Dominica Real Estate – An Informative Guide
Contents
Dominica is known as the “Nature Island of the Caribbean” and is renowned for its lush rainforests, nine volcanoes, hot springs, waterfalls, pristine beaches, and diverse ecosystems. This natural beauty has attracted buyers interested in Dominica real estate, from the island’s eco-friendly and sustainable commercial properties, such as eco-villas and eco-resorts, to its family homes in scenic locations.
In this article, we’ll give you a rundown of Dominica’s real estate market – from property prices and popular locations to the different processes of buying property as an independent buyer and CBI applicant. So, without further ado, let’s jump in!
Why buy property in Dominica?
There are many good reasons to buy Dominica property. For one, this Caribbean island is economically and politically stable, providing an ideal environment for those interested in building a life here. Furthermore, the island places a high value on environmental sustainability, which is reflected in its development of various eco-friendly practices and real estate options.
Real estate prices on the island tend to be more affordable than the cost of property in other Caribbean islands, and the cost of living is also generally lower than in many countries in Europe, the UK, and the US. The island’s thriving tourism market also means there is ample opportunity for investors to earn good profits through rentals or resales.
Finally, located in the eastern Caribbean Sea, Dominica boasts a tropical climate that offers warm weather throughout the year. The locals are friendly, welcoming newcomers to take part in the celebration of their rich history and vibrant culture. And, with Dominica’s untouched landscapes and relaxed pace of life, you’ll find the island an ideal place for families, retirees, and more to enjoy their days in a tropical paradise.
Dominica Real Estate Market Overview
Where to buy
Dominica offers a seemingly endless supply of excellent locations to search for real estate for sale. Thanks to the island’s beautifully preserved natural landscapes, you’re sure to enjoy breathtaking views and scenery no matter where you are.
On the west coast of the island, you’ll find popular locations such as Roseau (the capital city), Portsmouth, and Salisbury. To the northeast of the island, Calibishie and Marigot offer surroundings of rugged, unspoiled scenery that you’d commonly find on a postcard. With many glittering rivers and palm-fringed beaches, you’ll find plenty of homes and plots of land available by the beachfront and hillside areas.
Looking toward the island’s interior, you’ll encounter beautiful homes nestled right in the middle of nature, providing easy access to waterfalls, forests, and views of gently sloping green-covered mountains. Furthermore, if you are interested in developing plots of land for agricultural, farming, or sustainable development purposes, Central Dominica is the perfect location for you.
Property types
In Dominica, you’ll find your pick of property types, making it highly likely you’ll be able to purchase your dream property. For those with smaller budgets, apartments could be ideal. They also make the perfect rental property for tourists eager to spend some time on the island. If you’re in the market for a second home or vacation home, a villa, condo, or house may be more what you’re looking for. If you’re more interested in enjoying a more extravagant lifestyle, then luxury resorts, villas, and hotels might be of greater interest to you. Finally, if sustainability is the name of your game, rest assured that you’ll find a number of eco-friendly developments located on the island.
Property prices
Property prices in Dominica tend to be significantly lower than in other Caribbean islands, due largely to the island having preserved its natural environment against tourism. Of course, the price of any property will depend on a number of factors, such as where it is located (such as in the island’s interior or on the beachfront), the property type (residential villa, apartment, or condo or commercial building), and any added extras (e.g., modern finishes, access to the beachfront, or a view of the sea).
It can be useful to search real estate listings to get an idea of the types of properties for sale and the average prices, which can range anywhere from $500 to $5,000 per square meter. This may help you better identify your dream property and the perfect place to find it. For example, you can find a five-bedroom luxury home for sale in Calibishie, a village on the island’s north-east coast. A property like this, with its close proximity to an international airport, ocean views, terraces, guest houses, and European finishings, will cost about $2,700,000.
If you are interested in purchasing land and constructing your own commercial or residential property, you can find plots for sale at a range of sizes and prices. For example, in Marigot, it is possible to find a half-acre portion of land for sale for just over $48,000.
Property taxes
There is no property tax in Dominica, but you will pay Municipal Taxes of 1.27 percent. However, if your property is located in Roseau or Canefield, you will incur an annual property tax of 1.25 percent on the market value of the property. If you choose to lease your property, you must pay an annual state duty tax of one percent of the rental amount.
If you rent your property out, any rental income earned will be taxed at a progressive rate as follows:
- Up to $7,400: 15 percent
- $7,401 to $18,500: 25 percent
- Above $18,500: 35 percent
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Guide to Buying Dominica Real Estate
There are two different ways to buy property in Dominica. The first is as an independent buyer, in which case you must obtain an Alien Landholding License. The second is as an applicant to the citizenship by investment (CBI) program, in which case you will need to work with an Authorized Agent to make your application.
The following section highlights the general process you should follow in each instance.
Independent buyers
As an independent buyer looking to invest in Dominica real estate, you will generally follow the process outlined below:
- Search for properties that are available for sale in Dominica. You can do this by yourself, using real estate websites and portals, or through a real estate agent or buyer’s agent.
- Apply for your Alien Landholding License.
- Hire a lawyer to draw up the Purchase and Sale contract for the chosen property.
- You will generally be required to pay a ten percent deposit on the property in order to secure it under your name.
- Get in touch with a certified surveyor who can conduct a valuation of the property and prepare the necessary documents for the title transfer. If, for some reason, the title is not able to be transferred, your deposit will be refunded.
- Once everything is approved, your lawyer will submit documents to the Land Registry to have you officially registered as the new legal owner of the property.
Transaction costs
You will encounter the following fees when purchasing Dominica real estate:
- Legal fees: Three percent (15 percent VAT might apply)
- Alien Landholding License: Ten percent (applicable to independent buyers, not CBI applicants)
- Judicial fees: One percent
- Assurance (Memorandum of Transfer) fee: One percent
- Stamp duty: Two percent for the buyer and 2.5 percent for the seller
- Valuation fees: Depends on chosen surveyor
Buying Property as a CBI Applicant
If you would like to obtain Dominica citizenship, investing in real estate is a way to do so. This is thanks to the Dominica Citizenship by Investment Program, which was launched in 1993.
Not only does this program allow you to invest in a tangible asset that has the potential to generate profitable returns, but it also allows you to include family members in your application. This means that they, too, can benefit from all the advantages of being Dominica passport holders.
Under the real estate investment option, you must purchase property that has been pre-approved by the government for a minimum of $200,000. You must maintain this investment for at least three years from the date your citizenship is granted before you can sell it. However, if you want to resell the investment property under the citizenship program, you must hold the investment for five years.
As per the program’s regulations, the investment property must be government approved. These projects generally take the form of shares in hotels and luxury resorts, as well as villas, eco-lodges, and condos.
The benefit of these kinds of commercial properties is that you have the chance to enjoy excellent rental returns, as Dominica’s bustling tourism industry means that you are almost always guaranteed to have rental bookings. Furthermore, as these are commercial projects, you likely won’t have to worry about property management (or the associated costs).
Finally, the minimum real estate investment for the Dominica citizenship program is relatively affordable, particularly when compared to other Caribbean citizenship programs. This is because the minimum investment amount of $200,000 stays the same, no matter the number of dependents included in the application.
CBI program real estate investment
When investing in real estate under Dominica’s citizenship by investment program, here is the process you will need to follow:
Step 1
Decide on the real estate investment route and contact an Authorized Agent, such as Global Citizen Solutions.
Step 2
Complete the application forms provided by your Authorized Agent and gather the necessary supporting documents.
Step 3
Your Agent will submit your application on your behalf to the Citizenship by Investment Unit (CBIU).
Step 4
The CIU will process your application and approve it in principle.
Step 5
Once you receive approval, you will make the minimum investment of $200,000 and pay the additional fees, sending proof of payment to the CBIU.
Step 6
You will be granted citizenship of Dominica, and your passport will be issued and delivered to an address of your choice.
Program fees
In addition to making the qualifying minimum investment of $200,000, you will need to pay the following fees:
Government fee
- $25,000 for a single applicant
- $35,000 for a family of up to four
- $50,000 for a family of up to six
Due diligence fee
- $8,000 for a single applicant
- $4,000 for each additional family member older than 16
Processing fee
- $1,000 per application
Interview fee
- $1,000 per interview for applicants aged 16 and over
Passport fee
- $500 per passport
Oath of Allegiance/Certificate of Naturalization fee
- $250 per person
Check out our Ultimate Guide to Dominica Citizenship by Investment
Why use Global Citizen Solutions?
Global Citizen Solutions is a multidisciplinary firm offering bespoke residence and citizenship solutions in the Caribbean and Europe. In a world where the economy and politics are unpredictable, having a second citizenship opens up opportunities and creates flexibility for you and your family.
So, why work with Global Citizen Solutions for your Dominica real estate investment?
- Global approach by local experts: We are corporate members of the Investment Migration Council, with local expertise in all five Caribbean CBI programs.
- 100 percent approval rate: We have never had a case rejected and will offer you an initial, free-of-charge due diligence assessment before signing any contract.
- Independent service and full transparency: We will present to you all the investment options available, and all expenses will be discussed in advance, with no hidden fees.
- An all-encompassing solution: A multidisciplinary team of immigration lawyers, investment specialists, and tax experts will take into consideration all your and your family’s mobility, tax, and lifestyle needs.
- Confidential service and secure data management: All private data is stored within a GDPR-compliant database on a secure SSL-encrypted server.
Frequently Asked Questions about Dominica Real Estate
The capital city, Roseau, is a popular location to purchase properties in Dominica. Other popular locations include Fortune, St George, Dublanc (a village on the west coast), and Portsmouth. The best place for you will depend on your individual requirements (e.g., property type and size, budget, area, etc.).