The government of Dominica will be establishing, what prime minister Roosevelt Skerrit described as a ‘variant’ of its Economic Citizenship Program, as it aims to facilitate investments on the island.
It will target investors who prefer fixed investments, such as real estate, and/or a local address.
“This is partly in response to a recommendation of the revised Tourism Master Plan for reviewing the legislative framework to attract new investment in the sector,” Skerrit explained during the presentation of the national budget on Wednesday. “But it will go further and is intended to deal with investment more broadly.”
To facilitate this, Skerrit said a Special Purpose Vehicle (SPV), will be formed.
“This SPV will be a real estate purchase based scheme,” the prime minister stated. “This scheme is gaining favour in the Caribbean. Its emergence has come about from the realisation that some economic citizenship clients, have a preference for a fixed investment and a genuine local address.”
He said the SPV will “have an adequate governance structure and will be managed by a Board of Directors with clearly spelt out terms of reference and responsibilities and will include the appropriate checks and balances.”
He noted that although some buyers never visit their properties, sales under the variant “will be restricted to resort developments and be subjected to a mandatory rental programme.”
“In this way, hotel inventory will be created with no long term capital cost to the resort and rental income is split between the resort company and the individual property owner in order to generate a return on the investment,” Skerrit remarked.
Dominica already has an economic citizenship programme and according to the prime minister, this new variant will not affect it.