption before I can even rent it out?" Because the 15-year period runs from the completion of construction, the build months fall before the window opens rather than inside it.
The exemption covers the years that matter
The headline benefit is 0% property tax (IPI) for 15 years. IPI in the Dominican Republic is a tax on property value above an exemption threshold, so it matters most once your villa is complete and appreciating — which is exactly when the 15-year window is running.
Transfer tax has nothing to do with timing
The 0% transfer tax benefit (versus the standard 3%) applies at the moment of transfer. Whether your unit is finished or not, when your title is registered under a CONFOTUR-designated project, you skip the 3% transfer tax. That's a one-time saving locked in regardless of the construction calendar.
The takeaway: the construction wait does not cost you exemption years, because the window opens at completion.
What Does the Exemption Actually Save a Sienna Buyer?
Over the 15-year window, CONFOTUR delivers $50,000+ in tax savings for a typical Sienna owner — and the structure of that saving is what makes pre-construction attractive.
| Tax | Standard rate | With CONFOTUR | When it applies |
|---|---|---|---|
| Property tax (IPI) | 1% annually above the exemption threshold | 0% for 15 years | Ongoing, once built |
| Transfer tax | 3% of property value | 0% | At title transfer |
| Rental income tax | Standard income tax | Reduced (0% on first tranche; developer-built villas only) | Once you're renting |
Pair that with Sienna's pricing — lots from $74,100 and villas from $200,100 — and the tax structure compounds the below-market entry point. You can model the combined effect of appreciation, rental yield, and the tax exemption with our Las Terrenas ROI calculator, or see the underlying rental numbers in the 2026 Las Terrenas rental income analysis.
The Dominican tax authority, DGII, administers IPI and the transfer tax, and the exemptions flow from the CONFOTUR resolution registered against the project. For the broader policy context, MITUR — the Ministry of Tourism — oversees the CONFOTUR incentive program that Law 158-01 created to attract tourism investment.
How Does Sienna Handle the CONFOTUR Paperwork for You?
The developer files, tracks, and registers the exemption — you don't navigate MITUR yourself. That's the practical answer to most buyers' underlying anxiety.
Picture a Munich engineer weighing a pre-construction villa. He's used to German-standard documentation and wants to see the paper trail before committing. What reassures him isn't a promise — it's the CONFOTUR resolution on file for the project and a legal team that folds the exemption registration into his title transfer. No separate application, no chasing government offices in a second language.
This is part of Sienna's turnkey purchase process: legal documentation, CONFOTUR registration, and construction management run in parallel. Multilingual support in English, French, Spanish, and German means the paperwork gets explained in your language, not translated on the fly.
If you want to see how this fits into the wider legal sequence, our foreign buyer's legal guide for the Dominican Republic walks through title, closing, and registration.
What Should You Verify Before You Buy Pre-Construction?
Confirm the project's CONFOTUR resolution exists and covers your specific unit — that's the single most important due-diligence step. Don't take "it qualifies" on faith.
Here's a practical checklist:
- Ask for the CONFOTUR resolution number and confirm the project's classification with MITUR — provisional or definitive.
- Confirm your unit is included in the project's covered scope — not every phase or lot type in a project is automatically covered.
- Ask for the projected construction completion date — that is when the 15-year window opens.
- Verify the exemption will be registered at transfer, not left as a to-do after closing.
- Get the tax treatment in writing as part of your purchase agreement.
Ask for the resolution before placing the $5,000 refundable deposit — how quickly a developer produces it tells you a lot about how it runs its process. For a fuller run-through, see our Caribbean real estate due diligence checklist.
Curious how the timing works for your specific situation? To see which CONFOTUR exemptions apply at Sienna, and for how long, read the Sienna tax incentives page.
Frequently Asked Questions
When exactly does the CONFOTUR 15-year clock start for a pre-construction buyer?
Under Article 7 of Law 158-01, as amended by Law 195-13, it runs from the completion of the project's construction, not from your reservation or closing date. Because the exemption attaches to the development, it applies to your unit once your title transfers.
Does buying early waste part of my exemption?
No. Because the 15-year period runs from the completion of construction, buying early does not shorten it — and it locks in pre-construction pricing.
Do I have to apply for CONFOTUR myself?
No. Under Law 158-01 the developer applies through MITUR, and the exemption is granted to the qualifying project. At Sienna, the legal team registers your benefit as part of the title transfer.
What's the difference between the property tax and transfer tax exemptions?
The property tax (IPI) exemption is 0% for 15 years on qualifying built value. The transfer tax exemption removes the standard 3% at the moment your title is registered — a one-time saving independent of construction timing.
How much can CONFOTUR save me over the full term?
For a typical Sienna owner, $50,000+ across the 15-year window, combining the IPI exemption, the avoided transfer tax, and reduced rental income tax.
The Bottom Line on Timing
The clock question has a clean answer: your CONFOTUR window runs 15 years from the completion of the project's construction, it applies to your unit at transfer, and the pre-construction wait falls before the window opens — so buying early costs you nothing on the exemption and locks in below-market pricing at the same time. That combination is why the tax structure and the pre-construction discount work together rather than against each other.
Your move from here: verify the resolution, confirm your unit is covered, and model the numbers. When you're ready to see it in person, our Discovery Tour includes property visits, time with the legal team, and a walk-through of exactly how your CONFOTUR benefit gets registered. The details are checkable — which is precisely how a tax advantage should be.
This article provides general information about property in the Dominican Republic and is not personal financial, legal, or tax advice. Figures such as CONFOTUR benefits, taxes, and returns depend on your circumstances and can change — confirm specifics with a licensed Dominican attorney, tax advisor, or the relevant authority before making a decision.
Have questions about this?
Talk to our sales team directly — we'll answer on WhatsApp or by phone.
Written by
Sienna Terrenas Editorial Team
The Sienna Terrenas editorial team covers buying, owning, and living in Las Terrenas, Dominican Republic — from the purchase process and CONFOTUR tax strategy to villa construction and Caribbean community life, drawing on the team's on-the-ground experience in the area. Meet the Sienna Terrenas team.
