Before you sign on a CONFOTUR project, learn how to verify its real standing: provisional vs definitive status, how to read the resolution, and what to ask.
Before you sign anything on a CONFOTUR project, you should be able to name its resolution number and confirm whether its status is provisional or definitive. These are two different legal stages, and a developer who blurs them is giving you a reason to slow down. Sienna, for the record, holds provisional active status under Resolution 203-2024 — a real stage with a real document behind it, which is exactly what you want to verify for yourself.
Key Takeaways
- CONFOTUR provisional status is a granted stage under Law 158-01 — not a promise, and not the same as final (definitive) approval.
- Ask for the resolution number (Sienna's is Resolution 203-2024) and confirm it names your specific project, developer, and tax parcel.
- Provisional status covers 0% transfer tax and 15 years of 0% property tax (IPI) on what the developer builds and delivers — verify the scope matches what you are buying.
- A self-build villa outside the developer's construction contract is exempt on the land value only — not the house or its rental income.
- Never accept "CONFOTUR-approved" as a verbal claim; the paperwork is the proof, and your lawyer should read it before deposit.
What CONFOTUR Provisional Status Actually Is
CONFOTUR provisional status means a tourism project has been reviewed and granted incentives under Law 158-01, but has not yet reached the final (definitive) stage that confirms completion. It is a genuine legal grant — not an application pending, not a developer's hope. It carries the tax benefits from the moment it is issued, which is why the distinction matters so much at signing.
The two stages, plainly
Las Terrenas investors often hear "CONFOTUR" as a single on/off switch. In practice there are stages. Provisional status is granted early, once the Consejo de Fomento Turístico (CONFOTUR) within the Ministry of Tourism reviews the project file and classifies it as qualifying. Definitive status follows later in the project lifecycle. For a deeper walk-through of how the program works end to end, our guide to CONFOTUR tax benefits covers the full picture — this article is about one narrow, high-stakes task: confirming the status is real before you commit.
Key takeaway: Provisional is a real grant that already carries the tax benefits — but it is a stage, and you should know which stage you are buying into.
What Does Resolution 203-2024 Mean for Sienna?
Resolution 203-2024 is the document that records Sienna's provisional CONFOTUR status. A resolution number is your anchor for verification: it is the specific reference you can point your lawyer to, and the thing a legitimate developer will hand over without hesitation.
Why the number matters more than the label
Any seller can say the word "CONFOTUR." A resolution number is checkable. When a project tells you its status, the follow-up question is always the same: what is the resolution number, and does it name this project? If the answer is vague — "it's in process," "the lawyers have it," "approval is secured" — that is your cue to pause. Note the careful wording throughout: Sienna's status is provisional, not "approved," "certified," or "locked in." Those words describe a stage that has not been reached, and a developer who uses them loosely about final approval is misstating the legal position.
A resolution number you can read beats a reassurance you can't. If a project won't put its CONFOTUR status in writing with a reference you can verify, treat the benefit as unproven until it is.
Key takeaway: Resolution 203-2024 is Sienna's verifiable reference point — ask any project for its equivalent, and be wary if none exists.
How Do You Verify a Project's CONFOTUR Status?
You verify CONFOTUR status by obtaining the resolution document, confirming it names the exact project and developer entity, and having a Dominican lawyer cross-check it against the Ministry of Tourism's records. Here is the practical sequence.
A buyer's verification sequence
- Get the resolution number and a copy of the resolution itself — in writing, not verbally.
- Confirm the names match. The resolution should reference the project and the developer company exactly as they appear on your purchase contract.
- Check the scope. The incentive attaches to what the developer builds and delivers. Confirm your purchase (lot, or lot plus developer-built villa) falls inside that scope.
- Have your lawyer confirm it with CONFOTUR / MITUR. The program is administered by the Ministry of Tourism; the published Law 158-01 incentives are listed on the official CONFOTUR beneficios page. Your lawyer's job is to confirm the project's standing against the administering body, not just read the PDF you were handed.
- Read it before your deposit clears. A $5,000 refundable deposit holds your place; the verification should happen in the window before you are financially committed.
The Dominican Republic's investment framework is unusually open to foreign buyers — the OECD's reviews of the country's investment policy framework describe an environment designed to attract foreign capital, and CONFOTUR is one of its central tools. That openness is real, but it does not replace document-level due diligence on your specific project.
Key takeaway: Verification is a five-step paper trail ending with your lawyer confirming the project against the administering body — do it before the deposit window closes.
What Does Provisional Status Actually Cover?
Provisional CONFOTUR status covers the tax exemptions under Law 158-01 on what the developer builds and delivers: 0% transfer tax at closing (versus the standard 3%) and 0% annual property tax (IPI) for 15 years (versus the standard 1%). On a lot plus a Sienna-built villa, that works out to $50,000+ in savings over 15 years.
The scope line you cannot afford to misread
Here is where buyers get tripped up. The exemption follows what the developer builds and delivers. Two scenarios:
| Scenario | Transfer tax | 15-year IPI | Rental income |
|---|---|---|---|
| Lot + developer-built villa (Sienna's construction contract) | 0% on both | 0% on both | Standard tax rules apply |
| Lot + you build outside the construction contract | 0% on land value only | 0% on land value only | Not exempt |
If you buy a lot and build your own villa outside the developer's construction contract, your exemption covers the land value only — the 3% transfer tax and the 1% IPI on the land. The house you build, and any rental income it earns, are not exempt. Never let anyone imply otherwise. The distinction between land-only and full-build treatment is the single most expensive thing to get wrong, and it is covered in more detail in our land vs turnkey villa comparison.
Key takeaway: Full exemption follows the developer's build; a self-build gets land-only treatment — know which one your contract puts you in.
What Should You Ask Before You Sign?
Ask five questions, in writing, and get five answers you can file. If a project can answer all five with documents, the CONFOTUR piece of your due diligence is in good shape.
The five pre-signature questions
- What is your resolution number? (Sienna: Resolution 203-2024.)
- Is the status provisional or definitive, and what does that mean for my closing?
- Does the resolution name this exact project and developer entity?
- Does my purchase — lot, or lot plus your built villa — fall inside the covered scope?
- When does my 15-year IPI clock start? (The exemption clock has its own timing rules for pre-construction buyers — our note on when the exemption clock starts explains it.)
The broader legal process for foreign buyers — title search, escrow, closing — runs in parallel with this, and the general mechanics are well documented elsewhere in our legal guide for foreign buyers. CONFOTUR verification is one specific layer on top of that standard process.
Key takeaway: Five written questions, five documented answers — that is the standard. Anything less, and you are relying on a promise instead of a record.
Which Situation Fits You
You are buying a turnkey villa from the developer
Your path is the clean one. The exemption applies to the full lot-plus-villa package, the $50,000+ 15-year saving is on the table, and your main job is confirming the resolution names your project and that your purchase sits inside its scope. Get the resolution in writing, hand it to your lawyer, and proceed.
You are buying a lot to build on later
You can still benefit — on the land. Budget for the full tax treatment on the villa you build yourself, and don't let a sales conversation blur that line. If the full exemption matters to your numbers, compare building inside the developer's contract against building independently before you sign.
You are buying remotely and can't read documents in person
This is common, and manageable. A Dominican lawyer acting for you can obtain and verify the resolution, confirm it against the administering body, and advise before your deposit is at risk — all without you flying in. The verification steps don't change; only who physically handles the paper does.
The Verdict
CONFOTUR provisional status is a real, bankable benefit — but only once you have verified the resolution behind it, confirmed it names your project, and understood whether your purchase gets full-build or land-only treatment. The single question that decides whether the benefit is yours to count on: can the developer hand you the resolution number, in writing, and does it name exactly what you are buying? If yes, you are on solid ground. If not, keep your pen in your pocket.
Want to verify Sienna's standing with your own eyes and sit down with the team that holds the file? Book a Discovery Tour of Sienna in Las Terrenas — four nights, private property tours, and a dedicated legal and tax session where you can read the paperwork yourself.
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.
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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.
