What is a good ROI for Dominican Republic real estate?

Most investors target 8-15% annual ROI combining rental yields and appreciation. Locations like Las Terrenas and Samana show the highest appreciation (13-14%), while Cabarete and Punta Cana lead in rental yields (8.5-10%). A well-located property with 20-30% down can achieve double-digit returns.

How accurate are the rental yield estimates?

The calculator uses average rental yields by location based on market data from active listings and property management companies. Actual yields vary by property type, condition, management quality, and occupancy rates. Furnished vacation rentals in tourist areas typically achieve higher yields than long-term unfurnished rentals.

Can foreigners get mortgages in the Dominican Republic?

Yes, several Dominican banks offer mortgages to foreign buyers, typically requiring 20-30% down payment. Interest rates range from 8.5% to 11.5% for 15-20 year terms. Some developers also offer direct financing with competitive terms, especially during pre-construction.

What taxes apply to rental income in the Dominican Republic?

Rental income is subject to a 27% income tax, though properties under the Confotur (tourism incentive) program may be exempt from income tax on rental earnings for up to 15 years. Property transfer tax is 3% of the assessed value, and annual property tax (IPI) is 1% on properties valued over RD$9.86 million.

How does the Confotur tax incentive affect ROI?

Confotur-eligible properties enjoy exemptions from property tax, transfer tax, and income tax on rental revenue for up to 15 years. This can significantly boost net ROI by reducing annual costs by 2-4% of property value. Most new developments in tourist zones qualify for Confotur.

What is the difference between the investment tiers?

Conservative: 30%+ down payment with positive cash flow and moderate ROI — lower risk. Moderate: 20-30% down with balanced cash flow. Aggressive: under 20% down or negative cash flow — higher leverage means higher potential returns but greater risk if vacancy or costs increase.

Does the calculator account for property management costs?

The maintenance cost factor (1.5-2.5% of property value annually) provides a general estimate. If you plan to use a property management company, budget an additional 15-20% of gross rental income for their fees. You can factor this in by adjusting your monthly budget input.

Dominican Republic Real Estate ROI Calculator

Model your investment returns across the Dominican Republic's top real estate markets. Estimate rental income, appreciation, monthly costs, and break-even timelines.

How to calculate ROI on Dominican Republic real estate?

Enter your target location, purchase price, and down payment below. The calculator uses location-specific rental yields (7-10%), appreciation rates (9-14%), and Dominican Republic mortgage terms to estimate your annual ROI, monthly cash flow, and break-even timeline.

Carlos MendezPublished: June 1, 2025Updated: March 1, 2026

Reviewed by Maria Santos

Investment Calculator

How ROI is Calculated

1
Estimate Maximum Purchase Price
Based on your down payment and monthly budget, we calculate the largest property you can afford using Dominican Republic mortgage terms (20-year loan at 8.5-11.5% depending on credit tier).
2
Calculate Monthly Costs
We break down your total monthly obligation: mortgage payment (amortized), property tax (1% annually), and maintenance costs (1.5-2.5% annually, varying by location).
3
Project Rental Income
Using location-specific rental yield data (7-10% annually), we estimate the monthly rental income your property could generate from long-term or vacation rentals.
4
Compute Annual ROI
Annual ROI combines rental income plus capital appreciation minus total costs, expressed as a percentage of your down payment. Dominican Republic properties currently average 9-14% appreciation depending on market.
5
Determine Break-Even Timeline
If your net monthly cash flow is positive (rental income exceeds costs), we calculate how many months it takes to recover your initial down payment through cash flow alone.

ROI Calculator FAQ

Este contenido es solo para fines informativos y no constituye asesoramiento financiero, fiscal o legal. El rendimiento pasado y las proyecciones de retorno no garantizan resultados futuros. Siempre consulte con profesionales calificados antes de tomar decisiones de inversion.