A common question from Dominica citizenship applicants is whether Dominica is a "tax haven". The answer is not simple. Dominica has an income tax, but the residence rule, the exemption for retirees and the absence of a capital gains tax are important points. This article is based on the "Taxation" page of Invest Dominica Authority, checked on 24 October 2026. A 2026 tax summary by the international accounting firm Deloitte is used as a second source.
Personal income tax
Invest Dominica Authority publishes these bands (amounts in Eastern Caribbean dollars):
| Annual taxable income | Rate |
|---|---|
| 0 to 30,000 | 0 percent |
| 30,001 to 50,000 | 15 percent |
| 50,001 to 80,000 | 25 percent |
| 80,001 and above | 35 percent |
An important difference between sources
Deloitte's 2026 tax summary gives other bands: 15 percent up to 20,000, 25 percent from 20,001 to 50,000 and 35 percent above EC$50,000. One of the two sources may treat an exemption or allowance separately. We cannot say which is right for the current year; ask the Inland Revenue Division.
Example: annual income of EC$60,000
With the Invest Dominica Authority bands:
| Band | Part of income | Rate | Tax |
|---|---|---|---|
| up to 30,000 | 30,000 | 0 percent | 0 |
| 30,001 to 50,000 | 20,000 | 15 percent | 3,000 |
| 50,001 to 60,000 | 10,000 | 25 percent | 2,500 |
| Total | 60,000 | 5,500 |
The tax in this example is EC$5,500, about 9.2 percent of total income. The calculation only shows how progressive bands work and leaves out allowances, exemptions and social security.
Who pays tax in Dominica?
Dominica's Citizenship by Investment Unit (CBIU) says in its FAQ that a citizen pays personal tax only if resident in Dominica, and that Dominica has no wealth, gift, inheritance, foreign income or capital gains taxes. The article "Tax in Dominica: an overview for citizens by investment" explains this answer.
Deloitte's summary adds two points:
- someone physically present in Dominica for at least 183 days in a calendar year is treated as tax resident;
- according to Deloitte, a resident is taxed on worldwide income and a non-resident only on income derived from Dominica.
Deloitte's second point does not match the CBIU's official statement on foreign income. The CBIU's official answer is our reference; if you plan to live in Dominica, ask the Inland Revenue Division about this point. In any case, citizenship alone does not make you a tax resident of Dominica; the test is residence.
Retirees
Invest Dominica Authority says that people who retire in Dominica are exempt from tax on income from outside Dominica, provided they were not resident in Dominica before retiring.
Corporate tax
| Item | Value |
|---|---|
| Corporate income tax rate | 25 percent |
| Surtax | none, according to Deloitte |
| Global minimum tax (OECD Pillar Two) | according to Deloitte, Dominica has not adopted it |
VAT and other charges
| Item | Published rate |
|---|---|
| Value added tax, standard rate | 15 percent on all goods and services |
| Value added tax, reduced rate | 10 percent on hotel accommodation |
| Environmental levy | 1 or 1.5 percent, depending on the item |
| Customs service charge | 4 percent |
| Excise tax on motor vehicles | 28 percent |
Capital gains
Invest Dominica Authority states plainly: there is no capital gains tax in Dominica. Deloitte says the same.
Costs of buying and transferring property
This section matters for those who invest through approved real estate or buy property later:
| Cost | Paid by | Published rate |
|---|---|---|
| Stamp duty, buyer | buyer | 2 percent of value |
| Stamp duty, vendor | vendor | 2.5 percent of value |
| Assurance Fund | not stated in the source | 1 percent of value |
| Judicial fee | not stated in the source | 1 percent of value |
| Solicitor's fee | by agreement | at most 2.5 percent of value, plus 15 percent VAT on that fee |
| Alien Land Holding Licence | foreign buyer | 10 percent of the property's value |
Example: a property worth EC$500,000
| Cost | Calculation | Amount |
|---|---|---|
| Buyer's stamp duty | 2 percent | 10,000 |
| Assurance Fund | 1 percent | 5,000 |
| Judicial fee | 1 percent | 5,000 |
| Solicitor's fee, maximum | 2.5 percent | 12,500 |
| VAT on the solicitor's fee | 15 percent of 12,500 | 1,875 |
| Land licence, if needed | 10 percent | 50,000 |
Whether the land licence is needed in a given case, and which party pays which cost, depends on your situation and the purchase contract. Ask your attorney in Dominica. In the citizenship programme, the official costs of approved real estate are set by the programme's own rules.
Registration and returns
On its "Starting a Business" page, Invest Dominica Authority lists the tax duties of businesses:
- every business must register with the Inland Revenue Division and obtain a tax number;
- the start date of operations must be notified to the Division in writing;
- an annual return is filed under the Income Tax Act, even during a tax holiday;
- a business with taxable activity must also register for value added tax.
Social security contributions are paid separately; their rates are in the article "Setting up a business in Dominica".
Treaties
Invest Dominica Authority names:
- the CARICOM double taxation treaty, in force;
- information-sharing agreements with the United States and Great Britain;
- bilateral investment treaties with Great Britain and Germany.
Your country of residence matters more
If you live in another country, that country's tax rules usually decide. Banks also ask about your tax residence under the CRS standard, not only your citizenship. The article "Banks, the CRS and a second passport" explains this.
Royal Golden does not give tax advice. This article is general information and not tax or legal advice.
Sources
- CBIU Dominica, FAQ (tax) — https://www.cbiu.gov.dm/faqs/ (checked on 24 October 2026)
- Invest Dominica Authority, tax information for individuals, companies and organisations — https://investdominica.com/doing-business/taxation/ (checked on 24 October 2026)
- Invest Dominica Authority, Starting a Business — https://investdominica.com/?p=1540 (checked on 24 October 2026)
- Deloitte, Dominica tax highlights 2026 — https://www.deloitte.com/content/dam/assets-shared/docs/services/tax/2026/dttl-tax-dominicahighlights-2026.pdf (secondary source, via the search index; checked on 24 October 2026)