Dreaming of property in the tropics? Find out how much your own apartment or villa with an extensive ocean view costs. Is it cheaper in the Dominican Republic than in Poland? The answer is below!
How much does an apartment cost in the Dominican Republic?
Apartment prices range from approximately $80,000 for simple apartments in Bayahibe or Puerto Plata to over $1,000,000 for luxury apartments in Punta Cana. The most expensive, of course, are exclusive residences with large areas (over 100 m²), private pools, ocean views, access to golf courses, and private beaches. Such apartments are located, among others, in Cap Cana, Casa de Campo, or Punta Cana Resort & Club. In contrast, the cheapest apartments often have undeveloped plots and require renovation, and are located in smaller towns and villages, e.g., Monte Cristi or Barahona. Apartments in the Dominican Republic are therefore very attractively priced – many “lower-end” apartments can be bought cheaper than in large Polish cities (e.g., Warsaw, Krakow, Wroclaw), where prices often exceed half a million zlotys, and that’s for a studio apartment. 🙂
How much does a house (villa) cost in the Dominican Republic?
Prices on Hispaniola can be much lower than in Warsaw – you can buy your own house here for the equivalent of half a million Polish zlotys! For that amount of money, you can get a property with an area of 50 m², located within walking distance of the beach. Looking at villa prices in the Dominican Republic, we can be pleasantly surprised: they are competitive compared to countries like Spain, Croatia, or the United Arab Emirates. Villas in gated communities (i.e., with truly luxurious conditions) can be purchased for as little as $220,000, which is just over 900,000 zlotys – it turns out that Polish homes can be up to 50% more expensive (for a similar standard)! Similar to apartments, the most expensive are communities considered “premium class” (we have written extensively about many of them here: The best neighborhoods in Punta Cana – for rent and living), and the cheapest are in smaller towns and villages. But low prices are not everything…
Fees and Taxes Related to Real Estate in the Dominican Republic
When it comes to taxes and other fees related to real estate, the Dominican Republic also pleasantly surprises. Essentially, everything worth knowing can be summarized in 5 points. Consider:
- Property Transfer Tax (ITBIS), similar to the Polish PCC (tax on civil law transactions), which amounts to 3% of the property value.
- Property Tax (IPI), which is 1% of the property value exceeding $168,000 USD.
- Notary Fees, usually ranging from 0.5% to 1.5% of the property value.
- Real Estate Agency Commission, typically from 1% to 3% of the property value.
- Additional Administrative Fees, related to documentation, translations, or other legal services (several / tens of thousands).
It turns out that, with a bit of luck, you will pay barely 5.5% of the property value + incur some minor administrative fees. And what about property maintenance? Here it is worth familiarizing yourself with issues such as:
- Homeowner Association (HOA) Fee, which usually ranges from $3 to $4 USD per square meter. For example, for a 100 m² apartment, the monthly fee will be between $300 and $400 USD (equivalent to our rent).
- Electricity Bill, approximately $250 USD per month.
- Internet, approximately $60 USD per month.
- Property Insurance, approximately $60-70 USD per month.
- Property Management (if you decide to rent out and hire an agency for management), the cost of such a service is approximately 30% of the monthly rent and lease. For example, if the total is $1,000 USD, the management fee will be $300 USD per month.
To pay even less, it is worth taking advantage of the CONFOTUR law and seeking assistance from good real estate agents in the Dominican Republic. In short, Ley de Fomento al Desarrollo Turístico guarantees:
- Exemption from Property Tax (IPI) for a period of up to 15 years.
- Exemption from Transfer Tax for a period of up to 15 years.
- Exemption from Import Tax on building materials, equipment, and furniture.
- Exemption from Local Taxes related to project implementation, such as fees for building plans or supervision.
This means that if you approach the matter wisely (and with a bit of luck), you can acquire a house in the Dominican Republic for the equivalent of 500,000 Polish zlotys – and, of course, cover all necessary formalities within that amount. 🙂
