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
Foreigners can buy property in Cabarete with the same rights as locals, making it one of the most accessible Caribbean markets for international investors.
The Dominican Republic welcomes foreign property ownership without restrictions, offering clear titles and straightforward purchase processes. From beachfront condos in Kite Beach to luxury villas in Perla Marina, international buyers have numerous options in this growing surf and kite destination.
If you want to go deeper, you can check our pack of documents related to the real estate market in the Dominican Republic, based on reliable facts and data, not opinions or rumors.
Foreigners enjoy full property ownership rights in Cabarete with no nationality restrictions or residency requirements.
Property prices range from $150,000 for condos to $1M+ for beachfront estates, with 8-10% annual growth rates.
| Key Factor | Details | Foreign Buyer Impact |
|---|---|---|
| Ownership Rights | Full ownership, same as locals | Complete property control |
| Residency Required | No | Buy with tourist status |
| Physical Presence | Not mandatory | Remote purchase possible |
| Transfer Tax | 3% of property value | Budget for closing costs |
| Lawyer Requirement | Recommended, not mandatory | Essential for due diligence |
| Mortgage Availability | Yes, 8-12% rates | 40-50% down payment needed |
| Popular Areas | Kite Beach, Perla Marina | Strong rental yields 6-8% |
Can foreigners buy property in Cabarete the same way locals can, or are there restrictions?
Foreigners enjoy exactly the same property ownership rights as Dominican citizens in Cabarete.
The Dominican Republic welcomes international investors with open arms, placing no restrictions based on nationality for real estate ownership. You can purchase, own, and sell property with complete legal title, whether as an individual, through a corporation, or via a trust structure.
This legal framework makes Cabarete one of the most accessible Caribbean property markets for foreign buyers. Unlike some countries that limit foreign ownership to certain percentages or require local partnerships, the Dominican Republic grants full ownership rights from day one.
The property registration system is well-established and transparent, providing clear title documentation that international banks and legal systems recognize.
It's something we develop in our Dominican Republic property pack.
Are there any special rules or differences depending on the buyer's nationality?
No special rules or restrictions apply based on your nationality when buying property in Cabarete.
Whether you're American, Canadian, European, or from any other country, the purchase process remains identical. The Dominican Republic treats all foreign buyers equally under its property laws, with no preferential treatment or additional hurdles for specific nationalities.
Some practical advantages exist for certain nationalities during the mortgage process, where U.S. and Canadian citizens typically find better approval rates with Dominican banks due to established banking relationships and credit verification systems.
Currency considerations may vary - while most transactions occur in U.S. dollars, some buyers benefit from favorable exchange rates depending on their home currency.
Do I need residency or a specific visa to purchase property in Cabarete?
You do not need residency or any specific visa to purchase property in Cabarete.
Tourist status is sufficient to complete a property purchase, making the Dominican Republic one of the most foreigner-friendly property markets in the Caribbean. Many international buyers successfully purchase property during vacation visits without any residency requirements.
While residency isn't required for purchase, obtaining it later can provide certain advantages including better banking relationships, potential tax benefits, and easier property management access.
The country offers various residency programs for property investors, though these are optional benefits rather than purchase requirements.
Do I have to be physically present in the Dominican Republic to complete the purchase?
Physical presence in the Dominican Republic is not mandatory to complete your property purchase.
Many foreign buyers successfully complete transactions remotely using Power of Attorney documents and local legal representation. This remote purchase process has become increasingly streamlined, especially for buyers working with established real estate professionals.
If purchasing remotely, you'll need to prepare notarized Power of Attorney documents in your home country, which your Dominican lawyer will use to act on your behalf during the transaction.
While remote purchases are possible, visiting the property and meeting your legal team in person is highly recommended for due diligence and peace of mind, especially for first-time buyers in the market.
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What is the full step-by-step process for buying property as a foreigner, and what documents will I need?
The property purchase process in Cabarete follows a structured 9-step sequence that typically takes 30-60 days to complete.
- Property Search and Selection: Research neighborhoods, visit listings, and work with local agents familiar with foreign buyer needs
- Submit Formal Offer: Present a purchase offer or letter of intent with initial terms and conditions
- Hire Legal Representation: Engage a Dominican lawyer specializing in real estate to handle legal aspects and due diligence
- Conduct Due Diligence: Verify property titles, check for encumbrances, liens, and conduct property condition assessments
- Sign Sales Contract: Execute the binding purchase agreement between buyer and seller, requiring notarization
- Transfer Funds: Wire deposit and full purchase price through secure banking channels
- Pay Taxes and Fees: Cover transfer tax (3%), registration fees (1-2%), and legal fees (1.5-2.5%)
- Complete Title Registration: Register the new ownership at the Dominican Registry of Titles
- Receive Title and Keys: Obtain certified title documents and take possession of your property
Required Documents:
- Valid passport with minimum 6 months validity
- Proof of funds (bank statements, wire transfer confirmations)
- Notarized Power of Attorney (if purchasing remotely)
- Purchase agreement and all contract amendments
- Seller's clear title, certificate of no debt, and certificate of no legal claims
Is hiring a lawyer mandatory, and if not, why might it still be recommended?
Hiring a lawyer is not legally mandatory for property purchases in Cabarete, but it's strongly recommended for foreign buyers.
Dominican real estate transactions involve complex legal documentation in Spanish, making professional legal guidance essential for non-Spanish speakers. A qualified lawyer protects you against fraud, hidden debts, title issues, and contractual problems that could cost thousands later.
Legal fees typically range from 1.5-2.5% of the property value, which is a small investment compared to the financial protection provided. Your lawyer will conduct comprehensive due diligence, verify all documentation, handle government registrations, and ensure compliance with Dominican property laws.
The legal system in the Dominican Republic operates differently from North American or European systems, making local expertise invaluable for navigating bureaucratic processes and avoiding common pitfalls.
It's something we develop in our Dominican Republic property pack.
What are the current property prices by neighborhood, city, and region, and how do they compare?
Cabarete property prices vary significantly by location, with beachfront proximity being the primary price driver as of September 2025.
| Neighborhood | 1-Bedroom Condo | 2-3 Bedroom Villa | Luxury Beachfront | Price Trend |
|---|---|---|---|---|
| Kite Beach | $150,000-$220,000 | $300,000-$450,000 | $500,000-$1,000,000+ | +8-10% annually |
| Perla Marina | $200,000-$350,000 | $350,000-$600,000 | $600,000-$1,200,000 | Stable growth |
| Downtown Cabarete | $129,000+ | $175,000-$200,000 | $500,000+ | Tourist hub premium |
| Oceanfront Estates | $500,000+ | $1,000,000+ | $1,500,000+ | Highest premiums |
| Sosúa (nearby) | $120,000-$180,000 | $250,000-$400,000 | $450,000-$800,000 | International community |
Average price per square meter reaches $2,150 for apartments and $1,800 for houses. Beachfront or ocean-view properties command a 15% premium over similar inland properties.
Rental market data shows 2-bedroom apartments averaging $1,300 monthly, with ranges from $800-$1,750 depending on location and amenities.
Which areas are most popular with foreigners for living, renting out, or long-term investment, and what's the latest data on livability, rental yields, rental income, tourism numbers, and growth forecasts?
Kite Beach stands as the most popular area for foreign investors, offering strong rental yields between 6-8% annually.
This beachfront zone attracts water sports enthusiasts and digital nomads, creating consistent rental demand year-round. The area features established expat communities, international restaurants, and reliable internet infrastructure appealing to remote workers.
Perla Marina appeals to families and retirees seeking security and upscale amenities within a gated community setting. Properties here maintain stable values with moderate rental yields around 5-6% but offer excellent capital appreciation potential.
Downtown Cabarete provides the highest rental yields (7-9%) due to its walkable location and proximity to nightlife, restaurants, and beach access. This area works best for short-term rental strategies targeting tourists and weekend visitors.
Tourism numbers for the Puerto Plata province (including Cabarete) reached 1.2 million visitors in 2024, with growth forecasts projecting 8-12% annual increases through 2027. The Cabarete market specifically benefits from year-round kitesurfing and windsurfing seasons, maintaining occupancy rates above 70% for well-managed rental properties.
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.
Can foreigners get a mortgage in the Dominican Republic, and if so, what are the usual rates, conditions, and tips to improve approval chances?
Foreigners can obtain mortgages in the Dominican Republic, though the process is more challenging than for local residents.
Current mortgage rates for non-residents range from 8-12% annually, with loan terms typically limited to 10-15 years. Banks require substantial down payments of 40-50% of the property value, significantly higher than local buyer requirements.
Major banks offering foreign mortgages include BanReservas, Banco Popular, and Scotiabank, each with slightly different requirements and rate structures. U.S. and Canadian citizens generally experience better approval rates due to established banking relationships and easier income verification processes.
Required Documentation:
- Valid passport and identification documents
- Two years of verified income statements
- Bank statements from your home country (minimum 24 months)
- Bank references and credit reports
- Professional property appraisal
Tips for Approval Success: Prepare all documentation well in advance, establish relationships with multiple banks, work with experienced local lawyers familiar with foreign mortgage processes, and maintain patience as approval timelines often extend 60-90 days.
What taxes, fees, and costs should I expect when buying and later selling property?
Property purchase costs in Cabarete include several mandatory fees and taxes that buyers must budget beyond the purchase price.
Purchase Costs:
Transfer tax represents the largest expense at 3% of the property's declared value or appraised value, whichever is higher. Registration fees add another 1-2% of the property value for official title registration. Legal and notary fees typically range from 1.5-2.5% of the purchase price.
Ongoing Ownership Costs:
Annual property tax applies to properties valued over DOP 7 million (approximately $122,000), calculated at roughly 1% of the appraised value. Luxury properties may face higher tax rates, while properties under tourism development laws (Confotur) may qualify for tax exemptions up to 15 years.
Sale Costs:
Capital gains tax applies to properties not covered under Confotur or special tourism regimes. Real estate agent commissions and legal fees for sale preparation should be factored into exit strategies.
It's something we develop in our Dominican Republic property pack.
What are the common mistakes and pitfalls foreigners face when buying in Cabarete, and how can I avoid them?
The most common mistake foreign buyers make is skipping professional legal representation to save on fees.
This penny-wise, pound-foolish approach often leads to title problems, hidden debts, or legal complications that cost far more than lawyer fees. Always hire a qualified Dominican lawyer specializing in real estate, even if the seller or agent discourages it.
Inadequate due diligence represents another major pitfall, where buyers fail to verify property titles, check for encumbrances, or investigate legal claims against the property. Comprehensive title searches and property inspections are essential, regardless of time pressures from sellers.
Many foreigners underestimate total purchase costs, budgeting only for the property price without accounting for 6-8% in additional taxes, fees, and legal costs. Hidden ongoing expenses like HOA fees, maintenance costs, and property management charges catch unprepared buyers off-guard.
Additional Pitfalls to Avoid:
- Skipping professional property inspections
- Not understanding Spanish-language contracts
- Rushing transactions without proper research
- Failing to verify agent and lawyer credentials
- Ignoring local building codes and zoning restrictions
What are the fiscal implications of owning property there, both locally and in my home country?
Property ownership in Cabarete creates tax obligations both locally in the Dominican Republic and potentially in your home country.
Local Tax Obligations:
Annual property tax applies to properties valued over DOP 7 million (approximately $122,000) at rates around 1% of appraised value. Properties qualifying under Confotur tourism development laws may receive tax exemptions for up to 15 years. Rental income earned in the Dominican Republic is subject to local income tax, though rates and exemptions vary based on property type and location.
International Tax Implications:
Most countries require citizens to declare foreign property ownership on annual tax returns, regardless of whether taxes are owed. Rental income from Dominican properties typically must be reported in your home country, though double taxation treaties may provide relief. Capital gains from property sales may trigger tax obligations in both countries, depending on your residency status and local tax laws.
Professional Advice Recommended:
Cross-border tax implications vary significantly based on your nationality, residency status, and home country tax laws. Consult qualified tax professionals familiar with Dominican-international tax treaties before purchasing to understand your complete fiscal obligations and potential tax optimization strategies.
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.
Buying property in Cabarete offers foreigners an exceptional opportunity with full ownership rights and a straightforward purchase process.
The combination of strong rental yields, growing tourism numbers, and accessible legal framework makes Cabarete an attractive destination for both lifestyle and investment purchases, provided buyers work with qualified professionals and conduct proper due diligence.
Sources
- Blue Sail Realty - Buying Property in the Dominican Republic
- Cabarete Properties - Foreign Property Ownership
- Global Property Guide - Dominican Republic
- The Latinvestor - Cabarete Property Guide
- Blue Sail Realty - Dominican House Sale Guide
- Ocean Side Realty - Why Foreigners Move to Cabarete
- Casa Linda - Property Buying Answers
- Simply Dominican - Foreign Buyer Requirements
- Area Vista - Property Purchase Steps
- Inmobiliaria Salomon - Common Buying Mistakes