Can foreigners buy property in Punta Cana?

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

Yes, the analysis of Punta Cana'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 Punta Cana. 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 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 Punta Cana, Santo Domingo, and Santiago. 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

In Punta Cana, Gigi's strong understanding of the local real estate market allows her to match you with properties that align with your dreams. She makes navigating the area easy, ensuring every step feels seamless.

Can foreigners legally buy property in Punta Cana or are there restrictions compared to locals?

Foreigners can buy property in Punta Cana with exactly the same legal rights as Dominican citizens.

The Dominican Republic's constitution guarantees equal property ownership rights to foreign nationals, meaning you face no restrictions when purchasing residential, commercial, or agricultural land. You don't need Dominican citizenship, permanent residency, or any special permits to own real estate.

However, three specific areas remain restricted: properties within 60 meters of the beach (considered public land), properties within 60 kilometers of international borders (requiring special government permission), and land inside national parks or protected environmental areas. These restrictions apply equally to both foreigners and locals.

All other property types in Punta Cana—condominiums, villas, townhouses, lots, and commercial buildings—are completely open to foreign ownership with full title rights.

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

Do foreigners need to have residency, a visa, or any special permit to purchase property?

No residency, visa, or special permit is required for foreigners to purchase property in Punta Cana.

You can buy real estate as a tourist on a simple visitor visa, and the transaction process remains identical whether you're a temporary visitor or a long-term resident. The Dominican government designed these property laws specifically to attract foreign investment and make the buying process as straightforward as possible.

The only documentation you need is a valid passport and proof of funds for the purchase. Once you complete the transaction, you'll receive full legal title to the property with the same ownership rights as any Dominican citizen.

Many buyers complete their entire property purchase while visiting Punta Cana on vacation, making it one of the most accessible Caribbean real estate markets for international investors.

Is it necessary to be physically present in the Dominican Republic to complete the purchase?

Physical presence is not required to complete a property purchase in Punta Cana.

You can execute the entire transaction remotely using a properly prepared power of attorney that grants your designated representative full authority to sign contracts and complete the closing on your behalf. This legal document must be notarized and, if signed outside the Dominican Republic, authenticated by a Dominican consulate or apostilled according to international treaty requirements.

Your lawyer or trusted agent can handle all aspects of the transaction, including property inspections, contract negotiations, due diligence verification, and final document signing. However, many buyers prefer to be present for the initial property viewing and final closing to ensure everything meets their expectations.

Remote purchasing works particularly well for off-plan purchases or when buying from reputable developers with established track records in the Punta Cana market.

What is the step-by-step process to buy property, and which documents are required?

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

Step	Action Required	Timeline
1	Find reputable local real estate agent	1-2 weeks
2	Property search and viewing	1-4 weeks
3	Make formal offer through agent	1-3 days
4	Sign preliminary contract with 10% deposit	1 week
5	Due diligence and title verification	2-3 weeks
6	Obtain Dominican tax ID (RNC/NIF)	1 week
7	Sign final contract and pay balance	1 week
8	Pay 3% transfer tax and register property	1-2 weeks
9	Receive title certificate	1-2 weeks

Is hiring a lawyer mandatory for foreigners, and what role do they usually play in the transaction?

Hiring a lawyer is not legally mandatory but is highly recommended for all foreign property buyers in Punta Cana.

A qualified Dominican real estate attorney protects your interests by conducting comprehensive due diligence, verifying property titles, checking for outstanding debts or liens, reviewing all contracts, and ensuring proper deed registration. They also confirm the property has proper surveying (deslindado status) and current tax payments.

Your lawyer should be independent of the seller's legal representation to avoid conflicts of interest. They typically charge 1-1.5% of the property value and handle the entire legal process from contract review through final registration.

Given the complexities of Dominican property law and the potential for costly legal errors, most experienced foreign buyers consider legal representation essential rather than optional. The lawyer's fee represents a small insurance cost against much larger potential problems.

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

What are the taxes, fees, and closing costs involved when buying and later reselling property?

Property transactions in Punta Cana involve several mandatory taxes and fees that buyers should budget for in advance.

Cost Category	Amount	When Paid
Transfer Tax	3% of assessed value	At closing
Legal Fees	1-1.5% of purchase price	At closing
Notary Fees	~1% of purchase price	At closing
Registration	0.3-0.5% of purchase price	At closing
Surveying/Translation	$300-$800	During due diligence
Annual Property Tax	1% above $166,000 value	Annually
Capital Gains (selling)	27% of profit	Upon sale

Are mortgages available to foreigners, and if so, what are the typical interest rates, conditions, and tips to qualify?

Mortgages are available to foreigners in Punta Cana, though with stricter requirements and higher down payments than for Dominican citizens.

Dominican banks typically require 25-40% down payments from foreign buyers compared to potentially lower amounts for locals. Loan-to-value ratios usually range from 50-75%, with maximum terms of 20-25 years. Interest rates vary significantly: USD-denominated loans carry 8-10% annual rates, while Dominican peso loans range from 13-14%.

Required documentation includes passport, proof of income, six months of bank statements, credit reports, and property appraisals. The approval process takes 4-8 weeks, and banks often require property insurance plus prefer borrowers with existing banking relationships.

Pro tips for qualification: work with developers' preferred banks for easier approval, consider using a local mortgage broker, and maintain Dominican bank accounts before applying. USD loans offer more stable payments for foreign buyers earning in dollars.

How do property prices break down by city, neighborhood, and region within Punta Cana and nearby areas?

Property prices in Punta Cana vary dramatically based on location, amenities, and proximity to beaches or golf courses.

1. **Entry-level condos ($75,000-$150,000)**: Found in Bavaro, White Sands, and Vista Cana developments, typically offering basic amenities and community pools2. **Mid-range properties ($200,000-$400,000)**: Located in Los Corales, Cocotal Golf & Country Club, and beachfront Bavaro areas with better finishes and resort-style amenities3. **Luxury properties ($500,000-$5 million+)**: Concentrated in Cap Cana, Punta Cana Village, and exclusive beachfront locations with marina access, championship golf, and premium services4. **Price per square meter averages**: $1,569/m² overall, ranging from $146/m² for rural properties to $2,500+/m² for prime beachfront locations5. **Rental investment properties**: Properties in tourist zones command premium prices due to higher rental yields and stronger appreciation potential

As of September 2025, the most expensive areas remain Cap Cana and beachfront Punta Cana Village, while the best value for money is typically found in established communities like Cocotal and emerging areas like Vista Cana.

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.

Which areas are most popular among foreigners for living, renting out, or long-term investment?

Foreign buyers concentrate their investments in five primary areas, each offering distinct advantages for different investment strategies.

**Cap Cana** leads in luxury investment appeal, featuring marina access, championship golf courses, high-end restaurants, and exclusive beach clubs. Properties here appreciate fastest and attract affluent vacation renters willing to pay premium rates for luxury amenities.

**Bavaro and Los Corales** form the most established expat community with abundant restaurants, shopping, and nightlife. This area offers the strongest vacation rental demand due to proximity to beaches and tourist attractions, making it ideal for short-term rental investment.

**Vista Cana, Cocotal, and White Sands** provide family-friendly gated communities with golf courses, security, and modern infrastructure. These areas appeal to buyers seeking long-term residency or stable rental income from families and professionals.

**Punta Cana Village** attracts buyers wanting luxury without Cap Cana's premium pricing, offering golf access, quality construction, and growing appreciation potential.

What are the latest figures on rental yields, rental demand, tourism numbers, and property value growth forecasts?

Punta Cana's rental market delivers strong returns driven by robust tourism and consistent visitor growth.

Vacation rental properties typically generate 7-10% annual yields, with properties in prime tourist zones achieving the higher end of this range. Peak occupancy occurs December through April when demand from North American travelers reaches its highest levels.

Tourism statistics show Punta Cana and La Altagracia province remain the Dominican Republic's fastest-growing tourist destination, ensuring sustained rental demand. The region's tourism infrastructure continues expanding with new restaurants, attractions, and direct flights from major international cities.

Property value growth forecasts predict 3-8% annual appreciation through 2028, with luxury properties and pre-construction developments expected to outperform the general market. This growth is supported by limited beachfront land availability and increasing international recognition of Punta Cana as a premium Caribbean destination.

Long-term rental demand also strengthens as more international professionals work remotely from Punta Cana, creating additional income opportunities for property investors beyond traditional vacation rentals.

What classic mistakes or pitfalls should foreigners avoid when buying property in Punta Cana?

Foreign buyers frequently encounter avoidable problems that can cost thousands of dollars or result in legal complications.

**Title and documentation errors** represent the most costly mistakes: buying properties without clear surveyed titles (deslindado status), skipping proper due diligence, or relying solely on the seller's lawyer for legal advice. Always verify the seller owns the property and confirm no outstanding debts, liens, or tax obligations exist.

**Informal agreements** create serious legal risks: handshake deals, unsigned contracts, or agreements not properly notarized hold no legal weight in Dominican courts. Every transaction must follow formal legal procedures with proper documentation.

**Community and regulatory oversights** cause ongoing problems: failing to understand HOA fees and rules, ignoring local environmental or zoning restrictions, or buying in areas without proper infrastructure access. These issues become expensive to resolve after purchase.

**Insurance and professional service gaps** leave buyers vulnerable: not obtaining property insurance, choosing inexperienced agents or lawyers, or attempting to navigate the process without professional guidance typically results in preventable complications.

Always hire reputable lawyers and experienced local agents, insist on complete title verification, and ensure all contracts receive proper notarization.

How do fiscal obligations such as annual property taxes or capital gains taxes affect foreign buyers compared to locals?

Tax obligations for property ownership apply equally to foreign and Dominican buyers, with identical rates and requirements for both groups.

Annual property tax (IPI) is charged at 1% of assessed value for properties exceeding RD$10,190,833 (approximately $166,000-$172,000 as of September 2025). Properties below this threshold are exempt, and the tax applies only to the excess amount above the exemption level.

Capital gains tax is 27% of profit when selling property, calculated as the difference between sale price and total acquisition costs including purchase price, improvements, and transaction fees. A partial exemption applies after 10 years of ownership, and this rate is identical for foreign and local sellers.

However, foreign retirees may qualify for special benefits: a 50% reduction in property tax over the exemption amount is available to qualifying retired foreign residents. This incentive program encourages international retirees to establish residency in the Dominican Republic.

Rental income from properties is subject to Dominican income tax, and both foreign and local property owners must comply with identical reporting and payment requirements.

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. Nova Properties - Property Registration Dominican Republic Foreigners
2. The LatinVestor - Buy Land Dominican Republic
3. The LatinVestor - Punta Cana Property
4. Turnkey in Punta Cana - Legal Process Buy House
5. The LatinVestor - Dominican Property Taxes
6. RealtorDR - Property Tax Guide
7. Perez Real Estate - Mortgages for Foreigners
8. The LatinVestor - Punta Cana Real Estate Market