The first thing you should know is that there are no restrictions for foreign investors to purchase property in Punta Cana or anywhere in the Dominican Republic; it’s easier than you might think.

Here are some common questions my clients have before investing in a property in the DOMINICAN REPUBLIC:

What is the legal process for a foreigner, specifically a Mexican, to buy property in Punta Cana?

As a foreigner, you only need your passport and basic documentation from your country of origin, such as proof of address, birth certificate, bank statements from your home country, and, of course, to choose your ideal purchase scheme. You could invest in a pre-sale property, which means buying from plans and paying through developer financing, with delivery in 2-3 years, or in a property that’s ready to occupy, which must be paid in full within approximately 45 days.

What is the average return on real estate investment in Punta Cana?

Properties in the Dominican Republic have different rates of return, but in Punta Cana, the current average annual appreciation rate is 8.5%, with annual profitability between 5-12%. Remember that appreciation and profitability are different aspects, but both should always be considered in real estate investment.

What types of properties are available for investment, and which is the most profitable?

In Punta Cana, you can invest in any type of property, whether an apartment, villa, land plot, or even a construction or development project to sell or to build your own home.

Profitability today depends on several factors, including:
Location
Property decor
Accessibility
Security
Amenities for enjoyment
Nearby activities
Among other considerations, including who manages the property and the platforms where it’s promoted.

Today, Airbnb accounts for 70% of vacation rental traffic on platforms.

Are there tax incentives or benefits for foreign investors in the Dominican Republic?

The Dominican government aims to encourage foreign investment, and thus offers a law called CONFOTUR, which is very beneficial for investors. It exempts us from the Property

Tax for 15 years, which would otherwise be 1% annually of the property’s value. Additionally, with CONFOTUR, we are exempt from the 3% property transfer tax at the time of purchase.

Other interesting benefits also exist to help maximize profits by paying lower taxes.

What are the costs associated with purchasing and maintaining properties in Punta Cana?

Associated costs include the property transfer tax (3% of the property’s value), legal fees (1% - 1.5% of the property’s value), and maintenance costs, which vary depending on the property and complex, but can range from $100 to $500 monthly.

If you’d like to learn more about real estate investments, our team of advisors would be delighted to guide you and show you the best investment opportunities in Punta Cana.

WE DO NOT SELL PROPERTIES;
AWE ADVISE ON REAL ESTATE INVESTMENTS
TOP ADVISER REAL ESTATE PUNTA CANA