Short answer: Latin American investors are looking at the Dominican Republic because of record tourism, record foreign direct investment, direct flights from cities such as Buenos Aires, and property rules that treat foreigners like Dominicans. They should still verify title, permits, trust structure, taxes (including the new Law 30-26) and realistic yield before signing. No public official statistic measures property purchases by buyer nationality, so any “Latin American share” figure should be treated with caution.

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Why are Latin American investors looking at the Dominican Republic?

Four verifiable signals, and one data gap worth admitting.

1. Foreign capital is arriving at record levels. Foreign direct investment (FDI) closed 2025 at US$5,032.3 million, up 11.3% on 2024, with tourism (26.3%) and real estate (15.7%) among the leading sectors (Infobae, citing the Central Bank). In the first half of 2026 FDI reached US$3,276.5 million (+7.7% year on year), with real estate development at 12.4% (Hosteltur). Spain was the top investor in 2025 with US$1,086 million (21.5%), followed by the United States at US$1,042 million (same source). For a Latin American buyer, this means institutional capital from several countries is already active in the market.

2. Tourism demand, which supports rental income, is growing from South America. According to the Ministry of Tourism, as cited by the hotel association Asonahores, Colombia sent about 395,000 tourists in 2025, over 12% more than in 2024, roughly 28% of South American visitors (elCaribe, 24 Feb 2026). From Argentina, 281,400 tourists arrived in January–July 2025 against 151,251 a year earlier (about 86% more, our own calculation from those figures), with a direct flight available (Acento, 26 Aug 2025). Tourism is not property purchases, but it drives lodging demand and appreciation in destinations such as Punta Cana.

3. Panama and other regional countries already appear as FDI sources. Citing Central Bank data, elCaribe reports that Panama invested US$64.2 million in the first quarter of 2025 (elCaribe). That article mentions fluctuations from Mexico and Brazil without figures and does not list Colombia. We therefore do not state how much Colombia, Mexico or Argentina invest: we found no verifiable public country series for them.

4. Property ownership is open to foreigners. Foreigners can own property on the same terms as Dominicans, after registering with the tax authority (GGI / Guzmán Ariza, Jul 2021). Foreign Investment Law 16-95 gives foreign investors the same rights and obligations as nationals (art. 6) and allows investment in real estate (art. 3), according to a summary of the law.

The data gap: Netix’s market report on Punta Cana concludes there is no official price index, no MLS and no public census of off-plan projects; all public data is asking prices. A buyer investing from abroad must cross-check what they are shown.

What kinds of Latin American investors buy, and for what purpose?

Without official statistics by nationality, the honest approach is to describe typical objectives rather than percentages. This classification is our own:

What yield is realistic? (no promises)

This is where expectations cost the most money. According to Netix’s Punta Cana market report (October 2026), realistic net yield on short-term rentals is around 5–7%, about half of what some brokers promise, and Airbnb listings grew 46% in a year while revenue rose 9%. The original sources in the report:

• An analysis of a “12% ROI” offer in Vista Cana found the broker assumed US$125 a night and 20 nights a month, while AirDNA showed US$107–115 and realistic occupancy near 40%; the recalculated return was 5–6% (Grubernation).
• An investor who bought in Bávaro for US$280,000 after negotiating down from US$295,000 targeted about 7% net before tax, checked data with local agents and held funds in escrow while title and documents were reviewed (Global Property Guide case study, published 4 Jul 2026 on inmobiliario.do).

These are individual cases, not market averages. Any projection you receive should state occupancy, rate, management fee (20–25% of income in the examples we reviewed), upkeep, VAT and taxes. Ask for the assumption behind every percentage.

How does a foreigner buy property in the Dominican Republic?

Usual steps, in order. Your Dominican lawyer must confirm each one:

1. Tax registration. Foreign individuals register with the tax authority (DGII) before the purchase is recorded; companies register first with the Chamber of Commerce (GGI).
2. Legal due diligence. Title certificate and legal-status certification from the Real Estate Registry, which shows owners, encumbrances and litigation (inmobiliario.do, 2024).
3. A clear promise of sale and reservation. Payment terms, delivery and penalties in writing.
4. Traceable payment. Since 1 May 2025, for transactions above RD$1,000,000 the DGII requires the payment method to be declared; without it, it will not authorize payment of the transfer tax (Siempre al Día).
5. Deed and registration. A licensed notary-lawyer is required to verify title and authenticate the deed (Century 21 Perdomo, Aug 2026).
6. Foreign investment registration (optional but relevant). Registering the investment lets the investor remit capital abroad without prior Central Bank approval, per Law 16-95 as described by elDinero (2015); that source is old, so confirm with a lawyer the current procedure and deadline (it cites 180 days).

How much are closing costs?

Hypothetical example (our own calculation with those percentages): on a US$250,000 purchase without CONFOTUR, closing would fall between US$11,250 and US$13,750. The source shows one case at US$12,888 (5.2%). The CONFOTUR exemption for the first buyer does not carry over to later buyers: the DGII states that subsequent transfers to third-party purchasers are excluded (DGII). That same page gives a 10-year exemption period for the developer, while Netix’s market report cites 15 years from another source: confirm with a lawyer before valuing a project on its exemption.

What changed with Law 30-26 for investors?

Law 30-26, enacted on 18 June 2026, creates a single 10% payment on capital gains from real estate sales by individuals, due within six months, but the calculation basis is awaiting regulation. It cuts the mortgage registration tax from 2% (2026) to 1% (2027) and 0% (from 2028), and leaves the 3% ITBI unchanged (inmobiliario.do). It also introduces a rule against stacking incentives whose scope the DGII has not yet clarified (same source). For an investor planning to sell in three to five years, the effect is concrete: model your exit with 10% on the gain (hypothetical: a US$40,000 gain implies US$4,000) and recalculate when the regulation is published. If you are not a Dominican individual, ask your tax adviser how the law interacts with your country of tax residence: confirm with a lawyer or tax adviser.

What checklist should an off-plan project pass before you reserve?

• [ ] Land title in the developer’s or trust’s name, free of encumbrances (legal-status certification).
• [ ] Valid building and land-use permits; for coastal sites, confirm the project respects the 60-metre strip from the high-tide line, which our market report records as public domain (confirm with your lawyer and current zoning).
• [ ] A real trust: buyer payments go into trust accounts, not the builder’s own account (El Día, Jan 2024). The source does not say a trust is mandatory, and complaints have been reported in Punta Cana of projects invoking the structure without applying it.
• [ ] A CONFOTUR resolution (if sold as a benefit) with a verifiable number.
• [ ] Developer track record: delivered projects, original versus actual delivery dates.
• [ ] Management and rental contract with occupancy and rate assumptions in writing.
• [ ] Contract currency, payment schedule and delay clauses.
• [ ] Documented source of funds: brokers and builders are obligated parties under anti-money-laundering Law 155-17 and may ask where your money comes from.

One point to weigh: Netix’s report records allegations (not proven facts) about a Macao project where 1,200 units were reportedly sold without a formalized trust. Independent verification is part of the entry price, not a luxury.

Which market risks should a regional investor measure?

• Short-term rental oversupply: La Altagracia has 25,825 rooms under construction against 54,418 existing (Netix market report, citing Situr data).
• Reliance on North American tourism and all-inclusive hotels: the Netix report identifies this as a structural weakness of Punta Cana demand.
• Regulation in motion: mandatory short-term-rental registration (RENATUR) and a licence for real estate intermediaries are proposals, not rules in force as of October 2026.
• Land-use planning: the new Verón–Punta Cana plan, presented in July 2026, limits heights and densities on the coast. Check that what you are sold is compatible with it.
• Currency and liquidity risk: you buy in dollars, but local income and costs may be in pesos; resale depends on a market without an MLS.

Frequently asked questions

Can a Colombian, Mexican or Argentine buy property in the Dominican Republic? Yes. Foreigners can own property on the same terms as Dominicans, with prior tax registration (GGI). A Dominican lawyer should confirm the specific case, including restrictions on each type of land.

Do I need to travel to buy? Not always, but an in-person visit is advisable. Documented successful cases include visits, cross-checking data with local owners and escrow while title was reviewed.

How much should I set aside for closing costs? Around 4.5–5.5% of price without CONFOTUR and 1.5–2.5% with a valid exemption, plus US$1,500–5,000 of post-closing costs (HOA setup, deposits, management onboarding, furnishing) according to the same source (Century 21 Perdomo).

Does buying property give me residency? Not automatically. Residency by investment is a separate procedure that requires certifying the investment. We explain it in our article on residency by investment.

What return can I expect? There is no guarantee. Documented examples run from 5% to 7% net before tax on short-term rentals, and promises of 10–13% did not survive a review of their assumptions. Build your own scenario with verifiable occupancy and rate data.

Should I register my foreign investment? Worth discussing: registration allows capital repatriation without prior authorization under Law 16-95. Confirm the current procedure and deadline with your lawyer.

Need help?

If you are a developer, architect or builder who wants to present a project to regional investors, Netix offers marketing and sales services for real estate projects in the Dominican Republic, and prepares documents to attract investment (dossier, technical sheets and executive presentation). Learn more at Netix: marketing and commercial advertising for real estate projects.

Informational only; it does not replace legal, immigration, tax or investment advice. Verify each procedure with a Dominican lawyer and your tax adviser. Figures as of 13 October 2026.