Dominica Property Tax Guide: Stamp Duty 2-5%, Annual Property Tax 0.5-1.5% 2026
Dominica's property tax system includes stamp duty of 2-5% paid by the buyer on property purchases and an annual property tax of 0.5-1.5% of market value. There is no capital gains tax on property sales. Here is how Dominican property tax works in 2026.
Property taxation in Dominica is governed by the Stamp Duty Act and the Property Tax Act, administered by the Inland Revenue Division. Real estate is a significant investment sector in Dominica, driven by tourism development and the Citizenship by Investment Program. Dominica's property tax system is relatively straightforward. Capital gains on property sales →
Real-world example: A buyer purchases a beachfront villa in Roseau valued at XCD 1,000,000. Stamp duty at 3% = XCD 30,000 (paid by buyer). Annual property tax at 0.5% = XCD 5,000 per year. There is no CGT when the seller eventually sells. Compare to Grenada where transfer tax is 5% or Barbados where property transfer costs are up to 5%. Rental income taxation →
Stamp Duty (Transfer Tax)
- Rate: 2-5% of the higher of the purchase price or market value, depending on property value
- Who pays: The buyer is responsible for paying the stamp duty
- When paid: At the time of property registration and transfer of title
- Exemptions: Certain transfers may be exempt, including transfers between spouses, and approved projects under the Fiscal Incentives Act
Stamp duty is calculated on the higher of the contract price or the assessed market value determined by the Inland Revenue Division. This is a one-time tax paid upon acquisition. Lower-value properties typically attract the lower 2% rate, while higher-value properties are at 5%.
Annual Property Tax
- Rate: 0.5-1.5% of the market value of the property per year, depending on property type and location
- Assessment: Based on the assessed market value determined by the IRD
- Payment: Annual payment, typically due by April 30 each year
- Scope: Applies to all real estate including residential, commercial, and land
The annual property tax at 0.5-1.5% varies based on the classification of the property. Owner-occupied residential properties generally attract the lower rate, while commercial properties and undeveloped land may attract the higher rate. Properties used for approved tourism developments may qualify for reduced rates or exemptions under the Hotel Aids Act.
Registration and Legal Fees
- Legal fees: Typically 2-5% of the purchase price for conveyancing
- Registration fee: Fee for registering the property title with the Land Registry
- VAT on services: Legal and professional fees are subject to VAT at 15%
Buyers should budget approximately 6-12% of the purchase price for total transaction costs including stamp duty (2-5%), legal fees, registration, and due diligence.
Do foreigners pay the same property tax as residents?
Yes. Dominica applies the same property tax rules to residents and non-residents. There are no additional surcharges or restrictions on foreign property ownership. Foreigners may purchase property in Dominica with the same tax treatment as Dominican citizens. An Alien Landholding License may be required for certain types of property.
Is there a tax on rental income from property?
Yes. Rental income from property is subject to personal income tax at progressive PIT rates (0-15%). Deductions for maintenance, management fees, and mortgage interest may be available. Detailed rental income guide →
Are CIP real estate investments subject to these taxes?
Yes, real estate purchased under the Citizenship by Investment Program is subject to the same stamp duty (2-5%) and annual property tax (0.5-1.5%). However, approved CIP real estate projects may qualify for certain concessions. The CIP minimum real estate investment is USD 100,000.