Does the CONFOTUR tax exemption apply to my rental income?

What CONFOTUR is documented to exempt is the 3% property transfer tax and the 1% annual property tax (IPI) — both taxes on the PROPERTY. Rental income is taxed separately, under its own rules. We have not found a source that addresses the two together in terms, so treat them as separate questions and put your specific case to a Dominican attorney and accountant.

Do I need to be a Dominican resident to rent out my condo?

No, you do not need to be a resident or citizen to own property or operate a rental in the Dominican Republic. Foreign buyers have the same rights and responsibilities as Dominican nationals, including the obligation to pay taxes on any income earned in the country.

Who is responsible for the 18% ITBIS tax on bookings?

The property owner, as the host, is legally responsible for collecting and remitting the 18% ITBIS (VAT) on short-term tourist stays. This responsibility does not fall on the booking platform (e.g., Airbnb, VRBO).

Rental & management

Running an Airbnb in Punta Cana: A Guide for Owners

Published August 30, 2026 6 min read

Yes, operating a short-term rental like an Airbnb in Punta Cana is a primary reason many international buyers invest in the Dominican Republic. At Secret Garden, our residences are designed for this purpose, situated in the high-demand Los Corales area of Bávaro and placing your rental property just a 5-minute walk from the beach.

Are short-term rentals permitted for a Secret Garden owner?

Yes. While national law in the Dominican Republic generally permits short-term rentals, the most important rules are set by a property's own condominium bylaws. Secret Garden was designed from the ground up with vacation rentals in mind, and our community regulations fully permit owners to rent out their properties on a short-term basis.

This makes a crucial difference for an investor. Buying in a community not explicitly designed for tourism can lead to future restrictions from the homeowners' association. At Secret Garden, the ability to generate rental income is a core part of the ownership proposition. Our location in Los Corales, about 1,476 feet from the sands of Bávaro Beach, places your property in one of the most sought-after zones for tourists searching on platforms like Airbnb, VRBO, and Booking.com.

Rendering of rooftop terraces overlooking the 19,375 sq ft resort pool at Secret Garden, designed for vacation rental guests.

What taxes do I pay on rental income in the Dominican Republic?

As a non-resident owner earning rental income, you are responsible for two primary taxes. It is critical to understand that these are separate from the property tax benefits offered by CONFOTUR.

The CONFOTUR law provides an exemption from the 3% property transfer tax and the 1% annual property tax (IPI) for qualifying projects like Secret Garden. Those are property taxes. Rental income is taxed separately, under the rules set out below, so a CONFOTUR exemption should not be read as changing what you owe on rent. Your attorney and accountant will provide definitive guidance, but owners should be aware of the following tax obligations on their rental revenue.

Primary Taxes on Short-Term Rental Income for Non-Residents
Tax	Rate	Basis and Key Details
ITBIS (VAT)	18%	Applied to short-term tourist accommodation. The property owner (the host) is legally responsible for collecting and remitting this tax, not the booking platform.
Non-Resident Withholding Tax	27%	A single, definitive tax applied to the gross rental income, with no deductions for expenses. This is withheld and paid to the Dominican tax authority (DGII).

How can I manage my rental property from abroad?

Owners at Secret Garden have two main paths for managing their rental property: self-management or appointing a property manager. Your choice depends on how hands-on you wish to be.

Self-Management: This involves personally handling all aspects of the rental. You would be responsible for creating and managing listings on platforms like Airbnb, communicating with guests, arranging check-ins and check-outs, scheduling cleaning services between stays, and addressing any maintenance issues that arise. While this approach can maximize your direct control, it requires significant time and attention.

Professional Management: Many foreign owners choose to hire a licensed property management company in Punta Cana. A manager can handle all day-to-day operations on your behalf, providing a passive investment experience. For owners at Secret Garden, we offer an in-house option, Gesproin Rentals. This program is designed to provide a seamless, hands-off rental management solution. The specific services and fees are detailed in the program's terms, which are available to our buyers.

What makes a property attractive to Punta Cana renters?

Travelers in Punta Cana look for a combination of location, amenities, and modern comfort. Secret Garden was designed to deliver on all three fronts, positioning your property to compete effectively in the vacation rental market.

Location: Proximity to the beach is paramount. Being a 5-minute walk from Bávaro Beach is a powerful draw. Additionally, we are only a 15-minute drive from Punta Cana International Airport (PUJ), which handled 71.9% of all foreign non-resident arrivals to the country in 2025.
Amenities: Resort-style amenities are a key differentiator from standard apartments. Our 19,375 sq ft lagoon pool, on-site restaurant, spa, and fully-equipped gym offer guests a premium experience they can't get everywhere.
Turnkey Quality: Every residence at Secret Garden is delivered turnkey with a stove, oven, extractor fan, and air conditioning installed. This ensures a consistent, high-quality standard for guests from day one. Optional furniture packages are also available to make your unit immediately rental-ready.

How does tourism demand in Punta Cana support my investment?

Punta Cana is the engine of the Dominican Republic's tourism economy. The sheer volume of visitors creates a deep and consistent demand for short-term accommodation. In 2025 alone, 5,275,492 foreign non-resident passengers arrived through Punta Cana International Airport (PUJ), out of a national total of 8,860,709 air arrivals.

This level of traffic sustains a vibrant rental market, particularly in prime tourist zones like Los Corales. By owning a property within a community designed for this market, you are positioned to benefit from this constant flow of international visitors seeking an alternative to traditional all-inclusive hotels. The goal is to provide a high-quality home base for travelers exploring the beaches, restaurants, and attractions of Bávaro-Punta Cana.

5,275,492 Foreign arrivals via PUJ Airport in 2025

15 min Drive from Secret Garden to PUJ Airport

1,476 ft Approximate walk to Bávaro Beach

Common questions

Does the CONFOTUR tax exemption apply to my rental income?: What CONFOTUR is documented to exempt is the 3% property transfer tax and the 1% annual property tax (IPI) — both taxes on the PROPERTY. Rental income is taxed separately, under its own rules. We have not found a source that addresses the two together in terms, so treat them as separate questions and put your specific case to a Dominican attorney and accountant.
Do I need to be a Dominican resident to rent out my condo?: No, you do not need to be a resident or citizen to own property or operate a rental in the Dominican Republic. Foreign buyers have the same rights and responsibilities as Dominican nationals, including the obligation to pay taxes on any income earned in the country.
Who is responsible for the 18% ITBIS tax on bookings?: The property owner, as the host, is legally responsible for collecting and remitting the 18% ITBIS (VAT) on short-term tourist stays. This responsibility does not fall on the booking platform (e.g., Airbnb, VRBO).