Puerto Plata · Dominican Republic
Costambar Real Estate
Costambar is an established, gated beach community just west of Puerto Plata, popular with North American and European expats, with condos, villas, a small nine-hole golf course and a near two-kilometre beach.
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Quick facts · Costambar
- Province
- Puerto Plata
- Region
- North Coast
- Setting
- Gated beach community west of Puerto Plata
- Nearest airport
- Puerto Plata (POP), ~25–30 min
- On-site golf
- Los Mangos nine-hole course
- Character
- Established expat enclave
- Foreign ownership
- Full (Law 16-95)
- CONFOTUR
- On certified new builds
About Costambar
Costambar is a gated residential beach community in Puerto Plata province on the north coast, about 10 km west of the city of Puerto Plata. It is a long-established mix of Dominican and foreign residents, mostly from North America and Europe, with condos, villas, restaurants, a small nine-hole golf course at Los Mangos and a beach that runs for close to two kilometres.
For buyers it is one of the more settled, services-rich expat enclaves on the Puerto Plata coast, with a track record of resale and rental rather than a brand-new resort. The nearest airport is Gregorio Luperón International (POP) at Puerto Plata, roughly a 25 to 30 minute drive, and the city's two cruise ports are close by.
History of Costambar
Costambar developed from the late 20th century as a gated beach community west of Puerto Plata, on a long stretch of golden-sand beach. Unlike the all-inclusive resort model nearby, it grew as a residential enclave of villas and low-rise condos, attracting Dominican owners alongside a steady inflow of North American and European retirees and second-home buyers.
A small nine-hole golf course at Los Mangos, local restaurants and shops, and the proximity of Puerto Plata's services gave it a settled, lived-in character. It is now one of the more mature expat communities on the coast, known more for full-time and seasonal residents than for mass tourism.
Why investors buy in Costambar
An established expat community with services, resale history and an active rental market.
A gated beach setting with a near two-kilometre beach and a small nine-hole golf course.
Close to Puerto Plata, POP airport and two cruise ports, supporting demand.
Full foreign-ownership rights and CONFOTUR incentives on qualifying new projects.
Market & growth
Figures are approximate and informational only. Verify before transacting.
Prices & rental market
| Inner condos / villas | entry to mid |
|---|---|
| Golf-area homes | step up |
| Beachfront villas | premium |
Brokerages describe Costambar as one of the stronger Puerto Plata sub-markets for both appreciation and rental demand, with peak-season occupancy concentrated from December to April. Reported yields and prices vary by source and by beach distance, so treat single figures as indicative and confirm current numbers and fees before buying.
Figures are approximate and informational only. Verify before transacting.
Neighborhoods & zones
Beachfront Costambar
Condos and villas closest to the sand, the priciest band.
Los Mangos / golf area
Homes and lots around the nine-hole course and country club.
Inner Costambar
More affordable villas and condos a short walk from the beach.
Lifestyle & who it's for
Costambar is residential and walkable in parts, the beach, local restaurants, the small golf course and an active expat social scene, with full city services in Puerto Plata minutes away. It suits buyers who want a settled community with neighbours, services and a rental track record rather than a resort or a remote town.
Things to do & attractions
Playa Costambar
A near two-kilometre golden-sand beach framed by homes and trees.
Los Mangos golf course
A small, casual nine-hole course inside the community.
Puerto Plata city
The historic city, Malecón and amber museum a short drive east.
Isabel de Torres cable car
The cable car to the Pico Isabel de Torres above Puerto Plata.
Ocean World (Cofresí)
The marine park and marina in neighbouring Cofresí.
Recent developments
- Jan 2026
POP airport opens 2026 with 78 routes
Puerto Plata's POP airport began 2026 with 78 active international routes on 11 airlines, improving access for Costambar's overseas owners and renters.
- Jan 2026
Record 11.6 million arrivals in 2025
The country set a record of about 11.6 million arrivals in 2025, underpinning north-coast rental and resale demand.
Buying costs & process
| Item | Cost |
|---|---|
| Transfer taxOf the DGII appraised value (may exceed the sale price). | 3% |
| Legal / attorney feesTitle search, due diligence and closing. | ~1–1.5% |
| Notary & registryDocument notarization and title transfer recording. | up to ~1% |
| CONFOTUR exemptionFirst buyer of a certified project is exempt from transfer tax and the annual IPI property tax for 15 years. | −3% + 15-yr IPI |
| Annual property tax (IPI)On value above the exemption threshold; CONFOTUR units exempt for 15 years. | 1% |
≈4–9% of price all-in (commonly 5.5–7.5%). No additional tax for foreign buyers, who hold equal ownership rights under Law 16-95.
Source: DGII / DR property-law guidance (aggregated) · early 2026
Risks & considerations
Infrastructure and services
Gated communities here can depend on private water, power backup and security; check utilities and reliability.
HOA and community fees
Confirm HOA, security and golf or club fees, which vary by sector and affect net returns.
Rental seasonality
Demand concentrates in the December to April high season; model conservative annual occupancy.
Title & CONFOTUR diligence
Confirm a clean Certificado de Título and any CONFOTUR status with an independent attorney.
10-year outlook
Informational, not adviceCostambar's settled expat community, beach, small golf course and quick access to Puerto Plata, POP and two cruise ports give it one of the more dependable resale and rental markets on the coast. It is a community-and-lifestyle play with steady demand rather than a high-yield resort bet, and buyers should verify fees, utilities and current figures locally. Informational only, not investment advice.
Explore other markets in Dominican Republic
Investing in Costambar
Can foreigners buy property in Costambar?+
Yes. Foreign buyers have nearly the same rights as citizens under Law 16-95 — no local partner or residency required. You'll need a passport and a Dominican tax ID (RNC), which your attorney can obtain.
What are the closing costs in Costambar?+
Typically 4–9% of the price (commonly 5.5–7.5%), led by the 3% transfer tax on the appraised value, plus legal fees (~1–1.5%) and notary and registry costs.
What is CONFOTUR?+
A tourism-incentive law that can exempt the 3% transfer tax and the annual property tax (IPI) for up to 15 years on qualifying developments. The benefit goes to the first buyer of a certified unit.
Can I buy in Costambar without traveling to the country?+
Yes. Buying remotely is common: you grant power of attorney to an independent Dominican lawyer who runs due diligence, signs on your behalf and registers the title. We still recommend visiting before you buy.
What annual property tax applies (IPI)?+
IPI is 1% per year on value above an inflation-adjusted exemption threshold (around US$160,000). Units with CONFOTUR status are exempt from IPI for 15 years.
Can foreigners get a mortgage in the Dominican Republic?+
Yes — some banks lend to non-residents, usually at 60–70% loan-to-value and higher rates than in the U.S. or Europe. Many buyers pay cash or use developer financing on new construction.
How long does the buying process take in Costambar?+
Usually 30–60 days: reservation, title search and due diligence, a promise-of-sale contract, the notarized deed (acto de venta), and recording at the Title Registry, which issues a new Certificado de Título in your name.
Can I earn rental income, and how is it taxed?+
Yes. Many owners rent short- or long-term through property managers. Dominican-source income is taxable; a local accountant can advise on ITBIS and income tax.
Do I need residency to own property?+
No. Ownership requires neither residency nor citizenship. Buying can actually support an investor-residency application, but it isn't a requirement to hold title.
Sources & last updated
Last updated June 4, 2026