Why Dominica Real Estate?
Dominica is one of the lesser-known, least visited island nations in the Caribbean. The Dominica real estate investment market has a narrow appeal due to mainly its lack of white sandy beaches and no direct flights from Europe. But what Dominica lacks in this particular area it more than makes up for with its Dominican Citizenship by Investment Program.
(If you are interested in Dominica’s Citizenship by Real Estate Investment Program please our Dominica Buyer’s Agent.)
- Foreign buyers are free to own Dominica real estate: subject to certain restrictions and approval.
- The government is focused on the promotion of investment immigration, which is aimed at increasing government revenues, cutting debts, and revitalizing Dominica’s economy.
- Citizenship can be obtained through direct investment in property.
- Alternatively citizenship can be obtained through investment in the Government Fund.
- Dominica’s tourism appeal is not typical for the Caribbean region; however it is a stunning island nation with an exceptionally diverse geographical offering.
- Ecotourism is growing; interest has also increased since the 2nd and 3rd Pirates of the Caribbean films utilized Dominica for much of their on-location filming.
- Land and real estate are very affordable for the region; in addition Dominica’s Citizenship by Investment Program is the most affordable in the world.
- Dominica is the baby of a remarkable chain of tropical islands still a work in progress; it is literally still being shaped by ongoing geothermal and volcanic activity on the seafloor.
- Like its status as the youngest island in the region, so its economy and appeal is very new, very fresh, and ripe for consideration and exploration, particularly by those who would benefit from lifetime citizenship and a second passport.
Real Estate Investment, Taxes and Doing Business in Dominica
Please our real estate broker in Dominica for prices of real estate for sale in Dominica, as well as current rental rates.
- Foreign buyers can own free title to real estate in Dominica.
- An Alien Landholding License is required if purchasing more than 1 acre of land for residential purposes, or 3 acres of land for commercial purposes.
- If an Alien Landholding License is required it will be necessary to present financial records or a bank statement, police record, passport and a letter from your real estate broker in Dominica. The license costs 10% of the value of the property. Even when the license is not required all foreign buyers have to pay an additional 10% on the market value of the land, regardless of how much or how little land is purchased.
- Foreign purchasers can obtain temporary residency for up to 6 months at a time, or apply for citizenship if their investment qualifies. Round trip real estate costs in Dominica are quite high: the burden falls to the buyer.
- Foreign buyer pays: 10% of the value of the land, legal fees 3%, judicial fees 2.5%, assurance fund fee 1%, stamp duty 4%. Vendor pays: stamp duty 2.5%, realtor’s fees 5%.
- Additional information and documents may be required for transparency purposes as a precaution against money laundering. Rental yields for commercial and residential real estate are relatively low.
As tourism increases, (as predicted by the World Travel & Tourism Council), and as Dominica’s economy advances, there may be opportunities to profit more from an investment in real estate in the future. The good news is the legal landscape for landlords is supportive; rent can be freely negotiated, and a tenant refusing to vacate a property will incur significant legal costs because all such claims go the High Court. As a result this situation seldom occurs as tenants do not want the burden of these costs and therefore vacate a property when required.
Rental income earned by nonresidents is taxed at progressive rates from 15% to 35%. And VAT is also levied on rental income at a flat rate of 15% (a special rate of 10% can apply under certain conditions). There is no capital gains tax or inheritance tax in Dominica.
Dominican Citizenship by Investment Program
Since 1993 Dominica has had a Dominica Citizenship by Investment Program. Applicants for the program can choose to invest in qualifying real estate or make a fiscal contribution to the Government Fund. Citizenship by investment is based on Section 101 of the Constitution and Sections 8 and 20 (1) of the Citizenship Act.
Those choosing the real estate option must purchase authorized real estate valued at a minimum of US$200,000. The property purchased must be held for at least 3 years and may be eligible for re-sale under the Citizenship by Investment Program if owned for 5 years.
- There is a due diligence fee of US$7,500 payable per individual purchaser, with an additional US$4,000 for each dependent over the age of 16.
- Individual applicants choosing the Government Fund contribution option have to make a payment of US$100,000 plus due diligence fees of US$7,500.
- An application made by a couple requires a US$175,000 contribution plus due diligence fees of US$7,500 for the main applicant and US$4,000 for the spouse.
- A family of up to 4 can apply by making a contribution of US$200,000: an additional US$50,000 will be required for additional dependents.
- Due diligence fees for a family application are US$7,500 for the main applicant, US$4,000 for the spouse and US$4,000 for any dependent over the age of 16.
- Dominica’s is the most affordable citizenship by investment program in the world; however application requires the assistance of government approved agents.
- The application process can take up to 3 months.
- Supporting paperwork and documentation includes, but it not limited to, personal references, financial details, police record, medical certificate and notarized copies of qualifications.
- All documents and forms have to be submitted in English.
Once a passport is granted it is for life for the applicant and their family. The benefits of obtaining citizenship include enjoying visa-free travel to 60 countries including the United Kingdom, Singapore, Hong Kong and Ireland.
Successful applicants endure minimal taxation as there is no wealth, gift, inheritance, foreign income or capital gains tax in Dominica. Full residence status is granted which includes the right to live and work in Dominica and other CARICOM countries.
Dual citizenship is allowed and there is no actual requirement to reside in Dominica before or after citizenship is granted.
The application process is confidential, with no disclosure or exchange of information.
[Source: Dominica Government Website]
Areas of Interest for Dominica Real Estate
Investors Dominica enjoys the nickname “Nature Island” because of its stunningly rich and diverse flora and fauna. Two thirds of the island is covered with lush tropical rainforests, and Dominica is home to 1 of only 2 boiling lakes in the world.
Located right in the middle of the Eastern Caribbean archipelago between Guadeloupe and Martinique, Dominica is much less developed than any of its famous Caribbean neighbors, and it’s a perfect place to call home if you’re seeking a quieter, healthier life away from the hustle and bustle of home.
In terms of where to purchase real estate on the island, the north east coast of Dominica is appealing to those seeking second homes or beautiful lots of beachfront land for personal development.
Calibishie and Woodford Hill not far from Melville Hall Airport are prime examples of popular locations with foreign buyers.
Alternatively the north west coast also offers some beautiful properties for sale close to Dominica’s second-largest town of Portsmouth, as well as parcels of land for real estate development.
[Source: For more information Dominica Wikipedia]
What to do next if you are interested in Dominica Real Estate
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Please feel free to contact our real estate broker in Dominica to help you with your Dominica real estate needs as well as the Dominican Citizenship by Investment Program.