Prime Minister Roosevelt Scherrit announced the statistics of the Citizenship Programme for Investment at the Parliament session on 26 October 2020. He also spoke about how many passports foreign investors and their families have received and what they have invested in.
The Dominica Citizenship Programme offers 2 options: non-refundable deposit and contribution to the property. The minimum investment amount for the contribution is $100,000, for the purchase of real estate – $200,000. You can only invest in properties that are approved by the government.
What foreign investors have invested in
What foreign investors have invested in
Roosevelt Skerrit explained how many passports were issued by the Citizenship Programme Department for each financial year. The figures also take into account the number of principal applicants and their family members who have participated in the programme.
Demand for Dominica citizenship for investment is growing steadily. Even the pandemic and crisis have not reduced the dynamics. The real estate option remains the most in demand among investors. Over the past year, 2 times more applicants have chosen returnable investment in real estate compared to the non-refundable contribution – only 1500 people.
How many passports have been issued in exchange for investments for 2017一2020
The graph shows that over the last 2 financial years real estate has attracted more investors than a non-refundable contribution. The trend is typical for all Caribbean citizenship programmes.
The reason is that real estate prices are increasing by 1一3% per year. This is why investors return investments with profit. In addition, investors receive rental income during the time they own the property. According to developers’ estimates, it is 3一5% per annum.
Villas in a 5-star hotel complex on Dominica. Price — от 218 000 $
Villa overlooking the ocean in a hotel complex in Dominica. Price — 255 000 $
Share in a 5-star hotel run by Kempinsky in Dominica. Price of share — 200 000 $
How much did Dominica earn from the citizenship programme?
Income increased in proportion to the number of passports issued. But the Prime Minister did not indicate the distribution of income by programme options – only the total amounts for the year.
In 3 fiscal years the programme has brought the country about 1.2 billion dollars. The Prime Minister noted that this money is used to restore and maintain the economy during the crisis. The government is also implementing various social projects through foreign investments.
Programme income, million USD
What foreign investors' money is spent on
The government invests primarily in the needs of citizens: medicine, building houses and infrastructure, education. For example, in 2019, 26 million dollars was spent on educational grants for young people in Dominica. Also in the next few years, the country will build around 5000 new houses that will be resistant to hurricanes.
The Minister of Health of Dominica, Irving McIntyre, said that the money from the citizenship programme is being used to build a new Marigot Hospital. This is just one of the many projects that the government sponsors with income from foreign investors.
In addition to the hospital, Dominica is building 14 new polyclinics as part of its housing programme. It is fully financed from programme contributions. Part of the funds from the programme have also been spent on the rehabilitation of 15 schools that were destroyed by Hurricane Maria in 2017.
The development of renewable energy sources is another large-scale project for which the government spends foreign investment. Dominica plans to produce 85% of its electricity from geothermal sources in the coming years.
We talked about these and other projects in the material “Dominica: how the citizenship programme for investment helps the country”.
Prime Minister Roosevelt Skerrit believes that Dominica can serve as a model for how to use the foreign investment for sustainable development.