Authored by the expert who managed and guided the team behind the Dominican Republic Property Pack
Everything you need to know before buying real estate is included in our The Dominican Republic Property Pack
If you're a foreigner thinking about buying a property in the Dominican Republic to rent it out, you're probably wondering what the real numbers look like and whether it's actually worth it.
We wrote this guide to answer every question you might have about renting out residential property in the Dominican Republic, from legal requirements to realistic yields to which neighborhoods actually perform best.
We update this blog post regularly as regulations and market conditions change, so you're always getting current information for early 2026.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in the Dominican Republic.
Can I legally rent out a property in the Dominican Republic as a foreigner right now?
Can a foreigner own-and-rent a residential property in the Dominican Republic in 2026?
As of early 2026, foreigners can legally own and rent out residential property in the Dominican Republic with the same rights as Dominican citizens, and no special government approval is required for most transactions.
The most common ownership structure for foreigners is direct personal ownership under their own name, though some investors use a local corporation (SRL) for liability protection or estate planning purposes.
The main limitation foreigners face is not a legal restriction but a practical one: managing a rental property remotely requires either a trusted property manager or a local partner who can handle tenant issues, maintenance, and collections on your behalf.
One important recent change is that the Dominican Republic enacted Ley 85-25, a new rental law that modernizes the rules around lease contracts, deposits, and rent adjustments, so you will want to ensure your lease agreements comply with this framework.
If you're not a local, you might want to read our guide to foreign property ownership in the Dominican Republic.
Do I need residency to rent out in the Dominican Republic right now?
You do not need Dominican residency to rent out property you own in the Dominican Republic, and many foreigners successfully collect rental income while living abroad full-time.
In practice, you should expect to obtain a Dominican tax identification number (RNC) so you can properly declare rental income and comply with DGII requirements, which your attorney can help you set up in a few days.
A local bank account is not legally required to collect rent, but it makes life much easier for receiving local peso transfers, paying condo fees, and handling maintenance invoices without constant international wire fees.
Managing a rental property in the Dominican Republic remotely is entirely feasible if you hire a reliable property manager, which is especially common in beach markets like Punta Cana and Sosua where turnover is frequent and tenant issues need local attention.
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What rental strategy makes the most money in the Dominican Republic in 2026?
Is long-term renting more profitable than short-term in the Dominican Republic in 2026?
As of early 2026, the more profitable rental strategy in the Dominican Republic depends heavily on your location and your willingness to manage higher complexity, with long-term rentals offering simpler passive income and short-term rentals offering higher gross revenue potential in prime tourist areas.
For a comparable 1-bedroom apartment in Santo Domingo, you might expect around $12,000 to $14,000 USD per year from a long-term lease versus $15,000 to $20,000 USD gross from a well-managed short-term rental, but after deducting management fees, turnovers, and higher vacancy, the net difference often narrows to just $2,000 to $4,000 USD annually.
Properties in beachfront locations like Punta Cana, Los Corales, and Las Terrenas tend to favor short-term renting because tourist demand is seasonal but intense, while Santo Domingo apartments near business districts and universities favor long-term leases with steadier year-round demand.
What's the average gross rental yield in the Dominican Republic in 2026?
As of early 2026, the average gross rental yield for residential properties in the Dominican Republic is approximately 7.8%, which places it among the best-performing markets in the Caribbean and Latin America.
The realistic gross rental yield range for most residential properties in the Dominican Republic spans from about 6% to 10%, with the lower end representing luxury properties and the higher end representing well-located mid-market apartments.
Smaller units like studios and 1-bedroom apartments typically achieve the highest gross yields in the Dominican Republic because their rent-to-price ratio is more favorable, while larger family-sized units often deliver lower yields despite higher absolute rents.
By the way, we have much more granular data about rental yields in our property pack about the Dominican Republic.
What's the realistic net rental yield after costs in the Dominican Republic in 2026?
As of early 2026, the realistic net rental yield after all costs for residential properties in the Dominican Republic falls between approximately 4.5% and 6.5% for long-term rentals, and between 4% and 7% for short-term rentals depending on occupancy and management efficiency.
Most landlords in the Dominican Republic actually experience net yields in the 4.5% to 6% range after accounting for vacancy, management, and maintenance, with premium properties in top neighborhoods hitting closer to 6.5% and older or poorly located units sometimes dipping below 4%.
The three main cost categories that reduce gross yield to net yield specifically in the Dominican Republic are condo and HOA fees (which can run $80 to $300 USD monthly in tower buildings), property management fees (8% to 10% for long-term and 15% to 25% for short-term), and the ongoing maintenance burden from humidity and air conditioning wear that many foreign owners underestimate.
You might want to check our latest analysis about gross and net rental yields in the Dominican Republic.
What monthly rent can I get in the Dominican Republic in 2026?
As of early 2026, typical monthly rents in Santo Domingo (the benchmark market) are approximately $700 to $900 USD for a studio (RD$44,000 to RD$57,000), $1,000 to $1,200 USD for a 1-bedroom (RD$63,000 to RD$76,000), and $1,400 to $1,900 USD for a 2-bedroom (RD$89,000 to RD$121,000).
A realistic entry-level monthly rent for a decent studio in the Dominican Republic is around $550 to $750 USD (RD$35,000 to RD$48,000), which covers basic furnished units in secondary neighborhoods or unfurnished units in better areas.
A realistic mid-range monthly rent for a typical 1-bedroom apartment in the Dominican Republic is around $800 to $1,100 USD (RD$51,000 to RD$70,000), which covers modern buildings with security, air conditioning, and good locations in Santo Domingo or beach communities.
A realistic mid-to-high monthly rent for a typical 2-bedroom apartment in the Dominican Republic is around $1,200 to $1,800 USD (RD$76,000 to RD$114,000), which covers well-furnished units in prime Santo Domingo neighborhoods or quality beach condos in Punta Cana and Las Terrenas.
If you want to know more about this topic, you can read our guide about rents and rental incomes in the Dominican Republic.
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.
What are the real numbers I should budget for renting out in the Dominican Republic in 2026?
What's the total "all-in" monthly cost to hold a rental in the Dominican Republic in 2026?
As of early 2026, the estimated total "all-in" monthly cost to hold and maintain a typical rental property in the Dominican Republic ranges from approximately $250 to $600 USD (RD$16,000 to RD$38,000), depending on property type, location, and whether you self-manage or hire a property manager.
A realistic low-to-high monthly cost range for most standard rental apartments in the Dominican Republic is $200 to $450 USD (RD$13,000 to RD$29,000) for a simple condo with modest HOA fees, and $400 to $700 USD (RD$25,000 to RD$44,000) for a larger property or one in a full-service tower building with higher condo fees.
The single largest contributor to monthly holding costs in the Dominican Republic is typically the condo or HOA fee, which can range from $80 to $300 USD monthly depending on whether your building has elevators, pools, backup generators, and 24/7 security guards.
You want to go into more details? Check our list of property taxes and fees you have to pay when buying a property in the Dominican Republic.
What's the typical vacancy rate in the Dominican Republic in 2026?
As of early 2026, the typical vacancy rate for long-term rentals in the Dominican Republic's prime neighborhoods is estimated at around 8% to 12% annually, which translates to roughly 1 to 1.5 months of vacancy per year for a well-located property.
A landlord in the Dominican Republic should realistically budget for 1 to 1.5 months of vacancy per year in strong Santo Domingo neighborhoods like Piantini and Naco, and closer to 1.5 to 2 months per year in tourist-driven coastal markets where the tenant pool is more seasonal and transient.
The main factor that causes vacancy rates to differ across neighborhoods in the Dominican Republic is proximity to stable demand sources like corporate offices, universities, and hospitals in Santo Domingo versus reliance on seasonal tourism in beach areas where expat and digital nomad tenants come and go more frequently.
Tenant turnover and vacancy in the Dominican Republic typically peak during the off-season months of May through November for coastal markets, while Santo Domingo sees more consistent year-round demand with modest turnover spikes around the August school year transition.
We have a whole part covering the best rental strategies in our pack about buying a property in the Dominican Republic.
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Where do rentals perform best in the Dominican Republic in 2026?
Which neighborhoods have the highest long-term demand in the Dominican Republic in 2026?
As of early 2026, the top three neighborhoods with the highest overall long-term rental demand in the Dominican Republic are Piantini and Naco in Santo Domingo (for professionals and expats), followed by Los Corales and El Cortecito in Bavaro (for tourism workers and long-stay visitors).
Families in the Dominican Republic gravitate toward neighborhoods like Arroyo Hondo, Los Cacicazgos, and Bella Vista in Santo Domingo because these areas offer larger apartments, proximity to international schools, and quieter residential streets with good security.
Students in the Dominican Republic concentrate their rental demand in Gazcue and the University Zone (Zona Universitaria) near UASD and other central Santo Domingo campuses, where they can find affordable studios and apartments with easy metro and public transit access.
Expats and international professionals in the Dominican Republic strongly prefer Piantini, Naco, and Bella Vista in Santo Domingo for their modern towers, walkable amenities, and English-friendly services, while in beach areas they favor Punta Cana Village, Cap Cana, and Las Terrenas for lifestyle-driven furnished rentals.
By the way, we've written a blog article detailing what are the current best areas to invest in property in the Dominican Republic.
Which neighborhoods have the best yield in the Dominican Republic in 2026?
As of early 2026, the top three neighborhoods with the best rental yields in the Dominican Republic are Gazcue and Evaristo Morales in Santo Domingo (mid-market areas with strong rent-to-price ratios), and Los Corales in Bavaro (accessible beach market with high tourist demand).
The estimated gross rental yield range for these top-yielding neighborhoods in the Dominican Republic is approximately 8% to 10%, compared to 6% to 7.5% in the most expensive prime neighborhoods where purchase prices are higher relative to rents.
The main characteristic that allows these neighborhoods to achieve higher yields than others in the Dominican Republic is that purchase prices have not yet inflated to "trophy" levels while rental demand remains persistently strong from cost-conscious professionals, students, and mid-budget tourists.
We cover a lot of neighborhoods and provide a lot of updated data in our pack about real estate in the Dominican Republic.
Where do tenants pay the highest rents in the Dominican Republic in 2026?
As of early 2026, the top three neighborhoods where tenants pay the highest rents in the Dominican Republic are Piantini and Naco in Santo Domingo (approximately $1,500 to $2,500 USD or RD$95,000 to RD$159,000 per month for a 2-bedroom), and Cap Cana in Punta Cana (approximately $2,000 to $4,000 USD or RD$127,000 to RD$254,000 per month for a luxury villa).
The typical monthly rent range for a standard 2-bedroom apartment in these premium neighborhoods is approximately $1,800 to $2,800 USD (RD$114,000 to RD$178,000) in Santo Domingo's top sectors, and $2,500 to $5,000 USD (RD$159,000 to RD$317,000) for furnished villas in Cap Cana and Casa de Campo.
The main characteristic that makes these neighborhoods command the highest rents in the Dominican Republic is their combination of modern high-rise towers with reliable backup generators, 24/7 security, and proximity to premium restaurants, international schools, and business centers that expats and executives require.
The typical tenant profile in these highest-rent Dominican Republic neighborhoods includes corporate executives on relocation packages, embassy staff, international NGO workers, successful remote entrepreneurs, and wealthy Dominicans who prioritize security and modern amenities over price.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of the Dominican Republic. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
What do tenants actually want in the Dominican Republic in 2026?
What features increase rent the most in the Dominican Republic in 2026?
As of early 2026, the top three property features that increase monthly rent the most in the Dominican Republic are backup power systems (generator or inverter), high-speed reliable internet, and 24/7 security with controlled access, because these directly address the everyday concerns that drive tenant decisions in this market.
Backup power alone can add an estimated 10% to 20% rent premium in the Dominican Republic because electricity outages remain common and tenants, especially expats and remote workers, will pay significantly more to avoid disruption to their work and daily life.
One commonly overrated feature that Dominican Republic landlords invest in but tenants do not pay much extra for is luxury kitchen finishes, because most renters prioritize functional appliances and air conditioning over imported countertops or high-end cabinetry.
One affordable upgrade that provides a strong return on investment for landlords in the Dominican Republic is installing a good quality inverter and ensuring reliable internet wiring, which can cost under $2,000 USD total but meaningfully increases both rent and tenant retention.
Do furnished rentals rent faster in the Dominican Republic in 2026?
As of early 2026, furnished apartments in the Dominican Republic typically rent 2 to 4 weeks faster than unfurnished units, especially in expat-heavy neighborhoods like Piantini and Naco and throughout beach markets where tenants expect move-in-ready properties.
Furnished apartments in the Dominican Republic typically command a rent premium of approximately 15% to 25% over comparable unfurnished units, which often justifies the upfront furnishing investment within the first 1 to 2 years of ownership.
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How regulated is long-term renting in the Dominican Republic right now?
Can I freely set rent prices in the Dominican Republic right now?
Landlords in the Dominican Republic can freely set the initial rent price at whatever level they and the tenant agree upon, as there is no government-mandated starting rent cap for new leases.
However, under the new Ley 85-25, if you did not explicitly agree on a rent adjustment mechanism in the lease contract, rent increases for residential housing cannot exceed 10% of the rent, which means you should always specify your readjustment terms clearly in writing.
What's the standard lease length in the Dominican Republic right now?
The standard lease length in the Dominican Republic is whatever landlord and tenant agree to in writing, but if a residential lease is verbal (not written), Ley 85-25 presumes a minimum term of at least 1 year.
The maximum security deposit a landlord can legally require for residential housing in the Dominican Republic is 2 months' rent under Ley 85-25, which represents a significant reduction from the 5 to 6 month deposits that were previously common market practice.
The rules for returning the security deposit in the Dominican Republic under Ley 85-25 allow the landlord to retain amounts for documented damages with evidence, and the law contemplates depositing the guarantee in specified banks by agreement, though in practice most landlords hold deposits directly and deduct repair costs at lease end.
We made this infographic to show you how property prices in the Dominican Republic compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
How does short-term renting really work in the Dominican Republic in 2026?
Is Airbnb legal in the Dominican Republic right now?
Airbnb-style short-term rentals are legal and widely practiced in the Dominican Republic, though the government has been working toward more formalized regulation, and condo building rules may impose their own restrictions.
There is currently no nationwide license or permit specifically required to operate a short-term rental in the Dominican Republic, but you should still register your rental income with DGII and ensure compliance with any local municipal or building-level requirements.
There are no national annual night limits or caps on how many days per year you can rent your property short-term in the Dominican Republic, unlike some European cities that restrict Airbnb to a maximum number of nights.
The most common consequence for non-compliance in the Dominican Republic is not a specific "Airbnb fine" but rather problems arising from undeclared rental income (tax penalties from DGII), violations of condo bylaws (fines or legal action from the HOA), or operating in a building that explicitly prohibits short-term guests.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in the Dominican Republic.
What's the average short-term occupancy in the Dominican Republic in 2026?
As of early 2026, the estimated average annual occupancy rate for short-term rentals in the Dominican Republic is approximately 40% to 50% for well-managed properties, with Santo Domingo averaging 37% to 53% and Punta Cana averaging 30% to 49% depending on property quality and location.
The realistic occupancy range that most short-term rentals experience in the Dominican Republic spans from about 18% for entry-level or poorly located properties to over 60% for top-performing listings with excellent reviews, professional photos, and prime locations.
The highest occupancy months for short-term rentals in the Dominican Republic are December through April (the "high season"), when North American and European tourists arrive in large numbers, driving occupancy rates to 70% to 90% in popular beach areas.
The lowest occupancy months for short-term rentals in the Dominican Republic are September through November (the "low season"), when hurricane concerns and back-to-school timing reduce tourist arrivals, and many STR properties see occupancy drop to 30% to 45%.
Finally, please note that you can find much more granular data about this topic in our property pack about the Dominican Republic.
What's the average nightly rate in the Dominican Republic in 2026?
As of early 2026, the estimated average nightly rate for short-term rentals in the Dominican Republic is approximately $70 to $80 USD (RD$4,400 to RD$5,100) in Santo Domingo and $120 to $150 USD (RD$7,600 to RD$9,500) in Punta Cana and beach markets.
The realistic nightly rate range for most short-term rental listings in the Dominican Republic spans from about $45 to $70 USD (RD$2,900 to RD$4,400) for budget listings to $150 to $250 USD (RD$9,500 to RD$15,900) for premium beachfront properties and luxury villas.
The typical nightly rate difference between peak season (December to April) and off-season (September to November) in the Dominican Republic is approximately $30 to $60 USD (RD$1,900 to RD$3,800), meaning you might charge $100 USD per night in January but only $60 USD per night in October for the same property.
Is short-term rental supply saturated in the Dominican Republic in 2026?
As of early 2026, the short-term rental market in the Dominican Republic is crowded but not uniformly saturated, with over 4,400 active listings in Santo Domingo alone, meaning success depends heavily on your specific micro-location, building rules, and property quality rather than the overall market.
The trend in the number of active short-term rental listings in the Dominican Republic has been growing steadily over the past few years, with new inventory entering both Santo Domingo and Punta Cana markets as more foreign owners discover the STR opportunity.
The neighborhoods most oversaturated with short-term rentals in the Dominican Republic are the Zona Colonial in Santo Domingo (where generic listings compete heavily) and the most commoditized strips of Los Corales and El Cortecito in Bavaro, where similar-looking condos struggle to differentiate.
Neighborhoods that still have room for new short-term rental supply in the Dominican Republic include emerging areas of Cap Cana (where luxury demand exceeds current inventory), parts of Las Terrenas on the Samana peninsula (where professional STR management is still less common), and well-differentiated properties in Cabarete targeting the kitesurfing and digital nomad community.
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about the Dominican Republic, we always rely on the strongest methodology we can and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Banco Central de la Republica Dominicana (BCRD) Tourism Report | Official central bank publishing primary tourism data used by government and markets. | We use it to anchor short-term rental demand in hard official visitor counts. We also use it to validate seasonality assumptions for coastal STR markets. |
| BCRD Exchange Rate Bulletin | Official central bank bulletin showing daily USD exchange rates. | We use it to convert rents and costs between USD and Dominican pesos consistently. We keep all budgets in one currency without guessing. |
| DGII ITBIS Page | Dominican tax authority stating which services are VAT-exempt. | We use it to confirm that residential rent is exempt from ITBIS (VAT). We prevent "surprise VAT" assumptions in net yield calculations. |
| DGII IPI Property Tax Guide | Official DGII technical guide explaining property tax rules and thresholds. | We use it to model whether foreign owners will owe IPI. We translate the rules into a simple "will I pay it?" checklist. |
| Ley 85-25 (Stern & Comas) | Reproduces the text of the new rentals law with Gazette publication details. | We use it to answer questions about rent setting, deposit limits, and contract rules. We quote only the operative parts needed for a non-professional reader. |
| Global Property Guide Rental Yields | Long-running cross-country property research publisher with transparent yield data. | We use it as a benchmark for gross yields by city and unit size. We triangulate with live asking rents on listing portals to keep estimates realistic. |
| Encuentra24 Rental Listings | Major classifieds marketplace showing real current asking rents by neighborhood. | We use it to spot-check early 2026 rent levels for expat-style units priced in USD. We use it as "market pulse," not as a statistical average. |
| Airbtics Santo Domingo STR Data | Dedicated STR analytics provider publishing ADR, occupancy, and listing counts. | We use it to quantify short-term occupancy and nightly rates for planning. We triangulate with AirROI data to avoid single-vendor bias. |
| AirROI Santo Domingo STR Data | Provides downloadable STR market snapshots with listings and occupancy updated regularly. | We use it as an independent second opinion on STR occupancy and inventory. We use differences versus Airbtics as a realistic range. |
| Diario Libre STR Regulation Reporting | Leading national newspaper reporting direct statements from the Tourism Minister. | We use it to describe the regulatory direction (ongoing formalization) without inventing rules that don't exist. We pair it with actual law for long-term rentals. |
We have made this infographic to give you a quick and clear snapshot of the property market in the Dominican Republic. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.