What Rental Income Can an Owner Expect at Moon Garden 2?

The developer projects an annual return on investment of 10-13% for a turnkey Moon Garden 2 residence placed into a rental program — a projection rather than a guaranteed return. This income is subject to specific Dominican taxes for non-residents, and owners have the choice between self-management or using an optional managed rental program.

What does the 10-13% projected ROI represent?

The 10-13% projected annual return on investment (ROI) is the developer's projection for residences enrolled in an optional managed rental program. We hold no published derivation for it, so ask the developer which occupancy level and nightly rate the range assumes before you plan against it. It describes income from short-term stays at Moon Garden 2, inside Coral Golf Resort.

This figure is an illustrative projection, not a guarantee. Actual rental income will fluctuate based on several factors, including the specific unit, seasonal demand, occupancy rates, and nightly pricing. The projection is a starting point for understanding the investment potential of a fully furnished, rental-ready condo at Moon Garden 2, which is scheduled for delivery in September 2027.

What are my options for managing my rental property?

As an owner at Moon Garden 2, you have two primary paths for generating rental income. The choice depends on how hands-on you wish to be. You can either manage the property yourself, retaining full control over listings and guest interactions, or you can opt into the available managed rental program for a more passive investment experience. The property's own bylaws will be the final authority on the rules governing short-term rentals within the community.

How do Moon Garden 2's features support rental demand?

Several specific attributes of Moon Garden 2 are designed to attract short-term rental guests, directly influencing income potential. First, every one of the 108 residences is delivered fully furnished and equipped, making them turnkey and rental-ready from day one. This eliminates the upfront cost and effort of furnishing a property for the rental market.

Second, the location within Coral Golf Resort provides access to a suite of premium amenities that are highly sought after by vacationers. These include a private beach club, spa and wellness facilities, and on-site dining. The standout feature is the 12-acre water-sports lagoon, a unique amenity that sets the property apart in Punta Cana. Proximity is also key; the property is just a 3-minute drive from Playa Cabeza de Toro and 10 minutes from Punta Cana International Airport, minimizing travel friction for arriving guests.

What taxes apply to rental income for non-resident owners?

If you are not a tax resident of the Dominican Republic, your rental income is subject to two primary taxes. It is crucial to understand these obligations, as they directly impact your net return. Your attorney or a Dominican accountant can provide definitive guidance for your specific situation.

First, an 18% tax known as ITBIS (Impuesto sobre Transferencia de Bienes Industrializados y Servicios) applies to revenue from short-term tourist accommodations. As the property owner, you are responsible for remitting this tax; it is not automatically handled by booking platforms.

Second, a 27% withholding tax is levied on the gross rental income earned by non-residents. This is considered a single and definitive payment, meaning no deductions for expenses (like maintenance, fees, or utilities) can be applied to reduce the taxable base. Tax laws can change, so these rates should be confirmed with a qualified professional.

Does the CONFOTUR tax exemption apply to rental income?

This is a common and important question, and what can be sourced is narrower than a flat answer. The CONFOTUR law (Law 158-01) provides significant tax benefits for qualifying tourism projects like Moon Garden 2, and those benefits are recorded against the taxes of buying and holding the property. Rental earnings are assessed under a separate part of the Dominican tax code. Nothing we can cite settles how the two interact for one unit and one owner, so put that question to your attorney rather than treat it as decided.

Specifically, for a first buyer from the developer, CONFOTUR grants an exemption from the 3% property transfer tax at the time of purchase and an exemption from the 1% annual property tax (IPI). The law provides this IPI exemption for a period of 15 years for the project itself. These exemptions substantially reduce the costs of acquiring and holding the property. The taxes levied on income generated from renting it out are assessed separately: an 18% ITBIS and a 27% non-resident withholding tax on gross rental income, with no deductions permitted. Rates change, so confirm the current figures with your attorney or a Dominican accountant before relying on them.

Common questions

Is the 10-13% rental return guaranteed?

No. The 10-13% figure is the developer's projection, not a guarantee, and we hold no published derivation for it. Actual returns depend on factors like your specific unit, seasonality, occupancy rates, and the terms of the rental program you choose.

Do I have to rent out my condo at Moon Garden 2?

No, renting out your property is entirely optional. You can use your residence exclusively for personal enjoyment. If you do choose to rent, you can decide between self-management or enrolling in the optional managed program.

What does 'turnkey and rental-ready' mean?

It means your residence at Moon Garden 2 is delivered fully furnished and equipped with all necessary appliances. From the day you receive the keys, the property is ready for you, your family, or rental guests to occupy without needing any additional setup.

Are short-term rentals like Airbnb permitted at Moon Garden 2?

While national law permits short-term rentals, the specific rules for any condominium project are governed by its own internal bylaws. Your attorney will review these documents during the purchase process to confirm the regulations for short-term letting at Moon Garden 2.