Why Canadian Investors Are Finding the Dominican Republic a Surprisingly Easy Solution for Real Estate Diversification

While Canadian real estate continues to provide value, diversifying internationally provides not just geographical balance, but also access to high-growth markets that behave differently from Canada’s. The Dominican Republic (DR) has emerged as one of the most accessible and profitable places to do this, offering a blend of strong fundamentals, investor protections, and straightforward processes that make it far less daunting than many other foreign markets. This simplicity and transparency are key reasons I started investing in DR personally.

Diversify Into an International, Tourism-Driven Market with Consistent Demand

Tourism is the engine of the Dominican economy, and its resilience directly fuels the real estate sector. In 2023, the DR recorded 8.1 million air arrivals, a 12.5% increase from the prior year, with Canadian visitors climbing at the same pace. Punta Cana alone handles roughly 60% of all arrivals, underscoring its position as a top Caribbean destination.

This steady demand translates to reliable occupancy rates. Hotel-managed projects consistently achieve 80 to 82% occupancy, while private vacation rentals average 60 to 65%. I was certainly attracted to the income potential in DR and the long-term value from appreciating assets, but what stood out even more was the practical side. Hotel-managed properties not only projected stronger returns, they also offered a far easier ownership experience, with far less stress and involvement than managing rentals independently. That balance of higher performance and simpler management was ultimately even more compelling to me.

Entry Pricing and Equity From Day One

Affordability is another differentiator. A newly built one-bedroom apartment near the beach often sells for US$150,000 or less. Meanwhile, resale values are rising quickly, with units purchased for around US$146,000 a few years ago now trading closer to US$250,000. Investors are often able to acquire properties below resale prices in pre-construction, creating equity on closing.

Legal and Tax Advantages Designed for Investors

One of the most overlooked aspects of the Dominican Republic is its pro-investor legal framework, which is structured to attract foreign capital and support long-term property ownership. Unlike in many other jurisdictions, foreigners are granted the same property rights as local citizens, with no restrictions on ownership, inheritance, or resale. The country also maintains a transparent and reliable title registration system, which provides an added layer of security for international buyers who may be wary of unclear property rights in emerging markets.

A central pillar of this framework is the Confotur Law, which was introduced to encourage real estate development and tourism-related investment. Properties approved under Confotur benefit from extensive tax exemptions that directly improve returns. Buyers are not required to pay the standard 3% transfer tax on property purchases, and owners are exempt from the 1% annual property tax for a period ranging from ten to 15 years. In addition, income generated through rentals, dividends, and interest is also exempt from taxation during the Confotur benefit period.

The result is a system where investors not only save on upfront acquisition costs but also retain more of their annual income and long-term capital appreciation. Closing costs remain minimal compared to many other countries, and in practice, most transactions avoid land transfer taxes altogether. Just as importantly, this system makes it easier for investors. 

Hands-Off Management Structures

Distance and management are often the barriers Canadians cite when looking abroad. The Dominican Republic addresses this directly. Many developments are sold turnkey and fully furnished and equipped, while additionally providing professional hotel or rental management programs. These services handle marketing, guest turnover, and maintenance, while still allowing owners personal use of their property.

This setup is particularly appealing for investors who want to diversify internationally without taking on the burden of cross-border property management. 

Hotel-Managed Investment Properties

The Dominican Republic has a wide range of projects in strong locations that offer hotel-style management, ensuring less day-to-day involvement for owners.

Secret Garden, Bávaro

Located minutes from the beach in Bávaro and only a 20-minute drive from Punta Cana International Airport, Secret Garden is backed by the Gesproin Group in partnership with the Banyan Group’s Cassia brand. The project offers full hotel management, including a rental program charging a 25% management fee. Amenities range from pools and a beach club to coworking areas and a spa.

Crystal Garden, Cap Cana

For those looking at the premium Cap Cana market, Crystal Garden is located just 500 meters from Juanillo Beach. The development offers optional hotel-style management, with owners able to decide whether to join the program. Apartments include golf and pool views, with larger units offering terraces and private spa features. Amenities include a spa, coworking space, rooftop terrace, and paddle tennis courts. 

Wave Garden, Cap Cana

Operated by the international Banyan Group under its Angsana brand, this Cap Cana development combines luxury residences with full hotel operations. Units overlook the Jack Nicklaus–designed Las Iguanas Golf Course and are within walking distance of Juanillo Beach. Owners participate in a profit-sharing model and retain up to 60 nights of personal use annually.

Riviera Bay, Cana Bay

Developed by Noval Properties, Riviera Bay uses a rental pool system tied to the adjacent Hard Rock Hotel & Casino. Units come fully furnished, with golf course views and access to extensive resort amenities. 

River Island, Bávaro

One of the largest developments in Bávaro, River Island apartments are fully furnished and supported by hotel management. The project emphasizes scale, with 16 pools, landscaped gardens, restaurants, retail, and even a 9,000-seat amphitheatre under construction. 

Easier Than Most International Markets

Perhaps the most striking aspect for Canadians is how familiar the buying process feels. Transactions are handled with English-speaking lawyers, titles are registered directly in the buyer’s name, and even financing is available through institutions like Scotiabank, with loan-to-value ratios up to 70%. In comparison, many Caribbean or Latin American markets have more complex ownership rules, limited financing, or unclear tax regimes.

For investors seeking to balance Canadian holdings with high-yield, appreciating assets abroad, the Dominican Republic represents a uniquely accessible opportunity. The combination of predictable tourism demand, strong returns, affordable entry points, and investor-friendly laws makes it one of the few international markets where diversifying is not just possible, but practical.