Dominica: Citizenship by investment 2024

Dominica Citizenship by Investment Guide

Dominica's Citizenship by Investment (CBI) program is one of the longest-running and most reputable in the world. Established in 1993, the program offers individuals and families a pathway to citizenship through investment in the country. Applicants can choose between a non-refundable contribution to the Economic Diversification Fund (starting at $100,000) or an investment in approved real estate (starting at $200,000). Affordable, quick processing times, and the benefits of visa-free travel to over 140 countries.

Break Front has a team of legal experts that can guide you through the process.

Country Info

Here’s some key information about Dominica:

Population: Approximately 72,000 people.

GDP: Around $500 million USD.

Economy: Dominica’s economy is primarily driven by agriculture, tourism, and its Citizenship by Investment program. The island is known for its natural beauty, including rainforests, waterfalls, and geothermal activity, which also attracts eco-tourism.

Language: The official language is English.

Currency: Eastern Caribbean Dollar (XCD)

Geographical Position: Dominica is an island nation located in the Caribbean, part of the Windward Islands in the Lesser Antilles. It is situated between Guadeloupe to the north and Martinique to the south.

Life Quality Index

Here’s a breakdown of the Life Quality Index for Dominica:

Safety Index: Moderate

Healthcare Index: Moderate to High

Cost of Living Index: Low

Property Price to Income Ratio: Low

Pollution Index: Low

Traffic Commute Time Index: Very Low

Climate Index: High

Investment options

Dominica's Citizenship by Investment program offers two primary investment options for those seeking citizenship:

Economic Diversification Fund (EDF):
- Investment: A non-refundable donation starting at $100,000 for a single applicant.
- Details: The EDF is used to fund public and private sector projects in Dominica, such as building schools, hospitals, and promoting tourism and agriculture. For applicants with dependents, the required contribution increases—$175,000 for the main applicant and spouse, and an additional $25,000 for each subsequent dependent.
Real Estate Investment:
- Investment: A minimum investment of $200,000 in government-approved real estate projects.
- Details: The property must be held for at least three years before it can be sold, although to maintain the citizenship benefit for future buyers, it must be held for five years. This option often includes investment in luxury resorts, hotels, or other high-end developments that contribute to the island's tourism and infrastructure growth.

Both options provide a pathway to citizenship with the added benefits of visa-free travel to over 140 countries, including the Schengen Area, the UK, and Singapore. Additionally, there is no residency requirement, and Dominica allows dual citizenship, making it a flexible and attractive option for global investors

Eligibility criteria

To be eligible for Dominica’s Citizenship by Investment program, applicants must meet the following criteria:

Age Requirement: The main applicant must be at least 18 years old.
Investment Requirement: The applicant must make a qualifying investment in one of the approved options:
- A non-refundable contribution to the Economic Diversification Fund (EDF).
- A real estate investment in government-approved projects.
Clean Criminal Record: The applicant and any dependents over the age of 16 must provide a police clearance certificate from their country of origin and any country where they have lived for more than six months over the past ten years. This certificate must show no criminal record.
Good Health: The main applicant and their dependents must undergo a medical examination to prove they are in good health and free of contagious diseases.
Due Diligence: Applicants must pass a rigorous due diligence process, which includes background checks to verify their financial standing, character, and source of funds.
Dependents: The program allows the inclusion of dependents, such as a spouse, children under 18, and children up to 30 who are full-time students and financially dependent on the main applicant. Additionally, parents or grandparents of the main applicant or spouse, who are over 55 years old and living with and supported by the main applicant, can be included.
Supporting Documents: Applicants must provide all necessary documentation, including birth certificates, marriage certificates (if applicable), passports, and financial statements, among others, to support their application.

Required documents

To apply for Dominica’s Citizenship by Investment program, the following documents are required:

Application Forms:
- Form 12: Completed in duplicate for all family members applying for citizenship, including minors. This form must be notarized.
- Form D1: Disclosure Form, completed in duplicate.
- Form D2: Fingerprint and Photo Verification Form for all applicants.
- Form D3: Medical Certificate and HIV test results, including routine blood and urine test results for all applicants.
Proof of Investment:
- Form D4: Investment Agreement or proof of real estate investment (for the main applicant only).
Identification Documents:
- Certified copies of passports for all applicants.
- Certified copies of national IDs, residency permits, and driver’s licenses, if applicable.
- Certified copies of birth certificates for all applicants.
Marital Status Documents:
- Certified copies of marriage certificates, dissolution of marriage documents, and any name change documents.
Police Clearance:
- Original police clearance certificates from the country of birth, citizenship, and residence (if different) for all applicants aged 16 and older. For children aged 12 to 15, a sworn affidavit by the parent confirming that the child has no criminal record is required.
Financial Documents:
- Bank statements for the last 12 months.
- Bank reference letter from a banker who has known the investor for at least two years.
- Notarized affidavit of source of funds.
- Statutory declaration attesting to the correctness of the information provided in the application.
Professional and Personal References:
- Two original personal references (not from family members) for the investor, spouse, and any child over 18.
- One original professional reference for the investor, from someone who has known the investor’s work for at least three years.
Proof of Address:
- Utility bill or credit card statement showing the residential address (PO Box addresses are not accepted).
Additional Documents:
- Eight certified passport-sized photos for all applicants.
- A detailed resume/business background report for all working adult applicants.
- Original letter of employment for the investor or, if self-employed, the most recent audited financial statements of the business.

These documents must be translated into English if they are in another language, and any copies must be notarized.

Application process

The application process for Dominica's Citizenship by Investment (CBI) program involves several steps, ensuring a thorough and secure pathway to citizenship:

Choose an Authorized Agent: The first step is to select an authorized agent, as all applications must be submitted through one. The agent will guide you through the process, help gather the required documents, and submit your application to the Citizenship by Investment Unit (CBIU).
Document Preparation and Submission: Collect and prepare all necessary documents, including passports, birth certificates, police clearance certificates, proof of investment, and more. These documents must be translated into English and properly notarized. Once complete, your agent will submit the application on your behalf.
Due Diligence and Background Checks: After submission, the CBIU will conduct a thorough due diligence check on all applicants aged 16 and above. This step is crucial to ensure the integrity of the program and typically includes an interview.
Approval in Principle: If the due diligence process is successful, you will receive an approval in principle, meaning your application is accepted pending the completion of your chosen investment.
Investment and Final Payment: Once approved, you must complete the payment for your selected investment option—either a donation to the Economic Diversification Fund or the full payment for your real estate investment. Additional government fees, such as processing and due diligence fees, are also payable at this stage.
Issuance of Certificate of Naturalization: Upon confirmation of your investment and payment of all required fees, the CBIU will issue your Certificate of Naturalization, officially granting you Dominican citizenship.
Passport Application: With your Certificate of Naturalization, you can apply for a Dominican passport, which typically takes about two weeks to be issued.

This process is structured to ensure transparency, security, and efficiency, making Dominica's CBI program one of the most respected in the Caribbean. The entire process can take several months, depending on the promptness of document preparation and the speed of due diligence checks.

Tax system

Dominica's tax system is known for its simplicity and favorable conditions, especially for those who obtain citizenship through the Citizenship by Investment (CBI) program. Here are the key aspects of Dominica's tax system that CBI applicants should be aware of:

1. No Global Income Tax:

Dominica does not impose taxes on global income, meaning that income earned outside of Dominica is not subject to taxation in Dominica. This is a significant advantage for international investors and high-net-worth individuals who have diverse income sources from around the world.

2. No Capital Gains, Inheritance, or Wealth Taxes:

Dominica does not levy taxes on capital gains, inheritance, or wealth. This means that assets passed on to heirs, capital gains from investments, and overall wealth accumulation are not taxed by the Dominican government.

3. Local Income Tax:

Income generated within Dominica is subject to local income tax. The rates are progressive, with higher earners paying a higher percentage of their income. However, many CBI participants do not typically earn local income, focusing instead on international earnings.

4. Corporate Tax:

Dominica imposes a corporate tax on companies operating within the country. The standard corporate tax rate is 25%, but certain exemptions and incentives may apply, particularly for businesses in sectors like tourism and agriculture.

5. Value Added Tax (VAT):

The standard VAT rate in Dominica is 15%, applied to most goods and services. Some essential goods, such as certain food items and healthcare services, may be exempt from VAT.

6. Property Tax:

Property owners in Dominica are subject to an annual property tax. The tax is generally based on the market value of the property and is relatively low compared to other jurisdictions.

7. Withholding Tax:

A withholding tax may apply to dividends, interest, and royalties paid to non-residents. The standard rate is 15%, but this can vary depending on tax treaties between Dominica and other countries.

8. Tax Residency:

Even though Dominica offers favorable tax conditions, individuals who spend more than 183 days in Dominica during a calendar year may be considered tax residents. Tax residents are subject to local taxation on their worldwide income, though this is uncommon for most CBI participants.

Key Takeaways for CBI Participants:

No Obligation for Local Taxation: If your income is derived outside Dominica and you do not spend significant time in the country, you will not be subject to income tax in Dominica.
Consider International Tax Obligations: While Dominica offers tax advantages, it’s important to consider the tax obligations in your home country or any other countries where you have tax residency.

Overall, Dominica's tax system is highly advantageous for individuals seeking to minimize their global tax burden while benefiting from the flexibility and mobility that Dominican citizenship provides. It is advisable to consult with a tax professional to understand fully how these benefits apply to your specific situation and to navigate any international tax obligations you may have.

Benefits

Choosing Dominica's Citizenship by Investment (CBI) program offers several compelling benefits, making it an attractive option for investors and their families. Here are some of the key advantages:

1. Affordable Investment Options:

Dominica’s CBI program is one of the most cost-effective in the Caribbean, with a minimum donation of $100,000 to the Economic Diversification Fund or a real estate investment starting at $200,000. This makes it accessible to a broader range of investors.

2. Visa-Free Travel:

Dominican citizens enjoy visa-free or visa-on-arrival access to over 140 countries, including the Schengen Area, the UK, Hong Kong, and Singapore. This extensive mobility is a significant advantage for global businesspeople and frequent travelers.

3. No Residency Requirement:

There is no requirement to reside in Dominica before, during, or after the application process. This flexibility allows investors to maintain their current lifestyle and residence while enjoying the benefits of Dominican citizenship.

4. Tax Advantages:

Dominica offers a favorable tax environment, including no taxes on worldwide income, capital gains, inheritance, or wealth. This can significantly reduce the global tax burden for high-net-worth individuals.

5. Dual Citizenship:

Dominica allows dual citizenship, enabling investors to maintain their original nationality while acquiring Dominican citizenship. This dual status can provide additional flexibility in managing international affairs and personal security.

6. Fast Processing Time:

The application process for Dominican citizenship is efficient, with approvals typically granted within 3-4 months. This quick turnaround is advantageous for those seeking a rapid path to second citizenship.

7. Inclusion of Family Members:

The CBI program allows investors to include their spouse, children, parents, and grandparents as dependents. This ensures that the entire family can benefit from Dominican citizenship.

8. Political Stability and Safety:

Dominica is known for its political stability, low crime rates, and peaceful environment, making it a secure place for investors and their families.

These benefits make Dominica’s Citizenship by Investment program a highly attractive option for individuals seeking a secure, affordable, and flexible path to second citizenship, coupled with significant global mobility and financial advantages.

Why choose Break Front?

Global expertise with local insight: A team of seasoned local case executives, immigration lawyers, and investment specialists.

Independent service: We are not affiliated with any marketing agencies or specific projects. You’ll have access to all eligible Golden Visa options, allowing you to choose the best path for your needs, supported by the legal due diligence services of a reputable law firm.

High approval rate: We pride ourselves on our high approval rates while having successfully assisted hundreds of clients from over 25 countries.

Comprehensive support: Our dedicated onboarding and immigration teams guide you through the entire process, providing a seamless experience with a single point of contact.

Transparency: Our fees are clearly outlined and comprehensive, with no hidden costs involved in the entire process.

Privacy: Your personal information is securely stored in a GDPR-compliant database.