Starting a business in
🇩🇲Dominica
Checked November 9, 2026 · How we score
Corporate tax
25%
Top income tax
35%
Setup from
$1,500
all-in, first year
Time to form
7 days
can be done remotely
What is the corporate tax rate in Dominica?
The headline corporate tax rate in Dominica is 25% in 2026, and individuals pay up to 35%. 25% on net income, with no surtax or alternative minimum tax. Approved enterprises in tourism, agro-processing and other sectors can claim tax holidays.
| Corporate income tax | 25% 25% on net income, with no surtax or alternative minimum tax. Approved enterprises in tourism, agro-processing and other sectors can claim tax holidays. |
|---|---|
| Personal income tax (top) | 35% 15% on income up to EC$20,000, 25% from EC$20,001 to EC$50,000 and 35% above. The 2026/27 budget (August 2026) proposed replacing these bands with a single 10% rate from 1 January 2027. |
| Tax system | Worldwide income |
| Capital gains tax | 0%No capital gains tax on individuals; property transfers attract stamp duty. |
| Dividend withholding (non-residents) | 15% |
| VAT / GST | 15% |
| Social security | VAT is 15%. Social security contributions are payable by employers and employees on local payroll (about 4% employee and 6% employer, with ceilings). Stamp duty applies to land transfers. |
Forming a company in Dominica
| Usual entity | Dominica company limited by shares |
|---|---|
| Minimum capital | None |
| Setup cost (all-in) | $1,500–$3,500 |
| Annual running cost | $1,200–$3,000 |
| Time to incorporate | 7 days |
| Form remotely as a foreigner | Yes |
| Local director required | No |
| Local address required | Yes |
| Owners on public register | No |
| Statutory audit for small companies | No |
| Business banking for non-residents | Hard |
Residency and visas
Citizenship by investment starts at US$200,000 for a single applicant, either as a contribution to the Economic Diversification Fund or in approved real estate held for at least three years, plus government and due-diligence fees; the five OECS programmes share a US$200,000 floor from July 2024 under the regional harmonisation. There is no residency requirement, though interviews and stricter due diligence now apply. Confirm current terms with the CBI Unit.
| Digital nomad visa | Work in Nature (WIN) Extended Stay Visa, $4,167/month income |
|---|---|
| Golden visa | Yes, from $200k |
| Citizenship by investment | From $200k |
| Ease of residency for founders | 3/5 (1 = easiest) |
Taxes for individuals living in Dominica
Dominica taxes residents on worldwide income under its Income Tax Act, though citizens who live abroad are not taxed on foreign income. Foreign income of non-residents is not taxed.
| Foreign income of residents | Partly taxed |
|---|---|
| Income tax structure | Progressive rates |
| Inheritance / estate tax | 0%No inheritance, estate or gift tax. |
| Wealth tax | No |
| Annual property tax on your home | Yes |
| Exit tax when you leave | No |
| When you become tax resident | Resident if you spend 183 days or more in Dominica in a calendar year or have a permanent home there. |
Special tax regimes
Citizenship by Investment (EDF)
Contribute at least US$200,000 to the Economic Diversification Fund (single applicant) or buy approved real estate from US$200,000 for a Dominican passport; government fees, due diligence and an interview apply.
Work in Nature (WIN) Visa
An extended-stay visa for remote workers with foreign income, allowing up to 18 months in Dominica.
Tax holidays for approved enterprises
Qualifying tourism, agro-processing and manufacturing projects can receive multi-year income tax holidays and duty relief.
Pros and cons
Why founders pick Dominica
- Passport from US$200,000, among the lowest minimums
- No residency requirement for citizenship by investment
- No inheritance, estate or capital gains tax
- Visa-free access to about 140 countries including Schengen and the UK
Watch out for
- 25% corporate tax and 35% top personal rate today
- CBI programme under regional regulatory reform and international scrutiny
- Banking for Dominican entities is difficult
- Not suited to US-based owners because US tax rules still apply
Best for: Individuals seeking the cheapest Caribbean second passport · Founders wanting visa-free access to the UK and Schengen · Remote workers interested in an 18-month nature-island base
Dominica: common questions
Is Dominica a tax haven?
No. Dominica is a normal-tax country: companies pay 25% corporate tax and the top personal income tax rate is 35%.
How much does Dominica citizenship by investment cost?
From US$200,000 for a single applicant, either as a contribution to the Economic Diversification Fund or in approved real estate held for at least three years. Government, due-diligence and processing fees are extra, and family applications cost more.
What is the corporate tax rate in Dominica?
25% on net income, with no surtax. Tourism and other approved enterprises can claim tax holidays.
Does Dominica have income tax?
Yes. Personal rates currently run 15%, 25% and 35%, though the 2026/27 budget proposed a flat 10% rate from 2027. Citizens who live abroad are not taxed on foreign income.
Is Dominica on the EU tax blacklist?
No. Dominica was removed from the EU's list of non-cooperative jurisdictions in 2023 and is not on the 9 October 2026 list.
Does Dominica citizenship require living there?
No. There is no residency requirement to obtain or keep citizenship by investment, though an interview is part of the application.
Sources
- Dominica Citizenship by Investment Unit
- Dominica Inland Revenue Division
- Deloitte: International Tax Dominica Highlights 2026
- Council of the EU: list of non-cooperative jurisdictions
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Not tax or legal advice. Rates and rules change; we check official sources and update every page, but verify with a licensed adviser in the country before acting. Spotted something out of date? Use the correction form below.