August 2026 · 9 min read
Developer gross yields are not what you earn.
The Dominican Republic is frequently marketed to foreign investors on the basis of rental yield — and the numbers cited in developer marketing materials are almost always gross yield figures that bear little resemblance to what an investor actually pockets. This guide explains how to calculate yield properly and what to actually expect.
The Four Metrics You Need
Gross Rental Yield
Annual Gross Rent / Purchase Price x 100
⚠ Ignores ALL expenses. Developer marketing almost always uses gross yield.
Net Rental Yield
(Gross Rent - Expenses) / Purchase Price x 100
⚠ Does not account for financing costs (mortgage payments).
Cash-on-Cash Return
Annual Net Cash Flow / Total Cash Invested x 100
⚠ Does not capture appreciation.
Cap Rate
Net Operating Income / Property Value x 100
⚠ Ignores financing — not useful for leveraged vs. all-cash comparison.
Worked Example: Punta Cana 2-Bedroom Condo
Property assumptions
Annual Expenses
Returns Summary
How CONFOTUR Improves the Numbers
- ✓No transfer tax: saves USD 8,400 at closing
- ✓No annual IPI: saves ~USD 1,400/yr
- ✓No rental income tax: saves ~USD 2,850/yr
- ✓NOI improves from USD 11,400 to ~USD 15,650 (+37%)
- ✓Net yield improves from 4.1% to 5.6%
Calculate Your Financing Scenario
Adjust sliders to estimate your DR mortgage payment
Monthly Payment
$1,522
20-year loan at 8%
Estimate only. Actual payments depend on bank-specific terms, fees, and insurance. Does not include property insurance or closing costs.
Get Real Bank Offers →Frequently Asked Questions
Model it properly before you buy
The gap between the 8–10% gross yields cited in developer marketing and the 4–6% net yields investors actually achieve is not a fraud — it is the difference between ignoring expenses and accounting for them. A properly modeled DR rental property with CONFOTUR benefits and realistic assumptions produces a compelling total return when appreciation is included. Cash flow alone rarely justifies the purchase — but cash flow plus appreciation plus principal paydown creates a strong investment case.
Run Your Numbers