Tax residency in Dominica is a three-step process:
Registration in Dominica.
Registration of Tax ID
Obtaining a Tax Code.
It is not required to live on the island for more than 183 days per year at the registration stage.
1. Registration in Dominica. The tax documents indicate the address of permanent residence in Dominica. It is enough to rent a house for an extended period, e.g. a year.
Immigrant Invest real estate specialists had selected several properties for James to choose from. James and Linda then flew to the country on Dominica passports to see the apartments and open a bank account in Dominica.
The couple liked the apartment five minutes walk from the sea with one bedroom. The lawyers contacted the landlord in Dominica to check the legal transparency of the contract and the property. James signed a lease for a year for $12,000 and transferred money to the apartment owner from his account in Dominica.
When the couple finished with the apartment, they returned to the US.
2. Tax ID is an individual taxpayer number by which the person enters into the electronic database of Dominica taxpayers. But Tax ID does not give the right to pay taxes to the budget of Dominica.
Immigrant Invest lawyers started preparing a Tax ID application for James as soon as they received a copy of the rental agreement. First, they filled out an application form for the tax office of Dominica, which indicated the mailing address of the investor on the island. The lawyers also attached copies of the lease agreement and James’ Caribbean passport to the application.
The investor or his representative personally submits documents to the tax office In Dominica. Immigrant Invest lawyers transferred James’ documents to a local agent in Dominica who continued to act on behalf of the investor by proxy.
4 days
Took obtaining a Tax ID in Dominica
The Dominica IRS approved James’ application in four days and issued a confirmation certificate with a unique number. The investor entered a personal account on the website of the Dominica tax service.
3. Tax Code a resident receives to start paying taxes in Dominica. After receiving the Tax Code, the tax resident can submit a return to the tax office on the island.
The Tax Code is issued upon request to the Dominica Tax Office. James sent the request through his account on the tax service website.
Immigrant Invest lawyers helped James fill out an application for assignment of the Tax Code. Two days later, the investor received a notification that he was successfully assigned a taxpayer ID for filing returns and paying Dominica’s taxes.
2 weeks
Took a change of the tax residency
James became a full-fledged tax resident of Dominica on the 18th of April 2022 — the whole process took two weeks.
