Tax on property income in Dominica
Effective Tax Rate on Rental Income |
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| Monthly Income | €1,500 | €6,000 | €12,000 |
| Tax Rate | 0.00% | 7.73% | 18.07% |
| Click here to see a worked example | |||
| Source: Global Property Guide research |
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INDIVIDUAL TAXATION
Nonresidents are taxed on their Dominican-sourced income. The income of a husband and wife are assessed separately.
INCOME TAX
Income earned by nonresidents is taxed at progressive rates.
INCOME TAX 2019 |
|
| TAXABLE INCOME, ECD (US$) | TAX RATE |
| Up to 30,000 (US$11,111) | 0% |
| 30,000 - 50,000 (US$18,519) | 15% on band over US$11,111 |
| 50,000 - 80,000 (US$29,630) | 25% on band over US$18,519 |
| Over 80,000 (US$29,630) | 35% on all income over US$29,630 |
| Source: Global Property Guide | |
INCOME TAX 2017 |
|
| TAXABLE INCOME, ECD (US$) | TAX RATE |
| Up to 25,000 (US$9,259) | 0% |
| 25,000 - 45,000 (US$16,667) | 15% on band over US$9,259 |
| 45,000 - 75,000 (US$27,778) | 25% on band over US$16,667 |
| Over 75,000 (US$27,778) | 35% on all income over US$27,778 |
| Source: Global Property Guide | |
RENTAL INCOME
Rental income from residential properties is taxed at progressive income tax rates. Municipal taxes, maintenance costs, and accountancy fees incurred in the preparation of an income tax return are deductible.
Value Added Tax (VAT)
VAT is levied on rental income at a general rate of 15%. However, a special rate of 10% applies on (a) accommodation services provided by hotels, guest houses, inns or similar establishments and (b) accommodation services in an apartment or room with utilities and furnishings provided by the lessor or property owner.
Stamp Duty on Lease Contracts
For lease agreements where the annual rental is between ECD 100 (US$37) and ECD2,000 (US$741), the stamp duty is between ECD1.50 (US$0.56) and ECD20 (US$7.40). For every additional ECD500 (US$185) or part thereof, there is an additional stamp duty of ECD5 (US$1.85).
CAPITAL GAINS
There is no capital gains tax in Dominica.
Value Added Tax (VAT)
Sales of real properties are exempt from VAT.
Stamp Duty on Property Transfers
Sales of properties are liable for stamp duties levied at 6.5% of the sales price or the market value of the property. Generally, 2.5% is payable by the seller and 4% is payable by the buyer.
PROPERTY TAX
Municipal Tax
There are no real property taxes in Dominica but there are municipal taxes levied on properties located in the cities of Roseau and Canefield. The tax rate is 11/4% (or 1.25%) levied on the assessed value of the property.
CORPORATE TAXATION
INCOME TAX
Income and capital gains earned by companies are taxed at a flat rate of 25%. Income-generating expenses are deductible when calculating taxable income.