Short answer: Dominican developments are usually funded by a stack of sponsor equity, co-investors, buyer presales and, depending on the project, construction debt or capital-markets vehicles. The trust (fideicomiso) under Law 189-11 is the structure that ties the stack together: it ring-fences project assets, can hold buyers’ payments until agreed milestones, and makes the deal legible to outside capital. What gets money moving is not the vision but a verifiable package: clean land, a permit path, a stress-tested feasibility study, a defined legal structure and an exit story.

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What are the capital sources for a development?

The order usually runs: sponsor equity buys land and pays pre-development; co-investors join once the feasibility is solid; presales and debt follow when permits and structure are in place.

How much of the project can presales fund?

Less than the payment plan suggests, when the structure is sound. Under a trust, buyers’ funds go to a dedicated account and the builder receives them only when technical, legal and financial conditions in the contract are met, as a 2015 elDinero piece on trusts in presales described (elDinero). A CLIC buyer guide (August 2026) tells buyers to confirm payments go to the trustee, not to the builder’s own account, and are released against construction progress (CLIC).

So presales are not free equity and are not available on day one. Model when they release, what each milestone requires, and how much sponsor and investor capital must be in before then. Peak cash need usually occurs before presales start releasing.

Hypothetical example (own calculation): a 24-villa project with total cost including land of US$10,368,000 (costs before financing, taken from the hypothetical in our feasibility guide). One possible stack:

The proportions are illustrative. The useful question is what happens if released presales reach 25% instead of 40%.

What is a real estate trust, and why does it matter to investors?

Law 189-11 defines the trust as the act by which one or more settlors transfer rights to one or more legal entities (trustees) to form a separate estate, administered by the trustee under the settlor’s instructions for one or more beneficiaries (art. 3). A trust may serve any lawful purpose, including real estate market development (art. 4) (Law 189-11 text, DGII).

The provisions investors care about:

• Separate estate (arts. 8 and 9): trust assets are earmarked for the trust’s purpose and, in general, are outside the reach of creditors of the trustee, settlor and beneficiary, subject to the law’s exceptions (for instance, earlier claims declared when the asset was contributed).
• Who can act as trustee (art. 25): only authorized legal entities, including investment fund managers, securities intermediaries, multiple-service banks and savings-and-loan associations, plus companies formed solely for that purpose and registered with the tax authority.
• Real estate investment and development trusts (arts. 57 and 58): independent estates whose main aim is investing in projects at various stages of design and construction, for completion and sale or lease.
• Public-offering trusts (art. 60): back public securities issues and fall under the securities law and its regulator. The law as published in 2011 names the Superintendency of Securities; the authority today is the SIMV under Law 249-17.

Two Dominican lawyers writing for the International Bar Association (5 November 2025) summarize that real estate trusts are used for residential towers, shopping centers and tourism projects, that asset segregation shields investors and buyers from developer liabilities, and that banks are generally more willing to lend to buyers in trust-backed projects. They also cite that, as of May 2023, real estate trusts made up 79% of all trusts in the country (IBA).

Are there tax effects when you set one up?

Yes. Art. 46 states that, depending on the asset, transferring it to the trustee is subject to transfer or registration taxes (public-offering trusts are exempt), and that the settlor’s contribution is exempt from income tax and capital-gains tax where applicable. How that plays out in a given structure is a question for your tax counsel. Do not assume the exemption.

Is a trust mandatory for off-plan sales?

Not in general. A March 2025 opinion column by lawyer Erick Barinas in Acento argues that some Punta Cana projects are marketed as if covered by Law 189-11 while buyers pay into developer accounts (Acento). It is one lawyer’s opinion, not a ruling. For a serious sponsor the lesson runs the other way: if the trust is real, prove it. Name the trustee, show the constituting deed and registration. That is already a sales and fundraising asset.

How do you attract co-investors and institutional capital?

Risk-capital providers buy three things: an asset that exists, a credible plan and a path to exit. In documents, Netix describes on its capital raising page a package that includes an architectural preliminary design with renders, business plan, information memorandum, developer profile, pitch deck, one-pager with technical sheet and a participation proposal; and, later, a roadshow with teaser video, digital folder, meeting schedule and support through due diligence and negotiation.

Whatever the document names, investors will check:

1. Title and encumbrances, verified at the Registry of Titles, not from seller copies.
2. Permits and the permit path (land use, environmental, construction license), with a timeline.
3. A feasibility study with sensitivity, not just the base case.
4. Legal structure: trust or SPV, who controls what, how cash is split, what happens on default.
5. Verifiable team track record, delivered projects.
6. Tax incentives, if any, backed by the resolution (for example CONFOTUR in tourism zones).
7. Buyer exit scenarios net of Law 30-26.

On the last point: Law 30-26, promulgated 18 June 2026, sets a 10% capital-gains tax for individuals who sell at a gain (base pending regulation) and bars stacking more than one incentive regime for the same activity (inmobiliario.do, 24 June 2026). A sophisticated investor will ask about both.

What role do investment funds and the securities market play?

The securities market is governed by Law 249-17, which replaced Law 19-00; the SIMV authorizes and registers funds and public offerings in the Securities Market Registry. Fund documents show how this looks in practice: a JMMB closed-end real estate fund prospectus describes the fund as an autonomous estate separate from its manager, open to the general public, with a long-term horizon (JMMB prospectus).

Two different uses should not be confused:

• Closed-end real estate income funds mainly buy rental properties for income and long-term appreciation. They do not fund a new build, though they can be buyers of completed assets.
• Closed-end housing development funds invest in equity and debt of unlisted entities and trusts taking part in housing projects. Example: AFI Universal’s Housing Development Closed-End Fund II (registered SIVFIC-070 on 23 May 2023) targets 60% to 100% of its portfolio in such entities across low-cost, tourism and urban housing, with an issuance program of up to RD$4,000 million (40,000 units of RD$100,000) and a 25-year term (AFI Universal annual report 2023).

For a developer the reading is practical: this capital exists, has its own investment policies and limits, and typically expects a trust or special-purpose vehicle, audited information and governance. It is not a quick route, and eligibility criteria must be requested from each manager. If a tourism project holds CONFOTUR, the tax authority’s help page says domestic and foreign financing and its interest are not subject to taxes or withholdings for the benefiting companies, under the law’s conditions (DGII).

What compliance obligations come with outside capital?

Taking third-party money and selling units brings a compliance regime investors also look at. Under DGII Notice 12-26 (23 July 2026), a construction company is a non-financial obliged entity under anti-money-laundering Law 155-17 if it buys or sells real estate as part of its business (including units it builds) or promotes or markets projects. It must register with the financial intelligence unit (UAF), assess risk, identify beneficial owners and file Format 647 quarterly (Siempre al Día, updated 27 July 2026). An institutional investor will treat missing compliance as a red flag.

What does financing mean for foreign buyers of your units?

It shapes your presale pace. A CLIC guide (1 July 2026) says banks typically finance 50% to 70% of value for non-residents, at about 9% to 13.5%, with 15 years the most common term (CLIC). A separate 2021 note from GGI states foreigners face no ownership restrictions but must register locally with the tax authority first; confirm current rules with counsel (GGI, July 2021).

A sensible order of operations

1. Feasibility study and residual land value.
2. Legal structure: trust or project company, partner agreements.
3. Permits and timeline, with a delay case.
4. Investor package: business plan, information memorandum, pitch deck, sources and uses.
5. Risk capital first; presales and debt after, each with its release conditions.
6. Regular investor reporting from day one.

FAQ

Can I sell off-plan without a trust? The law does not forbid it in general, but without a structure separating payments, buyers carry the developer’s risk and banks and investors will price that. Ask a Dominican real estate lawyer which vehicle fits.

How much sponsor equity is needed? There is no universal ratio; it depends on permits, minimum presales and the lender or investor. Typically the sponsor contributes land and pre-development, and each financier sets conditions.

Can a foreign investor invest in a Dominican project? Yes, subject to local registration and structuring; confirm current requirements with local counsel.

What is the difference between a co-investor and a fund? A co-investor usually negotiates a direct stake; a fund is a regulated vehicle with an investment policy, committee and disclosure rules. Timing and paperwork differ.

Should I promise returns? No. Present scenarios with assumptions, ranges and risks. Return promises are a reputational and, depending on the case, legal problem.

Need help?

If you are building an investor package, see Netix’s capital raising page, which describes its services for land or project review, investment document structuring and roadshow with support through closing.

For information only; not legal, tax or financial advice. Numerical examples are hypothetical and our own calculation. Confirm the structure (trust, company, fund) with your attorney and the tax treatment with your accountant. Figures as of 13 October 2026.