The Dominican Republic is the number one destination in the Caribbean for tourism and one of the top 5 destinations in the Americas, welcoming over 7 million tourists, and expats every year from all over the world including North America, Europe, Asia and South America. Aside from being a beach lover’s paradise due to the nine hundred miles of Caribbean coastline, white-sand beautiful beaches, and Victorian architecture, the Dominican Republic is an ideal destination when it comes to real estate investment because a residency status is not required to purchase real estate or even to open a business.
There are countless options to consider when purchasing real estate in Dominican Republic, taking into account that it is a leading vacation destination, but Punta Cana is an all-time favorite. Blessed with one of the longest white sand coastlines in the Caribbean, with breezy coconut palms that seem to reach the sky, and its sparkling turquoise waters, this tropical paradise is a fusion between relaxation and leisure in front of the sea. You will not only find it to be an amazing destination to enjoy its beaches under the sun, but Punta Cana is also a golfer’s paradise with over 10 golf courses, some of which have even hosted PGA Championships. This beach escape is also a great location for fine dining, with luxury marinas, gourmet restaurants, and a wellness area with some of the best spas in the Dominican Republic and in the Caribbean. Punta Cana also has private schools offering international bilingual curriculum and private hospitals staffed with multilingual local and foreign doctors.
Thanks to its increasing tourism appeal, the vacation rental industry in the Dominican Republic is very lucrative, especially in destinations such as Punta Cana. While there are times during which most of the tourists visit and therefore, is considered “high season”, which is usually during winter, spring, and summer, there is never a time when tourists stop visiting Punta Cana because there is no such thing as a “bad” moment to come to the Dominican Republic due to its subtropical climate. Also, because of the expansion of tourism and new visitors arriving in Punta Cana each year, the demand for short-term rental accommodation is growing. Currently, there is a large segment of tourists who prefer to stay in fully equipped luxury condominiums instead of a hotel or resort. This means that if you are planning to invest in a property for vacation rental, you can expect a steady flow of income throughout the entire year.
The Punta Cana International Airport is the main gateway to Punta Cana, the busiest airport in Dominican Republic, and the second-busiest airport of the Caribbean, serving 90 airports in 26 countries, and putting the popular beaches of Punta Cana within a driving distance of minutes! The strategic location of the Dominican Republic makes it an even more attractive destination for tourists, especially those from USA and Canada. It is definitely not a coincidence that millions of tourists from all over the world choose Punta Cana as their holiday and/or investment destination every year. Investing in Punta Cana can be much more than a financial decision, this comes with an advantage that not all destinations can offer, your friends and family will be very excited about planning an escape from the cold winter weather or at any time of the year, to a tropical paradise vacation home.
Another great advantage that favors Punta Cana as an ideal real estate investment destination are the tax exemptions and benefits. Thanks to the CONFOTUR law, new developments and properties for first buyers are exempt from the transfer tax on real estate rights which represents 3% of the value of the property, and are also exempt from the real estate property tax equivalent to 1% of the annual tax that is applied to the total sum of the real estate assets for 15 years.
Buying real estate in Dominican Republic can be a challenging endeavor, but with the right real estate attorney by your side, it is a safe and secure investment. For additional information about closing costs, property taxes, and Dominican real estate services, please do not hesitate to reach out to our team of professionals at CanaLaw. We would be happy to provide you with a free Estimated Closing Costs for your property.
