A common question from applicants is whether Dominica citizenship creates a new tax obligation. The CBIU's official answer is clear, but the full picture also depends on your country of residence. The source was checked on 24 October 2026.
The CBIU's official answer
According to the FAQ page of the Citizenship by Investment Unit of Dominica (CBIU):
- Dominica has no wealth, gift, inheritance, foreign income or capital gains tax;
- a citizen pays personal tax only if they are resident in Dominica.
What it means in practice
- Citizenship alone does not make you a taxpayer in Dominica; the test is residence.
- If you do not live in Dominica, according to the CBIU's answer, income you earn outside Dominica is not taxed in Dominica.
- If you decide to live in Dominica, Dominica's personal tax rules apply to you. Ask Dominica's tax office about the rates and thresholds.
Your country of residence matters more
- Most countries tax on the basis of residence. As long as you are resident in a country, its tax rules apply to you, whatever passport you hold.
- Some countries tax on the basis of citizenship. If you are a citizen of such a country, a second passport does not remove that obligation.
- A second passport does not change your tax residence. Changing tax residence has its own rules.
Banks and the automatic exchange of information
Under the Common Reporting Standard (CRS) approved by the OECD in 2014, participating jurisdictions obtain financial account information from their banks and financial institutions and exchange it automatically with other jurisdictions every year. That is why a bank asks for your tax residence, not only your citizenship. Correct and complete answers to these questions are necessary.
Before deciding
- Speak to a tax adviser in the country where you live.
- If you are buying approved real estate in Dominica, ask the official source or the project separately about the costs and taxes of buying, holding and selling the property.
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)
- OECD, international standards on tax transparency (CRS) — https://www.oecd.org/en/topics/international-standards-on-tax-transparency.html (via the search index; the OECD site refused direct access; checked on 24 October 2026)