Dominica’s citizenship by investment program (CIP) has garnered interest from around the globe as investors flock to gain the citizenship and passport of a commonwealth nation for a reasonable price.
Dominica’s CIP has become a fan favourite, and has performed admirably even during the heights of the pandemic as the government kept on processing files and granting citizenship to applicants worldwide. This approach has enticed even more investors to consider the nation’s CIP as their next venture.
But Dominica as a nation offers investors much more than just enhanced global mobility. In this piece, we will cover the hidden benefits of becoming a Dominican citizen through investment.
Safeguarding Your Wealth
The financial aspect of the Dominican CIP is not to be overlooked. While global mobility may grab the headlines, Dominica’s stature as one of a few genuine tax havens in the world is essential when it comes to safeguarding the wealth you worked so hard to amass.
But it isn’t just the tax regime that is favourable, but the entire financial landscape which is built upon the idea of attracting global investors. In short, Dominica provides foreign investors with benefits abundantly, all one needs to do is take advantage of them.
Dominica has a favourable tax regime in comparison to the world average; the government does not impose any wealth, gift, capital gains, or inheritance tax on its citizens or residents. Nor is there any global income tax for its non-resident citizens.
Non-resident citizens of Dominica are not liable to any global income tax. If non-residents do have income sourced within the nation of Dominica, it is levied for income tax on a bracketed scale ranging from 0-35% depending on the amount. Those who rent out units in Dominica, for example, rarely surpass the 15% mark in terms of income tax, meaning that the real estate option in Dominica’s CIP is favourable in terms of taxation as well.
The Dominican tax system aligns perfectly with its CIP; as those who gain citizenship through investment are not required to reside in the nation making them non-residents and hence find themselves in a favourable position from a taxation point of view.
Established on the EU’s official tax haven list, Dominica is one of the best places in the world to hold your wealth and enjoy an outstanding tax structure. The low-tax framework is actually possible partially due to the income generated by the nation’s CIP, so the matter becomes a continuous loop; as you invest in a Dominica passport, your investment helps save you money in terms of taxes.
Opening an offshore bank account in a tax haven is a tried and tested route to saving money on taxes. Offshore banking is a legal practice that allows you to deposit your savings outside of your country of residence. Those who invest in Dominica’s CIP are in luck, as the Caribbean nation has ten registered and regulated offshore banks within its shores ready to serve the globe’s elite.
Offshore banks are also more private and flexible than normal banks, and they follow different regulations set for them specifically. Opening an offshore account, or accounts, can help you manage your money better, mitigate financial risk, and ensure you have a backup in case something wrong happens in your home nation. This risk management benefit of offshore banking is precisely why many of the elite in nations with turbulent political structures invest in the citizenship of Dominica.
Having an offshore bank account also helps you move funds around easily. It is much easier transferring money from Dominica to the United Kingdom, for example, than it is transferring the same amount from the Middle East. Having an offshore account gives you more flexibility and freedom when it comes to moving your money around.
Imagine if an investor from Lebanon, for instance, invested in a Dominican citizenship and opened an offshore account before the banking crisis hit the Lebanese market, they would have a route to move funds around and maintain global fluidity.
Another great advantage is the law that governs offshore banking in Dominica; the nation follows Common Law, which is familiar to many nationals in the MENA region, and is easy to understand while also being extremely thorough. Common Law is a body of laws based on legal precedents established by the courts, similar to structures we find in the United Kingdom, USA, Canada, and many more countries. Common-Law nations normally have three functioning branches of government; legislative, judicial, and executive. This makes Dominica a safe place to bank.
New HQ For Your Business
Dominica’s stable macroeconomic environment, coupled with its democratic political framework, provide fertile land for businesses to flourish. Businesses are also aided by the proximity of one of the world’s leading economic powerhouses – the United States of America.
Dominica is a nation that thrives on its financial service sector, its tourism industry, and its ability to attract new foreign businesses to its shores. The latter is no fluke, however, as the country offers an abundance of incentives for those looking to set up shop on the sandy shores of the Caribbean country.
Some enterprises in manufacturing, agriculture, assembly, or relative services can get tax holidays (tax exemptions) for 15 years. These enterprises can even get an exemption from import duty indefinitely.
Hotels and resort developments can also get tax holidays, but for an even longer period of 20 years.
Where it gets really interesting, and much more relevant, is that any company registered under the International Business Companies Act can also get a tax holiday of 20 years from the date of incorporation. While foreign investors are allowed to repatriate 100% of profits.
Dominica’s many incentives and close proximity to the United States make it a great place to establish your business HQ.
A New Airport, A New Economic Overview
Come 2023, Dominica will be unveiling its first-ever international airport with direct flights to the United States, the United Kingdom, and more. This airport will help place Dominica on the global commerce map.
The Caribbean is known for having a shortage of airports and depending on short flights between its many island states, but Dominica is currently constructing a 370 million USD international airport as part of its plan to enhance global commerce, tourism, and worldwide trade.
This airport will help Dominica become a hub for trade and travel in the region, and will reflect positively on its economic landscape as it opens doors to important parts of the world.
An interesting fact about the airport is that it is fully funded by the country’s Citizenship by Investment Program, once again highlighting how the program is helping the nation enhance its economic standing on the global stage.
The CIP also plays a major role in the tourism sector, as investors looking to obtain citizenship can buy shares in major five-star resorts throughout the nation, enhancing the allure of the Caribbean country to global tourists. This boost to the hotel sector combined with an international airport can lead to even greater tourism income, highlighting how intricately planned the CIP is and how it is transforming the entire economic overview of the country.
Scholarships In The UK
Being a commonwealth country does come with its perks, and the most interesting of them, in this case, is the scholarships UK bodies provide commonwealth citizens.
The United Kingdom has a list of countries whose nationals can apply for UK scholarships, and Dominica is nicely seated within that list. Now this works better for those who choose to reside in Dominica, as one of the requirements is that a student be permanently residing in an eligible commonwealth nation.
Those looking to retire in Dominica and take their children, or those looking for a naturally beautiful place far away from the desert sand or the bustling of metropolises can plan ahead for their children to finalize their studies in the nation then apply for a UK scholarship.
Dominica’s CIP does not require anyone to reside on the island to become a citizen, but those who do can take advantage of benefits like these.
Much More Than A passport
Dominica’s stature as a global tax haven is enticing for those who want to ensure their hard-earned money isn’t drained by a vicious tax regime. Its commercial landscape is also extremely welcoming for those who want to expand their global business.
Banking in Dominica is fairly simple, and the country is very crypto-friendly, making it a great place to lay anchor, and the best way to do that is through its prominent CIP.
We at Savory & Partners understand that your needs go beyond visa-free travel, and our staff is perfectly situated to help you realize all your financial goals by guiding you through obtaining Dominica’s citizenship through investment for yourself and for your family; all you need to do is contact us today for a free, comprehensive consultation.
We are available on every channel convenient for you.