Guide to buying a second home in Punta Cana as a European
Why Punta Cana for your second home?
Buying a second home in Punta Cana has become more than just a rich person’s whim. It’s a smart move for Europeans who want sun, beach and their money working for them. 11.6 million visitors in 2025. A record. The Dominican Republic leads Caribbean tourism and Bávaro concentrates the very best. Projects like Salado Golf & Beach offer new-build seafront flats, with golf course, spa and fine services. Perfect for slow living or for renting out and letting it pay for itself.
What a European should know before buying
I’ll get straight to the point. These are the key points. But careful, Salado Golf & Beach is located in White Sands, Bávaro, Punta Cana. A consolidated area, with capital appreciation guaranteed (or so it seems, at least).
1. Location isn’t everything, but almost
Not all of Punta Cana is worth the same. Bávaro, where Salado is located, has white beaches, championship golf courses and supermarkets, restaurants and hospitals within a stone’s throw. And the international airport (PUJ) nearby, with direct flights from Europe. What more could you want?
2. Buying as a foreigner: easier than it seems
Europeans can buy without any problems. The process is straightforward, though it requires patience:
- Reservation: You secure the unit with 10% of its value.
- Contract: Signed in Spanish and English. Get a local lawyer who knows this business.
- Staged payments: Usually during construction.
- Deed: At the end, before a notary and at the Property Registry.
One detail: there are no special taxes for foreigners. You only pay the ITBI (Property Transfer Tax), around 3%. No big deal.
3. Financing and currency: the US dollar rules
Most projects accept US dollars. That protects against exchange rate fluctuations. If you need a mortgage, some Dominican banks lend to non-residents up to 70%. But careful, the terms are better if you pay cash or through a construction plan. To me, that seems the more sensible option.
4. How much can you earn? Between 8 and 12% per year
Tourist demand in Bavaro never stops. According to industry data, beachfront properties like those at Salado Golf & Beach enjoy occupancy rates of 70% or more in high season. With an estimated return of 8-12% per year, the second home can finance itself through holiday rentals. And there are companies that manage everything for you.
The advantages of a luxury development like Salado
Choosing a new build with integrated services makes all the difference. Salado Golf & Beach offers:
- Beachfront: Direct access to the sand and the Caribbean Sea.
- Golf course: 18 holes designed by a renowned architect.
- Spa and wellness: Relaxation, gym, infinity pools.
- 24/7 security: Private surveillance, controlled access.
- Rental management: A turnkey programme to maximise returns without headaches.
Taxes and legal matters: what nobody tells you
If you are European, keep the following in mind:
- Tax residency: To avoid paying tax in the Dominican Republic, do not spend more than 183 days per year there. Consult your adviser in Europe.
- Local taxes: The 3% transfer tax when purchasing. Property tax is low, less than 1% of the assessed value.
- Capital gains: If you sell, the capital gains tax is 27% on the difference. But there are exemptions that can reduce it.
Old-timer’s tip: Hire a Dominican lawyer who is a member of the Punta Cana Chamber of Commerce. No informal agencies. At Residencial Group, which markets Salado in Spain, they offer free legal advice to their clients. Not bad at all.
Practical steps to buying your second home in Punta Cana
- Define your budget: Include the purchase price, taxes (3%) and closing costs (another 1-2%).
- Visit the development: If you can, travel to Bávaro and see Salado Golf & Beach in person. If not, request a 360° virtual tour.
- Compare options: Ask for floor plans, finishes and delivery times. Ask about the available phases (without making up prices for future phases).
- Negotiate terms: Developers often offer discounts for cash payment or early purchase.
- Close the purchase: Sign the deed, register the property. The keys arrive when construction is complete.
Frequently asked questions (and some answers)
Can I buy as a non-Dominican citizen?
Yes, with no restrictions for Europeans. You only need a valid passport and a local tax identification number (RNC), which the solicitor will arrange for you.
Do I need a residency visa?
No. Property ownership does not grant automatic residency. If you want to live there more than 6 months a year, apply for a residency visa by investment (minimum 200,000 USD in property).
What about hurricanes?
Punta Cana is in a low-risk zone compared with other islands. Developments like Salado comply with seismic and wind regulations. Multi-risk insurance is compulsory and is not expensive.
In short: is it worth it?
Buying a second home in Punta Cana does not guarantee you an effortless paradise. But it can be a solid investment, with returns of 8-12% per year in a tourist market that keeps on growing. Developments such as Salado Golf & Beach, in White Sands, Bávaro, combine slow living by the sea with luxury services: golf, spa, security, rental management. For Europeans, the process is transparent, with advisory support available from Spain through Residencial Group. If the Caribbean appeals to you, don’t let it pass you by. Book a virtual or in-person visit. Your second home is waiting for you, but think carefully about whether this is what you are looking for. Sometimes paradise has its clouds too.
