Many dream of owning a piece of paradise. For some, that dream translates to finding the perfect spot in the Caribbean, perhaps looking into Dominica real estate as an option or even investment opportunities.
But the idea of buying property in a foreign country might also seem complicated. You might even think, “Where do I even begin this search for Dominica real estate”? This buying guide explains the process.
Understanding the Dominica Real Estate Landscape
Dominica, often called the “Nature Island,” offers more than stunning landscapes. It presents a stable property market for various property types.
Over the past few years, property values on the island have seen some slow gains, with the government setting limits through programs on real estate investment.
Types of Properties Available
Dominica boasts diverse property types, catering to many preferences. You might picture yourself in a luxurious villa overlooking the ocean, perhaps something considered “luxury real estate.”
Or, a cozy cottage nestled in the rainforest might be more your style. There are even opportunities for those wanting commercial space, agricultural land, and featured properties in Dominica.
A fixer-upper property in Dominica is another option. Many are searching for a perfect piece of real estate.
Regional Hotspots for Real Estate in Dominica
Certain areas in Dominica stand out. Each region has its own character and appeal.
Roseau and Surroundings: As the capital city, Roseau gives urban convenience and access to amenities. Areas like Castle Comfort and Wall House feature sea view homes, popular in searches related to ‘sea views’ or ‘ocean view.’
West Coast (St. Joseph, Salisbury, Grand Savanne): Known for their stunning sunsets, this stretch boasts many properties. Properties vary between those for residential, commercial, or investment purposes.
North Coast (Portsmouth, Savanne Paille): The northern part is close to many secluded beaches and a calmer, slower-paced setting. Locations like Savanne Paille host luxurious residences, suitable if searching phrases like ‘view property’ or looking at buying a hilltop cottage.
East Coast (Riviere Cyrique, Castle Bruce): This coast of Dominica will give rugged beauty with sea views, appealing if a quiet lifestyle is your style. This coastal region also has lots of natural elements around the water, like springs, which is good if you want land.
You might also consider looking at a sea view lot in places like Pointe Michel or other rentals sold in Saint Luke. An ocean view villa or a Mountain Breeze Villa may also suit you. There are certainly a wide variety of properties on offer.
Legal Framework and Buying Process
You might be asking about buying restrictions in Dominica, but they really are minimal for foreign buyers. It follows a fairly normal and transparent process based on the laws here. Dominica ensures the highest standard of protection over the private property.
Buying property, whether it’s a residential lot, studio in an apartment building, or a prime piece of view land, will probably follow similar steps.
1. Property Search and Selection
You can start your search for a dream home by examining local search listings of local real estate companies or agents.
If, however, you plan to purchase the property and get a second passport, in that case your search should be limited to approved projects only. Inter Citizen has a wide selection of approved real estate projects you can pick up.
Working with a local real estate agent will give great knowledge. They understand current values and market conditions for all Dominica properties.
2. Offer and Negotiation
When the right investment opportunity pops up, it is time to submit a formal offer through the real estate agent. Negotiations will then finalize an agreed-upon price.
If you are not sure, you can make a reservation of the property you like by placing 10-15% of the whole purchase price as a deposit. Once it is reserved, such a property will no longer be advertised in search listings. Please do keep in mind—once you change your mind, the reservation deposit could be forfeited by the seller.
For the purchase of real estate as a part of the citizenship by investment process, the minimum purchase price in the offer should not be less than USD 200,000.
3. Legal Procedures
Having a local attorney in Dominica will guide proper practice, as well as title searches, to check for financial problems and unpaid utilities. Having a local attorney is essential when you are not the first owner of the property.
4. Financing & Payment
It might involve securing a mortgage. This can involve looking at financing. Deposits secure the sale after an agreement has been established and signed.
5. Closing and Transfer of Title
Once everything has checked out, transferring funds occurs. After the transfer of funds, recording documents for property registration occurs.
If the property is purchased as a part of the citizenship application process, the title transfer should be made only after approval in principle is issued by the Citizenship Investment Unit of Dominica.
Benefits of Dominica Real Estate
Cost of Living
Compared to North America and many parts of Europe, Dominica is considered affordable, including the nearby areas of Sint Maarten and Costa Rica. But of course it will be based on your way of life and where you want to settle.
Compared to other Caribbean countries, the cost of building your own home in Dominica is the lowest one and amounts to USD 100/200 per sq ft.
Access to Citizenship
Dominica’s Citizenship by Investment Program allows buying property and gaining citizenship. The investment should be done in the approved real estate project only.
The program is run across all parishes in Dominica, including Saint Andrew, Saint John, Saint George, Saint Paul, Saint Peter, Saint Mark, and many other areas.
Property should be held for 3 to 5 years before being sold. To view details about citizenship by investment in Dominica, visit our Dominica citizenship by investment page.
Low Taxes
Dominica is considered a safe tax harbor for foreign investors and high-net-worth individuals. The island is known for not having a property tax, which makes the wholesale-purchase process easier.
Safety
Dominica is a safe country for families with kids and has a very low criminal rank. Besides that, Dominica is a party to many international investment treaties ensuring the security of foreign investments.
Island Lifestyle
The natural beauty of Dominica is one of the main factors driving investors worldwide to get property here. You can enjoy pristine nature while working remotely, explore the beautiful surroundings, and delve into the local culture.
Financial Factors When Looking into Dominica
Apart from real estate prices, additional tax obligations and possible expenses should all be thought through in advance. Usually,
The good news for future owners of Dominica property is that there is no annual property tax or property transfer tax. It makes the whole check relatively lower compared to the real estate within the Caribbean.
Since Dominica does not have capital gains tax, the income obtained from the sale of the property here is not taxed.
Aliens Land Holding License
Every foreign individual or foreign company should obtain an Aliens Land Holding License (‘the License’) prior to the purchase of any real estate in Dominica.
The foreign individual who acquires the real estate as a part of the citizenship by investment application process is exempted from obtaining the license. The license is not required for rental properties, provided the tenancy is renewed annually.
The process for license application is regulated by the Aliens Land Holding Regulation as of 1992. Usually it can take up to 5 months in general to get the said license.
The fee for issuance of a license amounts to 10% of the property’s market value. Failure to get the license prior to acquisition of a property results in significant penalties.
Stamp Duty
Stamp duty is a mandatory tax paid in every case the property’s title is transferred. Stamp Duty is regulated by the Stamp Act Chapter 68:01 as of 1887.
The stamp duty is 4.5% of the property’s market value, where 2.5% is paid by the seller and 2% by the new owner.
Stamp duty is paid by everyone, despite being a Dominican citizen or not.
Assurance Fund Fee and Judicial Fee
The Assurance Fund Fee is another mandatory tax paid in each case of transfer of title to the new owner. The aim of the fee is to protect the ownership title of the new owner over the purchased property. Therefore, this fee should be paid by the buyer only.
The assurance fee is 1% of the land’s market value and regulated by the Title By Registration Act Chapter 56:50 as of 1886.
The judicial fee is regulated by the same act and amounts to 1% of the land’s market value.
Both insurance and judicial fees are paid by both foreigners and citizens.
Additional Expenses
Additional expenses involved in the real property include professional support from lawyers and real estate agents.
As of 2022, the professional legal fees should not exceed 2.5% of the land’s value. There is, however, no limitation on the amount of a real estate agent’s commission.
VAT
All goods and services in Dominica are subject to a mandatory consumer tax (VAT) at the rate of 15%. The real estate agent fee as well as legal support fees are all subject to mandatory VAT tax.
Maintenance of Property
If you do not plan to live or stay for many months on the island, the maintenance of the purchased property might become an issue.
Whether it is an office space or a few-bedroom apartment, you want to make sure it is being cleaned and secured for the whole period of time you are away from Dominica. Likely, the island accommodates few property maintenance companies ready to help you out.
The price varies depending on many factors, including the total area of the property. The maintenance of a few-bedroom rental apartment may cost you around USD 100 per sq ft, while a fully furnished five-bedroom villa can reach up to USD 400 per sq ft.
Conclusion
Whether you are interested in residential property or considering other options such as a commercial space, Dominica real estate provides stability. The rules in Dominica also give some ease in navigating land buying.
If you were wondering, “Where do I even begin this search for Dominica real estate?” this guide will certainly assist. Finding your paradise can certainly become reality in Dominica.
