Recently we were asked a very interesting question by a client who had bought property which necessitated him obtaining an Alien Land Holding License. This client wanted to know what would happen on his death. Could he leave the property to any-one he chose?

If you buy with the aid of a Licence  then  if your executor or beneficiary  is not an OECS citizen they can hold the property for one year without any consequences. Within that time  frame the law requires that the said beneficiary or executor must either sell or obtain and Alien Land Holding License in their own right .

You may have obtained citizenship after residing in Dominica for the requisite number of years or through the economic citizenship programme  and you own more than the designated 1 acre for residential and three acres for business . In this case you still need to be mindful that if your executor is not an OECS citizen they will have to sell or vestin a beneficiary  who is an OECS citizen within a year of your death.

In both cases the consequences of failing  to sell or vesting the proprty in some-one who does not need such  lIcense is that the Government canforfeit the property.

The first step when you are thinking of buying property and you do not have sufficient funds is to visit a financial institution to find out what its  interest rates are, what  documents are required and whether you  qualify for a mortgage. Sometimes  the lending institution may give you pre-approval. This does not, as some clients think, mean that you are obliged to deal with that lending institution if you find a suitable property. 

 Because your accounts are held with a particular lending institution does not mean that  it is in your interests to obtain your mortgage with that institution. Just ½ % difference in interest rates can substantially affect the amount of money you have to spend on the property or may substantially impact on the amount you have to pay over the life of the mortgage.

Finally read the small print. Some mortgages may be cheaper but have a three-month penalty on early redemption. In other words if you sell your property and want to pay off your mortgage early  you will be penalized.

 There has been much debate recently as to whether you are required to use the  lawyer of the lending institution. It has to be remembered that the entity with the biggest stake in the property is often the lending institution. However, your interests and that of the institution may not be the same. We think the correct procedure should be that you are entitled to choose your lawyer  to complete the purchase and the  lending institution can have a lawyer to oversee its interests. Bear in mind that  nothing is free so although the lending institution may agree to you exercising your freedom of choice, if it insists on having an independent lawyer to oversee its interests, you will most probably also have to bear that cost.

Dominica’s Prime Minister, Honourable Roosevelt  Skerrit, today,  Saturday 11th of May 2013, married his long-time girlfriend Melissa Poponne according  to a brief statement  issued by the Prime Minister’s office . The couple married at Bourne Roman Catholic Church in the North of the Island with a reception at his home in Vieille Casse.  Speculation has been rife all week that the Prime Minister would be getting married this weekend but  there was no official announcement  with the only indication of the impending nuptials to be found on Face Book, surely a sign of the times.

The happy couple are expected to leave the island tomorrow on honeymoon.

Dominica has long been known for its natural beauty. For those who love to hike it is the jewel of the Caribbean. Hikers come from around the region to experience Dominica’s Waitukubili Hiking Trail which will allow you to explore the whole o Dominica.

If you love to hike then it makes sense to purchase a property close to a hiking trail. You could then earn income by letting  the property  out to friends who share your interest or by arranging swaps with other like-minded people in different parts of the world.

Below are two beautiful west coast ocean view villas which are  close to the Trail. These would make an ideal investment. For more information visit www.safehavenrealestate.com ref 693

 

Dominica has attracted hikers from around the world  with its Waitukubili  National Trail. The trail has fourteen segments and spans the width and breadth of Dominica.

HIKE FEST is an annual event which commenced about five years ago. The first Hike Fest was actually the idea of Jeremy Winston of Three Rivers Eco Resort,Rosalie.  During this week of activities the Dominica Hotel and Tourism Association organises hikes of varying difficulty around the island culminating in Jazz  in the Park at Cabrits National Park. This is a wonderful event which takes place during the day and as well as vibrant jazz music patrons can also enjoy delicious home cooked Dominican Food. With the stunning backdrop of the  crystal clear blue waters of the marine national park, yachts  from around the world and the historic  buildings  of Dominica’s colonial past  this is one event that should  be on every one’s calendar. 

Below is the calendar of events

DHTA office for those of you not familiar with Dominica is at  Castle Street,Roseau.

Weekend hikes cost EC$40 / US$15. DHTA members pay EC$30. Package prices available for more than 1 hike.

Price includes transportation to-from Roseau, water, T-shirt and trail guiding service. Does NOT include site passes applicable to visitors. US$5 1 day / US$12 for week pass

Sat May 4

Waitukubuli National Trail Segment 7:

Hatton Garden – First Camp – Melville Hall

Depart DHTA Office 7AM

Depart Hatton Garden 9 AM

Level of difficulty: Moderate

Estimated hike time: 6 hours

Food for purchase, and hospitality available at Melville Hall on hike’s end.

Sun May 5

“Kairi Walk & Smile For Your Health” Hike:

Cochrane – Middleham – Roseau.

*National Parks user fee for visitors NOT included

(US$5/ US$12 for week pass)

Depart Bay Front 5:30 AM

Level of difficulty: Moderate

Food-to-go available for purchase at Laudat reception point before walking to Roseau

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Sat May 11

Boiling Lake & Titou Gorge

*National Parks user fee for visitors NOT included

(US$5/ US$12 for week pass)

Depart DHTA Office 7 AM

Depart Titou Gorge 7:45 AM

Level of Difficulty – Difficult

Estimated hiking time – 6 hrs

Food available for purchase at Titou Gorge on hike’s end.

Sun May 12

Private site *User fee for visitors NOT included

(US$5). Contribution accepted from locals for maintenance and upkeep of trail & facility.

“2 waterfalls & a lyme”’ – 

Spanny Falls & Jacko Falls followed by lunch & lyme at Vena’s.

Depart DHTA Office 9 AM

Depart Titou Gorge 10 AM

Level of Difficulty – Moderate/Easy

Spanny Falls

– hike to falls (moderate/easy) and swimming in pools (2 hours)

Walk up-road to

Jaco Falls

– site visit, vendors, water-stop (easy)

After-hike-lyme at VENA’s in Pont Casse (food and drinks for purchase)

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Week hikes cost US$25 for visitors or EC$50 for locals.

Price includes site passes, water, T-shirt and trail guiding service. Transportation not included, except from Emerald Pool to return to WNT R&I Centre on Thursday May 16.

Mon May 13

9 “Diamonds”

9 waterfalls at Salton Falls in the Heart of Dominica!!

Meet at Salton Falls: 9 AM

Hike a 3 hour trail which takes you to 9 waterfalls at “Salton Falls”

Lunch on the river rocks at the last waterfall … purchase food & drinks

Tues May 14

Central Rainforest Walk & River Lyme 

Meet at Zen Gardens, Wet Area, Belles: 9 AM

Forest Walk through Central Forest Reserve trail followed by

Garden tour at Zen Gardens + River lyme & cookout

Evening “FEAST” at Harmony Villa, Pont Casse 5:30 PM US$40 inclusive

Wed May 15

Hike

Morne Trois Pitons!!

The “BIG CHALLENGE in the World Heritage Site”

Meet at Morne Trois Pitons trail head, Pont Casse 10 AM

Level of Difficulty – Difficult/ Advanced

Length of trail: 1.06 miles

Estimated hiking time – 6 hrs

Forest type  

Fruits & lunch available for purchase at trail head/end.

8 PM Evergreen “Pan meets Jazz”

Thurs May 16

“Bala Caves & Emerald Pool” 

– portion of WNT Segment 5

10 AM Nature & Cultural interpretation at the WNT Research & Interpretation Centre, Pont Casse

Hike portion of segment 5 to Bala Caves & Emerald Pool.

Lunch available for purchase at restaurant at Emerald Pool reception centre.

7PM “Word Sound & Power Jazz Edition” & Seaside buffet at Anchorage Hotel

Fri May 17 

(along WNT segment 4) “Organic Experience”

Sylvannia – Pont Casse 

– DSMART Farms, Corona

Meet at Nature’s Trail Minimart: 8 AM

Hike from Nature’s Trail Minimart – Sylvania, along Segment 4 to Pont Casse, then on to Corona for Organic Farm tour & lunch at D-Smart Farm. Lunch included!

5 PM Creole & Jazz Happy Hour @ Fort Young Hotel

Sat May 18 

“Maroon Heritage River Hike”

Depart DHTA at 8 AM

9 AM depart Belles School for

Jacko Steps & Jacko Flats

and back through village to Riverstone bar & grill for lunch.

2 PM Riverside Jazz…& Creole” at RiverStone Bar n Grill

Sunday May 19

Jazz & Creole, Cabrits National Park:

Dominica’s Jazz ‘n Creole 2013 headline artist is Jamaican born master pianist

Monty Alexander, who has recently celebrated his 50th year in music, and who will delve into a repertoire that encompasses standards and original songs as well as exciting rhythms of his native island. Also featured are: Haitian-born Jazz Artist Beethova Obas – who has successfully blended traditional Haitian music with conscious lyrics and harmonies reminiscent of jazz and Brazilian melodies; Dominica’s very own Michele Henderson – who has emerged as one of the Caribbean’s premier female vocal talents, whether in English, French, or Creole, Zouk, R&B, Jazz, Reggae or Retro Soul, her accolades are consistent; and the Eric Ildefonse Quartet – featuring the modern Jazz renditions of Martiniquais pianist Eric Ildefonse as well as renowned St. Lucian saxophonist Luther Francois. Included on the May 19th line-up are local female vocalists – Mel-C, Joy Stoute, and Tiffany Mayne – and the pan renditions of Phase 5

.

Reuters reported on Tuesday  30th April 2013 that a US Federal Court had granted an order to the IRS to allow it to carry out checks  on the accounts of U.S. taxpayers held at Canadian Imperial Bank of Commerce First Caribbean International Bank (FCIB).  The Department said it would allow  the IRS to serve a “John Doe” summons seeking information from FCIB’s Correspondent bank Wells Fargo. A  Correspondent bank is one which holds deposits for another bank. A “john Doe” summons is a summons issued to a person whose name is unknown at the time of service.

IRS Acting Commissioner Steven Miller said in a statement.”Our work here shows our resolve to pursue these cases in all parts of the world, regardless of whether the person hiding money overseas chooses a bank with no offices on U.S. soil.”

CIBC First Caribbean is a major Caribbean bank .On October 14th, 2002, Barclays Bank PLC based in the United Kingdom and Canadian Imperial Bank of Commerce (CIBC) based in Toronto, Canada combined their retail, corporate and offshore Caribbean banking operations and launched First Caribbean International Bank. On December 22^nd, 2006, CIBC became the majority shareholder in the organisation, now holding 91.5% of the shares  in CIBC First Caribbean International Bank.

The Department of Justice said the IRS currently has an Offshore Voluntary  Disclosure Programme in which US taxpayers can come forward and disclose their  offshore accounts and income.

Dominica’s Prime Minister the Hon Roosevelt Skerrit,  at the   27th annual congress of the Caribbean Association of Insurance and Financial Advisors (CARAIFA)  which  commenced in Roseau  on  23rd of April  2o13  expressed the urgent need for a regional insurance scheme to assist  people with their healthcare, the cost  which are  increasing in the region as  elsewhere.

Antigua and Barbados have schemes in place but as the cost of healthcare soars throughout the world with new advances in medical care it would make a lot of sense if the smaller nations in the region were to pool their resources to deliver health care to their citizens.

We think that such a scheme would be commendable but it would have to be carefully thought out   to guard against inflationary  medical practises found in US A. In addition it would make sense to have  specialist sin different areas of medicine in different countries. It is not possible for countries  the size of  Dominica to have specialists in every field having regard to the size of the population. For example , Dominica has one of the top eye speialists   in the region  in Dr. Hazel Shillingford Ricketts. However  investors, especially older investors  will want to be assured of  adequate health care.   Dominica does have a system of health centres throughout the country which deliver basic health care  at a local level .At the present time a new hospital is being built. Despite not having the resources of the larger countries Dominica boast the most centenarians  in the world having regard to the size of the population.

The Prime Minister  also commended the industry saying that  the Caribbean and the OECS(Organisation of Eastern Caribbean States) have maintained very strong banking practices and this has in a very large measure safeguarded us from the effect of the banking crisis in the US and in many parts of Europe”.

We would add that  although interest rates  are relatively high in  countries such as Dominica  it has ensured that  development is more sustainable ss fewer people over extend themselves with a huge burden of debt.

Although this Blog is primarily aimed at Real estate we do feel it is important that people coming to live here or thinking of residing here get a taste of island life and that is why our blog covers much more than real estate. We are also concerned to give information to those wanting to do business here because if you are thinking of coming to Dominica to live, unless you are retired, doing business may also have an impact on your decision to come and live here.

Having just posted a  blog about the Government’s new online company formation, we thought it important to address a  common misapprehension about company formation.

Some people  believe that if they form an onshore company they will not need an Alien Land Holding License. However,this is clearly not the case. Even if you form an onshore company it is still an alien company for the purposes of the Alien Land Holding License legislation unless it is 51% owned by a person who is  a citizen of the Organisation of Eastern Caribbean States ( OECS ). Do not be tempted to put some-one who is not a business partner  on the Deeds to avoid this tax. It may cost you more in the long- run because that person, as a majority share holder, can make decisions about the sale or other alienation of the property and you will not be able to do anything about. Should that person suddenly die his shares will go into his estate . Even if you have an Agreement that Agreement will be void as the shares cannot be transferred to you without breaching the legislation.

For reasons such as the above it may still be worth your while to consult a lawyer if you are establishing a company to purchase property  in Dominica and you are not familiar with the laws of Dominica.

 

 The Government of Dominica as part of ts procedure to streamline companies has just introduced web-based software which creates a single portal for Company registration between the Companies and Intellectual Property Office(CIPO),the Inland Revenue Division and Dominica Social security.

The  CIPO is responsible for starting the registration process and will therefore be required to collect data from the applicants which is needed by Inland Revenue Division and Dominica Social Security.

The additional information required are the date of birth of the Applicant,telephone number,e-mail address,whether the business has employees and the financial year-end of the company.

For more information and online registration visit  www.cipo.gov.dm

This will make it easier for people to Register a Company without involving a lawyer but if you are new to Dominica it is still advisable to take legal advise on the implications of company formation.

 

March 2013

Savers in Europe  looked on in horror as the EU  held out a poisoned chalice to Cyprus by offering a 10 billion Euros bailout which required 5.8 billion to be seized from  the accounts of bank depositors. Thankfully, the Cypriot Parliament rejected this suicidal plan  on Tuesday and is now looking to Moscow for help. It is rumoured that many large depositors in Cypriot banks are from Russia.

In the past the EU has given an assurance that the savings of small depositors, that is those with less than 100,000 Euros, were safe but this is sounding increasingly hollow as the number of so-called “special cases” increases.

One EU banking chief is quoted as saying, “This is the biggest policy mistake that the European Union has  subscribed to.”

Of what relevance is Cyprus to Dominica one might ask?  The banking debacle now unfolding in the Euro Zone had its roots in the American mortgage scandal which occurred during the Bush era,  when mortgage sellers in the USA were relieved of accountability by a system which enabled them to  pass on the liability of toxic mortgages by disguising them and repackaging them, together with other investment tools and then retrading them throughout the western banking system as AAA rated investments. The mortgage lenders had a field day and the sale of toxic mortgages along with property prices accelerated to the point that the bubble burst in 2008 requiring a 7 trillion dollar bailout to financial institutions in the USA and similar bailouts throughout the EU. The consequences of these policies are now coming to a climax.

In desperation the EU is now prepared to breach the once sacrosanct principle of protecting savings held in banks. It is against this backdrop that we encourage Caribbean Nationals and the Dominican diaspora, particularly those residing in Europe and North America, to consider investing in property in Dominica at this time.  The pound, the  Euro and the US dollar are now looking rather fragile. Banking deposits appear to be  at risk. That leaves property  as the most sound investment option in this current climate. In Dominica prices are still very reasonable and have  avoided the wild speculations often seen in the western property markets, as mortgage interest rates in Dominica have always been fairly consistent and a reasonable amount of equity is required by our lenders. For example, you can purchase a lot, with an ocean view, in an established residential development, at Calibishie  with infra structure underground for EC$11.00 per sq ft which translates to approximately US$4.00, €3.50 and £2.75  per sq ft. There are not too many places in the Caribbean where developed land can still be purchased at such attractive prices.

With future uncertainty ahead, this is a call to the Dominican Diaspora – times are changing and the dangers are looming – take heed!