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June 7, 2021

Dominica Tax System Explained

Caribbean island Dominica, covered with tropical rainforests and mountains, is incredibly popular destination among foreign property investors. To make Dominica Tax System more clear for our clients, Mann’s Solutions team decided to prepare an ultimate Dominica Tax System guide.

Income Tax in Dominica

Depending on the income amount, earnings of non-residents is taxed from 0%-35%.

Up to 30,000 (US$11,111) – 0%

30,000 – 50,000 (US$18,519) – 15% on band over US$11,111

50,000 – 80,000 (US$29,630) – 25% on band over US$18,519

Over 80,000 (US$29,630) – 35% on all income over US$29,630

Property Rental Income

Rental income is taxed at a progressive income tax rates. Besides, maintenance costs, municipal taxes and accountancy fees incurred in the preparation of an income tax return are deductible. Also, sales of real properties are exempt from VAT, however, there is 6.5% stamp duty of the sales price or the market value of the property that needs to be paid. In general, a 2.5% is payable by the seller and 4% needs to be paid by the buyer.

VAT in Dominica

In Dominica, a general tax rate of 15% is levied on rental income. It is important to keep in mind that a special rate of 10% applies to some additional accommodation services provided by hotels, guest houses, and accommodation services.

Corporate Taxation

Talking about corporate taxation, most of the income and capital gains that are earned by the companies in Dominica are taxed at a flat rate of 25%. Besides, any income-generating expenses might be deductible when taxable income is calculated.

Dominica Citizenship Program Overview

Dominica Citizenship by Investment program is one of the longest-running economic citizenship programs in the world. The most affordable in the Caribbean, the Dominica Citizenship by investment program offers a quick route to acquiring a second passport in 2-3 months. The program grants the investor visa-free access to over 137 countries and provides 2 investment options, a $100,000 donation to the government or property investment from $200,000.

Dominica is a true nature lover’s paradise located north of Martinique and Saint Lucia. The island is covered with rainforests, mountains, black sand beaches, rivers, and waterfalls, which make the island an ideal destination for relaxing in a pristine natural setting. Dominica Program is one of the most popular and longest-running programs in the world. It’s an exciting place for walking and hiking lovers, both gentle potters, and more complicated paths curl over the island for 115 miles.

Program benefits

Dominica Citizenship Program lets obtain a second passport in just 2-3 months. There are no residence requirements therefore the passport can be easily obtained remotely. Dominica allows dual citizenship, moreover, it is transferable to descendants and the whole family can apply for citizenship, including children up to 30, siblings, and parents. Dominica’s tax regime claims no tax on income, wealth, and inheritance.

Investment options

Dominica Citizenship by investment is available through two options. To qualify for Dominica citizenship by investment program, you can either make a government donation of $100,000 or invest in real estate on the island starting from $200,000.

1. $100,000 — Non-refundable donation to the government fund

• Contribution to the Economic Diversification Fund (EDF) is non-refundable

• The donation amount may vary based on the number of dependents included in the main applicant’s application

• To qualify for citizenship as a single applicant, you will be required to make a government donation of $100,000

 

2. $200,000 Real Estate Investment

• Real Estate option should be approved by the government

• The property can be sold in 3 years

 

LONDON BASED SOLUTIONS ADVISERS – Dominica Citizenship Program

Full Support with our Immigration Advisers & Property Consultants:

Property search based on your requirements (from residential properties to high-value luxury developments)

• Property virtual tours, 3-D tours and in-person tours available.

• Due diligence checks and additional property checks completed by our experts.

• Residency & Citizenship document preparation and submission.

• Full support until you receive your second passport & residency.

Mann’s Solutions is an international immigration law firm with offices in London, Hong Kong, and Moscow and has expertise in offering UK Visas and Immigration by Investment services to high net worth individuals. Our immigration advisers are regulated by OISC and IMC (Investment Migration Council).

For further information or to discuss your circumstances in a private consultation with our immigration lawyers in London Office, please contact us at enquiries@manns-solutions.com or call +44 207 993 63 46.

Photo by Hugh Whyte on Unsplash