Dominica Island Buying Process
1. The Property Purchase Process — Step by Step
The purchase process in Dominica differs significantly depending on whether the transaction is a CBI-approved development purchase or an open market property acquisition. Both processes are described below.
CBI Real Estate Purchase Process
Step 1: Engage an Authorised CBI Agent
CBI applications in Dominica must be submitted through an authorised agent — an individual or firm licensed by the government's Citizenship by Investment Unit (CBIU) to process applications. The authorised agent manages the entire CBI application process, including document collection, due diligence submissions, and communication with the CBIU. Your authorised agent is your primary point of contact for the CBI process, but you should also engage an independent Dominican attorney for legal review of the property purchase agreement — the agent represents the CBI process, not your legal interests in the property transaction itself.
Step 2: Select an Approved Development and Unit
Work with your authorised agent to identify the approved development and specific unit that meets your requirements. Consider: location, unit type, price, rental pool arrangements, development track record, hurricane resilience specifications, and the management operator's reputation. Visit the development in person before committing if at all possible — due diligence on a physical property requires physical inspection, not just brochure review.
Step 3: Execute the Purchase Agreement with the Developer
A purchase agreement is executed between you and the approved development/developer, setting out the price, payment schedule, unit specification, and rental pool arrangements. This agreement is reviewed by your independent Dominican attorney. Payments are typically made in stages — initial reservation, payment upon submission of the CBI application, and final payment upon approval.
Step 4: CBI Application Submission
Your authorised agent compiles and submits the CBI application to the CBIU, including:
- ⦁ Completed application forms for the principal applicant and all dependants included in the application
- ⦁ Certified copies of passports and other identity documents
- ⦁ Certified birth and marriage certificates as applicable
- ⦁ Bank reference letters and evidence of the source of funds for the investment
- ⦁ Police clearance certificates from all countries of residence in the past ten years
- ⦁ Medical certificates confirming the health of all applicants
- ⦁ Professional and character references
- ⦁ The purchase agreement for the approved development property
- ⦁ Payment of government due diligence fees and processing fees
Step 5: Government Due Diligence and Approval
The CBIU conducts thorough due diligence on all applicants, using both internal and external due diligence providers. Processing times vary — the government has stated target timelines for processing (typically three to six months for a complete application), but actual processing can take longer depending on application volume and complexity. Applications with complete documentation and straightforward backgrounds typically process most efficiently. Upon approval, the government issues an approval letter authorising the citizenship grant subject to completion of the investment.
Step 6: Completion of Investment and Citizenship Grant
Following government approval, the remaining investment payment is made to the approved development, and the citizenship and passport are issued. The five-year minimum holding period for the CBI real estate investment begins from this point — the property cannot be sold within five years without jeopardising the citizenship grant. After the five-year period, the property can be sold, though it can only be used as a qualifying CBI investment by a subsequent buyer if it retains its approved development status.
Open Market Purchase Process
Step 1: Legal Engagement and Property Identification
Engage a Dominican conveyancing attorney before making any offer. Identify the target property, agree a price, and instruct your attorney to begin due diligence — title search, verification of seller's right to sell, confirmation of any encumbrances, and assessment of the alien landholding licence requirement for your specific circumstances.
Step 2: Sale and Purchase Agreement
Execute a sale and purchase agreement that includes an explicit condition for the grant of the Alien Landholding Licence (if required). The deposit — typically 10% — should be held as stakeholder pending licence approval and completion. The agreement should specify what is included in the sale, the completion date, and all relevant warranties.
Step 3: Alien Landholding Licence Application
Your attorney submits the licence application to the relevant government ministry with all required supporting documentation. The application should include your identity documents, the purchase agreement, evidence of the source of funds, and any other documentation specified by the ministry. Processing times vary — build this into your transaction timeline.
Step 4: Completion and Registration
Upon licence approval, completion proceeds: the balance of the purchase price is paid, stamp duty is settled, transfer documents are executed, and the transfer is registered at the Dominican Land Registry. Your attorney provides you with the registered title evidence confirming your ownership.
2. Can Foreigners Buy Property? The Legal Framework
Foreign nationals can purchase real estate in Dominica, but the framework differs importantly depending on whether the purchase is through the CBI programme or on the open market.
The Alien Landholding Licence — Open Market Purchases
For non-CBI open market purchases, foreign buyers (non-citizens) are generally required to obtain an Alien Landholding Licence before completing a property purchase. This requirement applies to the purchase of land and buildings by non-nationals on the open market — it is equivalent in concept to the Non-Belonger Land Holding Licence in the BVI or the alien landholding licence process in Antigua, though administered under Dominica's specific legislation.
The Alien Landholding Licence is issued by the government and involves an application process, supporting documentation, and the payment of a government fee. The licence requirement reflects the government's management of foreign land ownership and its commitment to ensuring that land use is compatible with national development priorities. Key practical points:
- ⦁ The licence application must be submitted to the relevant government ministry and is processed through the formal application framework
- ⦁ A government application fee is payable — the amount should be confirmed with your Dominican attorney at the time of your transaction, as fee schedules are subject to change
- ⦁ The sale and purchase agreement for open market purchases by foreign buyers should be conditional on the grant of the Alien Landholding Licence — your deposit should be protected pending licence approval
- ⦁ Processing timelines can vary — your attorney will advise on current processing times and whether any expedited process is available for your specific circumstances
CBI Real Estate Purchases — Different Framework
For purchases made through the official CBI programme in approved developments, the transaction is structured differently from an open market purchase. CBI real estate transactions are conducted within the framework of the programme rules — the government-approved development agreement, the CBI application process, and the authorised agent system are the governing framework rather than a simple open market conveyance. In the CBI context, the alien landholding licence requirement may be handled differently — your authorised CBI agent and Dominican legal adviser will confirm the specific requirements for your transaction within the approved development framework.
English Common Law Conveyancing
Dominica operates within an English common law legal framework — a legacy of British colonial governance. Property transactions are effected by a conveyancing process managed by Dominican attorneys, with title transfer registered at the Land Registry. This is a familiar framework for buyers from the UK, USA, Canada, and other common law jurisdictions, and is structurally similar to the conveyancing processes described in the Antigua, Barbados, BVI, and Cayman guides elsewhere in this series.
Currency and Transactions
Dominica uses the Eastern Caribbean dollar (XCD), which is pegged to the US dollar at a fixed rate of XCD 2.70 = US$1. This peg is maintained by the Eastern Caribbean Central Bank and has been stable since 1976. Property transactions in Dominica — particularly CBI-related transactions — are commonly denominated in US dollars, reflecting the international buyer base and the USD denomination of the CBI programme's qualifying investment thresholds. There are no restrictions on the import of foreign currency for investment purposes, though standard anti-money laundering documentation requirements apply.