Dominica Island Taxes

1. Taxes, Fees & Costs of Ownership

Understanding the full cost of property ownership in Dominica requires distinguishing between two very different cost structures: the CBI real estate route (which has significant government programme fees in addition to the property purchase costs) and the open market route (which follows a more conventional Caribbean acquisition cost structure).

A. Open Market Acquisition Costs

Stamp Duty

Stamp duty on property transfers in Dominica is payable by the buyer. The standard rate is 4% of the purchase price or market value, whichever is higher. This is a competitive rate by Caribbean standards — lower than the Cayman Islands (7.5%) and comparable to Curacao (4%) and the Bahamas (equivalent combined duty). Your attorney will confirm the current applicable rate and any variations for your specific transaction type or property classification.

Alien Landholding Licence Fee

For open market purchases by foreign buyers, the Alien Landholding Licence attracts a government fee in addition to the application process costs. This fee should be treated as a core acquisition cost and must be confirmed with your Dominican attorney before agreeing your purchase price and finalising your budget. The fee level can be material relative to the purchase price, particularly for land and lower-value properties.

Legal Fees

Dominican conveyancing legal fees are typically charged as a percentage of the purchase price. For a straightforward residential transaction, expect fees in the range of 1%–2% of the purchase price plus applicable disbursements and registration charges. Engage your attorney early and obtain a clear fee estimate covering all stages of the transaction before committing.

Total Open Market Acquisition Cost Estimate

For open market purchases, buyers should budget an additional 7%–12% of the purchase price to cover all acquisition costs: stamp duty (4%), alien landholding licence fee (variable), legal fees, registration, and incidentals. The alien landholding licence fee is the primary variable — confirm this with your attorney for your specific transaction.

The CBI real estate route involves costs that go significantly beyond the property purchase price. The total cost of acquiring Dominican citizenship through the real estate option includes:

B. CBI Real Estate — Full Cost Breakdown

The Property Investment

The minimum qualifying property investment is US$200,000 in an approved development. This is the purchase price of the unit within the approved development and is paid to the developer. It is also, post the five-year holding period, potentially recoverable through resale — though the liquidity of CBI development units on the secondary market varies by development and market conditions.

Government Processing and Due Diligence Fees

The government charges processing fees and due diligence fees for each CBI application. These fees are paid to the CBIU and are non-refundable regardless of the outcome of the application. Fee levels vary by family composition — a single applicant pays different fees from a couple or a family with dependants. The government publishes the applicable fee schedule through the CBIU and through authorised agents. These fees are material amounts — for a family of four, the combined government fees (processing plus due diligence) typically amount to tens of thousands of US dollars in addition to the property investment. Obtain the current, confirmed fee schedule from the CBIU or your authorised agent before proceeding.

Authorised Agent Fees

Authorised agents charge fees for managing the CBI application process — these fees vary by agent and are typically in addition to government fees. Some developers include agent services within their offering; others require buyers to separately engage and remunerate an authorised agent. Confirm the agent fee arrangement, what it covers, and what is excluded before engaging any authorised agent for a Dominica CBI application.

Legal Fees for the Property Transaction

An independent Dominican attorney should review the property purchase agreement as part of the CBI purchase — separate from the authorised agent's role. These legal fees are an additional cost specific to the property transaction element of the CBI process.

Total CBI Real Estate Cost — Planning Guidance

A realistic total cost for acquiring Dominican citizenship through the real estate option — for a single applicant purchasing at the minimum threshold — typically starts from approximately US$235,000–US$260,000 all-in, comprising the US$200,000 property investment plus government fees, due diligence fees, and agent costs. For a family of four, the total cost rises significantly due to the additional per-dependent government fees. Always obtain a complete, itemised cost schedule from your authorised agent before making any commitment — the all-in cost is materially higher than the headline US$200,000 property price.

C. Annual Ownership Costs

Property Tax

Dominica levies an annual property tax on real estate. The tax is based on the assessed annual rental value of the property and is administered by the Inland Revenue Division. Rates are modest by international standards. Confirm current rates and the assessed value for any property you are considering with your attorney or a local tax adviser, and verify that all tax payments are current before completing any purchase.

No Capital Gains Tax, No Inheritance Tax

Dominica levies no capital gains tax on the sale of real estate and no inheritance tax. These absences are meaningful long-term advantages for investors — all appreciation in property value accrues to the owner without local deduction, and property can pass between generations without a local inheritance tax liability.

Insurance

Hurricane insurance is a non-negotiable ownership cost in Dominica — the island's exposure to Category 5 hurricane conditions, as demonstrated by Maria, makes comprehensive windstorm cover essential. Post-Maria, the insurance market for Dominican property has adjusted its risk pricing to reflect the island's demonstrated vulnerability. For CBI development properties, building insurance may be managed by the resort operator and included in management fees — confirm this arrangement precisely. For open market properties, owners are responsible for sourcing and maintaining adequate buildings and contents cover. Budget windstorm insurance as a significant annual cost relative to property values in this market.

CBI Development Management and Rental Pool Fees

For properties held within CBI-approved developments with rental pool arrangements, annual management fees are a significant ongoing cost. These fees — which can represent a substantial percentage of rental income — cover resort operations, maintenance, marketing, and management. Review the management fee structure and rental pool terms carefully before purchase, and model the net income position after all fees when assessing rental yield.