Dominica Investment

This Nature Isle of the Caribbean is visibly a dot on the globe, it is small in size, but grand in its natural resources, scenic panorama and generally undeveloped offering great potential for investment in Dominica via Dominica Citizenship by Investment program, foreign and local alike in many areas.

Dominica is well known for its rugged and rustic landscape, with an abundance of sights for the nature lover. As a notable ecotourism destination and a first class dive destination, its desirability is growing. As host country of the ever popular Mas Domnik, and The Annual World Creole Music Festival, there is an anticipated continued growth in the numbers of visitors. Investment in Dominica in these areas is greatly encouraged.

the Nature Island is the ideal place for (Dominica) investment in the Caribbean and was recently rated as one of the top most favourable places to start a new business. Dominica enjoys a stable economy which is dependant mainly on revenue generated from tourism and agriculture. With the thrust towards globalization, diversification from a one-crop economy is necessary to facilitate and stimulate the country’s growth. Additionally, modernization is forcing a gradual shift towards a service oriented market. The authorities recognize this shift in dynamics, and embrace any sound Dominica investment which will bring about this desired change. These trends are affecting not only the areas of tourism such as hotels and ancillary services but also, transportation, and communication and information technology.

Currently Dominica is economically, politically, socially and physically ideally positioned to entertain this investment in Dominica boom, providing a viable and engaging investor climate. Dominica can boast a good work force of professionals, affordable wages, reasonable operational cost, stable currency, investor friendly taxation and ownership policies, easy company set up and attractively priced land (land cost are low compared to other parts of the world, but that is expected to change with influx of investors in Dominica and the anticipated local growth).

As the business of Dominica IBC‘s, or Dominica offshore companies grows in Dominica, it is necessary to highlight the main difference between a “local company” and an “international business company (IBC)”.

A (Dominica)“IBC” is a Dominica offshore company, and though formed under the laws of Dominica as a tax–free company, cannot engage in any business in Dominica whereas, a “local company” is a taxable corporation or an association which operate a commercial or industrial enterprise in Dominica. It is registered under the Companies Acts.

There is no restriction on the ownership or the repatriation of profits for a local company. There is no estate, capital gains, or death (inheritance) tax. The Fiscal Incentives Act, the Hotels Aid Act, the Income Tax, Value Added Tax Act are all investor friendly legislation. Concessions are also available to persons wishing to take advantage of opportunities in the Tourism, Manufacturing, Agro-processing, and Information and Communication Technology (ICT) as long as they satisfy all criteria. Dominica investments will benefit from such fiscal incentives.

The cost of living is average, but significantly lower than other Caribbean islands such as Antigua, Barbados, the Bahamas, and St. Lucia, which have experienced such rapid change and development for over 15years. Living standards are good across the island. A sound infrastructure with good quality services for lights, water, and telecommunications, cable access is in place. For the tourist and non-Dominican cost appear relatively low, the cost of housing is considered low, but prices do vary greatly between urban and rural, residential and commercial areas. The country has modern air and sea port facilities providing access to outside world. Leading carriers and cargo ships have daily and weekly scheduled services to island. The currency, the EC dollar is fixed to the US dollar at 1US to 2.7EC. These are also feature that attract investment in Dominica.

These factors provide for Dominica investments opportunities in every area conceivable. Some areas identified for the lucrative Dominica investment opportunities are:

  • International business services sector:
      • IBCs
      • offshore banking in existing banks
      • offshore trust business
      • insurance business
  • Tourism: This area has seen little development up to now and provides a huge opening for eco-tourism.
    • Hotel and Resort Development, including construction of properties to facilitate accommodation. Up-market, mid and low market demands are on rise. With just under 300 (2.5star rated) rooms on island.
    • Marine based operations to include Marinas, and Golf and Recreational facility Development.
    • Supplementary Services such as Upscale Dining amenities and Restaurants, Biopark projects, Watersport activities, and conference facilities.
    • And medical tourism and health tourism, to include wellness centers, spas.
  • Residential and Commercial Real Estate
  • Film and entertainment
  • Manufacturing: Dominica has a small manufacturing sector, with great avenues for investment.
  • Communication and Information Services: Telemarketing, Call Center operations, Data-processing to name a few.
  • Agricultural based business also referred to as Agri-business

Several incentive packages for Dominica investment are in place to encourage the establishment and development of new businesses. Benefits for Dominica investors are in the form of package incentives which include tax holidays, duty free concessions on business applicable content, work permit facilitation, waiving of alien land holding licenses, and other fiscal incentives are available based on nature and value of investment. The tourism sectors are even more incentivized.

The newly created Financial Services Unit was designed to oversee Dominica investments in the international business sector. Investors who register their IBC on island are guaranteed a twenty year tax holiday as a safeguard against any future changes in existing legislation.

The Invest Dominica Authority is established to assist local and foreign investors in the bureaucratic course of setting up the business, government licensing, duty free concessions. It is intended to simplify and put all the offices in one place to ensure an expeditious process.