The Real 10-Year Cost of a $250K Sosúa Condo

A $250,000 Sosúa condo advertised at "8% net yield" is, in almost every case we've modeled, actually delivering somewhere between break-even and 4-5% once every real cost lands on the ledger. The gap isn't fraud — it's arithmetic that agencies skip. HOA, property management, realistic vacancy, insurance, and the 1% you'll spend every year just keeping the unit rentable rarely make it into the one-page projection a seller hands you at the viewing.

This article does the arithmetic in full, for one specific, common unit: a $250,000 two-bedroom condo in Sosúa, the affordable North Coast alternative to Cabarete and Puerto Plata, bought by an individual foreign buyer who rents it short-term through Airbnb roughly half the year.

The short answer: over 10 years, a $250,000 Sosúa condo run as a short-term rental costs approximately $88,000 in carrying costs (HOA, insurance, IPI, maintenance, utilities) against gross rental income that — after property management and realistic vacancy — nets somewhere between $84,000 and $134,000 depending on occupancy. That leaves the owner roughly break-even to modestly cash-flow-positive before counting appreciation, plus whatever the unit itself has gained in value.

01What Does a $250K Sosúa Condo Actually Cost to Buy?

The $250,000 sticker price is never the number that leaves your account. Non-CONFOTUR closing costs in the Dominican Republic run 4.5-5.5% of purchase price, covering the 3% transfer tax plus legal, notary, and registration fees — so budget $261,250-$263,750 to get the title in your name.

Sosúa condos rarely carry CONFOTUR classification (it's more common in new Las Terrenas and Punta Cana developments), so we're modeling the standard path here. If you're comparing a CONFOTUR-eligible alternative, our CONFOTUR Savings Calculator shows how the 3% transfer tax waiver and 15-year IPI exemption change the math — worth checking before you commit to a non-exempt building.

Evalúa's own listing data puts Sosúa condos at a median $2,188/m² (middle 50% range $1,779-$2,780, n=148, September 2026) — so $250,000 buys roughly 114m² (1,227 sq ft) at the median, though unit sizes and finishes vary widely between the older beachfront buildings near Playa Sosúa and newer construction further from the water.

02What Are the Annual Carrying Costs?

The four fixed costs — HOA, insurance, IPI, and maintenance — total roughly $6,700-$7,700 a year before you factor in the owner's share of utilities during vacant months. Here's the breakdown, using Evalúa's canonical carrying-cost model:

That IPI figure surprises a lot of first-time buyers who assume 1% applies to the full purchase price. It doesn't — the threshold exemption (adjusted annually for inflation, currently around $182,000 per DGII) means you're only taxed on the excess. Our Ownership Cost Calculator runs this exact math for any purchase price if you want to sanity-check a different unit.

03How Much Does Property Management Actually Eat Into Rental Income?

Short-term rental management in the DR typically runs 15-25% of gross revenue, with 20% as the realistic midpoint most owners pay once you include the platform's own cut. On top of that, Airbnb charges hosts a 3% fee, so a $20,000 gross rental year nets roughly $15,400 before carrying costs — not the $18,000-$19,000 a seller's spreadsheet might imply.

This is the single biggest source of disappointment for absentee owners. You're not managing from Toronto or Boston — someone local is, and that person needs paying whether they're answering a 2am WhatsApp about a broken AC unit or just collecting the rent. Managing remotely without a trustworthy local partner is consistently the top complaint we hear from Sosúa and Cabarete owners, more than hurricane risk or currency swings.

04What's Realistic Rental Income for a Sosúa Condo?

Sosúa doesn't carry the same short-term-rental brand recognition as Punta Cana or Las Terrenas, and the honest number reflects that. Evalúa's market model puts Cabarete — the closest comparable North Coast market we track directly — at $18,000-$20,000/year gross for a standard unit. Sosúa condos, being a notch more affordable and slightly less internationally marketed, typically land in a similar or slightly lower gross range, with occupancy in the 35-45% band rather than the 50%+ some Punta Cana listings achieve.

We model three scenarios rather than pretend to know which one you'll get:

05The 10-Year Model: Base Case

Running the base case ($18,000 gross, 40% occupancy, 20% management, 3% Airbnb fee) against $8,780 in average annual carrying costs:

• 10-year net rental income (after management/platform fees): ~$138,600
• 10-year carrying costs: ~$87,800
• 10-year net P&L before tax and appreciation: ~+$50,800

Individual owners pay progressive income tax (0-25%) on net rental income, with roughly RD$416,000 (~$6,700) exempt annually — at this income level, effective tax typically lands around 10-15% once the exemption is applied. Shave another $14,000-$18,000 off the 10-year total for income tax, and you're left with roughly $33,000-$37,000 in net cash flow over the decade — before whatever the unit itself appreciates.

At the conservative scenario ($14,000 gross, 30% occupancy), net rental income after fees drops to roughly $104,700 over 10 years — barely covering the $87,800 in carrying costs, and leaving the owner close to break-even on cash flow alone, before even applying income tax. That's the scenario sellers never show you.

06Does Appreciation Rescue the Math?

This is where the Sosúa math genuinely improves. National apartment prices grew 7.74% nominally in the year to Q1 2026, though only 2.97% after inflation — and that's the third consecutive year of decelerating growth, per Global Property Guide. Applying a conservative long-run real appreciation assumption (not the peak nominal figure) to a $250,000 unit over 10 years could plausibly add $60,000-$90,000 in property value, though this is a market-level estimate, not a guarantee for any specific building or unit condition.

Combine base-case cash flow (~$35,000 net over 10 years) with even modest appreciation, and the total return picture looks considerably better than the "does it cash-flow" question alone suggests. But appreciation isn't income you can spend on carrying costs in year 3 — it's locked in until you sell, and selling triggers its own tax (capital gains for individuals on the progressive scale, applied to the inflation-adjusted cost basis, not the nominal gain).

07Sosúa vs. the Alternatives: Where Does This Money Go Further?

If $250,000 in Sosúa nets a modest cash-flow picture, it's worth asking what the same capital does elsewhere in the DR. Our breakdown of a $600K Cap Cana villa's 10-year ownership cost shows a very different cost structure at the luxury end, and the Punta Cana Airbnb income reality piece covers a market with meaningfully higher occupancy but also higher HOA and competition. Sosúa's appeal is really its entry price — you're getting into North Coast ownership for less capital than Cabarete or Las Terrenas typically require, per our zone comparison data.

If you're financing part of the purchase rather than paying cash, the math shifts again — foreign buyer rates through Banco Popular or Scotiabank run 10-14%, which changes the breakeven occupancy considerably. Our guide on what DR banks actually want from foreign borrowers is worth reading before you assume financing is off the table.

08Common Mistakes to Avoid

1. Trusting a gross yield projection without a management fee deducted. An 8% "yield" quoted on gross rent before the 20% management commission and 3% platform fee is really closer to 6% net — always ask whether the number you're being shown is gross or net, and of what.
2. Ignoring the vacancy scenario entirely. A single occupancy assumption (usually the optimistic one) hides the swing between a break-even year and a genuinely profitable one. Model at least two scenarios before buying.
3. Forgetting the 1% maintenance reserve. A/C units, water heaters, and salt-air corrosion on anything metal near Playa Sosúa add up faster than inland properties. Skipping this line item understates true cost by $2,000+/year.
4. Assuming HOA fees are fixed for the life of ownership. Condo boards raise dues, sometimes sharply, after a major repair or insurance renewal. Ask for three years of HOA meeting minutes, not just the current fee schedule.
5. Not budgeting for income tax on rental profit. Individual owners owe progressive tax on net rental income after the annual exemption — a cost that's easy to forget until the DGII filing deadline arrives.
6. Underestimating income tax and capital gains changes underway. Ley 30-26, promulgated in mid-2026, is phasing in changes to individual capital gains and rental income tax treatment through 2027-2028. Confirm current rates with a Dominican attorney before finalizing any multi-year projection.

09Frequently Asked Questions

What's a realistic net yield on a $250,000 Sosúa condo?

In our base-case model, net rental income after management fees and before tax runs roughly $13,860/year against $8,780 in carrying costs — a net operating margin of about 2%, or roughly 5.5% gross-on-purchase-price before that carrying cost is subtracted. The conservative scenario is closer to break-even.

Is Sosúa a good rental market compared to Cabarete or Punta Cana?

Sosúa is more affordable to buy into but has lower brand recognition among renters than Cabarete (surf/kitesurf tourism) or Punta Cana (resort tourism), which typically means lower achievable occupancy. It suits buyers prioritizing entry price and personal use over maximum rental yield.

Does CONFOTUR apply to Sosúa condos?

Most Sosúa condo buildings are not CONFOTUR-classified, unlike many newer developments in Las Terrenas and Punta Cana. Always verify a specific project's CONFOTUR resolution number directly rather than assuming — classification is granted project-by-project, never by location alone.

How much should I budget for HOA fees in Sosúa?

$200-$300/month is typical for a standard gated Sosúa condo, though this varies by amenities and building age. Ask for the last three years of HOA statements to check for planned increases or unfunded reserve shortfalls before you buy.

What happens to my carrying costs if the condo sits vacant all year?

You still owe HOA, insurance, IPI, and the maintenance reserve regardless of occupancy — roughly $8,780/year in our model — with no rental income offsetting it. This is the scenario buyers underestimate most, especially in year one before a rental track record is established.

Should I own through an individual name or an SRL?

It depends on your income level, liability concerns, and whether you plan to hold multiple properties. Individuals pay progressive rental income tax with an annual exemption; SRLs pay a flat 27% on net income. Our comparison of individual vs. SRL ownership walks through the tradeoffs in detail — this decision has real tax consequences, so loop in a Dominican attorney or accountant before closing.

This article is for informational purposes and does not constitute legal, tax, or financial advice. Tax rates cited reflect 2026 law, which is being phased in changes under Ley 30-26 through 2027-2028. Consult a licensed Dominican attorney and accountant before making purchase or ownership-structure decisions.

10Where This Leaves You

The honest picture: a $250,000 Sosúa condo run as a short-term rental is a modest cash-flow investment in the base case, a break-even proposition in the conservative case, and a genuinely solid total-return play once you factor in a decade of Dominican property appreciation. None of those outcomes match the "8% net, hands-off income" pitch you'll hear at a sales presentation — and that gap is exactly why modeling your own numbers before you wire a deposit matters more than any brochure.

Run the specific unit you're considering — its actual HOA, its actual asking price per square meter — through Evalúa's Property Analyzer before you make an offer. The difference between a projection and a model is whether someone shows their work.