Dominica citizenship by investment in real estate: terms of the program
The Dominica citizenship by investment program offers investors the chance to obtain citizenship by investment in real estate.
It is necessary to invest $200,000 in real estate, regardless of the composition of the family.
Dominica citizenship by investment in real estate is a refundable option. Under the terms of the citizenship program, it is possible to return investments in real estate, that is, to sell the object, after three years after obtaining citizenship.
If the investor sells the property after five years, the object can re-participate in the citizenship program. This increases the liquidity of the asset.
In our experience, investors participating in the Dominica real estate citizenship program under the real estate option do not sell assets until after five years.
The terms of the Dominica citizenship by investment program are described in section 101 of the Dominica Constitution and sections 8 and 20 of the Citizenship Law.
The procedure of obtaining citizenship under the program lasts from 2 to 6 months.
The law does not require investors to stay in the country either before or after obtaining a passport. Therefore, participation in the program is entirely remote.
Together with the investor, the following can participate in the program:
- children under 30;
- brothers and sisters under 25;
- parents, grandparents, no age limit.
To participate in the Dominica citizenship by investment program, foreigners can also make a non-refundable contribution to the Dominica Economy Diversification Fund. The contribution amount is from $100,000 and depends on the composition of the investor’s family. Money from the fund goes to social programs such as housing and medicine.
Additional costs under the Dominica citizenship program by investment in real estate
A government fee is charged when buying real estate under the real estate citizenship program. Its amount depends on the number of applicants for citizenship.
State fee for the purchase of a real estate
|Family up to 4 people, without siblings||$35,000|
|Family of 5+ people, without siblings||$50,000+|
|Brother or sister under the age of 18||$25,000|
|Brother or sister aged 18 to 30||$50,000|
The Due Diligence fee is a mandatory additional cost for participation in the program. This is the main stage of the citizenship program, in which the investor and his family members undergo Due Diligence.
For the investor, the fee for Due Diligence is $7,500, and for other family members over 16 years old, it is $4,000. There is no fee for children under 16 years of age.
The processing of documents is $1,000 for the whole family. There are also fees for:
- Issuance of certificates of naturalisation — $250 per person;
- issuance of passports — $300 per person.
There is no tax on the real estate sale or purchases. The owner doesn't pay property tax, but a municipal tax of 1.25% is levied. The seller of real estate pays a stamp duty of 2.5% of the transaction amount.
What properties do investors choose to buy?
The Government approves all properties eligible for the citizenship program in Dominica. This approach limits the choice of investors but, on the other hand, protects against scammers.
Approved projects are objects of tourism infrastructure, usually hotel complexes. Eight years ago, only one project was approved for participation in the program, and now there are ten.
An investor can purchase a share, an apartment or a villa in a hotel. Buying a share is the least expensive option; it costs from $200,000. As an investor, you get the right to stay at the hotel for free for 1-2 weeks a year.
If you buy an apartment or a villa, you can keep it or rent it out. The problems of maintenance or finding tenants will not fall on you as the management company will take care of this.
Immigrant Invest real estate experts study information about all citizenship program projects. Lawyers check the purity of contracts and assess risks. This is how Immigrant Invest clients receive proposals for the best and most reliable projects.
5 projects for real estate investment in Dominica
We talk about the best projects approved by the Dominica government for participation in the citizenship program.
1. Five-star resort complex managed by Autograph Collections. The complex is located on one of the most beautiful beaches of Picard Beach in Portsmouth, on the northwest coast of Dominica.
Investors can purchase shares or apartments with one or two bedrooms. The cost of a share in the project is $220,000, and the cost of apartments is $320,000 or more.
The commissioning of the hotel is scheduled for the third quarter of 2022. At the construction time, the developer estimates the return on investment at 2%. Since the opening, the yield will increase to 3.5%.
All properties purchased in whole or part will be managed by the resort and will not be available for permanent residence. Investors will be able to stay at the hotel free of charge for one week a year.
2. The five-star Kempinski-managed hotel is nestled deep within the Cabrits National Park. The hotel opened in 2019 and has 151 rooms.
Despite the hotel's seclusion, the airport is only 34 km away. And on the resort's territory, there is a spa, four restaurants and bars, an art centre, two floodlit tennis courts, four swimming pools, a gym, a conference, and a wedding hall.
Investors are invited to purchase a share worth $220,000.
3. A coastal resort managed by Hilton consists of a hotel with 73 rooms and villas with one, two or three bedrooms with a full range of services. The complex is situated on a picturesque sea cliff, and its guests can access two secluded beaches.
The infrastructure includes a spa and wellness centre, a restaurant, a swimming pool, shops and parking.
Investors may buy shares for $220,000 each. In addition, they'll get a Hilton gold status and points worth about $15,000, which can be spent on staying in Hilton hotels worldwide.
The return on investment will be around 3—7% per annum.
4. The hotel complex of eco-cottages is located in the rainforest, in the vicinity of the village of Laudat, Roseau Valley. It is home to the Mo e Trois Pitons National Park, a UNESCO World Heritage Site.
Seventy-two cottages and swimming pools are being built on the territory of the hotel. Investors will be able to become equity participants in the project. The value of one preferred share is $200,000.
The developer estimates the investment yield after putting the hotel into operation at 3% per annum. The opening of the hotel is scheduled for November 2022.
The investor and his family members will be able to stay at the hotel for one week during the high season or two weeks during the low season. At the same time, seasonality in the Caribbean Islands is weakly expressed, and you can relax there all year round.
5. Operating a five-star boutique hotel. Secret Bay property is one of the most resalable Caribbean objects with the opportunity to get Dominica citizenship. The Wall Street Journal published that in 2021 Secret Bay set the current sales record in Dominica.
The cost of the share at Secret bay was $208,000. Hasan сoncluded a preliminary agreement with the seller and paid 10% of its cost to reserve an object.
There are 42 treehouse-style villas on site. You can buy a share in the project worth $218,000 or a villa. Villas ranging from 126 to 481 m² cost from 1.5 to 3.8 million dollars.
The hotel is rented out in four phases. The first, second and third phases of villas have been put into operation. Villas of the fourth phase will begin to receive guests from October 2022.
Step-by-step procedure to obtain Dominica citizenship by investment in real estate
Step 1. Preliminary Due Diligence Check. The Immigrant Invest compliance department checks investors’ biography before signing a contract. Anti-Money Laundering Officer identifies potential risks that may lead to the rejection of the application. This is how Immigrant Invest reduces the risk of refusing an application for citizenship by investment to 1%.
Step 2. Choosing property. The investor chose shared ownership in the hotel. Under the law, the return on investment when buying property in Dominica is three years. But for real estate, which is used to obtain investment citizenship, the ownership should be kept for five years.
Step 3. Sending documents to the CBI Unit. Investors bring documents according to the list. Immigrant Invest lawyers get copies notarized, apostilled, and submitted for consideration to the Dominica government.
The Dominica Citizenship by Investment Unit (CBIU) accepts the applications and starts the Due Diligence checks.
Step 4. Approving application. Immigrant Invest lawyers receive a response about investors’ participation in the real estate citizenship program. Approval of the program is the basis for the transfer of investments.
Step 5. Purchasing real estate. Investors' expenses when choosing to buy a share in real estate included the cost of the object, Due Diligence check, the state and courier fees.
Step 6. Getting passports. When the bank confirmed the investment, the CBI printed the passports and certificate of naturalisation. Later, Immigrant Invest lawyers delivered a new passport of a Dominican citizen to the investor.
What are the benefits of Dominica citizenship by real estate investment?
The Dominica government selects the best real estate projects to participate in the program. Real estate investments start at $200,000, which is a small investment compared to European citizenship or residency programs.
For comparison, under the Portuguese residence permit program, you need to invest at least €250,000. At the same time, a residence permit of an EU country does not give freedom of visa-free travel around the world, unlike citizenship.
Citizenship of Dominica provides many advantages:
- You can visit more than 140 countries without a visa, including the Schengen countries, the UK, Singapore, Hong Kong.
- As a citizen of Dominica, you will be able to obtain a US visitor visa for ten years. You can apply for a visa at the nearest US consulate or visa centre.
- With a Caribbean passport, it is much easier to become a client of a bank that operates in the EU. An account in a European bank will allow you to have savings.
- Dominica has a loyal taxation system. For example, there are no taxes on capital gains or inheritance.
You acquire a liquid asset by participating in the Dominica citizenship by real estate investment program. The developer will manage your property, and the investment will be returned after five years.
Frequently Asked Questions
Yes, the profitability of Caribbean real estate is compared to Europe and ranges from 2 to 5% per year. Investors don’t have to look for tenants by themselves. There are management companies with specialists who help to lease the property and control object conditions.
Investors can obtain citizenship by contributing $100,000 to the state fund or purchasing real estate for $200,000.
Investors can sell a property after 3 or 5 years. In practice, the most common cases are to keep ownership for five years because the object can be sold to another investor.
Contribution to the state fund is a non-refundable option.
The Immigrant Invest compliance department checks investors’ backgrounds before signing a contract. Anti-Money Laundering Officer identifies potential risks that may lead to the rejection of the application.
If the conclusion is positive, investors choose the investment property in Dominica.
Immigrant Invest lawyers prepare all the necessary documents and submit them to The Dominica Citizenship by Investment Unit (CBIU).
After the Due Diligence check, investors get final approval, buy real estate and obtain their passports.
Yes. A Dominica passport allows you to travel to 144 countries visa-free, including the UK and the entire Schengen Area. But except for visa-free travelling, Dominica citizenship provides other advantages.
As a citizen of Dominica, you can obtain a US tourist visa for ten years. You may apply for a visa at the nearest US consulate or visa centre.
Dominica has a loyal taxation system; for example, there are no taxes on capital gains or inheritance. Investors may optimise their taxes.