Dominica Real Estate: A Detailed Overview for International Buyers

Known as the “Nature Island,” Dominica and its real estate offerings present a worthwhile opportunity for investors. According to Statista, international tourist numbers reached 339,000 in 2023, and ongoing infrastructure projects are set to increase that number, boosting the value of the Dominica real estate market. This guide provides insights into Dominica’s property market, as well as guidance on buying approved real estate to qualify for the country’s citizenship program.

Dominica Real Estate Market Overview

Dominica has been preserved from mass tourism, which is why the real estate market mainly comprises family villas and beautiful hotels thinly scattered across the island’s lush rain forests. Despite the absence of mass tourism, Dominica received 339,000 international tourists in 2023, an increase of 37 percent compared to the previous year. With relatively few real estate options available to tourist, foreign investors can capitalize on the limited supply by developing unique real estate projects that cater to the growing demand for exclusive vacation rentals.

Property types

• Villas and luxury homes: In recent years, developments with modern amenities, such as swimming pools, balconies, and jacuzzis, have been built across the island.
• Condos: Condominiums and apartments in residential complexes with resort-style amenities.
• Land and lots: Land to build real estate, whether for residential, commercial, or investment purposes.
• Colonial estates: Though few and far between, Dominica’s property market includes former sugar plantations and estates.
• Commercial properties: These include office buildings, retail spaces, resorts, and restaurants.

Dominica’s beachfront is not massively developed, meaning you can buy land, or your dream home, at lower prices than in the rest of the Caribbean islands.

Market trends

Foreign tourists spent EC 193.1 million ($74.45 million) in Dominica in 2023–a relatively small number compared to other Eastern Caribbean states. With the scheduled opening of Dominica International Airport in 2025, tourism is poised to increase significantly, attracting more international visitors through improved infrastructure and accessibility.

To satisfy the increase in tourism, approved real estate developments, including the Anichi Resort & Spa, Jungle Bay Ecovilla, and Tranquillity Beach Dominica, have been included in the Dominica citizenship by investment program, allowing foreign buyers to capitalize on Dominica’s growing property market and obtain citizenship.

Property prices

A glance at Dominica real estate listings shows that prices vary according to the location but are generally affordable. Dominica property prices can range between $500 and $5,000 per square meter, depending on the Dominica property type, condition, size, and location. Property values in Portsmouth, Roseau, Salisbury, and Soufrière tend to be ten percent higher than the country’s average, so look outside of these areas if you’re in the market for cheap houses for sale in Dominica.

Compared to other Caribbean nations, prices are extremely affordable. For example Blue Sky Realtors has a three-bedroom, two-bathroom tradition house for sale in Roseau Valley for just $167,000.

Ten Reasons to Buy Dominica Real Estate

1. Low property prices: Dominica has one of the lowest average property prices among Caribbean countries, with three-bedroom houses listed for under $150,000.
2. Acquiring citizenship: Buying approved real estate for least $200,000 qualifies for Dominica citizenship by investment.
3. Low-impact development: Dominica does not suffer from over-development, allowing buyers to own residential and commercial property without the risk of a crowded marketplace.
4. Sustainable initiatives: The Dominica government strongly focuses on environmentally sustainable, eco-friendly property developments, ensuring the long-term health of the island.
5. Low living costs: Dominica has one of the lowest costs of living among Caribbean countries.
6. High income potential: Rental income in Dominica is four percent annually, and boutique hotel accommodations and luxury developments with all the amenities provide annual rental yields of up to ten percent.
7. Tax friendliness: Dominica does not impose wealth, inheritance, or capital gains taxes. There is no annual property tax besides a municipal tax for property in Roseau and Canefield.
8. Proximity to the US: There are direct flights to Miami International Airport, and the flight time is just three and a half hours.
9. Natural beauty: As a preserved natural island, foreign buyers have the option of luxury homes, villas, and resorts nestled in lush greenery.
10. Swift yield on property sales: After a year of ownership, property sales—ranging from family homes to resort shares—can yield a profit of two to five percent.

Where to buy real estate in Dominica

• Portsmouth: A charming town on the northwest coast that is a popular tourist destination with a number of hotels, resorts, and restaurants. Southsea Beach, located within walking distance of the town center, is one of the most popular beaches here, as well as Coconut Beach.
• Roseau: The capital city of Dominica, located on the southwest coast. A vibrant city and business center with a mix of old and new architecture, government offices, schools, and businesses.
• Soufrière: A town on the southwest coast known for its natural beauty. It’s a popular eco-tourism destination, and one of its draws is the Bubble Beach Spa, a hot sulfur spring.
• Salisbury: A village on the west coast known for its beaches.
• Calibishie: A village on the east coast with a rugged coastline and lush rainforests that is a popular destination for eco-tourism and nature lovers.
• Marigot: A relatively large village on the east coast, it is a thriving community and is home to the island’s main airport and the new Dominical International Airport.
• Castle Bruce: A village on the east coast of Dominica that overlooks the bay. A good choice for waterfront properties.

Finding Property for Sale in Dominica

Numerous resources are available to find residential or commercial property to buy in Dominica. Several international real estate websites list government-approved real estate developments in numerous towns across the Caribbean island. These Dominica real estate websites include:

• 7th Heaven Properties
• Blue Sky Realtors
• Realty Dominica
• A Place in the Sun

Approved Antigua and Barbuda CIP properties for sale

Portsmouth: The Anichi Resort & Spa, in association with Marriott International, offers luxury suites along Picard Beach through approved Dominica real estate developer Oriental Developers (Caribbean) Ltd, from $220,000 for shares of a suite.

Soufriere: Jungle Bay Villas, developed by Ay Ay Holdings Caribbean Ltd, offers luxury eco-friendly villas with views of the Caribbean Sea from $255,000.

Portsmouth: The Residences at Secret Bay development offers numerous properties, from luxury suites to ocean-view villas with three beds, for $208,000 for shares or $1.49 million for sole ownership.

Laudat: Vital Developers Ltd offers shares in the Sanctuary Rainforest Eco Resort and Spa in the island’s interior between Morne Watt, Morne Micotrine, and Morne Trois Pitons from $200,000.

Other real estate for sale in Dominica

Buying Dominica Real Estate to Obtain Citizenship

Dominica citizenship by investment allows investors to acquire a Dominica passport by making a real estate investment.

Dominica real estate investment requirements:

• Buy real estate worth at least $200,000
• The property must be government-approved
• The investment must be held for at least five years
• Property registration, processing fees, and taxes must be paid in addition to the property purchase

Dominica approved real estate projects

Approved projects listed by the Dominica Citizenship by Investment Unit (CIU) include:

• Anichi Resort & Spa
• Ay Ay Holdings Caribbean Ltd. Jungle Bay Resort
• Grande Anse Holdings – Timbo’s Downtown
• Ocean Edge Development
• Range Developments
• Sanctuary Rainforest Eco Resort & Spa
• The Residences at Secret Bay
• Tranquility Beach Resort

Step-by-Step Guide Buying Real Estate in Dominica

1. Explore the real estate options that align with your goals. If it’s a rental property, you may consider rental demand and potential rental income. If it’s a second home, you may consider accessibility to amenities and the local culture and lifestyle.
2. Once you’ve identified a suitable property, have an attorney assess the deed and ensure there are no encumbrances on the property purchase.
3. After ascertaining the property’s legality, your attorney can Prepare the Sales and Purchase Agreement.
4. If you’re a non-citizen, you must apply for an Alien Landholding License (ALHL) from the Lands and Surveys Division of the Ministry of Agriculture and Forestry to complete the purchase, which is ten percent of the purchase price. Non-citizens buying approved real estate to obtain Dominica citizenship by investment do not require an ALHL.
5. ALHLs typically take five months to prepare; in the meantime, secure the property by paying a 10 percent deposit to the seller.
6. You can ask your attorney to register a restriction blocking others from tampering with the property without your consent.
7. After receiving your ALHL, complete the purchase by paying the amount agreed in the Sales and Purchase Agreement, as well as the stamp duty, which is two percent of the property value.
8. Once all payments and documents are finalized, your attorney will register the sale with the Land and Title Registry Division of the Ministry of National Security and Legal Affairs, transferring your name to the title deed.

Alien Landholding License

Dominica allows citizens, foreign residents, and foreign nationals to buy real estate in the country. These individuals can invest in any property on the island, but non-resident foreigners not participating in the Dominica citizenship by investment program must obtain a special land ownership license (Alien Landholding License) to legally purchase real estate. The license costs ten percent of the property price.

If investors are buying land of less than one acre for residential purposes or less than three acres for commercial purposes, an ALHL is not required. However, investors are still liable to pay the ten percent fee.

CBI real estate

Buying Dominica property approved under Dominica’s CBI program for at least $200,000 waives the requirement to obtain an ALHL.

Tips for buying investment rental property

1. Research potential rental demand in different towns, considering the potential for development in infrastructure, attractions, and local amenities.
2. Seek advice from a real estate agent familiar with the local market and investment property.
3. Consider the property’s long-term rental potential by evaluating rental trends and the ability to attract future tenants.
4. Prepare for challenges, such as unexpected maintenance, tenant turnover, and legal requirements.
5. Contemplate employing the services of a property management company to handle tenant issues and maintenance.
6. Assess long-term profitability by calculating expenses against expected rental yield, including annual property tax, maintenance, and property management fees.

Dominica Property Transaction Costs

Here are the fees that you will need to pay for Dominica real estate transactions:

• Legal fees: Three percent (15 percent VAT might apply)
• Alien Landholding License: Ten percent
• Judicial fees: One percent
• Assurance Fund Fee: One percent
• Stamp Duty: Two percent
• Valuation fees

Property taxes

Property tax rates in Dominica are favorable as only those properties located in the two largest cities – Roseau and Canefield – incur annual property tax. The Dominica tax rate is 1.25 percent on the market value.

Dominica rental income tax is charged at a progressive rate of 15 to 35 percent:

• 15 percent on income up to $7,400
• 25 percent on income from $7,401 to $18,500
• 35 percent on income over $18,500

Taxes for foreign buyers: Even if foreign buyers do not require an Alien Landholding License (ALHL) to complete a purchase, the ten percent fee for property value still applies.

Estimated cost for property purchase

The table below provides an example of the typical expenses for a foreign buyer to purchase a $1 million Dominica property.

Mortgages for foreign buyers

Foreign property buyers may finance property purchases in Dominica through local banks or international institutions, though the process will differ from that of residents. Typically, national banks require non-residents to make larger down payments of 30 to 50 percent of the property’s value and higher interest rates than local buyers are subject to paying. Loan terms are also generally shorter. Given the elevated risk factors of lending to non-residents, mortgage companies tend to approve borrowing for those with substantial wealth or assets.

Why use Global Citizen Solutions?

Global Citizen Solutions is a multidisciplinary firm offering bespoke residence and citizenship solutions in Europe and the Caribbean. In a world where the economy and politics are unpredictable, having a second citizenship opens up opportunities and creates flexibility for you and your family.

So, why work with Global Citizen Solutions to obtain Caribbean citizenship?

• Global approach by local experts: We are corporate members of the Investment Migration Council, with local expertise in all five Caribbean CBI programs.
• 100 percent approval rate: We have never had a case rejected and will offer you an initial, free-of-charge, due diligence assessment before signing any contract.
• Independent service and full transparency: We will present to you all the investment options available, and all expenses will be discussed in advance, with no hidden fees.
• An all-encompassing solution: A multidisciplinary team of immigration lawyers, investment specialists, and tax experts will take into consideration all your and your family's mobility, tax, and lifestyle needs.
• Confidential service and secure data management: All private data is stored within a GDPR-compliant database on a secure SSL-encrypted server.

Frequently Asked Questions about Dominican Real Estate

Can foreigners buy property in Dominica?

Yes, foreign investors can buy properties in Dominica or own the perfect piece of land on the island. If not going through the Dominica CBI Program, you must obtain a Caribbean Alien Landholding License. Land does not require a license if it’s smaller than one acre for residential property and less than three for commercial property.

What are the property options in Dominica?

When looking for a Caribbean real estate investment in the Commonwealth of Dominica, you can find villas, family homes, apartments, hotels, and luxury resorts for sale at a range of prices. You can also find land for sale in Dominica. Whether looking for Dominica residential or commercial properties, you’ll find plenty of options.

What are the best places to buy property for sale in Dominica?

Some of the best places to make a Dominica real estate investment include Portsmouth, Soufrière, Salisbury, and around the country’s capital and business center of Roseau. Most are located along the west coast overlooking the Caribbean Sea and are ideal for Dominica waterfront real estate.

Is real estate via citizenship by investment in Dominica expensive?

The cost to invest in Dominica and obtain a passport through the island’s citizenship by investment program is at least $200,000 when buying shares in pre-approved property.

Can I rent out my property as a vacation rental in Dominica?

Dominica property investors can rent out their properties as vacation rentals.

How much does it cost to build in Dominica?

The construction cost to build a house in Dominica varies depending on the materials, location, and Dominica construction company. Generally, investors can build a Dominica dream home for between EC 180 to EC 200 ($65 to $75) per square foot.

Can you own land in Dominica?

The Dominican government permits citizens, residents, and foreigners alike to own land in the country.