—No tax on worldwide income, capital gains or inheritance for non-residents
—Tax residence is separate from citizenship
—No wealth tax
Personal income tax — yes, up to 35%
Contrary to the “tax-free Caribbean passport” pitch, Dominica does levy a personal income tax, and its top rate is the highest of the five programmes. Income up to EC$30,000 (about US$11,100) is taxed at 0%, then progressive bands apply, rising to a top rate of 35%. Non-residents are taxed on Dominica-source income only, so a passport held without residence does not tax your worldwide income — but a genuine relocation to Dominica does bring meaningful income tax. If zero personal income tax is your goal, St Kitts or Antigua are the fit, not Dominica.
Corporate tax
Resident and non-resident companies pay corporate income tax at a flat 25% on net profit, per the Inland Revenue Division. As with its neighbours, the jurisdiction favours individuals over active companies based on the island.
Indirect tax (VAT)
A value-added tax (VAT) applies at a standard 15%, with reduced rates for some categories, alongside import duties. Everyday consumption is taxed regardless of income.
What is not taxed
There is no capital gains tax, no wealth tax and no inheritance or estate tax. So while income can be taxed for residents, holding and transferring personal assets is not.
Citizenship is not tax residency
A Dominica passport does not make you tax-resident, and it does not remove obligations to a country that taxes on citizenship, such as the United States. Dominica’s real draw is a low headline cost, not a tax holiday — and remember its total cost is higher than the headline, and a UK visa has applied to its passport since 2023. Read the tax-residency line in our guide to second citizenship and taxes, compare the programmes on our comparator, and see the cost picture on cheapest citizenship by investment. See our methodology for how each figure is verified.