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Why buy an income property in the Dominican Republic

What you'll learn on this page

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    Here's what you get from an income property

    Fund your vacations + Hassle-free income + Steady income

    1. Fund your vacations!

    Wouldn’t it be great if your vacations paid for themselves?

    It’s possible. Lots of our clients use their vacation homes as income properties.

    You can too.

    Rent your home out when you’re not here. And use a portion of the rental income to fund your visits to the D.R.

    It can be as turnkey as you want:

    Property management is available. So you don’t have to worry about maintenance, cleaning—or even renting it out. 

    Even better, set up a corporation in the D.R. (we can help you with that). Then buy your home through the corporation.

    Your vacation home becomes your business: you can take advantage of tax incentives and business write-offs.

    D.R. vacation–cold winters or endless summer?

    2. Hassle-free income from your property

    Your income property can be as hands-off as you want. No need to be an on-site landlord.

    We can recommend a dependable property management company to handle your rental.

    So when you’re not in the D.R, everything is taken care of for you.

    No need to worry about cleaning, maintenance, or even renting your home out. The fees are reasonable too, at 10-15% of monthly rent.

    You just sit back and deposit the monthly rental cheques!

    3. A steady income stream

    Imagine if you had a steady stream of rental income—every month.

    In the high-demand tourist areas of  

    That’s why it’s called an income property!

    It goes without saying:

    Rental payments can provide a reliable source of cash flow. That’s cash that can help offset expenses associated with the property.

    And of course, provide you with additional income.

    Moutain Village: stunning views near golf and beach

    Nine modern homes in a gated community in the heart of the D.R’s North Coast.

    From $219,000

    Visit the Mountain Village page

    Mountain Village: stunning views near golf & beach

    LOGO-mountain-vilage-web (3)

    Nine modern homes in a gated community in the heart of the D.R’s North Coast.

    From $219,000

    Visit the Mountain Village page

    Okay...but what’s so special about a D.R. income property?

    More home for your buck + Booming rentals tourism + Landlords favoured + Tons of options

    More home for your buck

    Prices for homes in most sunshine destinations in the Caribbean and Central America have skyrocketed.

    Yet in the D.R. real estate is still reasonably priced —and that includes ocean view properties.

    Get two or three times the home for your hard-earned dollars.

    Or spend a third of what you’d spend back home—for the same amount of house!

    Imagine an ocean view condo for $150K. Or a 3 bedroom villa—with a private pool!—in a gated community, for $250,000.

    High demand for income property rentals in Dominican Republic, especially tourist areas like Sosua, Cabarete, Puerto Plata

    Rental tourism in the D.R. is booming

    The D.R. is the number 1 tourist destination in the Caribbean — 10 million+ visitors last year!

    That’s why major hotels and cruise lines have made big investments.

    They see the huge upside.

    As an investor, you can take advantage of this too. You can count on a steady stream of visitors looking to rent a home like yours

    And another thing:

    Post-pandemic, many people are more wary about staying at resorts and hotels.

    Which is why demand has grown for private homes and condos to rent. People want to stay in their own home while on vacation.

    Favorable environment for property owners in the D.R.

    In the D.R. you can take advantage of a rental and tax environment that favors property owners.

    • Taxes: Low property taxes and no capital gains tax on real estate transactions
    • Operating costs: Enjoy lower management fees, maintenance expenses, and utilities compared to North America
    • Rules and regulations: Generally more favorable to owners than to renters/tenants
    For sale in D.R: villas, condos, land for development, hotels

    Lots of investment options

    In the D.R. there’s a diverse range of investment options.

    Whatever your preference and budget, there’s a great investment opportunity for you:

    • Condos, townhomes and villas
    • Resales, newly built, pre-construction, and land for development
    • Beachfront, ocean view and hillside
    • Gated communities with or without onsite amenities
    • Commercial properties like hotels
    • Short-term vacation rentals and long-term leases
    • Every budget and level of luxury

    Kite Beach Villas 2: A vacation home steps from the beach

    View from side of Kite Beach Villa at Cabarete

    Fourteen smartly designed villas steps from world famous Kite Beach.

    From 399,999

    Visit the Kite Beach Villas page

    Kite Beach Villas 2: A vacation home steps from the beach

    LOGO-Kite-Beach-Villas-300x258

    Fourteen smartly designed villas steps from world famous Kite Beach.

    From $405,999

    Visit the Kite Beach Villas page

    Wait—can foreigners own D.R. property?

    It’s a good question:

    Can you—as a foreigner in the D.R.—actually own property there?

    Yep, you sure can!

    • The Dominican Republic has a legal framework that encourages foreign investment in real estate, so it’s a great option for international buyers.
    • No matter where you’re from, you have the EXACT SAME property rights as a Dominican citizen.
    • The real estate market is just like in the US or Canada. You can hold title to property directly in your name or through a corporation.

    Which means you can develop your property however you like. You can sell it, or pass it on to your children.

    It’s your private property.

    Meaning, the government can’t take your property away from you. In fact, foreigners’ property rights are enshrined in the country’s constitution!

    Which is why thousands of Americans, Canadians and Europeans own property here now.

    American couple arrive in D.R. on vacation and buy a property

    How does a foreigner actually buy property in the D.R?

    Buying property in the Dominican Republic is a lot easier than you might think.

    If you really wanted, you could come to the D.R, find a home and make an offer, then make a down payment—all on the same trip!

    (All transactions are in US dollars. If you need financing, that can be arranged too.)

    Of course, like any property transaction, there are the usual legal matters—which is where we come in:

    We can connect you with a lawyer (who can work with your lawyer back home) and guide you through the paperwork.

    The team at Dreaming D.R. has helped hundreds of people purchase homes in the Dominican Republic. We know the process—inside and out.

    We’ll make it easy for you too.

    Incentives for foreign buyers

    The D.R. wants to encourage foreign investment, including real estate.

    So you can take advantage of tax exemptions and other incentives for property buyers and retirees.

    [Link to Financial Incentives page]

    You can be exempt from:

    • Taxes on pensions or income received from abroad.
    • Taxes on dividends and interest generated within the Dominican Republic.
    • Property transfer taxes for the first property purchased.
    • Taxes on household and personal items brought into the country.
    • Import taxes for a vehicle, which can be sold or transferred tax-free after five years.

    And as well, you can fast-track residency.

    So get your Dominican resident status more quickly and easily compared to the usual process.

    When you qualify for residency you’re eligible for many perks, benefits, and tax breaks.

    And in the DR, it couldn’t be simpler to qualify for residency.

    (Don’t worry, you still keep your citizenship in your home country.)

    Some of the things you’d be eligible for as resident:

    • local home financing
    • importing household goods and a car tax-free
    • qualify for citizenship (and thus a second passport)
    • pay for higher education in pesos instead of dollars. 
    Foreigners in D.R. welcomed with tax and other financial incentives

    Sea Glass Cabarete: a vacation home on the ocean​

    Seven luxury villas in a gated community right on the ocean.

    From $573,999

    Visit the Sea Glass page

    Sea Glass Cabarete: a vacation home on the ocean

    Sea Glass Cabarete logo

    Seven luxury villas in a gated community right on the ocean.

    From $573,999

    Visit the Sea Glass page

    Answers to your frequently asked questions (FAQs)

    Does the D.R. have a modern real estate market?

    Yes, the Dominican real estate market is just like in North America.

    A couple decades ago, the government modernized the real estate market. Land registration became more efficient and transparent.

    This included digitized property titles, which clearly defined ownership, making it much easier to buy and sell property.

    Other ways the D.R. real estate market is similar to North America’s:

    • A wide range of financing options to purchase real estate
    • Online platforms for property listings to connect buyers and sellers
    • Reputable real estate agencies, property management companies, and legal services specializing in real estate transactions
    • The government enforces all laws and regulations to protect property owners

    Is the D.R. a stable country?

    Yes!

    The Dominican Republic has a long history of stable, democratic government.

    The country has regular, fair elections. People are protected under the law. The government can’t intrude into the private lives of its citizens.

    And foreigners enjoy the same property rights as nationals—it’s even in the country’s constitution!

    And the economy is stable too:

    The Dominican Republic has experienced consistent economic growth, driven by sectors like tourism, manufacturing, and services.

    So when you buy a home in the D.R. you know your home and investment is secure.

    Can you access quality healthcare?

    Definitely!

    The D.R. has modern healthcare facilities. Whatever care you might need, either routine or emergency care, you can get it here.

    Clinics and hospitals are staffed by many American-trained, English speaking professionals.

    The medical expertise is so high in the D.R. that the country has become a destination for medical tourism.

    Some private healthcare facilities in major cities offer various specialized treatments tailored to the needs of international patients.

    Is the country safe?

    Yes, the D.R. is a safe country for foreigners.

    Which is why a record-breaking 10 million people visited in 2023.

    Like any country, there are areas to avoid. But wherever you’d want to go, you’ll feel at ease.

    There are many police officers in popular tourist areas to improve security. This includes patrols at beaches, hotels, and other tourist attractions.

    As well, the country has dedicated tourism police specifically trained to assist and protect foreigners. These officers often speak multiple languages and are stationed in tourist areas.

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