Retire in Dominica: The Ultimate Guide 2025

10 Reasons to Retire in Dominica

Dominica is quickly gaining recognition as one of the Caribbean’s best-kept secrets for retirement. You may enjoy a relaxed coastal life, tax-friendly policies, or simply use it as a place to spend your golden years in harmony with nature. Below are top reasons why you should pay your attention to Dominica: 

Low cost of living

Dominica is considered one of the most affordable destinations in the Caribbean, making it highly attractive for retirees living on a fixed income. The average monthly rent for a one-bedroom apartment in Dominica's city center is about $281. Outside the city center, the average rent is around $331. For a three-bedroom apartment in the city center, the average rent is about $952, while outside the center, it's around $619. Dining out is also affordable, with meals at inexpensive restaurants averaging $7.40. Grocery prices are similarly budget-friendly; for example, a kilogram of chicken fillets costs around $10.33, and potatoes are priced at approximately $3.28 per kilogram. Thanks to the abundance of local markets and natural resources, retirees enjoy a healthy and affordable lifestyle without compromising comfort.

Breathtaking natural beauty

Dominica’s nickname, “The Nature Island of the Caribbean,” is well deserved. The island is home to 365 rivers, countless waterfalls, lush rainforests, and the second-largest boiling lake in the world. Outdoor enthusiasts will relish hiking the Waitukubuli National Trail, exploring the UNESCO-listed Morne Trois Pitons National Park, or snorkeling and diving in the vibrant underwater ecosystems. The natural hot springs, fed by volcanic activity, offer a relaxing way to unwind, while panoramic views from the mountain ranges and coastal cliffs deliver breathtaking scenery every day.

Relaxed and peaceful lifestyle

Dominica’s easygoing pace of life is one of its greatest appeals to retirees. With average temperatures ranging from 25 to 30 degrees Celsius year-round and a low population density, the island provides a serene environment far removed from the stresses of urban living. Expats and locals alike embrace a strong sense of community, especially in areas like Soufriere and Portsmouth, where social gatherings and local festivals keep life joyful. Whether you're strolling through the market or enjoying sunset views, there is a prevailing sense of calm and belonging that makes daily life feel like a retreat.

Favorable tax environment

Dominica is known for its retiree-friendly tax policies. There are no wealth taxes, no inheritance or gift taxes, and no capital gains taxes. For foreign retirees, this means that overseas pension income can be remitted to Dominica without any additional local tax burden. In addition, residents over 65 can benefit from lower income tax rates, helping retirees preserve more of their savings while enjoying life in the Caribbean.

Accessible private healthcare

Healthcare in Dominica is both accessible and affordable, with major facilities like the Dominica Princess Margaret Hospital serving the population. Many expats opt for international health insurance plans, such as those from Allianz or Cigna, to ensure comprehensive coverage. Healthcare costs in Dominica remain lower than in many Western countries, and the ratio of medical staff to patients is relatively high compared to other Caribbean nations. Routine visits and treatments are typically well within budget, giving retirees peace of mind about their health needs.

Opportunity for dual citizenship

Dominica offers a reputable Citizenship by Investment Program, which allows retirees to obtain dual citizenship by contributing to the Economic Diversification Fund (minimum $200,000) or by investing in government-approved real estate. This citizenship grants visa-free or visa-on-arrival access to various countries. Citizenship is for life, can be passed on to future generations, and offers flexibility for global travel and estate planning.

Stable economy and currency

Dominica’s economy is anchored by its robust tourism sector and citizenship-by-investment program. The local currency, the Eastern Caribbean Dollar (XCD), is pegged to the US dollar at a stable rate of 2.7 XCD to 1 USD. This fixed exchange rate helps retirees plan their budgets with confidence and shields them from the fluctuations of international currency markets. With steady economic development and responsible fiscal policies, Dominica provides a reliable environment for managing retirement finances.

Safe and friendly community

Safety is a major advantage for retirees choosing Dominica. The island has low crime rates, particularly outside the capital city, and locals are famously welcoming to newcomers. Expats consistently report feeling safe in their communities, and many quickly form friendships with both locals and fellow retirees. The sense of security extends beyond crime rates to the overall atmosphere of mutual respect and genuine hospitality that characterizes daily life on the island.

Growing infrastructure and connectivity

Dominica is investing heavily in its infrastructure, making the island more accessible and convenient for residents and visitors alike. A new international airport near the village of Wesley is under construction, which will significantly improve global connectivity. High-speed internet and reliable mobile networks are widely available, which is especially important for retirees who wish to stay connected with family abroad or manage remote business affairs. Additionally, transportation within the island is straightforward, with affordable taxis and mini-bus services.

Eco-friendly and sustainable living

Dominica is positioning itself as a global leader in sustainable living. The island has ambitious goals to become the world’s first fully climate-resilient nation. Renewable energy sources, particularly hydropower and geothermal energy, already supply a significant portion of the island's electricity. The government prioritizes environmental conservation and eco-tourism, making it an ideal home for retirees who value green living. From organic farms to nature preserves, Dominica offers a lifestyle deeply connected to the environment. 

Top Places to Retire in Dominica

Dominica, known as the “Nature Island of the Caribbean,” offers lush landscapes, a welcoming community, and a relaxed pace of life ideal for retirees. Here are some of the top places to consider:

Roseau

‍

Roseau, the capital city of Dominica, blends Caribbean charm with modern conveniences. Its bustling market, colonial architecture, and proximity to natural attractions like the Trafalgar Falls and Boiling Lake make it appealing for retirees who want both city life and nature nearby. Healthcare is readily accessible at the Dominica China Friendship Hospital and several private clinics. Real estate in Roseau typically ranges from USD 200,000 to USD 500,000, especially in desirable areas like Morne House and Wall Bruce.  With a population of about 14,700, reliable amenities, and a lively cultural calendar, Roseau provides a vibrant yet manageable urban lifestyle.

Portsmouth

‍

Located on the northwestern coast, Portsmouth is Dominica’s second-largest town and a favorite among retirees seeking a laid-back, coastal environment. The town offers easy access to the scenic Cabrits National Park, beautiful beaches like Purple Turtle Beach, and the Ross University School of Medicine’s facilities. Real estate prices in Portsmouth vary from USD 180,000 to USD 450,000, with attractive waterfront properties and homes in neighborhoods such as Glanvillia and Lagoon. With a population of approximately 3,600, Portsmouth provides a close-knit community, tranquil surroundings, and essential services for a comfortable retirement.

Calibishie

‍

Calibishie, located on Dominica’s northeast coast, is a picturesque fishing village known for its stunning beaches, red rock formations, and panoramic ocean views. It attracts retirees looking for a peaceful, nature-immersed lifestyle. The area offers boutique guesthouses, local restaurants, and opportunities for outdoor activities like hiking and snorkeling. Real estate in Calibishie is moderately priced, ranging from USD 150,000 to USD 350,000, with ocean-view homes and charming cottages available. With a small population of around 800, Calibishie is perfect for those seeking serenity and a strong sense of community.

Soufrière & Scotts Head

‍

These neighboring villages in southern Dominica are famous for their dramatic landscapes, hot springs, and marine reserves. Retirees here enjoy direct access to snorkeling and diving in the Soufrière-Scotts Head Marine Reserve. The area is known for its friendly locals, relaxed vibe, and spectacular sunsets over the Caribbean Sea. Real estate prices range from USD 170,000 to USD 400,000, with hillside villas and beachfront properties offering incredible views. With a combined population of about 1,200, Soufrière and Scotts Head provide a peaceful retreat immersed in nature and culture.

Laudat

‍

Perched in the lush Roseau Valley, Laudat is ideal for nature-loving retirees. It is the gateway to some of Dominica’s most famous attractions, including Boiling Lake, Titou Gorge, and the Freshwater Lake. The cool mountain climate, abundant hiking trails, and natural hot springs make it a refreshing alternative to coastal living. Real estate prices in Laudat typically range from USD 120,000 to USD 300,000, with cozy homes and eco-lodges nestled in the rainforest. The village’s small population fosters a warm, welcoming atmosphere, perfect for those who appreciate seclusion and natural beauty.

Expat Communities in Dominica

While the island does not have large, formal expat enclaves, a modest yet vibrant expatriate community thrives, particularly comprising individuals from the United States and Europe.​

The capital city, Roseau, and the coastal town of Portsmouth are popular choices among expats due to their amenities and proximity to natural attractions. In these areas, expatriates often engage in local events and activities, fostering integration with the Dominican community.​

For those looking to connect with fellow expatriates, online platforms such as InterNations and Meetup offer opportunities to network and participate in social gatherings. These resources can be invaluable for newcomers seeking advice and companionship in their new environment.

Overall, while Dominica's expat communities may be smaller compared to other Caribbean nations, they offer a welcoming atmosphere for individuals looking to embrace the island's serene lifestyle.​

How to Retire in Dominica?

If you are planning to spend your retirement years in Dominica, you have several paths to choose from, depending on whether you prefer a temporary arrangement, permanent residency, or even citizenship.

Temporary Residency (as a first step towards permanent stay)

Dominica offers a Temporary Residency Permit, which is typically valid for one year and must be renewed annually for five consecutive years. After five years of holding this permit, you become eligible to apply for permanent residency. To apply for the temporary residency permit, you generally need to provide:

• Two application forms
• Valid passport
• Medical certificate
• Bank statement as proof of funds
• Criminal background check
• Two passport-sized photos
• Two references/testimonials (one from your most recent employer)
• A cover letter explaining your reasons for applying
• Marriage certificate (if applicable)
• Proof of application fee payment

With a temporary residency permit, you won’t be allowed to purchase a property in Dominica unless you first obtain an Alien Landholding License or follow another legal pathway such as citizenship.

Permanent Residency

Once you have lived in Dominica for at least five years under the temporary residency, you can apply for a Permanent Residence Permit. This offers a longer-term solution for retirees wanting to stay indefinitely without the need for yearly renewals.

Citizenship by Naturalization

If you are a permanent resident, you may qualify for citizenship by naturalization after seven years of legal residency in Dominica. For spouses of Dominican citizens, the timeframe is reduced to three years. This route allows you to obtain full citizenship rights, including the ability to live, work, and travel with a Dominican passport.

Citizenship by Investment (Fast-track Option)

For retirees seeking a quicker and more straightforward solution, Dominica's Citizenship by Investment Program is a popular option. It allows you to obtain citizenship without the need for prolonged residency. For more details, please refer to the following section. 

Dominica Citizenship for Retirees

Dominica's Citizenship by Investment (CBI) program, established back in 1993, is one of the most reputable and long-standing options for obtaining second citizenship in the Caribbean. Its simple process and reasonable investment requirements make it especially attractive to retirees and individuals looking to enhance their travel freedom and enjoy tax advantages. Notably, there is no obligation to reside in Dominica to benefit from its advantageous tax policies, offering retirees complete flexibility in managing their personal and financial matters.

To be eligible, applicants must be at least 18 years old, have a clean criminal record confirmed by comprehensive background checks, and be in good health, verified through a medical examination. The program is structured to welcome respectable individuals from around the world.

There are two main investment pathways to acquire Dominican citizenship:

• Contribution to the Economic Diversification Fund (EDF): A non-refundable donation starting at USD 200,000 for single applicants, which helps support various national development initiatives.
• Real Estate Investment: Purchase property in a government-approved project with a minimum value of USD 200,000, maintaining ownership for at least three years.

Applicants can also include qualifying family members in their application, such as a spouse, children under the age of 30, and parents or grandparents aged 65 and above. Dominica recognizes dual citizenship, allowing retirees to keep their existing nationality while enjoying visa-free or visa-on-arrival travel to over 140 countries and territories.

The entire application process is efficient, typically taking around 6 to 9 months to complete. With its attractive investment options, tax-friendly environment, and strong global reputation, Dominica’s CBI program presents an excellent opportunity for retirees seeking security, freedom of movement, and financial advantages.

Dominica vs Other Caribbean Countries for Retirement

For those dreaming of a serene and tax-friendly retirement in the Caribbean, several islands stand out, including Grenada, St. Lucia, St. Kitts and Nevis, and Antigua and Barbuda. Each offers a unique blend of natural beauty, lifestyle benefits, and investment opportunities.

Grenada
Nicknamed the "Spice Isle," Grenada is celebrated for its vibrant landscapes, idyllic beaches, and friendly community atmosphere. Retirees can enjoy a comfortable lifestyle here with a monthly budget of around $1,500 to $2,000, which includes rent and private healthcare. Grenada also features a Citizenship by Investment program, where an investment starting at $235,000 secures citizenship and unlocks visa-free access to numerous destinations worldwide.

St. Lucia
St. Lucia captivates retirees with its iconic Piton peaks, verdant rainforests, and stunning coastlines. The cost of living is fairly affordable, typically between $1,000 and $1,500 per month. St. Lucia’s Citizenship by Investment program requires a minimum investment of $240,000, providing citizenship and expanded travel freedom.

St. Kitts and Nevis
Known for its laid-back island lifestyle, St. Kitts and Nevis offers retirees a peaceful setting with gorgeous beaches and a rich cultural backdrop. The country benefits from a highly favorable tax system, free from personal income, capital gains, or inheritance taxes. Monthly living costs are generally in the range of $1,500 to $2,000. Their Citizenship by Investment scheme requires an investment of at least $250,000 to gain citizenship and its associated travel perks.

Antigua and Barbuda
Famous for its 365 beaches—one for every day of the year—Antigua and Barbuda is a perfect choice for retirees who love coastal living and a vibrant social scene. The cost of living is moderate, with monthly expenses typically ranging from $1,500 to $2,000. Antigua and Barbuda also offers a Citizenship by Investment program, with options starting from a $230,000 investment, opening doors to visa-free travel to over 140 countries.

FAQ

Is It Expensive to Retire in Dominica?

​Retiring in Dominica is generally affordable, with a single person's monthly living expenses averaging around USD 1,500 to USD 2,000, including rent, groceries, utilities, and other costs. Housing is particularly economical; a one-bedroom apartment in the city center typically costs about USD 335 per month, while a three-bedroom apartment averages USD 950. However, specialized healthcare services are limited, so retirees may need to budget for private health insurance or medical evacuation if necessary. ​

Is It Safe to Retire in Dominica?

​Dominica is generally considered a safe destination for retirees, boasting one of the lowest crime rates in the Caribbean. The island offers a serene and welcoming environment, with a stable political climate that enhances its appeal to expatriates. However, as with any location, it's advisable to exercise standard safety precautions, such as securing personal belongings and staying informed about local conditions. 

How Much Does it Cost to Retire in Dominica? 

​Retiring in Dominica is considered affordable, with a single person's estimated monthly expenses averaging around $856, excluding rent. Including rent, a comfortable monthly budget ranges from $1,500 to $2,000. Housing is particularly economical; a one-bedroom apartment in the city center typically costs about $335 per month, while a three-bedroom apartment averages $950. Outside the city center, rents are even more affordable, with one-bedroom apartments starting at $230 and three-bedroom ones at $620. Local groceries are reasonably priced, with items like rice and fresh bread costing less than in the U.S., though imported goods can be more expensive. Utilities, including electricity, are moderately priced, and public transportation is affordable, with one-way bus tickets costing just under $1.

Is There a Dominica Retirement Visa?

Dominica does not offer a dedicated retirement visa; however, retirees can obtain permanent residency through the Citizenship by Investment (CBI) program by making a non-refundable donation of $200,000 to the Economic Diversification Fund or investing at least $200,000 in approved real estate. Alternatively, retirees can apply for temporary residency, renewable annually for up to five years, leading to permanent residency. After two years of permanent residency, individuals may be eligible for citizenship.

What are Other Popular Countries for Retirement?

Several countries are particularly accommodating to foreign retirees due to their favorable residency policies, quality healthcare systems, and vibrant expatriate communities. For instance, Mexico offers a Temporary Resident Visa for retirees, requiring proof of a consistent monthly income of $2,500 over the previous six months. Portugal's D7 Visa is designed for retirees with a stable income, with applicants needing to demonstrate a minimum income of €870 per month, plus additional amounts for dependents. Chile requires retirees to have a monthly pension income of at least $1,000, with the Rentista Visa allowing proof of regular income through documents like lease contracts. Argentina's Pensionado Visa necessitates proof of a monthly pension income of at least five times the minimum wage, approximately $2,000, along with health insurance and accommodation proof.