Buying and Selling Property Costs & Considerations
- iamjuneella
- Oct 9
- 4 min read
Updated: Oct 13
What to Expect
Purchasing property in The Commonwealth of Dominica offers a chance to invest in one of the Caribbean’s most naturally rich and culturally vibrant destinations. Whether you're a local buyer or a foreign investor, understanding the costs and legal steps involved is key to a smooth transaction.
Buyers - Dominican Citizens
Stamp Duty: 4% of the property’s market value
Legal Fees: Varies depending on transaction complexity, but is typically 2.5% of the purchase price
Registration Fees: Around 1% property’s market value
Real Estate Agent Fees: Typically, 5% of the purchase price, if applicable
Buyers - Foreign Nationals
Foreign buyers are welcome and encouraged to invest in Dominica, though they are generally required to obtain an Alien Landholding License (ALHL), a measure designed to promote responsible ownership and environmental care. While the licensing process is waived for residential properties under one acre and commercial properties under three acres, the associated fees—typically 10% of the property's market value—still apply regardless of size or intended use. Costs and considerations include:
Alien Landholding License: 10% of the property’s market value
Stamp Duty: 4% of property’s market value
Legal Fees: Varies depending on transaction complexity, but is typically 2.5% of the purchase price
Registration Fees: Around 1% of the property’s market value
Real Estate Agent Fees: Typically, 5% of the purchase price, if applicable
Due Diligence & Background Checks: Required for ALHL approval
Citizenship by Investment: Available for government-approved real estate investments - $200,000+ per applicant. (Visit the official government website to learn more about CBI opportunities and find an approved agent: Dominica Citizenship by Investment Unit | Government of Dominica)
Sellers
Selling property in Dominica can be a rewarding process, especially with the island’s favorable tax environment and growing interest from international buyers. While the market may move at a slower pace, strategic marketing and professional support can help accelerate results.
Seller Costs
Agent Commission: Typically, 5% of the purchase price
Legal Fees: Varies depending on transaction complexity, but is typically 2.5% of the purchase price
Capital Gains Tax: None—Dominica does not impose capital gains tax
Preparation Costs: May include surveys, title verification, and marketing
Important Considerations
Dominica’s real estate market is currently unregulated, and there is no formal licensing system for real estate professionals. Buyers and sellers are strongly encouraged to seek out reputable, communicative agents and take time to interview them to build a relationship based on trust and transparency.
All property transactions must be handled by a licensed attorney to ensure full legal protection of title. While some attorneys have experience with real estate matters, none specialize exclusively in property law, and their availability may be limited due to competing demands across other legal areas. When transactions proceed without delays, a typical closing timeline is approximately three months; however, this is not guaranteed. Buyers and sellers should be prepared for potential delays and are advised to maintain regular contact with their attorney, real estate agent, and the registry office to ensure progress. It is especially important to work with agents who offer post-sale support, as navigating Dominica’s fragmented and loosely coordinated property systems often requires continued assistance beyond the initial transaction.
Practical Tips for Buyers & Sellers
Hire a Local Attorney: Ensures legal compliance and protects your interests
Work with Trusted Agents: Interview real estate agents to assess reliability, communication, and market knowledge
Plan for Timeframes: Sales may take longer, but smart positioning helps
Remote Transactions: Power of Attorney can enable property deals to be completed without the buyer or seller being physically present in Dominica. However, certain aspects of the transaction may still require in-person involvement due to legacy regulations within financial and legal institutions. These requirements can vary depending on the specific circumstances of the parties involved, so it's important to consult your attorney or local financial institution early to understand any limitations.
Understand Infrastructure: When buying property in Dominica, it’s essential to assess not only access to utilities and roads, but also the overall development readiness of the area. Conditions can vary widely across the island, so buyers should make specific inquiries into road quality, proximity to banking and shopping, and the reliability of services. Keep in mind that many amenities operate on limited hours, may likely lack disability access, and often fall short of international expectations for digital infrastructure —especially in more remote or rural locations.
Whether you're acquiring a commercial investment, securing your dream retreat, or selling a valuable asset, Dominica offers a rare combination of opportunity, natural beauty, and financial appeal. At Orinoco Real Estate, we provide personalized services that support buyers and sellers through every phase of the property journey—including post-sale assistance—with clarity, integrity, and deep local insight. Let us help you take the next step in your Caribbean investment with confidence and care.
Orinoco Real Estate
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