How to buy property in Punta Cana as a foreigner?

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 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 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 buy property in Punta Cana as easily as locals, or are there restrictions?

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

The Dominican Republic Constitution guarantees equal property ownership rights to foreign nationals, making it one of the most accessible Caribbean markets for international buyers. You can purchase residential properties, condominiums, land, and commercial real estate without any nationality-based restrictions or ownership caps.

Unlike many Caribbean nations that require local partnerships or impose foreign ownership limits, the Dominican Republic allows 100% foreign ownership of real estate. This includes beachfront properties, which are often restricted in other countries. The only exception is properties within 60 meters of the coastline, which require special permits but are still available to foreigners.

As of September 2025, there are no pending legislative changes that would restrict foreign property ownership. The government actively encourages foreign investment in real estate as part of its economic development strategy, particularly in tourism-focused areas like Punta Cana.

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

Do I need to have residency or a specific visa to purchase property?

No residency or special visa is required to purchase property in Punta Cana as a foreigner.

You can buy real estate while on a tourist visa, which allows stays of up to 30 days (extendable to 90 days). Many foreign buyers complete their entire property purchase during a vacation visit. The Dominican Republic does not require any minimum stay period or investment threshold to qualify for property ownership.

However, if you plan to live in the Dominican Republic full-time, you may want to consider obtaining residency for tax and practical benefits. Temporary residency can be obtained through various routes, including property investment over $200,000, but this is optional, not mandatory for ownership.

For tax purposes, becoming a resident can provide advantages if you plan to rent out your property or live there more than 183 days per year. Non-residents face the same tax obligations on Dominican-sourced income, but residents may access certain deductions and benefits.

The property purchase process itself requires obtaining a Dominican tax identification number (RNC or NIF), which is different from residency and can be obtained specifically for property transactions.

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.

Many foreign buyers successfully complete transactions remotely using power of attorney, video tours, digital signatures, and trusted local representatives. This became particularly common during 2020-2021 and remains a standard practice for international buyers.

The remote buying process typically involves virtual property tours, digital document review, and appointing a local lawyer with power of attorney to handle in-person requirements like document signing and property registration. Most reputable real estate agencies and lawyers in Punta Cana are equipped to facilitate remote transactions.

However, visiting in person is highly recommended for first-time buyers to inspect the property, meet your legal team, understand the neighborhood, and build confidence in your investment. Many buyers make an initial visit to select properties and meet professionals, then complete the transaction remotely.

Certain steps like opening a local bank account for mortgage payments or utility setup may be easier to complete in person, though these can often be handled by your attorney with proper authorization.

What is the exact step-by-step process for buying property as a foreigner, and what documents are required?

The property buying process in Punta Cana follows a structured eight-step sequence with specific documentation requirements.

1. **Property Selection and Initial Offer** - Required: Valid passport, proof of funds - Action: Choose property, submit written offer through agent2. **Promise of Sale Agreement** - Required: Purchase agreement, passport copy - Action: Sign preliminary contract, make initial deposit (typically 10%)3. **Due Diligence Period** - Required: Title certificate, property survey, certificate of no debt, seller's ownership proof - Action: Lawyer conducts title search and legal verification4. **Dominican Tax ID Acquisition** - Required: RNC/NIF application, passport - Action: Obtain tax identification number for property ownership5. **Mortgage Application (if applicable)** - Required: Income proof, bank statements (3-6 months), credit report, property appraisal - Action: Submit financing application to Dominican bank6. **Final Contract Execution** - Required: Final sale agreement, proof of funds transfer - Action: Sign definitive purchase contract, transfer remaining funds7. **Property Deed and Registration** - Required: Notarized deed, transfer tax payment receipt (3%), all previous documents - Action: Execute deed transfer at notary office8. **Title Registration** - Required: All transfer documents, passport, RNC/NIF - Action: Register new ownership at Land Registry Office

The entire process typically takes 45-90 days, depending on financing requirements and document preparation time. Cash purchases can be completed faster, often within 30-45 days.

All foreign documents must be apostilled and translated into Spanish by certified translators. Bank statements and income documents should be recent (within 90 days) and officially translated if seeking financing.

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

While not legally mandatory, hiring a lawyer is considered essential for safe property transactions in Punta Cana.

Unlike markets with title insurance companies, the Dominican Republic relies on legal professionals to protect buyers' interests and verify property rights. Your lawyer serves as your primary protection against fraud, title issues, and legal complications that could cost thousands of dollars to resolve later.

Dominican real estate lawyers typically handle title searches to verify clear ownership, lien checks to ensure no outstanding debts, contract drafting and review in both Spanish and English, escrow services to secure your deposit and final payments, and coordination with notaries for deed execution and title registration.

Legal fees typically range from 1-1.5% of the purchase price, which is relatively small compared to the protection provided. Many lawyers also offer additional services like opening bank accounts, setting up utilities, and providing ongoing property management contacts.

Choose a lawyer who specializes in real estate transactions, speaks your language fluently, and has experience with foreign buyers. Avoid using the seller's lawyer or attorney recommended solely by the real estate agent - seek independent legal representation.

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

What taxes, fees, and closing costs should I expect when buying, and what taxes apply if I later resell?

Property purchase costs in Punta Cana include several mandatory taxes and fees totaling 4-10% of the purchase price.

Cost Type	Amount	Based On
Transfer Tax	3%	Government-appraised value
Legal Fees	1-1.5%	Purchase price
Notary & Document Fees	Up to 1%	Purchase price
Surveyor Fees	Up to $600	Fixed fee if needed
Translation Fees	~$200	Per document set
Annual Property Tax (IPI)	1%	Properties over $156,000 USD
Agent Commission	Usually seller pays	Confirm during negotiation

The transfer tax is calculated on the government-appraised value, which may differ from your actual purchase price. Properties valued below DOP 8,830,000 (approximately $156,000 USD) are exempt from annual property tax.

When you sell your property, you'll face a 27% capital gains tax on net profit (sale price minus purchase price and documented expenses). Deductions may apply for renovations, transaction costs, and legal fees if properly documented.

If you rent out your property, rental income is subject to 27% tax on net income after allowable deductions for property maintenance and management costs. Residential leases are exempt from VAT, but commercial leases incur 18% VAT.

Plan for these costs in your investment calculations, as they significantly impact your total investment and potential returns.

Are mortgages available for foreigners, and if so, what are the usual interest rates, conditions, and tips to get approved?

Yes, mortgages are available for foreigners buying property in Punta Cana, though requirements are stricter than for locals.

Dominican banks typically offer financing to foreign buyers with down payments of 25-30% of the appraised property value. Loan terms extend up to 20 years, with interest rates ranging from 6-12% annually depending on the bank, your financial profile, and whether you choose USD or peso-denominated loans.

Required documentation includes a valid passport, bank statements from the past 3-6 months, verified proof of income, credit report from your home country, property appraisal from an approved Dominican appraiser, and certified translations of all financial documents into Spanish.

To improve approval chances, maintain a debt-to-income ratio below 40%, provide substantial down payment (30%+ improves terms), work with a mortgage broker familiar with foreign buyer requirements, have all documents properly apostilled and translated, and consider establishing a relationship with the bank before applying.

The mortgage approval process typically takes 4-8 weeks. Some developers offer in-house financing with more flexible terms, though interest rates may be higher. Consider both Dominican peso and USD loans, as currency fluctuation can significantly impact your payments over time.

Popular banks for foreign buyers include Banco Popular, Banco de Reservas, and Scotiabank, each offering different terms and requirements for international applicants.

What are the current property prices in different areas of Punta Cana and surrounding regions?

As of September 2025, Punta Cana property prices average $2,100 USD per square meter, with significant variation by location and property type.

Apartment prices have increased 7% annually, averaging $1,980 per square meter. A typical one-bedroom apartment (60 square meters) costs approximately $126,000 USD. House prices show 5% annual growth, averaging $1,569 per square meter for non-luxury properties.

Luxury beachfront properties start at $2,500 per square meter and can exceed $5,000 per square meter for ultra-premium locations. Million-dollar villas are common in exclusive developments like Cap Cana and Corales areas.

Entry-level beachfront condominiums start around $75,000 USD for studios, while vacation rental-ready properties command premiums of $2,000-$2,500 per square meter due to their income-generating potential. Pre-construction properties often offer 10-20% discounts but carry completion risks.

The luxury sector shows the fastest appreciation, with eco-friendly and smart home features commanding additional premiums. Properties with proven rental history and professional management contracts sell at 15-25% above comparable units.

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 neighborhoods are most popular with foreigners, and what makes them attractive?

Bávaro leads foreign buyer preferences due to its established tourism infrastructure and rental income potential.

Bávaro offers the highest concentration of resorts, restaurants, nightlife, and tourist activities, making it the prime location for vacation rental investments. The area provides excellent walkability, established expat communities, and consistent rental demand year-round. Property prices range from moderate to high, with strong appreciation potential.

Cap Cana attracts ultra-luxury buyers seeking exclusive gated communities with world-class golf courses, marina access, and high-end amenities. This area caters to wealthy retirees and luxury vacation home buyers willing to pay premium prices for privacy and prestige.

Punta Cana Village appeals to families and long-term residents with modern amenities, international schools, shopping centers, and proximity to the airport. This area offers the best infrastructure for permanent living while maintaining investment potential.

Los Corales and El Cortecito provide beachfront condo options with strong Airbnb and rental markets. These areas offer a "European vibe" with charming restaurants and beach clubs, attracting both tourists and expat residents.

Cocotal serves golfers and retirees seeking peaceful, country club environments with lower prices than Cap Cana but similar amenities and security.

Uvero Alto and Macao represent emerging areas with lower entry prices and higher appreciation potential, though with less developed infrastructure and amenities.

Where are the best areas in terms of livability, rental demand, tourism numbers, and future capital appreciation?

Bávaro consistently ranks highest across all four investment criteria, making it the most balanced choice for foreign buyers.

For rental demand and tourism numbers, Bávaro, Los Corales, and El Cortecito lead with year-round occupancy rates of 60-75%, peaking at 85-90% during high season (December-April). These areas benefit from proximity to major resorts, beaches, and tourist attractions.

Downtown Punta Cana offers excellent livability with shopping centers, international schools, medical facilities, and expat services, though rental demand focuses more on long-term residents than vacation rentals.

For future capital appreciation, emerging areas like Uvero Alto and Macao show the strongest potential due to planned resort developments, infrastructure improvements, and current below-market pricing. However, these areas carry higher risk due to less established tourism patterns.

Cap Cana provides the best luxury livability with world-class amenities, security, and services, though rental yields are typically lower due to higher property prices and a smaller tourist market for ultra-luxury accommodations.

Punta Cana Village offers the optimal balance for families planning permanent relocation, with good rental potential for long-term tenants and steady appreciation driven by infrastructure development and proximity to business centers.

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

What are the typical rental yields and income potential for investment properties in Punta Cana?

Punta Cana vacation rental properties typically generate annual yields of 6-12%, with an average of 8% being common for well-managed properties.

Short-term rental properties achieve average daily rates of $120 USD, generating approximately $1,600 USD in monthly rental income during peak occupancy periods. Annual occupancy rates average 62%, with peak season (December-April) reaching 75-90% occupancy.

The highest yields come from vacation rental-ready properties in Bávaro and Los Corales, where proximity to beaches, restaurants, and tourist activities drives consistent demand. Properties with pools, modern amenities, and professional management services command premium rates and occupancy.

Long-term rental yields are typically lower at 4-6% annually but provide more stable income with less management involvement. This market serves expats, business professionals, and locals seeking quality housing near employment centers.

Gross rental income varies significantly by property type, with beachfront condos generating $150-250 per night during peak season, mid-tier properties earning $80-150 per night, and budget accommodations achieving $50-80 per night.

Operating expenses typically consume 30-40% of gross rental income, including property management (10-20%), maintenance, utilities, taxes, and marketing costs. Properties with established rental history and professional management show more predictable returns.

Peak season performance largely determines annual profitability, making location, property condition, and marketing crucial for investment success.

What are the most common mistakes foreigners make when buying property here, and how can I avoid them?

The most costly mistake foreigners make is insufficient market research before committing to a purchase.

1. **Inadequate Due Diligence** - Mistake: Skipping title verification and property history checks - Solution: Always hire independent legal counsel for comprehensive title searches2. **Underestimating Total Costs** - Mistake: Budgeting only for purchase price without including 4-10% closing costs - Solution: Factor in all taxes, fees, and ongoing maintenance expenses3. **Using Unlicensed Professionals** - Mistake: Working with unverified agents or attorneys to save money - Solution: Verify professional licenses and check references thoroughly4. **Rushing Contract Signatures** - Mistake: Signing agreements without full legal review - Solution: Have independent attorneys review all documents before signing5. **Focusing Only on Short-term Profits** - Mistake: Ignoring long-term market trends and area development plans - Solution: Research infrastructure projects and zoning changes affecting future values6. **Neglecting Property Condition** - Mistake: Insufficient inspection, especially for beachfront properties - Solution: Conduct thorough inspections for weather damage, pests, and structural issues7. **Poor Diversification Strategy** - Mistake: Investing everything in one property type or location - Solution: Consider spreading risk across different areas and property types8. **Inadequate Local Knowledge** - Mistake: Making decisions based on tourist impressions rather than resident experience - Solution: Spend extended time in target areas and consult long-term expat residents

Prevention strategies include working with established, bilingual legal professionals, using escrow services for all payments, insisting on official contracts and receipts, and conducting thorough property inspections before final purchase.

Take time to understand local rental markets, seasonal tourism patterns, and neighborhood characteristics before making investment decisions.

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. Can Americans Own Property in Punta Cana
2. Legal Process Buy House Punta Cana
3. Punta Cana Property Investment Guide
4. Requirements Foreign Buyers Dominican Republic
5. Getting a Mortgage in Dominican Republic as Foreigner
6. Fees and Taxes When Buying Property Punta Cana
7. Dominican Property Taxes Guide
8. Punta Cana Price Forecasts
9. Why Invest in Punta Cana
10. Common Mistakes Investing Real Estate Punta Cana