How To Purchase Caribbean Real Estate: Dominica
Dominica is a mountainous Caribbean island nation with natural hot springs and tropical rainforests.
We are always striving to bring value to Ushombi and save investors time when it comes to purchasing Caribbean real estate. We have partnered with a real estate law firm in Dominica that has provided this outline for you. Ushombi has partnered with Rose-Anne Charles of The Law Office of Rose-Anne Charles. You can also reach out to her on Facebook here.
So let’s take a look at how you purchase real estate in Dominica in the most tax efficient way possible.
Dominica has one of the most stable democratic political systems in the world. Due to historical reasons, it has a system of land ownership which is patterned on the British. There are two systems of land registration, Deeds system and Torrens System. Although it is not compulsory, most people register and transfer land using the Torrens System (certificates of title).
The following is a list of the fees associated with land purchase and obtaining a certificate of title. There are no hidden fees.
– Applicable to foreigners: Alien Land Holding License 10% of value of property and where the property purchased is more than an acre for residential purposes or more than 3 acres for commercial purposes a further 10% is payable.
– Transfer of property fees include:
– 4% transferee Stamp Duty
– 2.5% Judicial fees
– 1% Assurance fund
– 2.5% transferor fees
– 3% solicitor’s fees
These following fees have been reduced until October 2022. It may be extended but it is advisable to take advantage of the reduction because there is no guarantee that it will continue past 2022.
– transferee’s stamp duty reduced to 2%
– judicial fee fee reduced to 1%
– solicitor’s fees reduced to 2.5 %
*All fees are based on the value of the property.
There is no tax advantage to purchasing property using a corporation or in your personal name.
If you would like to get in touch with our real estate lawyer partner in Dominica then click here!