A Step-by-Step Guide to Buying Property in Dominica
Dominica, known as the Nature Island of the Caribbean, is becoming an increasingly attractive destination for property buyers looking for a tropical paradise with affordable real estate options. Whether you’re interested in a vacation home, an investment property, or a permanent residence, Dominica offers various opportunities for foreign buyers. This guide will take you through the step-by-step process of purchasing property in Dominica.
Step 1: Research the Real Estate Market
Before making a purchase, it’s essential to understand the Dominican real estate market. Property prices in Dominica are generally more affordable compared to other Caribbean islands, with options ranging from beachfront villas to mountain retreats and eco-friendly homes. Some of the best areas to buy property include:
- Roseau – The capital city, offering urban conveniences.
- Portsmouth – A growing area with investment potential.
- Calibishie – A scenic coastal village with stunning views.
- Soufrière and Scotts Head – Ideal for beachfront living.
Step 2: Check Property Ownership Regulations
Dominica allows foreigners to buy property, but they must obtain an Alien Landholding License (ALHL) if purchasing more than one acre of land for residential use or three acres for commercial purposes. The license fee is 10% of the property value.
Step 3: Find a Real Estate Agent or Lawyer
Working with a local real estate agent or lawyer will make the buying process smoother. They can help with:
- Finding the right property
- Negotiating prices
- Ensuring legal compliance
- Handling paperwork
Step 4: Make an Offer and Sign a Sales Agreement
Once you’ve chosen a property, you’ll need to:
- Negotiate the price with the seller.
- Sign a sales agreement outlining the terms and conditions of the purchase.
- Pay a deposit (usually 10%) to secure the property.
Step 5: Conduct a Title Search and Due Diligence
Before finalizing the purchase, a title search must be conducted to ensure the property has no legal disputes or outstanding debts. Your lawyer will handle this step and confirm that the title is clear.
Step 6: Apply for the Alien Landholding License (If Required)
If you are purchasing more than one acre of land, you must apply for the Alien Landholding License through the Ministry of Agriculture, Lands, and Housing. The process can take a few months, so it’s best to start early.
Step 7: Pay Taxes and Fees
When buying property in Dominica, you must account for the following taxes and fees:
- Stamp Duty – 4% of the property value.
- Judicial Fees – 2.5% of the property value.
- Registration Fees – 1% of the property value.
- Legal Fees – Typically 1–2% of the property value.
Step 8: Finalize the Sale and Transfer Ownership
Once all legal checks are complete and payments are made, the property title is transferred to your name, and the sale is finalized. You will receive a Certificate of Title, proving your ownership.
Step 9: Consider Residency Options
If you plan to live in Dominica, you can apply for:
- Temporary Residency – Available for foreign property owners.
- Permanent Residency – Requires living in Dominica for a certain period.
- Citizenship by Investment (CBI) – Investing at least $200,000 in approved real estate can qualify you for Dominican citizenship.
Final Thoughts
Buying property in Dominica is a straightforward process, especially with the right guidance. With affordable prices, breathtaking landscapes, and a welcoming environment, Dominica is an excellent choice for real estate investment, retirement, or a vacation home. By following this step-by-step guide, you can confidently navigate the process and secure your dream property on the Nature Island.
