Thinking about retiring in Dominica? Although there’s no dedicated Dominica retirement visa, the government provides an easy route for senior citizens to retire in Dominica. The “Nature Island” offers many advantages as a Caribbean retirement destination in 2024, with just a few including a peaceful lifestyle, rich history, and low cost of living.
Why Consider Retiring in Dominica
- Life on a Caribbean island with year-round warm weather and full of gorgeous beaches and scenic views
- Lucrative real estate investment opportunities, including earning rental income
- English-speaking local population and established expat communities in several cities
- Favorable tax policies, including no worldwide income taxes, inheritance, capital gains, or wealth tax
- One of the cheapest Caribbean islands for retirement
- Contribute to Dominica’s economic growth through the country’s CBI program and obtain citizenship
- Direct flights to major US cities and flights to ten other islands in the Caribbean
Dominica Cost of Living for Retirees
Grocery costs
The average living expenses in Dominica are more affordable than that of the United States and the United Kingdom. You’ll find local produce like coconuts, citrus fruits, mangoes, and root crops at local markets like the Roseau Outdoor Market in the country’s capital city.
Like most Caribbean islands, imported food products are more expensive in Dominica than in the US and European nations. Here is a comparison of the average cost of groceries in Dominica compared to the US and UK.
Item | Dominica | United States | United Kingdom |
Milk (1 liter) | $3.52 | $1.05 | $1.57 |
White rice 1kg | $1.36 | $24.54 | $2 |
Fresh white bread (500g) | $2.59 | $3.57 | $1.55 |
Chicken (1kg) | $5.55 | $12.04 | $8.34 |
Oranges | $2.68 | $4.48 | $2.69 |
Potatoes (1kg) | $1.42 | $2.98 | $2.86 |
Eggs (12) | $3.72 | $3.68 | $3.73 |
Onions (1kg) | $1.35 | $3.04 | $1.35 |
Local cheese (1kg) | $2.41 | $12.83 | $8.86 |
Bottle of wine (mid-range) | $10.14 | $15 | $10.19 |
Restaurant costs
Dominica offers many foreigners retiring abroad with numerous restaurants in cities like Roseau, Soufriere, and Portsmouth, from inexpensive diners to high-end restaurants.
Considering the average cost of eating out in all the Caribbean islands, Dominica is one of the cheapest. An inexpensive meal at a mid-range restaurant costs around $7.40 on average, compared to $20 in the United States. Domestic beers are less than a third of the price, at $2.85 on average, compared to $6 in the USA.
Energy costs
Dominica generates electricity from diesel and renewable energy sources like hydropower. Electricity costs in Dominica average $0.21 per kWh, which is relatively high compared to the US but lower than many other Caribbean islands, according to the Energy Transitions Initiative by the US Department of Energy.
Rent in Dominica
Dominica is the perfect Caribbean retirement destination for senior citizens aiming to stretch their retirement income. Average monthly rent prices for apartments, whether in the city center or on the outskirts, are affordable compared to the US and many other countries, starting from around $230.
Property Type | Dominica | United States | United Kingdom |
One-bedroom apartment (city center) | $335 | $1,750 | $1,345 |
One-bedroom apartment (outside the center) | $230 | $1,440 | $1,105 |
Three-bedroom apartment (city center) | $950 | $2,935 | $2,225 |
Three-bedroom apartment (outside the center) | $620 | $2,385 | $1,710 |
Dominica Healthcare
Dominica provides free primary care for citizens and permanent residents. Residents can access quality health care at the nation’s medical centers like Dominica China Friendship Hospital and Princess Margaret Hospital in Roseau. However, retirees are advised to obtain private health care services to cover medical expenses when requiring specialized treatment.
International health insurance policies provide care at a private hospital and facilitate medical evacuation through reputable global insurers like Allianz, Cigna Global Health, and Clements Worldwide.
Overall, the cost of healthcare services in Dominica is relatively low compared to other population retirement destinations, making it attractive for retirees seeking healthcare options. The Caribbean nation heavily invests in its healthcare system, resulting in a higher doctor-to-patient ratio than other islands in the region.
Best Dominica Cities for Retirement
Dubbed the ‘Nature Island,” the Commonwealth of Dominica has plenty of options for nature lovers. Dominica’s cities are surrounded by magnificent natural parks, lush tropical forests, and pristine beaches, making it one of the best islands for adventure lovers.
Roseau is the island’s bustling capital and one of the best destinations for financial investments and those who prefer city life. As the island’s economic center, it offers numerous opportunities for business growth, diverse markets, and a vibrant commercial atmosphere.
Soufriere is a quaint seaside town and home to many foreign retirees and those considering Caribbean real estate investment. Close to Scott Head Peninsula, it offers dramatic views of the island nation among swaying palm trees and a slower pace of life.
Portsmouth is Dominica’s second-largest city and the ideal place to enjoy the island’s tropical climate, with a tranquil lifestyle by the Caribbean Sea and a more relaxed atmosphere than Roseau but with sufficient infrastructure for comfortable living and business activities.
Tax Freedoms in Dominica
Dominica is the ideal destination for stretching retirement savings. The country imposts no global income tax, wealth, gift, inheritance, or capital gains tax. Foreign nationals living in Dominica can remit their foreign social security tax-free to the country.
Americans retiring in Dominica should be mindful of potential tax implications, including owing taxes on their social security income to the IRS due to United States citizenship-based taxation. Nevertheless, obtaining residency in a foreign country like Dominica can provide eligibility for foreign tax credits and exemptions, significantly reducing the overall tax burden.
Take a look at our Dominica Citizenship by Investment Ultimate Guide
Dominica Immigration Options
US passport holders can travel to Dominica for up to three months without a standard tourist visa or residency permit. Retirees considering a permanent move to Dominica have several options to obtain permanent residency.
- Permanent residence permit: You can apply for a Dominica permanent residence permit if you have legally resided in the country for at least five years. The temporary permit must be renewed annually for five years.
- Citizenship by naturalization: Dominica permanent residents can apply for Dominica citizenship by naturalization after seven years of residency (three years for the spouse of a Dominican citizen).
Citizenship by investment: Dominica offers a citizenship by investment program, allowing foreign retirees to obtain citizenship by making an economic investment in the country to be granted citizenship. Qualifying investments include a donation to the Dominica Economy Diversification Fund (EDF) or a pre-approved real estate purchase. The minimum investment to obtain a Dominica passport is $100,000.
Dominica Expats Communities
With its tropical climate, laid-back lifestyle, and English as the official language, Dominica has become a popular retirement destination for senior citizens who want to live out their golden years abroad. The country has a diverse community of expats in popular cities like Marigot, Portsmouth, and Roseau.
Online platforms like Facebook, Expat Exchange, and Reddit have groups where you can find like-minded retirees living in Dominica. Most retirement communities in Dominica are made up of successful applicants on Dominica’s dual citizenship program, drawn by the island’s optimate climate, beauty, and low cost of living.
Dominica Culture
Dominica’s vibrant culture comprises indigenous Caribbeans, African, and European influences like many other Caribbean nations, such as Saint Lucia, the Dominican Republic, and the British Virgin Islands. The Commonwealth of Dominica, formerly a British Overseas Territory, is celebrated for its vibrant dance and music traditions, culminating in the island’s renowned World Creole Music Festival. Dominica’s cuisine, influenced by diverse continents, presents various flavors, including dishes such as Chatou Water, Mountain Chicken, Manicou, and Agouti.
Dominica is dedicated to environmental conservation, and its breathtaking natural landscapes and lush rainforests form a core part of its cultural identity. This commitment was underscored by its 2022 Caribbean Sustainable Awards, which surpasses other popular Caribbean islands for retirement, such as the Dominican Republic, St Lucia, and St Kitts and Nevis.
Dominicans’ profound connection to nature is emphasized through sustainable living, and expats and retirees living on the island are expected to adopt and respect these environmentally responsible practices, including recycling and supporting local, eco-conscious businesses.
Compare St Kitts vs Dominica Citizenship in our detailed comparison Guide
Frequently Asked Questions about Moving to Dominica for Retirement
Retiring in Dominica is more affordable than other Caribbean island nations, as well as the United States, Canada, and the United Kingdom. The East Caribbean Dollar, Dominica’s official currency, is pegged to the US dollar at a rate of EC$2.70 to US$1.
Thanks to the Dominica Citizenship by Investment program, foreigners can retire and live permanently in Dominica, provided they contribute at least $100,000 to the country’s government fund or purchase real estate valued at $200,000 or more.
Some of the best cities in Dominica to live in include Roseau, Soufriere, and Portsmouth.
Dominica’s healthcare system provides free essential healthcare services. You can also find affordable private health services.
Dominica is a safe place to retire due to its low crime rate and stable political environment.
The average monthly cost of living in Dominica for a single retiree is around $600, excluding rent. When other living expenses such as rent and private health insurance are included, most retirees could retire in Dominica with a monthly budget of around $1,500, making it one of the most affordable islands for retirement.
Before deciding to establish permanent residency and retire in Dominica, it’s essential to consider a few potential drawbacks. One notable issue is medical care; although facilities like Princess Margaret Hospital provide quality healthcare, they may fall short of the standards familiar to retirees accustomed to more advanced healthcare services.
Additional drawbacks could include the complex bureaucratic procedures and paperwork involved in banking and other administrative tasks, which may prove challenging and time-consuming for retirees living in the island nation.
Additionally, although Dominica’s Douglas-Charles International Airport offers direct flights to many major cities and destinations, flight routes to the US are limited compared to the options in other islands like Saint Lucia and Grenada, affecting convenience and accessibility for retirees wishing to visit family.
With one-bedroom city center apartment rents averaging $335 per month and monthly expenses for a single person around $600, living in Dominica can cost less than $1,000 per month before factoring in optional expenses such as healthcare and discretionary entertainment.
