Cabarete: property buying guide (Sept 2025)

Authored by the expert who managed and guided the team behind the Dominican Republic Property Pack

Yes, the analysis of Cabarete's property market is included in our pack

Who is the author of this content?

THE LATINVESTOR

A team specialized in real estate investing in LATAM countries

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Cabarete. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At The LatinvestoR, we explore the Dominican Republic real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Cabarete, Santo Domingo, and Punta Cana. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

Fact-checked and reviewed by our local expert

✓✓✓

Gigi Tea 🇩🇴

Realtor, at RealtorDR

With her Dominican-American heritage and local presence, Gigi has deep insight into the Cabarete real estate market. She will help you find the perfect property to match the town's adventurous and relaxed vibe. After speaking with her, we incorporated her perspective into this blog post, which also helped refine and validate the content.

What can foreigners legally buy in Cabarete and what types of properties are off-limits?

Foreign buyers enjoy complete legal property ownership in Cabarete with zero restrictions on property types.

You can purchase residential homes, condominiums, vacant land, commercial buildings, and even beachfront properties with full ownership rights identical to Dominican citizens. The Dominican Republic's Constitution guarantees foreign property ownership, making it one of the most foreigner-friendly real estate markets in the Caribbean.

There are no off-limits zones or property categories for international buyers. Whether you're interested in a beachfront villa, a downtown commercial space, agricultural land, or a luxury condominium, all property types are legally available for foreign purchase and ownership.

The only requirement is obtaining a Dominican tax identification number (RNC) during the purchase process, which your attorney will handle as part of the standard transaction procedures.

It's something we develop in our Dominican Republic property pack.

Is there a path to residency or citizenship if you buy property there?

Property purchase alone does not automatically grant residency or citizenship, but it significantly facilitates the residency application process.

Temporary residency becomes much easier for property owners, especially when working with a local attorney who can demonstrate your financial ties to the Dominican Republic. Property ownership serves as proof of economic investment and commitment to the country.

The most direct path to permanent residency is through the investment program, which requires a minimum $200,000 investment in Dominican real estate. This can be residential or commercial property, and the investment must be maintained throughout the residency process.

The investment residency process typically involves obtaining temporary residency first, then applying for permanent residency after two years. You'll need to provide proof of funds, pass a background check, and complete the legal application process with proper documentation.

After holding permanent residency for several years, you may become eligible to apply for Dominican citizenship, though this involves additional requirements and procedures beyond the initial property investment.

Which neighborhoods or areas in Cabarete are most popular with foreign buyers and why?

Pro Cab ranks as the most popular area among foreign buyers due to its prime beachfront location and vibrant social scene.

This neighborhood offers immediate beach access, numerous restaurants and bars, and the town's most active nightlife. Foreign investors particularly favor Pro Cab for short-term rental properties because tourists prefer staying within walking distance of the beach and entertainment options.

Hispaniola Residencial attracts expatriates seeking a more residential community atmosphere with well-maintained infrastructure and established expat networks. Properties here average DOP142,407 per square meter for apartments and DOP118,755 per square meter for houses, representing good value for the quality of amenities and community services.

Cabarete East appeals to buyers wanting newer developments and a quieter lifestyle while still maintaining reasonable access to the town center. This area offers more space and privacy compared to the central areas.

Beachfront and oceanfront properties across all neighborhoods command premium prices but deliver the highest rental yields due to their appeal to vacation rental guests and the limited supply of waterfront real estate.

What's the step-by-step process for buying property in Cabarete as a foreigner?

The property buying process in Cabarete follows a structured seven-step procedure that typically takes 30-60 days to complete.

1. **Property identification and selection** - Research neighborhoods, review listings, and conduct property viewings to select your target property2. **Hire qualified legal representation** - Engage a bilingual Dominican attorney experienced in foreign property transactions to handle legal procedures3. **Obtain Dominican tax identification (RNC)** - Your attorney will help you secure this mandatory tax ID number required for all property transactions4. **Complete due diligence investigation** - Verify clear title, check for liens or encumbrances, confirm tax payments are current, and conduct property inspections5. **Execute purchase agreement** - Sign the contract before a notary with typically a 10% deposit held in escrow by the attorney or notary6. **Finalize payment and closing** - Transfer the remaining balance via documented bank wire or verified cash payment according to the agreement terms7. **Title transfer and registration** - Sign the final deed before a notary and register the new title in your name at the local Land Registry office

Each step requires specific documentation and legal procedures, making qualified legal representation essential for a smooth transaction process.

Which documents are mandatory to complete the purchase, and which are optional but recommended?

Mandatory documents for property purchase include your valid passport, Dominican tax ID number (RNC), signed purchase agreement, certificate of title, and proof of legal funds origin.

Document Type	Specific Requirement	Purpose
Mandatory	Valid passport and identification	Legal identity verification
Mandatory	Dominican tax ID (RNC)	Tax compliance and registration
Mandatory	Signed purchase agreement	Legal contract establishment
Mandatory	Certificate of title/ownership proof	Property ownership verification
Mandatory	Proof of funds and legal origin	Anti-money laundering compliance
Recommended	Topographical property survey	Boundary and size confirmation
Recommended	Professional inspection report	Property condition assessment
Recommended	Tax and utility payment verification	Confirm no outstanding debts
Recommended	Power of attorney (if buying remotely)	Legal representation authorization

For financed purchases, you'll also need recent tax returns and bank statements to satisfy lender requirements. The surveyor's report is legally required in most cases to confirm property boundaries and measurements.

Can the entire buying process be done without physically being in the Dominican Republic?

Yes, the complete property purchase can be executed remotely through proper legal representation and digital documentation.

Remote purchases require establishing a power of attorney with a qualified Dominican attorney who can act on your behalf throughout the entire transaction process. This legal authorization allows your representative to sign documents, conduct due diligence, and complete the closing procedures without your physical presence.

Virtual property tours, video conferencing with agents and attorneys, and digital document exchange have become standard practice for international buyers. E-signatures are legally accepted for most transaction documents, streamlining the remote purchase process.

Your attorney will coordinate property inspections, title searches, and all necessary legal procedures while keeping you informed throughout each step. The final deed signing and title registration can be completed by your attorney using the power of attorney authorization.

However, visiting the property and location before purchase is strongly recommended to verify the property condition and neighborhood characteristics that may not be apparent through virtual tours alone.

What taxes, fees, and other costs should a foreign buyer expect to pay, both upfront and annually?

Foreign buyers face several upfront costs totaling approximately 5-7% of the purchase price, plus ongoing annual obligations.

The transfer tax represents the largest upfront cost at 3% of the purchase price or assessed property value, whichever is higher. Legal and notary fees typically range from 1-2.5% of the purchase price, depending on the complexity of the transaction and the attorney's fee structure.

Additional upfront costs include a stamp tax of RD$1,000 per contract and title registration fees equal to 1% of the property value. These government fees are non-negotiable and must be paid in Dominican pesos at current exchange rates.

Annual property tax (IPI) applies only to properties valued above RD$7,235,000 (approximately $130,000 USD as of September 2025), calculated at 1% of the assessed value. Properties below this threshold are exempt from annual property taxes.

Ongoing costs include homeowners association fees for condominiums, property maintenance, utilities, and property insurance, which vary significantly based on property type and location.

Can you pay entirely in cash, and if so, are there any restrictions or benefits?

Cash purchases are legal and common in Cabarete, but require proper documentation to comply with anti-money laundering regulations.

You must provide clear documentation of your funds' legal origin, including bank statements, tax returns, or other financial records that demonstrate the legitimate source of your money. This requirement applies to all cash transactions to prevent money laundering and comply with Dominican financial regulations.

Cash payments typically involve bank wire transfers rather than physical cash, as large cash transactions above RD$1,000,000 must be properly reported to Dominican financial authorities. Wire transfers provide the necessary documentation trail for legal compliance.

Cash buyers often negotiate better purchase prices and faster closing timelines since they don't depend on mortgage approval processes. Sellers frequently prefer cash offers because they eliminate financing-related delays and the risk of deal cancellation due to loan denials.

It's something we develop in our Dominican Republic property pack.

Is mortgage financing actually available to foreigners, and what are the typical rates, conditions, and best ways to qualify?

We did some research and made this infographic to help you quickly compare rental yields of the major cities in the Dominican Republic versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

Mortgage financing is available to foreigners through Dominican banks, though the process requires more documentation compared to cash purchases.

Dominican banks typically offer mortgage rates between 7-11% APR for foreign borrowers, with loan terms usually ranging from 15-20 years. Most lenders require down payments of 20-30% of the property value, which is higher than the typical requirements for Dominican citizens.

Qualifying for a mortgage requires demonstrating stable income through tax returns, bank statements, and employment verification from your home country. International lenders who specialize in Dominican real estate also provide financing options, sometimes with more flexible terms for qualified borrowers.

The best qualification strategy involves working with banks that have experience lending to foreigners, maintaining strong financial documentation, and considering working with mortgage brokers who understand both Dominican lending requirements and international income verification procedures.

Many foreign buyers find that establishing a relationship with a Dominican bank before property shopping can streamline the mortgage process and provide pre-approval clarity for their budget planning.

What are the most common mistakes or pitfalls foreigners face when buying property in Cabarete?

The most frequent and costly mistake is skipping comprehensive due diligence, particularly title verification and lien searches.

1. **Inadequate due diligence** - Failing to verify clear title, check for outstanding liens, or confirm the seller's legal ownership can result in future legal complications and financial losses2. **Choosing unqualified legal representation** - Using inexperienced or unreliable attorneys leads to improper documentation, missed legal requirements, and potential fraud exposure3. **Underestimating total costs** - Many buyers focus only on the purchase price and fail to budget for transfer taxes, legal fees, ongoing maintenance, and property management expenses4. **Ignoring property management requirements** - International buyers often underestimate the complexity and cost of managing properties remotely, especially for rental investments5. **Insufficient market research** - Purchasing without understanding local rental markets, neighborhood dynamics, or realistic income projections leads to poor investment returns6. **Documentation and compliance failures** - Improper fund documentation, missing tax compliance, or inadequate insurance coverage can create legal and financial complications

Working with experienced local professionals and conducting thorough market research before purchasing helps avoid these common and expensive mistakes.

What's life really like as an expat in Cabarete in terms of lifestyle, cost of living, and community?

Cabarete offers a relaxed, cosmopolitan lifestyle that attracts digital nomads, retirees, and adventure sports enthusiasts from around the world.

The town's laid-back atmosphere centers around beach activities, water sports (particularly kiteboarding and surfing), and a vibrant social scene with beachfront restaurants, yoga studios, and evening entertainment. English is widely spoken due to the large expat population, making daily life comfortable for international residents.

Living costs are significantly lower than North American or European standards, with monthly expenses ranging from $800-1,500 for a comfortable lifestyle depending on housing choices and personal preferences. Dining out, domestic services, and local transportation are particularly affordable compared to developed countries.

The expat community is diverse and welcoming, with established social networks, regular events, and support systems for newcomers. Many expatriates report high satisfaction with the quality of life, citing the perfect climate, friendly local culture, and strong sense of community as major advantages.

Infrastructure quality is generally good for basic needs, though internet reliability can vary depending on location, which is important for digital nomads and remote workers to consider when choosing their residence.

What are the current yields, average property prices, and the long-term forecast for the real estate market there?

As of September 2025, median apartment prices in Cabarete average DOP142,407 per square meter, while houses average DOP118,755 per square meter.

Short-term rental properties generate strong yields due to Cabarete's popularity as a vacation destination, with beachfront and oceanfront properties commanding premium rental rates throughout the year. The town's established tourism infrastructure and consistent visitor demand support reliable rental income for well-managed properties.

The long-term market forecast remains positive, driven by continued tourism growth, infrastructure development, and increasing foreign demand for Dominican Republic real estate. Property values in Cabarete are expected to continue rising as the destination gains recognition among international buyers and the government invests in regional development projects.

Market fundamentals support continued appreciation, including limited beachfront supply, growing expat community, and the Dominican Republic's stable economic environment. However, property performance varies significantly based on location, property type, and management quality, making careful selection crucial for investment success.

It's something we develop in our Dominican Republic property pack.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. Blue Sail Realty - Buying Property in the Dominican Republic
2. Cabarete Properties - Can Foreigners Buy Property
3. Global Property Guide - Dominican Republic Buying Guide
4. The LatinvestoR - Cabarete Property
5. Blue Sail Realty - Dominican House for Sale Guide
6. Ocean Side Realty - Why Foreigners Move to Cabarete
7. Blue Sail Realty - Guide to Gaining Residency
8. Noriega Group - Residency Through Real Estate
9. The LatinvestoR - Cabarete Which Area
10. Cabarete Properties - Best Investment Areas