Relocation intelligence
🇩🇲 Moving to Dominica: tax, residency and cost of living
Progressive personal income tax (0/15/25/35 percent) with a XCD 30,000 tax-free personal allowance. No capital gains, wealth or inheritance tax, and foreign income of residents is effectively untaxed. VAT 15 percent, corporate tax 25 percent. Citizenship-by-investment available.
Thinking of moving to Dominica? Here is the tax, residency, property and quality-of-life picture in plain numbers, with sources.
Key facts
- Top income tax
- 35%
- Corporate tax
- 25%
- Capital gains
- 0%
- Wealth tax
- No
- Inheritance tax
- No
- Cost of living index
- 62
- Safety
- 7/10
- Internet quality
- 5/10
- Visa-free destinations
- 145
- Foreigners can own property
- Yes
- Residency in
- 6 months
- Citizenship in
- 5 years
Taxes
Residents receive a XCD 30,000 personal allowance; then 15% (to 50k), 25% (to 80k) and 35% above. DSS employee contribution is 6.75% up to XCD 84,000/year and is not deductible. No CGT, wealth or inheritance tax.
Residency and visas
Naturalisation normally requires about 7 years of residence, but the citizenship-by-investment program grants citizenship directly with no residence requirement.
Property ownership
Foreigners may own property; larger plots require an Aliens Landholding Licence. Real estate can also be a route within the CBI program.
Cost of living and quality of life
Dominica is the green Nature Island with rainforest, hot springs and diving, but has limited medical care, small-scale infrastructure and hurricane risk.
Passport and mobility
The Dominica passport ranks 29th on the 2026 Henley index with visa-free or visa-on-arrival access to around 145 destinations, including the Schengen area, the UK and Singapore.
Why people move to Dominica
No capital gains, wealth or inheritance tax
Dominica levies no tax on capital gains, wealth, inheritance or gifts, making it attractive for wealth preservation and investors.
Fast second passport via investment
The citizenship-by-investment program grants a passport with visa-free access to about 145 countries within months, with no residence requirement.
Honest trade-offs
- Het werknemersdeel van de sociale premie stijgt jaarlijks door een 20-jarig hervormingsplan en bedraagt in 2026 al 6,75 procent tot een plafond van XCD 84.000 per jaar, met verdere verhogingen tot 2031 gepland.
- Ondanks het lage fiscale imago loopt het progressieve inkomstenbelastingtarief snel op tot 35 procent en de belastingvrije voet is met XCD 30.000 relatief bescheiden.
- Dominica ligt midden in de orkaangordel en werd in 2017 verwoest door orkaan Maria, waardoor eigendom en infrastructuur een blijvend natuurrisico kennen.
- De economie is klein en sterk afhankelijk van het burgerschap door investering programma en toerisme, met beperkte werkgelegenheid en hoge importkosten voor dagelijkse goederen.
- Buitenlanders hebben voor grotere percelen een Aliens Landholding Licence nodig voordat zij onroerend goed kunnen bezitten, wat extra kosten en administratieve stappen met zich meebrengt.
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- Inland Revenue Division Dominica - Current Income Tax Rates
- Inland Revenue Division Dominica - Personal Income Tax (allowances)
- Dominica Social Security - Table of Employee/Employer Contribution Rates 2012-2031
- Dominica Social Security - Employees (6.5% base, ceiling)
- DOM767 - Adjusted Social Security Contributions 2026
- Travel And Tour World - Dominica Passport 2026 Henley Index (145 countries)
- Invest Dominica Authority - Purchase of Land (Aliens Landholding Licence)