Your Guide to Short-Term Rentals at Andara Cap Cana

Owners at Andara can offer their residences for short-term rental on platforms like Airbnb, creating an opportunity for income from their property. While national law permits it, the specific rules are set by the condominium bylaws, and Andara is designed to support this with an optional managed rental program. This guide outlines the regulations, taxes, and management choices for owners considering renting their Andara residence.

Are short-term rentals permitted for an Andara owner?

Yes, owners at Andara are permitted to rent out their properties on a short-term basis. In the Dominican Republic, the primary regulation governing rentals comes from a property's own condominium bylaws rather than a restrictive national law. Andara was designed with rental flexibility in mind.

An owner has two primary routes: self-management or enrolling in the optional managed rental program. Those who self-manage are responsible for listing their property on platforms like Airbnb, managing bookings, communicating with guests, and coordinating cleaning and maintenance. Alternatively, the optional hands-off program is available for owners who prefer a turnkey solution. The developer's projection of an 11-15% net annual ROI is based on participation in this program at 70% occupancy.

What features at Andara attract premium rental guests?

Andara is designed to compete at the high end of the Cap Cana rental market, offering amenities and a location that appeal to discerning travelers. The community features seven distinct swimming pools, including an adults-only rooftop infinity pool with ocean views. A full suite of resort amenities provides a luxury hotel experience for guests.

Key features include:

• Resort Amenities: A fitness center and yoga lounge, coworking spaces, a golf simulator, and pickleball courts.
• Location: Situated within the exclusive gated community of Cap Cana, Andara offers security and prestige. It is a 15-minute drive from Punta Cana International Airport (PUJ) and just 10 minutes from the acclaimed Juanillo Beach.
• Golf Access: The property fronts the Las Iguanas Golf Course, a Jack Nicklaus design, offering immediate access for golf enthusiasts.
• Spacious Residences: The 175 homes range from 926 sq ft one-bedroom units to expansive 2,912 sq ft three-bedroom penthouses and townhomes (sizes are total constructed area), accommodating different group sizes in comfort.

What taxes apply to short-term rental income in the Dominican Republic?

It is important for owners to understand that the taxes on rental income are separate from the taxes on property ownership. While Andara's CONFOTUR approval provides significant property tax benefits, the income generated from renting your unit is subject to its own tax regime. For a non-resident owner, two main taxes apply.

Your attorney or accountant in the Dominican Republic can provide guidance on registration and compliance. The host is liable for these taxes, not the booking platform.

How does CONFOTUR approval improve a rental property's net return?

Andara's CONFOTUR approval directly impacts your bottom line as a rental property owner by reducing your annual carrying costs. These tax savings mean more of the revenue you generate can be realized as net profit.

The benefits apply to the property itself, not the income it generates. Specifically, as the first buyer of a unit at Andara, you benefit from:

• Exemption from the 3% Transfer Tax: This tax is normally paid by the buyer upon transfer of title. Its exemption represents a significant saving at closing.
• Exemption from Annual Property Tax (IPI): The Dominican Republic's Law 158-01 provides a fifteen-year property tax exemption for qualifying tourism projects. This exempts owners from the 1% annual IPI, a tax levied on the value of a property above an annually adjusted threshold. Your attorney will confirm the application of this exemption to your specific unit upon purchase.

By eliminating the largest annual property tax, CONFOTUR makes the overall investment more profitable, enhancing the net returns from rental operations.

What is the process for setting up an Andara residence for rental?

Preparing your Andara residence to welcome its first guests involves a few key steps. Working through them in order, with your attorney on the legal steps, is how owners get from title to first booking.

1. Finalize Purchase and Title
   The first step is legal ownership. A qualified Dominican attorney will handle the closing process, ensuring the deed of sale is correctly executed and the title is registered in your name with the corresponding tax exemptions.
2. Furnish and Equip the Residence
   A successful rental is fully equipped. Andara offers optional turnkey furniture packages curated to match the quality of the residences, ensuring your property is stylish, comfortable, and rental-ready for delivery in Q4 2028.
3. Select Your Management Approach
   Decide how you want to manage your property. You can enroll in the optional in-house rental program for a hands-off experience, manage it yourself remotely via online platforms, or engage a third-party property manager.
4. Fulfill Tax Obligations
   To operate legally, you must be set up to handle rental income taxes. Your Dominican accountant can assist with registering to declare and pay the 18% ITBIS and the 27% withholding tax for non-residents.

Common questions

Do I need to be in the Dominican Republic to manage my rental?

No. The optional managed rental program is specifically designed for hands-off ownership from abroad. If you choose to self-manage, you can do so remotely using online booking platforms and by hiring local staff for services like cleaning and guest check-ins.

Is the projected 11-15% net ROI guaranteed?

No, this figure is a projection, not a guarantee. It is based on a proforma analysis assuming 70% annual occupancy under the managed rental program and current market conditions in Cap Cana. Actual returns may be higher or lower.

Can my rental guests use all of Andara's amenities?

Yes, your guests will have access to Andara's common area amenities, including the seven pools, fitness center, coworking spaces, and pickleball courts. Access is subject to the condominium's community rules and regulations.