# Punta Cana property FAQ > Straight answers on Punta Cana property: closing costs, IPI, CONFOTUR, foreign ownership, financing, rental management and off-plan risk. Source: https://canakeys.com/faq Publisher: Cana Keys (A&M Caribbean Group SRL), Punta Cana, Dominican Republic Last reviewed: 2026-08-27 Language: en Licence: quote and cite with attribution and a link. 34 answers, collected from across the site and kept in the same words as the pages they come from. If an answer matters to your decision, follow the link underneath it — the detail page carries the caveats, the mechanics and the parts that do not compress into three sentences. ## The questions buyers ask first - Do I need to live in the country to buy?: No. Non-residents buy regularly, often closing by power of attorney. - Can I own in my own name rather than a company?: Yes. Personal freehold ownership is normal and often simpler for a single owner. - Are off-plan purchases riskier than resale?: They carry delivery risk that resale does not. That risk is manageable with permits, escrow and penalties written into the contract. - Who verifies the documents?: An independent Dominican lawyer you retain. A brokerage can gather documents; it cannot replace legal verification. - Can I use my home-country lawyer?: Not for the Dominican registry work. You may want your own tax adviser at home in parallel. - Can I close without travelling?: Yes, commonly by granting a power of attorney to your lawyer. - Does a CONFOTUR unit help my residency application?: No. CONFOTUR is a tax exemption for a project. Immigration does not treat it as a status. - Can I apply after I buy?: Yes, the application is separate and can be filed later, but the qualifying criteria are checked at application time. - Is a guaranteed return ever real?: Treat it as a marketing term. Ask who is contractually paying it, for how long, and what happens if they stop. - Long-stay or short-term for better net?: Long-stay is lower gross with far lower cost and fewer voids; short-term is higher gross with a heavy cost stack. Which nets more depends on the zone. - [All buyer questions](https://canakeys.com/questions) - [Can foreigners buy?](https://canakeys.com/questions/can-foreigners-buy) - [Can foreigners buy?](https://canakeys.com/questions/can-foreigners-buy) - [Is Punta Cana safe to buy in?](https://canakeys.com/questions/is-punta-cana-safe-to-buy) - [Is Punta Cana safe to buy in?](https://canakeys.com/questions/is-punta-cana-safe-to-buy) - [Do I need a lawyer?](https://canakeys.com/questions/do-i-need-a-lawyer) - [Do I need a lawyer?](https://canakeys.com/questions/do-i-need-a-lawyer) - [Residency by buying?](https://canakeys.com/questions/can-i-get-residency-by-buying) - [Residency by buying?](https://canakeys.com/questions/can-i-get-residency-by-buying) - [What is a good net yield?](https://canakeys.com/questions/what-is-a-good-net-yield) - [What is a good net yield?](https://canakeys.com/questions/what-is-a-good-net-yield) ## Costs and tax - How much are closing costs in Punta Cana?: As orientation, plan for roughly 4–5% of the purchase price on a standard resale: about 3% transfer tax plus legal, notary and registry costs. On a project with a valid CONFOTUR resolution the transfer tax can be exempt, which lowers the total substantially. Confirm the exact figures with your own lawyer. - Who pays closing costs, buyer or seller?: The buyer customarily pays transfer tax, registry and their own legal fees. The seller typically settles outstanding property tax, HOA and any commissions owed. Whatever the custom, put the allocation in the purchase contract. - How much is property tax in the Dominican Republic?: For individuals, 1% per year on the property value above an exempt threshold that is indexed annually, assessed on the tax authority's valuation. Below the threshold there is nothing to pay. Confirm the current year's threshold with your lawyer or accountant. - Do foreigners pay a different property tax rate?: No. IPI applies the same way to foreign and Dominican individual owners. - How much is HOA in Punta Cana?: It is quoted per square metre per month and varies widely: modest in simple older buildings, substantially higher in amenity-heavy resort condos. There is no honest single corridor figure. Ask each building for its current fee, inclusions, reserve and increase history. - Can HOA fees increase after I buy?: Yes. Fees rise with costs, with newly delivered amenities, and through special assessments for major repairs. Ask for two years of history and whether any assessment is planned. - [Costs cluster](https://canakeys.com/costs) - [Closing costs](https://canakeys.com/costs/closing-costs) - [Closing costs](https://canakeys.com/costs/closing-costs) - [Property tax (IPI)](https://canakeys.com/costs/property-tax-ipi) - [Property tax (IPI)](https://canakeys.com/costs/property-tax-ipi) - [HOA and maintenance](https://canakeys.com/costs/hoa) - [HOA and maintenance](https://canakeys.com/costs/hoa) ## Diligence and contracts - Do I need a Dominican lawyer if the developer provides one?: Yes. The developer's lawyer represents the developer. An independent lawyer verifies title and liens at the registry, reviews the contract, and is accountable to you alone. It is the cheapest risk reduction in the whole transaction. - Is buying in Punta Cana risky for foreigners?: Ownership itself is straightforward — foreigners hold freehold title on the same terms as Dominicans. The risk sits in unverified title, off-plan developers and optimistic income maths, all of which are manageable with an independent lawyer. - Are Punta Cana developers regulated?: Construction is permitted and inspected municipally and environmentally, and CONFOTUR projects go through a state approval, but there is no rating body that grades developer reliability. Verification is on you and your lawyer. - Is buying off-plan in Punta Cana safe?: It can be, with permits verified, milestone-linked payments, an escrow or trust holding funds, and a contract that penalises late delivery. Without those, you are lending the developer money at zero interest with no security. - [Diligence cluster](https://canakeys.com/diligence) - [Buyer checklist](https://canakeys.com/diligence/checklist) - [Common mistakes](https://canakeys.com/diligence/mistakes) - [Vetting developers](https://canakeys.com/diligence/developers) - [Off-plan red flags](https://canakeys.com/diligence/off-plan-red-flags) ## Renting the property out - What occupancy is realistic?: It varies by building, season and management quality, so we do not publish a headline number. Ask the manager for the last twelve months of actual nights on comparable units in the same building and underwrite from that. - Which zone gives the best net?: In most cases the Bávaro corridor, because demand depth and moderate HOA beat higher nightly rates with lower occupancy. Los Corales competes on rate; Cap Cana usually loses on net while winning on lifestyle. - Is long-stay rental more profitable than Airbnb?: Sometimes. Gross is lower but so are cleaning, management, utilities, vacancy and wear, so net can be similar or better outside the beach corridor. Inland and residential zones almost always favour long-stay. - What lease terms are normal?: Twelve-month leases are standard for residents, often with a deposit of one to two months. Seasonal furnished lets of three to six months are common in gated communities. Have a lawyer or agent draft the contract. - How much does rental management cost in Punta Cana?: It is charged as a share of rental revenue, higher for short-term than for long-stay, and sometimes with cleaning and maintenance billed on top. Rates vary by building and operator, so get written terms from two or three before committing. - Can I manage the property myself from abroad?: Some owners do, with a local cleaner and a handyman on call. It works until something floods at 2am. Most remote owners use a manager and treat the fee as the price of the property staying rentable. - [Rental operations](https://canakeys.com/rentals) - [Short-term rental](https://canakeys.com/rentals/short-term) - [Short-term rental](https://canakeys.com/rentals/short-term) - [Long-stay rental](https://canakeys.com/rentals/long-stay) - [Long-stay rental](https://canakeys.com/rentals/long-stay) - [Rental management](https://canakeys.com/rentals/management) - [Rental management](https://canakeys.com/rentals/management) ## Paying for it - Can a foreigner get a mortgage in the Dominican Republic?: Yes, Dominican banks do lend to non-residents, but with larger down payments, heavier documentation, valuation at the bank's own figure and a timeline measured in months. Rates are typically well above US or EU levels. - Is a developer payment plan cheaper than a mortgage?: It usually carries no visible interest rate, but the cost is built into the price and the risk sits with you: your instalments fund a building that does not exist yet. Compare the total price against a resale unit before assuming it is cheaper. - Does paying cash get a discount in Punta Cana?: It should. Cash removes the financing condition that most often kills a deal and shortens the timeline, and sellers price certainty. Ask for it explicitly rather than assuming it is in the number. - [Financing cluster](https://canakeys.com/financing) - [Mortgages for foreigners](https://canakeys.com/financing/mortgages-for-foreigners) - [Developer payment plans](https://canakeys.com/financing/developer-payment-plans) - [Cash vs financing](https://canakeys.com/financing/cash-vs-financing) ## Practical arrangements - Can I buy property in Punta Cana in US dollars?: Yes. Most foreign purchases are priced and settled in USD, though certain taxes and fees are paid in Dominican pesos. State the settlement currency and who bears conversion cost in the contract. - Is property insurance mandatory in the Dominican Republic?: It is not generally mandatory for an owner without a mortgage, but lenders require it and most HOAs carry a master policy funded from fees. For a coastal property it is prudent regardless. - How much does it cost to furnish a Punta Cana rental condo?: It varies with size and standard, but treat it as a meaningful percentage of purchase price rather than a small extra, and add launch costs like photography and a spares stock. Get two quotes — a local package and a developer package — before assuming. - Can a foreigner build a house in Punta Cana?: Yes. Foreign owners can build on their own titled land, using a licensed Dominican architect or engineer to stamp plans and obtain the municipal construction licence, plus community approval inside a masterplan. - Which airport serves Punta Cana?: Punta Cana International (PUJ), located inside the corridor itself. La Romana (LRM) and Santo Domingo's Las Américas (SDQ) are alternates, both further away by road. - [Practical guide](https://canakeys.com/practical) - [Currency and transfers](https://canakeys.com/practical/currency-and-transfers) - [Property insurance](https://canakeys.com/practical/insurance) - [Furnishing and FF&E](https://canakeys.com/practical/furnishing-budget) - [Utilities and build permits](https://canakeys.com/practical/utilities-and-permits) - [Getting there](https://canakeys.com/practical/getting-there) ## Still open? Check the glossary for the Spanish legal terms, the numbers page for every figure we publish, or ask the desk directly. - [Glossary](https://canakeys.com/glossary) - [Every number we publish](https://canakeys.com/data) - [Contact the desk](https://canakeys.com/contact) ## FAQ ### Do I need to live in the country to buy? Answer: No. Non-residents buy regularly, often closing by power of attorney. Permalink: https://canakeys.com/faq#do-i-need-to-live-in-the-country-to-buy ### Can I own in my own name rather than a company? Answer: Yes. Personal freehold ownership is normal and often simpler for a single owner. Permalink: https://canakeys.com/faq#can-i-own-in-my-own-name-rather-than-a-company ### Are off-plan purchases riskier than resale? Answer: They carry delivery risk that resale does not. That risk is manageable with permits, escrow and penalties written into the contract. Permalink: https://canakeys.com/faq#are-off-plan-purchases-riskier-than-resale ### Who verifies the documents? Answer: An independent Dominican lawyer you retain. A brokerage can gather documents; it cannot replace legal verification. Permalink: https://canakeys.com/faq#who-verifies-the-documents ### Can I use my home-country lawyer? Answer: Not for the Dominican registry work. You may want your own tax adviser at home in parallel. Permalink: https://canakeys.com/faq#can-i-use-my-home-country-lawyer ### Can I close without travelling? Answer: Yes, commonly by granting a power of attorney to your lawyer. Permalink: https://canakeys.com/faq#can-i-close-without-travelling ### Does a CONFOTUR unit help my residency application? Answer: No. CONFOTUR is a tax exemption for a project. Immigration does not treat it as a status. Permalink: https://canakeys.com/faq#does-a-confotur-unit-help-my-residency-application ### Can I apply after I buy? Answer: Yes, the application is separate and can be filed later, but the qualifying criteria are checked at application time. Permalink: https://canakeys.com/faq#can-i-apply-after-i-buy ### Is a guaranteed return ever real? Answer: Treat it as a marketing term. Ask who is contractually paying it, for how long, and what happens if they stop. Permalink: https://canakeys.com/faq#is-a-guaranteed-return-ever-real ### Long-stay or short-term for better net? Answer: Long-stay is lower gross with far lower cost and fewer voids; short-term is higher gross with a heavy cost stack. Which nets more depends on the zone. Permalink: https://canakeys.com/faq#long-stay-or-short-term-for-better-net ### How much are closing costs in Punta Cana? Answer: As orientation, plan for roughly 4–5% of the purchase price on a standard resale: about 3% transfer tax plus legal, notary and registry costs. On a project with a valid CONFOTUR resolution the transfer tax can be exempt, which lowers the total substantially. Confirm the exact figures with your own lawyer. Permalink: https://canakeys.com/faq#how-much-are-closing-costs-in-punta-cana ### Who pays closing costs, buyer or seller? Answer: The buyer customarily pays transfer tax, registry and their own legal fees. The seller typically settles outstanding property tax, HOA and any commissions owed. Whatever the custom, put the allocation in the purchase contract. Permalink: https://canakeys.com/faq#who-pays-closing-costs-buyer-or-seller ### How much is property tax in the Dominican Republic? Answer: For individuals, 1% per year on the property value above an exempt threshold that is indexed annually, assessed on the tax authority's valuation. Below the threshold there is nothing to pay. Confirm the current year's threshold with your lawyer or accountant. Permalink: https://canakeys.com/faq#how-much-is-property-tax-in-the-dominican-republic ### Do foreigners pay a different property tax rate? Answer: No. IPI applies the same way to foreign and Dominican individual owners. Permalink: https://canakeys.com/faq#do-foreigners-pay-a-different-property-tax-rate ### How much is HOA in Punta Cana? Answer: It is quoted per square metre per month and varies widely: modest in simple older buildings, substantially higher in amenity-heavy resort condos. There is no honest single corridor figure. Ask each building for its current fee, inclusions, reserve and increase history. Permalink: https://canakeys.com/faq#how-much-is-hoa-in-punta-cana ### Can HOA fees increase after I buy? Answer: Yes. Fees rise with costs, with newly delivered amenities, and through special assessments for major repairs. Ask for two years of history and whether any assessment is planned. Permalink: https://canakeys.com/faq#can-hoa-fees-increase-after-i-buy ### Do I need a Dominican lawyer if the developer provides one? Answer: Yes. The developer's lawyer represents the developer. An independent lawyer verifies title and liens at the registry, reviews the contract, and is accountable to you alone. It is the cheapest risk reduction in the whole transaction. Permalink: https://canakeys.com/faq#do-i-need-a-dominican-lawyer-if-the-developer-provides-one ### Is buying in Punta Cana risky for foreigners? Answer: Ownership itself is straightforward — foreigners hold freehold title on the same terms as Dominicans. The risk sits in unverified title, off-plan developers and optimistic income maths, all of which are manageable with an independent lawyer. Permalink: https://canakeys.com/faq#is-buying-in-punta-cana-risky-for-foreigners ### Are Punta Cana developers regulated? Answer: Construction is permitted and inspected municipally and environmentally, and CONFOTUR projects go through a state approval, but there is no rating body that grades developer reliability. Verification is on you and your lawyer. Permalink: https://canakeys.com/faq#are-punta-cana-developers-regulated ### Is buying off-plan in Punta Cana safe? Answer: It can be, with permits verified, milestone-linked payments, an escrow or trust holding funds, and a contract that penalises late delivery. Without those, you are lending the developer money at zero interest with no security. Permalink: https://canakeys.com/faq#is-buying-off-plan-in-punta-cana-safe ### What occupancy is realistic? Answer: It varies by building, season and management quality, so we do not publish a headline number. Ask the manager for the last twelve months of actual nights on comparable units in the same building and underwrite from that. Permalink: https://canakeys.com/faq#what-occupancy-is-realistic ### Which zone gives the best net? Answer: In most cases the Bávaro corridor, because demand depth and moderate HOA beat higher nightly rates with lower occupancy. Los Corales competes on rate; Cap Cana usually loses on net while winning on lifestyle. Permalink: https://canakeys.com/faq#which-zone-gives-the-best-net ### Is long-stay rental more profitable than Airbnb? Answer: Sometimes. Gross is lower but so are cleaning, management, utilities, vacancy and wear, so net can be similar or better outside the beach corridor. Inland and residential zones almost always favour long-stay. Permalink: https://canakeys.com/faq#is-long-stay-rental-more-profitable-than-airbnb ### What lease terms are normal? Answer: Twelve-month leases are standard for residents, often with a deposit of one to two months. Seasonal furnished lets of three to six months are common in gated communities. Have a lawyer or agent draft the contract. Permalink: https://canakeys.com/faq#what-lease-terms-are-normal ### How much does rental management cost in Punta Cana? Answer: It is charged as a share of rental revenue, higher for short-term than for long-stay, and sometimes with cleaning and maintenance billed on top. Rates vary by building and operator, so get written terms from two or three before committing. Permalink: https://canakeys.com/faq#how-much-does-rental-management-cost-in-punta-cana ### Can I manage the property myself from abroad? Answer: Some owners do, with a local cleaner and a handyman on call. It works until something floods at 2am. Most remote owners use a manager and treat the fee as the price of the property staying rentable. Permalink: https://canakeys.com/faq#can-i-manage-the-property-myself-from-abroad ### Can a foreigner get a mortgage in the Dominican Republic? Answer: Yes, Dominican banks do lend to non-residents, but with larger down payments, heavier documentation, valuation at the bank's own figure and a timeline measured in months. Rates are typically well above US or EU levels. Permalink: https://canakeys.com/faq#can-a-foreigner-get-a-mortgage-in-the-dominican-republic ### Is a developer payment plan cheaper than a mortgage? Answer: It usually carries no visible interest rate, but the cost is built into the price and the risk sits with you: your instalments fund a building that does not exist yet. Compare the total price against a resale unit before assuming it is cheaper. Permalink: https://canakeys.com/faq#is-a-developer-payment-plan-cheaper-than-a-mortgage ### Does paying cash get a discount in Punta Cana? Answer: It should. Cash removes the financing condition that most often kills a deal and shortens the timeline, and sellers price certainty. Ask for it explicitly rather than assuming it is in the number. Permalink: https://canakeys.com/faq#does-paying-cash-get-a-discount-in-punta-cana ### Can I buy property in Punta Cana in US dollars? Answer: Yes. Most foreign purchases are priced and settled in USD, though certain taxes and fees are paid in Dominican pesos. State the settlement currency and who bears conversion cost in the contract. Permalink: https://canakeys.com/faq#can-i-buy-property-in-punta-cana-in-us-dollars ### Is property insurance mandatory in the Dominican Republic? Answer: It is not generally mandatory for an owner without a mortgage, but lenders require it and most HOAs carry a master policy funded from fees. For a coastal property it is prudent regardless. Permalink: https://canakeys.com/faq#is-property-insurance-mandatory-in-the-dominican-republic ### How much does it cost to furnish a Punta Cana rental condo? Answer: It varies with size and standard, but treat it as a meaningful percentage of purchase price rather than a small extra, and add launch costs like photography and a spares stock. Get two quotes — a local package and a developer package — before assuming. Permalink: https://canakeys.com/faq#how-much-does-it-cost-to-furnish-a-punta-cana-rental-condo ### Can a foreigner build a house in Punta Cana? Answer: Yes. Foreign owners can build on their own titled land, using a licensed Dominican architect or engineer to stamp plans and obtain the municipal construction licence, plus community approval inside a masterplan. Permalink: https://canakeys.com/faq#can-a-foreigner-build-a-house-in-punta-cana ### Which airport serves Punta Cana? Answer: Punta Cana International (PUJ), located inside the corridor itself. La Romana (LRM) and Santo Domingo's Las Américas (SDQ) are alternates, both further away by road. Permalink: https://canakeys.com/faq#which-airport-serves-punta-cana ## Related - [Buyer questions](https://canakeys.com/questions) - [Glossary](https://canakeys.com/glossary) - [Buying process](https://canakeys.com/buying-process) - [Buying costs](https://canakeys.com/costs)