Hotel 400 m² in Cabarete, Dominican Republic — $550,000
An operating hotel of 400 m² is for sale in the center of Cabarete on the north coast of the Dominican Republic. The distance to the beach is 350 meters. A three‑story building constructed in 2010 on a 208 m² plot. The hotel includes 11 rooms with 8 bathrooms. The property is fully furnished and underwent a complete renovation at the end of 2023. Price — $550,000.
Location
Cabarete is the world capital of kitesurfing, attracting a year‑round flow of tourists and expats, particularly from the US and Canada. The town is known for its beaches with constant winds, ideal for water sports. The hotel is located in the center, 350 meters from the beach, close to restaurants, shops, and services essential for the tourism business. Puerto Plata Airport (POP) is a 20‑minute drive away.
About the property
A three‑story building constructed in 2010. Room inventory: 5 spacious studios and 3 two‑bedroom apartments, each with a kitchen and balcony. On the top floor, there is a common terrace with sunset views. The building area is 400 m², on a 208 m² plot. A complete renovation was carried out at the end of 2023, including replacement of finishes and systems. The property is fully furnished, and all rooms are equipped with air conditioning and internet access.
In the complex
The property features a communal pool and guest parking. The building is located in the city center, providing walking access to all necessary infrastructure.
Price and costs
- Price — $550,000.
- Price per square meter — $1,375.
- Year of construction — 2010.
When purchasing property in the Dominican Republic in 2026, the buyer pays a unified ad valorem transfer tax — in 2026 the rate is 2% of the property value. From 2027, the rate decreases to 1%, and from 2028 the tax is completely eliminated. Notary and registration fees are approximately 1.5% of the value. The full closing cost package is approximately 3–4% of the property price.
Annual expenses: property tax (IPI) — 1% of the cadastral value exceeding the threshold of 10,695,494 Dominican pesos (approximately $183,000 as of 2026). The property in Cabarete is likely to fall under this threshold. For tourist properties, CONFOTUR program benefits are available — exemptions from income tax, rental income tax, and property transfer tax for up to 15 years.
Purchase procedure and transaction format
Form of ownership — full freehold ownership. Foreigners may own property in the Dominican Republic without restrictions. The purchase procedure is identical for local and foreign buyers. Transaction steps: property selection, legal title verification, signing of a preliminary contract, notarial closing, and registration in the Land Registry. Online viewings and remote purchase by power of attorney are available. Languages of support — Spanish, English.
If you are considering it as an investment
The hotel is an operating business with confirmed income following the 2023 renovation, which confirms its rental potential. The north coast of the Dominican Republic shows steady tourism growth, attracting foreign buyers from the US, Canada, and Europe. The average gross rental yield in the region reaches 9–12% per annum. The property can be used as a hotel or repurposed as a boutique hotel, clubhouse, or residential complex. Investments starting from $200,000 open the path to obtaining residency for the investor, spouse, and children.
Suitable for
- Investors looking for a ready‑to‑operate hotel business with confirmed income in the heart of the world's kite‑surfing capital.
- Buyers considering acquisition for residency purposes (threshold from $200,000).
- Those who want to enter a market with rising property prices and active tourist demand.
May not be suitable for
- If you need a beachfront property — the beach is 350 meters away.
- If you need a property with a larger plot — the plot is 208 m².
- If you plan to use it as a large hotel — the hotel has only 11 rooms.
- If you are not prepared for the operating costs of a hotel business.
- If you are looking for a quiet area without tourist traffic — Cabarete is an active resort town.
What to know before the transaction
The hotel underwent renovation at the end of 2023, which reduces risks related to systems and finishes. During the season, Cabarete is in high demand, and parking and roads may be congested. Outside the season, the town remains active thanks to year‑round tourism and expats. The CONFOTUR program can provide substantial tax benefits. When purchasing, be sure to verify the clarity of the title and the availability of all permits.
How to view and purchase
Let us know when you plan to visit and what your budget is. A Discount House manager will confirm the property's availability, provide a full cost breakdown for the transaction, and suggest alternatives in the same area. Viewings in person or via video. Response within 30 minutes.