The Dominican Republic shares the island of Hispaniola with its neighbour Haiti, one of the poorest countries in the world. It is an island that has in the past had an image problem known for its all-inclusive holiday resorts and for giving visitors stomach bugs. Now, however, its going upmarket. New, luxury property developments have sprung up on the island – particularly on the east coast – attracting US celebrities: Jennifer Lopez, Beyonce Knowles and Paris Hilton have all laid their beach towels on the island and Brits are increasingly buying property here.

Popular areas for buying property for sale include Puerto Plata, Sosua and Cabarete on the north coast and, on the east coast, around Punta Cana, where several major luxury resorts are being built, notably Cap Cana, the biggest development in the Caribbean. Covering 14,000 hectares, the resort will see 10,000-holiday properties built over the next ten years along with six golf courses (including three Jack Nicklaus signature courses), five hotels and the biggest marina in the Caribbean. Prices of property for sale in the Dominican Republic start at 230,000 and go up to several million pounds. Next door is Caso de Campo, another luxury development, where Oscar de la Renta has a property. Prices of property for sale in Caso de Campo start at 250,000 for apartments.

It is hard to get hard and fast figures for capital growth experienced in the Dominican Republic, but most people suggest prices of property for sale in the Dominican Republic are going up by ten to 20 per cent a year, and rental yields can be as high as eight to ten per cent in prime locations. There is a one per cent property tax, 25 per cent capital gains tax and a six per cent exchange tax; but, like Antigua, some of the bigger resorts are negotiating lower rates of tax in Cap Cana, for example, there is a ten-year exemption on property taxes and no capital gains tax when properties are sold.