A member of the Commonwealth, Dominica is an island country in the eastern Caribbean Sea. Renowned for its stunning natural landscape, the country is home to forest-covered mountains, hot springs, and lush green vegetation, making it a true nature lover’s paradise. In addition to this, the country boasts of a competitive economy, real estate, and an attractive tax ecosystem. Moreover, Dominica passport holders have access to visa-free travel to over 140 countries across the world. In this article, we will take you through Dominica tax residency, the benefits of being a tax resident in Dominica, how to apply for it, and more.

Requirements for Dominica Tax Residency


You must be physically present in Dominica to become a Tax Resident of the country. By residing in Dominica for a minimum period of 183 days in a tax year, you can apply for obtaining tax residency in Dominica.

When it comes to businesses, a company is considered a resident for tax purposes if it is registered in Dominica. If the company is registered outside of Dominica but is controlled and managed from Dominica, it is still considered resident for tax purposes.

If you want to apply for Dominica tax residency, you might have to pay taxes to the Dominican government. Although, you will have the opportunity to get yourself exempted from paying income tax. Just so you know, in certain circumstances, the Dominican government might tax global income.

Check out our article: Dominica Taxes for Individuals and Companies – Your Guide.

Personal Income Tax Rates in Dominica


As per the Dominica Income Tax Act 67:01, tax residents in Dominica need to pay tax on specific income sources like business, partnerships, employment, rentals, royalties, interest, dividends from companies, discounts, premiums, commissions, fees, and annuities.

Since the year 2018, tax residents in Dominica have been exempted from taxes if their income is within $30,000 East Caribbean Dollars. Please refer to the list below to learn about the personal income tax threshold.

  • 0-$30,000   – 0%
  • $30,001 – $50,000   –  15%
  • $50,001 to $80,000  – 25%
  • $50,001 to $80,000  – 35%
  • No Capital Gains Tax –  N/A

Withholding Tax in Dominica

If you are a resident of Dominica, then a withholding tax of 15% is applicable when you are making a payment to a non-resident. Although, if you are making a payment to a resident, you will be exempted from paying taxes.

The withholding tax is applicable to the following income sources:


-Interest or Discounts

-Rental, lease premium, or license in relation to movable property

-Rental of plant, machinery, equipment, or other movable property


-Management charge

-Commission or fee

-Annuities or other periodic payments, including payments by way of alimony or maintenance

-Distribution of income of a trust

-Any other payment of an income nature

Corporate Income Tax Rate in Dominica


If you are a resident corporation in Dominica, then you are liable to pay tax to the government on your worldwide income. But non-resident corporations are supposed to pay tax on local income only.

You need to pay taxes at the end of every financial year in three quarterly installments at 25%, 35%, and 40%. Below is a list of the Corporate tax income rate in Dominica.

  • Corporate Income Tax Rate- 25%
  • Branch Income Tax Rate – 25%
  • Branch Remittance Tax Rate- 15%
  • Capital Gains Tax – No Capital Gains Tax

Value Added Tax (VAT) in Dominica

VAT came into effect in Dominica in March 2006 and replaced the former Consumption Tax, Sales Tax, Hotel Occupancy Tax, and Entertainment Tax. The VAT rate in Dominica is 15% but has been further reduced to 10% for supply sources that have been demarcated as accommodations and diving activity. Moreover, a few items that mainly include necessities are exempted from VAT.

This tax is applicable to registered producers of supply and is charged to consumers as well. Additionally, a VAT is levied on imported goods at port entries and is paid by the importers.

Transfer Tax on Sale of Property in Dominica

If you are selling your property in Dominica, a transfer tax is levied at 6.5% for conveyance or transfer. This tax is divided between the two parties – the buyer pays 4% tax, and the seller pays 2.5% tax. In addition to this, the buyer also needs to pay a judicial fee of 2.5% and an assurance fee of 1%. Here is a brief overview.

  • Transfer Tax (seller) -2.5%
  • Transfer Tax (buyer) – 4%
  • Judicial Fee (buyer) – 2.5%
  • Assurance Fee (buyer) – 1%

Double Taxation Treaties with CARICOM member countries

The country has signed double taxation treaties with CARICOM member countries and offers the following tax infrastructure:


  • Tax Residency Status – Must fulfill the requirement of 183 days presence in Dominica
  • Income Tax – 0% for non-residents and 0-35% on global income for residents
  • Wealth Tax – 0%
  • Inheritance Tax – 0%
  • Gift – Few gifts may be subjected to transfer tax
  • Dividends – Will be a part of taxable income for residents
  • Interests and Loyalties – Will be a part of taxable income for residents
  • Capital Gains – 0%
  • Withholding Tax – Residents need to pay 0% or 15% for payments to non-residents including dividends, interests and loyalties
  • Corporate Tax – 25% on global income for resident companies, 0% for non-resident companies with a 15% withholding tax on local income, dividends, interests and loyalties
  • Stamp Duty – 2.5% for the seller, 4% for the buyer. Additionally, the buyer is also required to pay 2.5% for a judicial fee, and a 1% assurance fee
  • Property Tax – 0% with Municipal taxes of 1.27% 

Obtain Dominica Citizenship with Tax Residency


Dominica introduced its Citizenship by Investment Program in 1996 to attract foreign investment in the country. Under this program, foreign investors can obtain citizenship in the country in return for an investment in the country’s economy, primarily through two ways – by donating a minimum of $100,000 to the Economic Development Fund or by investing a minimum of $200,000 in shares of government-approved real estate projects like luxury resorts and condominiums.

Eligibility for Dominica Citizenship

The primary applicant needs to fulfill the following criteria to obtain citizenship in the country:

  • Be over the age of 18
  • Have an outstanding character
  • Be in excellent health condition
  • Hold no criminal record
  • Pass a detailed background check

You can include the following family members in your Dominica Citizenship Application:

  • Spouse
  • Children of the main applicant or spouse under the age of 18
  • Children aged between 21 and 30 attending an institution of higher learning and supported by the main applicant or spouse
  • Unmarried daughters under the age of 25 supported by and living with the main applicant or spouse
  • Mentally or physically challenged dependent children, supported by the main applicant or spouse
  • Dependent parents and/or grandparents of the main applicant or spouse over the age of 65

Benefits of Dominica Tax Residency


Foreign Investors who are eligible for Dominica tax residency through the Dominica Citizenship by Investment Program can reap the various benefits of Dominica Citizenship. You can enjoy the following:

  • Visa-free travel to more than 140 countries worldwide
  • The right to live and work in any CARICOM or OECS countries
  • There is no requirement for tests or academic certificates
  • You are not liable to pay taxes on capital gains, wealth tax, or income tax
  • You are allowed to hold dual citizenship
  • Since English is the national language, it’s easier for foreign nationals to settle in
  • Since Dominica is a part of the Commonwealth, you automatically enjoy the benefits of being a Commonwealth citizen

Dominica Visa-Free Countries

With a Dominica passport, you can travel to the following countries visa-free.

  • Andorra- visa-free/90 days
  • Angola- pre-visa on arrival
  • Antigua and Barbuda- visa-free
  • Armenia- visa on arrival / eVisa/120 days
  • Austria- visa-free/90 days
  • Bahamas- visa-free/90 days
  • Bangladesh- visa on arrival/30 days
  • Barbados- visa-free
  • Belarus- visa-free/30 days
  • Belgium- visa-free/90 days
  • Belize- visa-free
  • Bolivia- visa on arrival / eVisa/90 days
  • Bosnia and Herzegovina- visa-free/90 days
  • Botswana- visa-free/90 days
  • Brazil- visa-free/90 days
  • Bulgaria- visa-free/90 days
  • Burundi- visa on arrival/30 days
  • Cambodia- visa on arrival / eVisa/30 days
  • Cape Verde- visa-free (EASE)
  • China- visa-free/30 days
  • Colombia- visa-free/90 days
  • Comoros- visa on arrival/45 days
  • Congo (Dem. Rep.)- eVisa/90 days
  • Costa Rica visa-free/90 days
  • Croatia- visa-free/90 days
  • Cuba- visa-free/28 days
  • Cyprus- visa-free/90 days
  • Czech Republic- visa-free/90 days
  • Denmark- visa-free/90 days
  • Djibouti- eVisa
  • Dominican Republic- visa-free
  • Ecuador- visa-free/90 days
  • Egypt- visa on arrival/30 days
  • Estonia- visa-free/90 days
  • Eswatini- visa-free/30 days
  • Ethiopia- eVisa/90 days
  • Fiji- visa-free/120 days
  • Finland- visa-free/90 days
  • France- visa-free/90 days
  • Gabon- eVisa/90 days
  • Gambia- visa-free/90 days
  • Germany- visa-free/90 days
  • Greece- visa-free/90 days
  • Grenada- visa-free
  • Guinea- eVisa/90 days
  • Guyana- visa-free/180 days
  • Haiti- visa-free/90 days
  • Hong Kong- visa-free/90 days
  • Hungary- visa-free/90 days
  • Iceland- visa-free/90 days
  • India- eVisa/30 days
  • Iran- eVisa/30 days
  • Ireland- visa-free/90 days
  • Israel- visa-free/90 days
  • Italy- visa-free/90 days
  • Jamaica- visa-free
  • Jordan- visa on arrival
  • Kenya- visa-free/90 days
  • Kosovo- visa-free/90 days
  • Laos- visa on arrival / eVisa/30 days
  • Latvia- visa-free/90 days
  • Lesotho- visa-free/90 days
  • Liechtenstein- visa-free/90 days
  • Lithuania- visa-free/90 days
  • Luxembourg- visa-free/90 days
  • Macao- visa-free/90 days
  • Madagascar- visa on arrival / eVisa/90 days
  • Malawi- visa-free
  • Malaysia- visa-free/30 days
  • Maldives- visa on arrival/30 days
  • Malta- visa-free/90 days
  • Mauritania- visa on arrival
  • Mauritius- visa-free/90 days
  • Micronesia- visa-free/30 days
  • Moldova- visa-free/90 days
  • Monaco- visa-free/90 days
  • Montenegro- visa-free/90 days
  • Mozambique- visa on arrival / eVisa/30 days
  • Nepal- visa on arrival/150 days
  • Netherlands- visa-free/90 days
  • Nicaragua- visa on arrival/30 days
  • Nigeria- pre-visa on arrival
  • Norway- visa-free/90 days
  • Palau- visa on arrival/30 days
  • Palestinian Territories- visa-free
  • Panama- visa-free/90 days
  • Papua New Guinea- eVisa/30 days
  • Peru- visa-free/180 days
  • Philippines- visa-free/30 days
  • Poland- visa-free/90 days
  • Portugal- visa-free/90 days
  • Romania- visa-free/90 days
  • Russian Federation- visa-free/90 days
  • Rwanda- visa on arrival / eVisa/30 days
  • Saint Kitts and Nevis- visa-free
  • Saint Lucia- visa-free
  • Samoa- visa on arrival/90 days
  • San Marino- visa-free/90 days
  • Serbia- visa-free/90 days
  • Seychelles- tourist registration/90 days
  • Sierra Leone- visa on arrival/30 days
  • Singapore- visa-free/30 days
  • Slovakia- visa-free/90 days
  • Slovenia- visa-free/90 days
  • Solomon Islands- visa on arrival/90 days
  • Somalia- visa on arrival/30 days
  • South Sudan- eVisa
  • Spain- visa-free/90 days
  • St. Vincent and the Grenadines- visa-free
  • Suriname- visa-free/180 days
  • Sweden- visa-free/90 days
  • Switzerland- visa-free/90 days
  • Taiwan- eVisa/30 days
  • Tanzania- visa-free/90 days
  • Timor-Leste- visa on arrival/30 days
  • Togo- visa on arrival/15 days
  • Tonga- visa on arrival/31 days
  • Trinidad and Tobago- visa-free
  • Tuvalu- visa on arrival/30 days
  • Türkiye- visa on arrival / eVisa/90 days
  • Uganda- eVisa
  • Ukraine- visa-free/90 days
  • Uruguay- visa-free/90 days
  • Uzbekistan- visa-free/30 days
  • Vanuatu- visa-free/30 days
  • Vatican City- visa-free/90 days
  • Venezuela- visa-free/90 days
  • Zambia- visa-free/90 days

To learn more about Dominica, you can read the following articles:


Frequently Asked Questions

Is foreign income taxed in Dominica?

Tax residents in Dominica need to pay income tax on all income received in the country and from foreign sources. 

Does Dominica have capital gains tax?

Capital Gains are not taxable in Dominica.