WHY INVEST IN THE DOMINICAN REPUBLIC REAL ESTATE?
10 Best Reasons Why Invest in the DOMINICAN REPUBLIC REAL ESTATE:
1. High Returns on Investment (ROI)
Over the past 25 years, the DOMINICAN REPUBLIC (DR) has experienced remarkable economic growth. The economy expanded by an average of 5.3 percent in 2000–19, and since 2010 the Dominican Republic has been the fastest-growing economy in Latin America (source OECD iLibrary). The economy recovered strongly from COVID-19 in 2021, with GDP rebounding by 12.3 percent. Tourism, remittances, foreign direct investment, mining revenues, free-trade zones, and telecommunications are the pillars of the Dominican economy.
3. Foreign Investment Incentives
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As a foreigner, all you need to buy property in the DOMINICAN REPUBLIC is a valid passport and driver's license.
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As a foreigner, the title of the properties will be in your name and you can sell or pass it on to your heirs at any time.
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As a foreigner, you have the same rights and privileges as Dominicans when buying & owning real estate in the DOMINICAN REPUBLIC, including the benefits of tax incentives such as the CONFOTUR or Law No. 158-01 (see below).
As the #1 Tourist Destination for the CARIBBEAN and #1 Golf Destination for LATIN AMERICA, the short-term rental business in the DOMINICAN REPUBLIC is very lucrative, especially in beach towns like PUNTA CANA and mountainous towns like JARABACOA. Rental properties close to the beach or in the mountains stay rented most of the time, yielding a strong ROI.
4. CONFOTUR Law No. 158-01 — Tax Exemption & Deferment (Tourism Incentive)
CONFOTUR is the Tourism Incentive Law of the DOMINICAN REPUBLIC, and it was designed to increase the pace of the development process of the tourist industry in the country. Its focus is on the regions with high potential for tourism development in the DOMINICAN REPUBLIC.
What are the BENEFITS of CONFOTUR?
As a real estate buyer of properties with CONFOTUR, you will be exempt from the standard 3% PROPERTY TITLE TRANSFER FEE, in addition to the 1% ANNUAL PROPERTY TAX for the first 15 YEARS.
5. Much Lower Property Prices
In addition to having great tax incentives, the DOMINICAN REPUBLIC offers a chance to invest in paradise with properties at a more accessible price point compared to many popular destinations in the Caribbean and Latin America, as well as the US. In fact, properties can start around $150k for a nice property in PUNTA CANA, SANTO DOMINGO, SANTIAGO, and other desirable areas of the country. Even beachfront property and luxury condos, while priced higher, tend to be priced competitively compared to other Caribbean hotspots or even compared to countries like Panama and Costa Rica. This affordability makes the DR an attractive option for investors seeking value and the potential for strong returns.
6. The DR #1 TOURIST Destination in The Caribbean
DOMINICAN REPUBLIC reaches a record-breaking 10 million visitors in 2023! According to Minister Collado, the country welcomed 7,863,542 tourists by air and 2,168,209 cruise passengers by sea in 2023. The Dominican Republic Ministry of Tourism (MITUR) also presented figures of tourism’s economic impact this year, which included more than 620,000 direct jobs and an estimated generation of foreign exchange of more than 11 billion dollars. Figures also showed that the Dominican Republic is the country that has grown the most in tourist arrivals in the Caribbean region post-COVID.
7. Centrally Located
The DOMINICAN REPUBLIC is centrally located in the Caribbean (learn more) and has 7 International Airports most of which are a short 2-hour direct flight from South Florida, 4-hour direct flights from the East Coast of the United States and Canada, and from most countries in Europe direct flights are around 8 hours—making the DR conveniently accessible and convenient from various points around the globe.
8. Stability You Can Count On: 10+ Years of Political & Economical Constancy
The DOMINICAN REPUBLIC offers more than just stunning beaches and sunny skies. Investors seeking a reliable environment will appreciate the country's remarkable political stability. Over the past decade, the Dominican Republic has enjoyed a period of sustained political calm, fostering a climate of predictability and growth. This stability, according to the World Bank's Political Stability and Absence of Violence/Terrorism indicator, has remained consistent since at least 2014 (latest data available as of 2024). This translates to a reduced risk of political upheaval or policy changes that could disrupt your investment. With a focus on economic development and a commitment to foreign investment, the Dominican Republic provides a solid foundation for your long-term real estate goals.
9. Is the Dominican Republic Safe? YES The DR Is Safe!
The DOMINICAN REPUBLIC, like many travel destinations, has areas that are safer than others. As is the case everywhere, safety is generally in direct correlation with the size of the city.
Do you want to know if the DOMINICAN REPUBLIC is safe? Be glad to know the country has implemented several measures to address it. One key initiative is the special Foreigner/Tourist Police force (Politour) dedicated to public safety. While exercising caution is important anywhere nowadays, the DOMINICAN REPUBLIC does not represent a major safety concern. Overall, the DR boasts a reputation as one of the most stable and secure countries in the Caribbean and Latin America, allowing visitors and investors to relax and enjoy their time.
10. Structured Legal System
Forget the complexities of navigating unfamiliar legal landscapes. The DOMINICAN REPUBLIC provides investors with the peace of mind of a well-defined legal system and property rights based on El Código Civil de la República Dominicana (the country's Civil Code) established in 1884. This cornerstone law, along with subsequent modifications, establishe clear guidelines for property ownership and commercial transactions. Furthermore, a defined court hierarchy that includes a Supreme Court which ensures transparency and accountability within the system. This structured approach fosters trust and minimizes potential risks, allowing you to invest with confidence and focus on turning your Dominican dream into your reality!
