Buying property in Dominica

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The Seller provides…

● The “Letter of Sale” that describes the basic details of the proposed transaction.

● The original Title document from which the new portion of land is being transferred.

● Details of any Caveats that have been placed on the land.

● A copy of the Notice of Approval from the Department of Physical Planning relating to a Sub Division or change of use.  

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The Surveyor undertakes the survey and provides…

● Three original copies of the Survey drawings that describe the absolute reference points, bearings and distances that make up the boundaries.

● A Certificate of Valuation

● In general, the Buyer pays for the cost of these drawings and documents.

 

The Lawyer provides…

● A Statement for the Buyer showing how much money needs to be transferred.  

● Receives the funds from the Buyer and holds them in a Client’s Account until the Seller signs the Transfer Document.

● Sends the file of Documents to the Registry.

As a general rule, the Buyer and the Seller use the same Lawyer in a non-confrontational way; similar to the way a Notary undertakes work for two parties on mainland Europe.

(The Seller pays a separate 2.5% Transfer Fee to the Government and any fees due to a Real Estate Agent, typically 5%)

 

Transfer fees (for buyers with a foreign nationality):

1. 10% Alien Landholders Fees

2. 4%    Stamp Duty

3. 2.5% Judicial Fees

4. 1%    Assurance Fund

5. 3%    Legal Fees (+15% VAT)

Total of 20.95%

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These fees only have to be paid once. 

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In Dominica, the following taxes do not exist:

- Capital Gains Tax

- Estate Duties

- Death Tax

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There are no taxes on:

- age and sickness benefit

- personal interest from banks

- agriculture income and fishing

- pension earnings

 

The Registry…

● Accepts all the Documents.

● Co-ordinates with the Surveyor to hatch out on the original Title document the portion of land being sold.

● Double-checks everything and then issues new Title Document.

It should be noted documents can spend a year in the Land Registry…

 

Aliens Land Holding Regulations (for purchases of more than one acre for residential purposes or more than three acres for trade or business)

If the Buyer is a Dominican or comes from a country that is a member of the OECS (Organisation of Eastern Caribbean States) then there are no restrictions or extra fees.

If the Buyer is an Alien and wishes to purchase more than one acre for residential purposes or more than three acres for trade or business (these limits are doubled for couples buying a shared property or land), then the Buyer…

● Will be required to apply for an Aliens Land Holding Licence.

● Pay an application fee of EC$150 plus any stamp duty that is required.

● Assuming the Licence is granted then the Buyer pays an Aliens Land Holding Licence Fee equivalent of ten percent of the market value of the land/property being purchased.  This fee is in addition to the fees listed above in Transfer fees.

If the Buyer is an Alien and wishes to purchase less than one acre for residential purposes or less than three acres for trade or business (these limits are doubled for couples buying a shared property or land), then the Buyer…

● Will not be required to apply for an Aliens Land Holding Licence

● Will be required to pay an Aliens Land Holding Fee equivalent of ten percent of the market value of the land/property being purchased.  This fee is listed above under transfer fees.