The Commonwealth of Dominica is a beautiful Caribbean island with a unique natural environment. This includes a mountainous interior with waterfalls and over 1200 plant species surrounded by a beautiful Caribbean coastline. As a result, Dominica CBI real estate is very popular with US and European tourists who are regular customers of the island’s popular ecotourism resorts.
Making a qualified investment into one of Dominica’s popular ecotourism developments allows applicants to qualify for the Dominica citizenship by investment program. Indeed, the benefits and due diligence requirements of the real estate program are the same as for Dominica’s EDF donation program.
However, a major benefit for real estate investors allows them to sell the property while retaining Dominica citizenship in perpetuity.
Dominica CBI Real Estate Advantages:
- Sell the Property to another CBI applicant after 5 Years
- Earn a 3-5% ROI during the holding period
- Choice of Freehold or Real Estate Trust Ownership Structure
- Reduced Investment Amount for Families
- Invest in Profitable Time Tested Development
- Stability of the Dominica Ecotourism industry
- Dominica’s environment is well suited for social distancing protocol.
- Obtain the same benefits as the EDF Donation with the right to recoup the investment.
- No requirement to notify your home country about the application.
- No need to ever visit the island during the application process.
Freehold vs. Real Estate Trust Ownership
Dominica CBI real estate options allow investors to choose between a freehold or real estate trust ownership structure. Freehold ownership is always preferred by conservative investors especially when purchasing residential real estate for personal use.
However, due consideration should be given to the fact that CBI investment is primarily for commercial use with an emphasis on tourism development. As a result, this eliminates a few of the most desirable freehold ownership benefits.
Indeed, most of the Dominica CBI real estate properties cannot be used as a personal residence for more than one or two weeks per year. Additionally, they can never be mortgaged or leased directly to the benefit of the owner. Therefore, several primary benefits of freehold ownership are not applicable with CBI properties.
However, wise CBI applicants will also consider confidentiality when applying for second citizenship. Purchase of freehold property requires that the name of the new owner be recorded in the Dominica Land Registry. As a result, the applicant’s name is published and can be viewed by the public.
In contrast, ownership in a development with a real estate trust structure such as the Cabrits Kempinski Dominica gives the CBI applicant 100% confidentiality. This is because their name is not published in the Dominica Land Registry. Instead, the name of the developer appears in the land registry on their behalf.
Purchase Well Established Dominica CBI Real Estate
Cabrits Kempinski Dominica was developed by the most successful CBI real estate developer in the Eastern Caribbean. Indeed, CBI ownership units in the resort were 100% sold out prior to opening in 2019. This is because of high demand from CBI investors seeking the security of an established developer.
However, limited number of ownership shares in Cabrits Kempinski have now become available for resale. This allows new investors to purchase an ownership unit from an existing owner who has satisfied the holding period.
As a result, a new investor can use the purchase to qualify for Dominica citizenship. Additionally, the previous owner can recoup their investment while retaining Dominica citizenship in perpetuity.
Cabrits Kempinski Purchase Price Breakdown
|Item||Family of Four|
|Cost of Share||$220,000|
|Government fees for main applicant, spouse and two dependents.||$35,000|
|Due Diligence Fees||US $11,500 (US $7,500 for main applicant and US $4,000 for spouse)|
|Share Registration Fees||$8,800|
|Government Processing Fees||$1,000|
|Certificate of Naturalization, stamp fees||$1,000 ($250 x 4)|
Future Demand for Dominica Tourism Industry
Caribbean tourism numbers were hard hit in 2020 by the COVID-19 pandemic. However, vaccinations in developed economies are progressing rapidly. As a result, pent up demand for Caribbean vacations has resulted in strong bookings for the second half of 2021 and into 2022. This is according to a recent press release by Royal Caribbean.
A strong recovery in the Caribbean cruise industry is an auspicious sign for things to come. According to the world bank, 40% of the economy in the Eastern Caribbean is dependent on tourism. Additionally, this optimism is especially pertinent for Dominica. Indeed, Dominica’s natural environment and low population density are ideally suited for social distancing protocol.
Furthermore, in preparation for a strong recovery, Dominica has already been receiving international tourists on the island. Likewise, demand will be high for Dominica CBI real estate.