Buying a home in Miami vs. Punta Cana

Maybe you are looking for real estate investment opportunities in Miami, but you are not convinced by the prices of the properties. You would like to have access to luxury properties, with a high long-term profitability projection, mainly oriented to tourist rentals.

Have you considered investing abroad? Buying a house in Punta Cana allows access to excellent tax advantages for investors. It is also a tourist paradise with a very high occupancy rate and excellent profitability, in the midst of a market in which you have greater purchasing power.

In this post we are going to show you a comparison of what it means to buying a home in Miami vs. Punta Cana, and because this second option is much easier than you think.

Discover here our Punta Cana real estate opportunities.

Advantages of buying a home in Punta Cana vs. Miami

There are many reasons to invest in a luxury house or apartment in Punta Cana, instead of on U.S. soil.

Costs

The costs of investing in a luxury home in Punta Cana are much lower than a home of the same characteristics in the State of Florida.

We are talking about homes that have a modern architecture, in an environment fully equipped with the best amenities, from gym to coworking area, and to top it off, with a swimming pool and close to the beach.

In Miami you will find properties with prices that can be between two and four times higher than an apartment of similar characteristics in Punta Cana, which can be between $100,000 USD and $300,000 USD, while in Miami it would be difficult to find them below $500,000 USD.

Taxes

Another great advantage of buying an apartment in Punta Cana vs. Miami is the taxes.

If your property is covered by the Confotur Law, As is the case with Vivantia Homes real estate opportunities, you can obtain a series of important advantages:

Real Property Tax Exemption (1%). Although the percentage is similar, if you were to make the same purchase in Miami, you would have to pay the tax in any area of Miami-Dade County on an annual basis.

Real Estate Transfer Tax Exemption (3%). In Miami you would have to pay the Documentary Stamp Tax, which although it is lower (around 1.05% in Miami-Dade), it would not allow you to benefit from an exemption.

Income tax exemption for up to 15 years. Think that if you buy in many other countries in South America, where there is no double taxation avoidance treaty, you would have to pay taxes both in the USA and in the destination country.

Profitability

The profitability of real estate in a highly touristy area such as Punta Cana, but less saturated and competitive than Miami, offers higher yields and a higher long-term growth projection.

While the U.S. real estate market is more mature and requires more research to find the great opportunities, in Punta Cana you can easily find luxury apartments located in condominiums, with returns of 10 or 12% per year, and with high occupancy rates throughout the year, making it the ideal market for tourist rentals.

Tourism growth

The Dominican Republic closed 2024 with an all-time record of more than 11 million tourists, with Punta Cana being the most visited destination in 2024. main tourist city in the country, with an airport that is a key connection in the Caribbean. And its long-term growth projection allows you to reap the benefits of a faster increase in profitability.

It is no longer just that the luxury properties in Punta Cana are less expensive, which leaves you with a higher profit margin, but the increase in demand and the fact that tourism is the main driver of the city make it the ideal business for those who want to create their own real estate empire oriented to vacation rentals.

Possibility of obtaining Dominican nationality

Although it all depends on your long-term plans, there are many U.S. citizens who are considering obtaining Dominican citizenship in order to enjoy a greater financial freedom and fiscal flexibility in the future.

Being an American has many advantages from all points of view, but the most important is the CBT (Citizenship-based taxation) implies that you have to pay taxes in the USA on your worldwide income due to your nationality.

This disadvantage, which hinders the strategy of many investors, Some of them are considering the possibility of obtaining the naturalization in Dominican Republic and renounce U.S. citizenship, which from a financial point of view offers great advantages.

Vivantia Homes encourages you to talk to one of our advisors if you are looking for information for investing in apartments in Punta Cana.

Are you a real estate investor or are you thinking of moving to a sun and beach paradise in the Caribbean? Request a video call now.

How long can a foreigner stay in the Dominican Republic?

One of the aspects to be focused on when making real estate investments in other countries is the possibility of traveling abroad and staying in the country. This also applies to the Dominican Republic, which is not only a tourist paradise in the middle of the Caribbean, but also an ideal scenario for international investors.

When a foreigner can stay for a long time on a tourist visa, it will generally be much more convenient to be able to move around and get to know the area where he/she is going to buy an apartment.How long can a foreigner stay in the Dominican Republic? with a tourist visa?

To make these points clear, we are going to explain everything in detail if you are thinking about buy a house in Dominican Republic.

How long does the tourist visa in Dominican Republic last?

A foreigner can staying in the Dominican Republic on a tourist visa for a period of 30 days.

Whether you come from Colombia, the United States, Mexico or Spain, the tourist visa in the Dominican Republic allows you to stay 30 days in the country.

But it is possible to apply for a visa extension for one year period of up to 90 daysIt is therefore an enormously flexible country for those who wish to spend a long time there.

If you are a real estate investor, you may also have thought of staying in this country for a while, or even considering applying for residency or naturalization in Dominican Republic.

You will see that there are many options for those who wish to travel to the country.

It is normal to arrive first as a tourist, extend the visa and then study the options to obtain residency or some other visa that allows you to stay in the Dominican Republic for a longer period of time.

What to do when your tourist visa expires in Dominican Republic?

When the 30 days of your tourist visaIf you wish to remain in the country, as well as the extension of up to 90 days, you have to look for an alternative if you wish to remain in the country.

In that time, you will have no problem to perform all of the real estate investment proceduresIf you wish to stay longer, there are several possibilities.

You can leave the country to another place nearby and re-enter with a new tourist visa.

Before your visa expires, you can consider whether you are eligible to apply for a tenant, investment or work visa.

Previously we showed you the types of visas to enter the Dominican Republic.

As long as you are within the validity period of your stay in the Dominican RepublicYou have the possibility to apply for another visa, and it will not be necessary for you to leave the country to do so.

So, for example, if you are a pensioned/retired and receive more than $$1500 per month From abroad, you can apply for a temporary residence visa for pensioners. This type of residence visa is valid for one year, renewable.

On the other hand, if during your stay as a tourist in Dominican Republic you make a real estate investment of at least $$200,000, then you are also eligible for a residence visa for investment, which would also allow you to obtain a residence visa for a period of 1 year, renewable.

What visa to apply for to buy an apartment in Dominican Republic?

Most of the real estate investorsespecially if it is the first time you are going to invest in the Dominican Republic, travel to the country with a tourist visa to get to know the market.

This allows you to be in the country for 30 days, with the possibility of adding 90 days more, which allows you to visit the properties you are going to buy, carry out the paperwork and explore the land.

Then, once you have made your first real estate investmentIf your visa is over the $200,000 limit, then it will be easy for you to apply for residency and then naturalization if you are interested. However, if you are not going to reside in the country, you can simply extend your visa until the time limit expires.

Other investors who have been investing in this market for a longer period of time can rely on a legal representative to carry out their buying and selling operations. But this option is only advisable for those who have already built up their own portfolio of real estate investments in Dominican Republic.

It is important to be clear in any case that invest apartments for rent in Dominican Republic does not necessarily imply that you have to live in the country. You can delegate the management of the property so that you don't have to take care of anything and simply receive your rent month by month.

From Vivantia Homes we accompany you throughout the process of purchasing your first apartment in the Dominican Republic so that you can carry out all the procedures during your stay in a quick and simple way and become the owner of a property that generates a high profitability for rent, and with long-term growth projection.