Hidden Costs When Buying in Punta Cana
Buying in Punta Cana can seem cheaper than it really is… until the hidden costs show up.
These expenses are real, unavoidable, and can seriously impact your returns if you don’t factor them in from the start.
I’m Jordi Albertus, a real-estate advisor in the Dominican Republic for 17 years.
I’ve seen many excited buyers get unpleasant surprises simply because no one explained the additional costs.
Today I’ll tell you what they are and how to plan for them so they don’t catch you off guard.
1️⃣ Transfer tax
In the Dominican Republic, when you purchase a property you must pay a transfer tax equal to 3% of the property’s value.
If you buy a $150,000 apartment, this tax would be about $4,500.
2️⃣ HOA/maintenance fee
Most residential and resort projects charge a monthly fee that covers security, landscaping, cleaning of common areas, and sometimes amenities like pools or gyms.
It usually ranges from $1.5 to $3 USD per m².
Example: a 90 m² apartment at $2/m² would cost $180/month.
3️⃣ Furnishing
If you buy a new, unfurnished property, factor in the cost to equip it.
Basic furnishing can start around $10,000, while luxury packages can exceed $25,000, depending on the property size.
4️⃣ Property insurance
Not mandatory, but highly recommended for fire, damage, and natural events.
Depending on the property value, annual cost typically ranges from $400 to $1,200.
5️⃣ Legal and notary fees
These include hiring an attorney, notary fees, and title registration.
They usually represent 1% to 1.5% of the property’s value.
A few months ago, a client bought an apartment without calculating maintenance and furnishing.
When he saw his rental income was lower than expected, he realized those costs cut his real returns by almost 25%.
That’s why I always recommend calculating the full investment, not just the purchase price.
In the next episode, we’ll talk about Airbnb in Punta Cana: how much you can really earn and what you should consider to maximize your income.