Also known as the Nature Island because of its untouched beauty, Dominica is a country in the Eastern Caribbean, situated between the French islands of Guadeloupe and Martinique. Dominica real estate investments can be beneficial for a number of reasons, such as allowing investors to qualify for the country’s Citizenship by Investment Program which grants passports to eligible investors. This Caribbean island offers excellent opportunities for those who want to invest in property.
Ten Reasons to Buy Dominica Real Estate
- Prices are more affordable than in many other Caribbean islands
- Provides a route to obtain a Dominica passport for you and your family
- Beautiful untouched island in the Caribbean
- Proximity to the United States
- Environmentally sustainable island
- Low cost of living
- Tropical climate with beautiful, warm weather all year round
- Relaxed pace of life
- Good profit potential on rental or resale value
- No wealth, gift, inheritance, property, or capital gains taxes
Real Estate Market Overview
Dominica has been preserved from mass tourism, which is why the real estate market mainly comprises family villas and beautiful hotels amongst the lush rain forests of this nature island. Dominica’s beachfront is not massively developed, meaning you are able to buy land, or your dream home, at lower prices than in the rest of the Caribbean islands.
Despite the relatively low property prices, real estate in Dominica appreciates at an average rate of four percent per year, ensuring a tidy return on investment when resold.
Where to buy homes for sale in Dominica
Dominica has one of the most rugged landscapes in the Caribbean. The island’s interior is largely covered by unexploited rainforests, so real estate properties will be mostly centered along the coast, where there is easier access.
The west coast is more sought after, perhaps because it overlooks the calmer Caribbean Sea. Some of the more popular areas include:
- Portsmouth: A charming town on the northwest coast that is a popular tourist destination with a number of hotels, resorts, and restaurants. Southsea Beach, located within walking distance of the town center, is one of the most popular beaches here, as well as Coconut Beach.
- Roseau: The capital of Dominica, located on the southwest coast. A vibrant city with a mix of old and new architecture, government offices, schools, and businesses.
- Soufrière: A town on the southwest coast known for its natural beauty. It’s a popular eco-tourism destination, and one of its draws is the Bubble Beach Spa, a hot sulphur spring.
- Salisbury: A village on the west coast known for its beaches.
- Calibishie: A village on the east coast with a rugged coastline and lush rainforests that is a popular destination for eco-tourism and nature lovers.
- Marigot: A relatively large village on the east coast, it is a thriving community and is home to the island’s main airport.
- Castle Bruce: A village on the east coast of Dominica that overlooks the bay. A good choice for waterfront properties.
A quick glance at real estate listings will show that prices in Dominica vary according to the location but are surprisingly affordable in general. Prices can range between $500 and $5,000 per square meter, depending on the property type (e.g., family homes, villas, apartments), its size, location, etc. Property values in Portsmouth, Roseau, Salisbury, and Soufrière tend to be ten percent higher than the country average, so look outside of these areas if you’re in the market for cheap houses for sale in Dominica.
Property tax rates in Dominica are quite favorable as only those properties located in the two largest cities – Roseau and Canefield – incur annual property tax. The rate is 1.25 percent on the market value.
Rental income is taxed at a progressive rate from 15 to 35 percent: 15 percent on income up to $7,400, 25 percent on income from $7,401 to $18,500, and 35 percent on income over $18,500.
Finding the perfect piece of land for sale or real estate investment option in Dominica can be complicated, and it is important to be aware of all the processes that may apply to your specific circumstances.
Our team of specialists at Global Citizen Solutions has almost a decade of experience in Citizenship by Investment in Dominica. Click here to get in touch and start building your personalized investment plan.
Buying Property Under the Dominica CBI Program
If you are considering acquiring property in Dominica, you can buy independently or through the Dominica Citizenship by Investment Program. The latter is an increasingly popular option as it comes with a Dominica passport and all its attendant benefits. To qualify for the investment program, you must invest in government-approved Dominica real estate shares worth at least $200,000. The investment must be held for three years from the date your citizenship is granted and can only be resold under the same citizenship program after five years.
Government-authorized property projects offer different options, such as buying shares in hotels and luxury resorts. They may also take the form of villas, eco-lodges, and condos. These sorts of commercial properties provide an incredible opportunity to own excellent rental return schemes without having to bother with property management. Investment properties tend to bring owners an average profit of between two and eight percent each year. Alternatively, you can explore the real estate listings on your own to find your dream property.
When qualifying for the Dominica passport through the CBI program, it is noteworthy that the minimum investment of $200,000 remains the same regardless of family size. Additional fees, however, will vary according to the number of family members included in the application.
It is important to remember that prices in Dominica are significantly lower than in most of the other Caribbean islands due to the island’s preservation of its natural environment from mass tourism. Some of the most popular locations to purchase real estate in Dominica include Portsmouth, Soufrière, Salisbury, and around the capital Roseau.
Here is what you will need to do:
- Access property listings through an authorized real estate agent, or on your own, and find the one that interests you.
- Hire a lawyer and have them draft a Purchase and Sale contract. You’ll normally have to pay a 10 percent deposit for the property to be secured under your name.
- Get a certified surveyor to conduct the valuation and prepare documents for the title transfer – if titles can’t be transferred, your deposit will be refunded.
- Once approved, documents will be submitted by the lawyer to the Land Registry to register you as the new owner of the property.
Here are the fees that you will need to pay for real estate transactions:
- Legal fees: three percent (15 percent VAT might apply)
- Alien Landholding License (applicable for foreign buyers not under the CBI Program): ten percent
- Judicial fees: four percent
- Assurance Fund Fee: one percent
- Stamp Duty: four percent
- Valuation fees
CBI Program Investors
- Select the real estate investment option.
- Complete all application forms in consultation with your specialized agent at Global Citizen Solutions and provide all relevant documents.
- Application submission by your agent on your behalf as required by the government.
- Receive Citizenship by Investment Unit (CBIU) approval in approximately three to four months.
- Make the minimum investment of $200,000, pay the additional fees, and send proof to the CBIU.
- Citizenship approval, passport issuance and delivery to an address of your choosing.
Additional Program Fees
- Government fee: $25,000 for single applicant, $35,000 for family of up to four, $50,000 for family of up to six
- Due diligence fee: $7,500 for single applicant, $4,000 for each additional family member over 16
- Processing fee: $1,000 per application
- Interview fee: $1,000 per interview for applicants over 16
- Passport fee: $500 per passport
- Oath of Allegiance/Certificate of Naturalization fee: $250 per person
Is it worth getting property in Dominica?
Famous for its beauty, relaxed lifestyle, and low cost of living, Dominica is certainly a place to consider if you are looking to invest in Caribbean property. As mentioned above, real estate in Dominica is relatively cheaper than the rest of the Caribbean islands due to its preservation from mass tourism.
Purchasing property for sale in Dominica is a very good investment. Not only will you be able to provide for a viable and long-term investment for you and your family, but if you choose to make the investment under the island’s Citizenship by Investment Program, you and your family will be granted Dominica passports. That’s a win-win. You can enjoy the benefits of being a Dominica passport holder, which include increased global mobility and visa-free travel to more than 140 countries while enjoying a tropical paradise.
Properties, particularly tourist accommodations pre-approved by the government, have a potential rental income of, on average, four percent of their value per year. Furthermore, owners can resell at a profit after the stipulated timeframe because the value will appreciate between two to five percent annually.
Why use Global Citizen Solutions?
Global Citizen Solutions is a multidisciplinary firm offering bespoke residence and citizenship solutions in Europe and the Caribbean. 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.
- 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
Can foreigners buy property in Dominica?
Yes, foreign investors can buy properties in Dominica. If not going through the CBI Program, you must obtain an Alien Landholding License. If you are looking for properties, you can compare listings to find the best options available. If you plan to build your perfect place, you can also look for land for sale.
How can I get Dominica citizenship?
You can get a Dominica passport through the Dominica Citizenship by Investment Program. Investments can be made through a minimum donation of $100,000 to the Economic Diversity Fund (EDF) or by purchasing real estate in the country worth a minimum of $200,000.
What are the property options?
When looking for a real estate investment or planning to relocate, you can find villas, family homes, apartments, hotels, and luxury resorts for sale at diverse prices. You can also find land for sale in Dominica. Whether looking for residential or commercial properties, you’ll find plenty of options.
What are the best places to buy property for sale in Dominica?
Some of the best places to make a real estate investment in Dominica include Portsmouth, Soufrière, Salisbury, and around the capital Roseau. All located along the west coast overlooking the Caribbean Sea and ideal for waterfront real estate.
Is real estate via citizenship by investment expensive?
To obtain the Dominica passport through the island’s Citizenship by Investment Program, you will need to buy shares in pre-approved property worth at least $200,000. Due to its preservation from mass tourism, local real estate is one of the cheapest in the Caribbean, making real estate citizenship a very attractive option.
How is life in Dominica?
As you can imagine, life in Dominica has a relaxed pace compared to places such as the UK or US. The weather is sunny all year round, and you can enjoy the world-class beaches and beautiful nature.
Can I rent out my property as a vacation rental in Dominica?
Yes, you can rent your Dominica property out as a vacation rental.