Cap Cana Real Estate: Luxury Living with Investment Benefits
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Contents
- What Makes Cap Cana Special?
- The Money Side: Why Cap Cana Makes Sense
- Rental Income Potential in Cap Cana
- Property Values Are Appreciating
- Cap Cana’s Strategic Location
- What Types of Properties Can You Buy in Cap Cana?
- Luxury Villas
- Condos (Beachfront or Marina)
- Golf Course Properties
- Marina Residences
- Common Concerns for New American Buyers of Cap Cana Real Estate
- Is It Too Hard to Handle?
- Rental Strategies That Work
- Short-Term Rentals
- Mid-Term Holds (3–7 Years)
- Long-Term Wealth Planning
- Money and Financing Options for Cap Cana Real Estate
- Dominican Financing
- Notable Economic & Political Factors
- Tax Breaks That Actually Matter
- Legal Stuff Made Simple
- The Bottom Line on Cap Cana
Clients often ask us about foreign real estate options overseas that offer more than just protection from political instability and market volatility. They’re looking for places where the lifestyle is comfortable – and the investment makes good financial sense.
But finding places with comfortable living and beautiful views is easy enough. The complexities arise in the due diligence – analyzing the deal, reviewing contracts, and building the right structure. Technicalities that are better done the right way, the first time.
In fact, a client recently came to us with an important problem: he had already purchased a property in Cap Cana, but was unsure how to structure or even profit from his investment. After providing our services, we looked into Cap Cana real estate a bit more – and wanted to provide our findings here.
In this article, we’ll show you how Cap Cana stacks up in three key areas:
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The investment case.
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The lifestyle appeal.
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The tax angle.
Plus, we’ll walk you through some money and financing considerations, notable economic and political factors at play in the region, and some basic rental strategies.
What Makes Cap Cana Special?
Cap Cana is a large, private community on the eastern coast of the Dominican Republic. It covers about 30,000 acres, is located in Punta Cana, and sits just 15 minutes from Punta Cana International Airport. The area includes over 3 miles of white-sand beaches, a full-service marina, a top-ranked golf course, and several luxury resorts.
This isn’t just another tourist development. Cap Cana isn’t afraid to invest in itself – appealing to buyers who want more than just a vacation home.
Here’s what stands out:
The Marinas: Can hold yachts up to 250 feet. Offers full services for boat owners and crew.
The Golf: Punta Espada, a Jack Nicklaus Signature course, is ranked #1 in the Caribbean and among the best in the world.
The Resorts: High-end hotels like Sanctuary Cap Cana bring in steady visitors.
The Lifestyle: Upscale dining, beach clubs, and strong infrastructure support full-time living or rental income. Think paved roads, fiber optic internet, and enhanced waste management.
The Money Side: Why Cap Cana Makes Sense
Rental Income Potential in Cap Cana
Cap Cana draws a mix of short-term visitors and long-term expats. That steady demand makes it a solid option if you’re looking for rental income.
Returns vary by location and property type, but here’s what you should know:
- Modest but reliable yields: According to Global Property Guide, the average gross rental yield (returns before expenses are deducted) in Punta Cana across 1, 2, and 3-bedroom units
- Flexible use: You can rent your property short-term to tourists or long-term to expats and digital nomads. Both markets are growing in Cap Cana.
- Low-maintenance options: Many owners work with local property management companies. These firms can handle bookings, guest services, cleaning, and even maintenance – making this a hands-off investment if set up correctly.
Some websites claim gross rental yields as high as 9% for Punta Cana properties – but in our experience, you’re more likely to see stable yields between 5% and 6% when all is said and done. So, for investors focused on stability, rental income here can be a useful piece of a larger wealth strategy.
Property Values Are Appreciating
Cap Cana’s real estate market has seen steady growth in recent years. This trend is driven by several key factors:
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Limited Supply: Because Cap Cana is a gated community with strict zoning regulations and luxury brand presences, exclusivity is well-maintained, which supports property values.
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Improved Infrastructure: Ongoing development of marinas, golf courses, and entertainment centers enhances the area’s appeal.
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Growing Reputation: Cap Cana is becoming more recognized as a top Caribbean destination, attracting both tourists and investors.
Depending on where you look, the actual growth numbers vary. Some say Cap Cana real estate investments have grown by an average of 15% over the last 5 years. Some say by 35%.
And while there is undoubtedly growing international buyer interest in Cap Cana, trends come and go. A buyer today may see a very different market than a buyer three years from now. That kind of appreciation isn’t guaranteed.
But with the right planning and long-term horizon, Cap Cana can still be a reliable part of a diversified real estate strategy.
Cap Cana’s popularity may also be benefiting from what’s known as the flywheel effect – a concept borrowed from the tech world.
Here’s how it works: the more people buy in, the more others want to follow. This drives demand, which lifts property values. That, in turn, attracts more attention and more buyers. The momentum builds on itself – making the market feel increasingly “hot” just by virtue of its own activity.
It’s not a guarantee of success, but it helps explain why certain luxury communities take off faster than others.
Cap Cana’s Strategic Location
Cap Cana is located approximately 11 kilometers (7 miles) from Punta Cana International Airport (PUJ), making it easily accessible for international travelers.
The airport is the busiest in the Dominican Republic, handling over 9.5 million passengers in 2024, with direct flights to 75 cities in 34 countries. Americans can find flights to PUJ in many major metros, including Miami, New York (from both JFK and EWR), Boston, Atlanta, Houston, Dallas, Fort Lauderdale, and Chicago.
This location gives you several money benefits:
Depending on where you’re coming from, you can easily visit to check on your property.
Easy international access attracts high-end vacation renters and buyers.
Strong international presence helps keep market options open.
What Types of Properties Can You Buy in Cap Cana?
Cap Cana isn’t a one-size-fits-all market. The right property depends on your goals – income, lifestyle, legacy, or a combination of the three.
Here are the main categories our clients consider:
Luxury Villas
These are large, modern homes – often with private pools, full-time staff quarters, and premium finishes.
Best locations: Oceanfront or alongside the golf course.
High-end features: Private pools, gated lots, and access to resort services.
Rental value: Some beachfront villas rent for anywhere between $1,400–$5,900 per night, depending on size and season.
This option often suits clients looking for a long-term hold with rental upside – or a second home they plan to use part of the year.
Condos (Beachfront or Marina)
Condos offer a more flexible, lower-maintenance way to invest.
- Management included: Most developments include cleaning, concierge, and repair services.
- Shared amenities: Pools, gyms, and dining on-site.
Condos work well for clients who want hands-off income or a low-effort landing pad abroad.
Golf Course Properties
These homes back directly onto Punta Espada Golf Club – one of the top-ranked courses in the Caribbean, according to Golfweek Magazine and Golf Digest.
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Golf access: Popular with vacation renters who plan entire trips around the course.
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Community perks: Clubhouse access, security, and quiet surroundings.
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Reliable demand: Especially during high season and tournaments.
If you or your renters are golf-focused, this can be a stable mid-term hold with lifestyle upside.
Marina Residences
These are condos and townhomes close to Marina Cap Cana – one of the best-equipped in the Caribbean.
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Appeals to boat owners: Walking distance to slips and services.
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Less seasonal: High year-round occupancy due to yachting events and longer stays.
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Connected infrastructure: Restaurants, shops, and fuel docks nearby.
This category tends to attract long-stay professionals, yacht crews, and owners looking for dockside convenience.
Common Concerns for New American Buyers of Cap Cana Real Estate
Is the Dominican Republic Safe and Stable?
This is one of the first questions clients ask — and rightly so.
The Dominican Republic has a stable, elected government and a long-standing legal framework for property ownership. Its constitution treats foreign and local investors the same, and foreigners can hold title in their own name or through a legal entity.
That said, the US State Department classifies the Dominican Republic at Level 2: Exercise Increased Caution, for international travel, out of a 4-level system (the safest, Level 1, being Exercise Normal Precautions, and the most dangerous, Level 4, being Do Not Travel). Violent crime – particularly armed robbery and sexual assault – does occur, but it’s more likely in urban areas like Santo Domingo.
Petty crime, including pickpocketing and theft, is common in tourist zones like Santo Domingo, Santiago, and Puerto Plata. But gated communities like Cap Cana – with private security and restricted access – offer a safer, more controlled environment.
Outside of crime:
Tourism is strong. The country saw over 10 million visitors in 2023 – more than anywhere else in the Caribbean. That keeps rental demand steady in places like Cap Cana.
Infrastructure is improving. Roads, utilities, and airports continue to see investment, particularly in Punta Cana and La Altagracia province.
Foreign investment is consistent. The Dominican Republic attracts more foreign direct investment than any other country in the region – over $4 billion in 2022, according to Pro Dominicana.
None of this guarantees your investment will succeed. But for clients looking for international real estate in a jurisdiction that allows full foreign ownership – with reasonable protections and growing demand – the Dominican Republic offers a solid starting point.
Can You Actually Sell When You Want To?
This is a common concern among overseas property investors.
Cap Cana offers several factors that can facilitate a smoother resale process:
- Diverse Buyer Interest: Cap Cana attracts buyers from various countries, including the United States, Canada, and Europe. This international demand can provide a broader market when you’re ready to sell.
- Established Professional Services: The presence of experienced real estate brokers and legal professionals in Cap Cana ensures that transactions are conducted securely and efficiently.
While market conditions can vary, these factors contribute to a more liquid and accessible real estate market in Cap Cana, offering flexibility for investors considering future resale.
Is It Too Hard to Handle?
Overseas real estate comes with extra steps – no question. But with the right team, the process is manageable.
Here’s why Cap Cana is more straightforward than most offshore markets:
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Clear legal framework. The Dominican Republic allows foreign buyers to own property outright — no citizenship, local partner, or special status required.
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Tested process. Thousands of foreign investors have bought in Cap Cana. Title transfer, closing, and property registration follow a clear legal process.
As with any offshore investment, it pays to work with people who’ve done it before. But you don’t need to go it alone – and you don’t need to reinvent the wheel.
Rental Strategies That Work
Rental income is just one piece of the picture. For many of our clients, the goal is bigger: long-term capital growth, estate planning flexibility, or even a place they intend to use themselves down the road.
Here’s how Cap Cana holds up across different timelines:
Short-Term Rentals
Luxury vacation homes in Cap Cana aren’t setting records, but they do continue to offer stable returns within typical ranges thanks to steady demand. For instance, gross yields for short-term rentals are within the typical range for mature resort markets – ranging from 3% to 6%, according to Global Property Guide. Smaller units often deliver higher returns than larger homes.
It’s nothing flashy. If you’re more lifestyle-focused, these yields can help cover costs and still give you a property you enjoy. But don’t expect it to fully pay for itself.
Mid-Term Holds (3–7 Years)
For investors looking to buy, hold, and eventually exit:
Capital appreciation in Cap Cana has averaged around 6%–8% annually over the past several years, according to the Central Bank of the Dominican Republic.
Infrastructure upgrades and rising international visibility continue to drive value.
Luxury vacation homes in Cap Cana aren’t setting records, but they do continue to offer stable returns within typical ranges thanks to steady demand. For instance, gross yields for short-term rentals are within the typical range for mature resort markets – ranging from 3% to 6%, according to Global Property Guide. Smaller units often deliver higher returns than larger homes.
It’s nothing flashy. If you’re more lifestyle-focused, these yields can help cover costs and still give you a property you enjoy. But don’t expect it to fully pay for itself.
Long-Term Wealth Planning
For clients using real estate as a planning or legacy asset:
Hard-asset stability: Property in a master-planned community with strong governance like Cap Cana – which maintains its own private security, infrastructure, and architectural standards – holds long-term planning value.
Estate flexibility: Real estate can be titled through offshore entities or integrated into trusts, foundations, or insurance-based structures.
Cap Cana isn’t for those looking to fix and flip properties in the short term. But it offers strong fundamentals, consistent demand, and the kind of planning control that fits well in a diversified international portfolio.
Money and Financing Options for Cap Cana Real Estate
Understanding financing helps with Cap Cana real estate investment planning.
Dominican Financing
Financing is available in the Dominican Republic, though terms differ from what you might be used to in the US.
As of early 2025:
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Interest rates are averaging around 8% for mortgages.
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Loan-to-value ratios for foreign buyers typically top out at 70%, meaning you need to be able to put down at least 30% to get into the market.
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Amortization periods can run up to 25 years, with fixed-rate portions usually offered for only the early years of the loan.
Some clients choose to finance through local banks. Others prefer to use capital from offshore entities, retirement accounts, or private lending structures instead.
There’s no one-size-fits-all approach. The right strategy depends on your full financial picture – and how the property fits into your broader plan. This is something we’ve clarified for over 15,000 clients through 40+ years of service. Feel free to get in touch for more information.
Notable Economic & Political Factors
The Dominican Republic maintains a stable economic environment that supports real estate investment:
Political Stability: The country operates under a democratic government with a stable political climate, contributing to investor confidence.
Strong Economy: In 2024, the Dominican Republic attracted a record $4.512 billion in foreign direct investment, marking a 49% increase compared to 2019 and the highest level in its history.
Tourism Growth: The tourism sector continues to be a significant contributor to the economy, with over 11 million visitors recorded in 2024, reinforcing demand in the rental market.
Infrastructure Improvements: The government has initiated major infrastructure projects, including a $6.5 billion development agenda in 2025, focusing on transportation, water, sanitation, energy, and education.
These factors collectively contribute to a conducive environment for real estate investment in the Dominican Republic.
Tax Breaks That Actually Matter
For US investors, taxes are always part of the equation. The Dominican Republic offers some meaningful breaks – especially if your property qualifies under a tourism development law known as CONFOTUR.
Here’s what that means in practice:
No transfer taxes. The usual 3% tax due at closing is waived.
No property taxes. The 1% annual tax on property holdings is suspended – for up to 15 years.
No tax on rental income. You won’t pay income tax on money you earn from renting the property – again, up to 10–15 years depending on the project.
No import duties. If you’re building or outfitting a property, materials and equipment can often be brought in duty-free.
These benefits are real – and backed by Dominican law (Law 158-01). But they only apply to certain properties that meet tourism development criteria. Not every listing qualifies.
There are other points worth knowing:
- You can move money out freely. Profits and capital can be repatriated without restrictions.
- You get full property rights. Foreigners can buy and hold title just like Dominican citizens.
Bottom line: CONFOTUR isn’t a loophole. It’s a real framework that can reduce your total tax burden.
Legal Stuff Made Simple
Buying real estate in the Dominican Republic is legal and straightforward for foreigners — but as always, the details matter.
Your Rights as a Foreign Investor
Foreigners can own property outright in the Dominican Republic. There’s no citizenship requirement, no local partner needed, and no restrictions on what you can buy.
This is backed by Law 16-95, which gives foreign investors the same property rights as locals. You can hold title in your own name or through a legal entity. You can also move profits and investment capital out of the country without restriction.
What the Law Says:
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You’re treated the same as a Dominican citizen as far as property ownership is concerned.
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You can own real estate or a business without limits.
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You can bring back profits to the US freely.
Where You Still Need Help
The legal system offers strong protections – but paperwork still matters. Mistakes at this stage can cost you more later.
Before you buy:
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Get a title check. Make sure the property is free of liens and the seller has clean ownership.
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Think about ownership structure. Do you want to hold it personally? Through an SRL? A trust? That decision should fit your tax plan.
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Visit the area you plan to buy in, or work with someone who will do it for you.
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Work with professionals who understand the nuances involved in buying Cap Cana real estate for American investors.
Bottom line: the Dominican legal framework is solid. But smart investing means having the right team and structure in place before you close.
The Bottom Line on Cap Cana
Cap Cana offers something rare: a high-quality lifestyle asset that also has strong fundamentals. For the right kind of investor, it can be part of a thoughtful long-term plan — not just a nice place to stay, but a property that earns, appreciates, and fits into your broader wealth strategy.
But the key is to do your homework properly.
That means planning before you buy. Getting good legal and tax help. Knowing how ownership, income, and reporting will work on both the Dominican and US sides.
Yes, overseas property comes with more steps than buying in your hometown. But with the right guidance, those steps are manageable – and worth it.
Done well, Cap Cana can be:
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A place you enjoy.
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A stable long-term hold.
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Tax-efficient income.
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Options for legacy planning.
And now is a good time to look. Infrastructure is improving. International demand is growing. And the Dominican Republic remains one of the most open and investor-friendly countries in the region.
Perfect timing is a myth. What matters is being prepared – and knowing when an opportunity fits your goals.
If Cap Cana looks like a match, feel free to get in touch. We can help you make a plan and make it a reality.
About The Author
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We have 40+ years experience helping Americans move, live and invest internationally…
Need Help?
We have 40+ years experience helping Americans move, live and invest internationally…
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