Today, Dominica is well known for the picture-perfect islands in Pirates of the Caribbean 2 and 3. Publicity from these blockbuster movies has brought the island’s rustic beauty to people’s attention worldwide.
Though there are still no direct flights into the country, Dominica’s tourism industry has blossomed. Businesses like bars, restaurants, and hotels are happy, and the locals look forward to seeing and hearing about the big “Pirates” celebrities like Johnny Depp, Keira Knightley, and Orlando Bloom.
Dominica is now profiting on tours and hiking trails to the movies’ filming locations, and package tours which include accommodations in hotels where the cast and crew stayed.
The government is quite lenient to foreigners purchasing property in Dominica. Non-residents can acquire property up to one acre (4,046 sq. m) for residential purposes, and up to three acres (12,140 sq. m) for commercial use. Only those who plan to buy more need to obtain an Alien Landholding License.
Though there are still no direct flights into the country, Dominica’s tourism industry has blossomed. Businesses like bars, restaurants, and hotels are happy, and the locals look forward to seeing and hearing about the big “Pirates” celebrities like Johnny Depp, Keira Knightley, and Orlando Bloom.
Dominica is now profiting on tours and hiking trails to the movies’ filming locations, and package tours which include accommodations in hotels where the cast and crew stayed.
The government is quite lenient to foreigners purchasing property in Dominica. Non-residents can acquire property up to one acre (4,046 sq. m) for residential purposes, and up to three acres (12,140 sq. m) for commercial use. Only those who plan to buy more need to obtain an Alien Landholding License.
Analysis of Dominica Residential Property Market »
RENTAL YIELDS
Last Updated: Dec 05, 2005
Gross rental income returns (yields) are around 4% to 5% for properties located in Dominica’s coastal areas, in some cases it can reach up to 6.7%. Rents in the islands are predominantly seasonal but these yields figures are for long-term rentals.Rentals have not risen during the last five years, save around Picard. A two bedroom property rents for about US$800. Some higher end rentals have dropped as the offshore industry has declined.
TAXES AND COSTS
Last Updated: Dec 23, 2011
Rental Income: Rental income earned by nonresidents is taxed at progressive rates, from 18% to 38%.
VAT is also levied at rental income at a flat rate of 15% but a special rate of 10% can apply under certain conditions.
Capital Gains: There are no taxes on capital gains.
Inheritance: There are no inheritance taxes in Dominica.
Residents: Residents are taxed on worldwide income at progressive rates, from 18% to 38%.
VAT is also levied at rental income at a flat rate of 15% but a special rate of 10% can apply under certain conditions.
Capital Gains: There are no taxes on capital gains.
Inheritance: There are no inheritance taxes in Dominica.
Residents: Residents are taxed on worldwide income at progressive rates, from 18% to 38%.
BUYING GUIDE
Last Updated: Apr 03, 2008
Total roundtrip transaction costs, i.e., the cost of buying and selling a property, are at 28.45% of the property value.
The Alien Land Holding License fee is 10% of the land's market value. The buyer pays legal fees (3% + 15% VAT), judicial fees (2.5%), and the assurance fund (1%). The seller usually pays the agent's commission of 5%. The buyer pays 4% stamp duty, while the seller pays 2.5% stamp duty.
The Alien Land Holding License fee is 10% of the land's market value. The buyer pays legal fees (3% + 15% VAT), judicial fees (2.5%), and the assurance fund (1%). The seller usually pays the agent's commission of 5%. The buyer pays 4% stamp duty, while the seller pays 2.5% stamp duty.
LANDLORD AND TENANT
Last Updated: Jun 08, 2006
Rent: The rent can be freely agreed, except when less than US$300 a month, where the highly pro-tenant Tenancies and Rent Control Act applies.
Tenant Security: The recovery of premises from an unsatisfactory tenant must go to the High Court, and this can take time. But a tenant who thinks he has no defense to a claim for possession would normally vacate upon commencement of proceedings. To do otherwise is to bear unnecessary legal costs.
Tenant Security: The recovery of premises from an unsatisfactory tenant must go to the High Court, and this can take time. But a tenant who thinks he has no defense to a claim for possession would normally vacate upon commencement of proceedings. To do otherwise is to bear unnecessary legal costs.
ECONOMIC GROWTH
Last Updated: Jun 04, 2007
Away from the world
Dominica (pop 70,000, GDP per capita US$4,116) lives up to its name as the “Nature Island of the Caribbean.” It is the youngest of the Caribbean islands, and there truly is a lot to explore.A haven for nature lovers; its mountainous terrains proliferate with virgin forests, natural springs, and a multitude of rivers cascading down steep cliffs to meet the coast. Moreover, it is one of the world’s premier diving spots, its surrounding reefs emanate from the Island’s volcanic origins.
Highly dependent on agriculture, Dominica's economy remains very vulnerable to climatic conditions and to international economic developments. The economy grew by an average of 2.5% per year from 2003 to 2005. Growth of 2.8% is expected for 2006.
Developing tourism is difficult because of the rugged coastline, lack of white sand beaches, and the absence of an international airport. The number of visitors increased by 1.6% per year between 1999 and 2002.
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