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Alien Landholding License (ALHL)

Woodford Hill

The Alien Landholding License (ALHL) is a legal requirement in Dominica that regulates non-citizens’ acquisition and ownership of land. Established under the Aliens Landholding Regulation Act, No. 17 of 1995, the ALHL ensures that foreign land ownership is monitored and controlled to align with national interests.

Key Provisions of the Aliens Landholding Regulation Act

  • Definition of an Alien: The Act defines an “alien” as any individual who is not a citizen of Dominica or any Member of the Organization of Eastern Caribbean States (OECS). This definition also extends to companies controlled by such individuals.
  • Landholding Thresholds: Non-citizens can own up to one (1) acre of land for residential purposes and up to three (3) acres for commercial purposes without obtaining an ALHL. However, even within these limits, a license fee of 10% of the property’s market value is payable to the government.
  • License Requirement for Larger Holdings: If a foreign individual or entity wishes to acquire more than the specified acreage, obtaining an ALHL is mandatory. The application process involves submitting detailed information and is subject to governmental approval.

Application Process for an Alien Landholding License

  1. Submission: Applicants must submit a comprehensive application to the relevant government authorities, typically facilitated by a local attorney.

  2. Documentation: Required documents include:

    • Completed application form
    • Financial statements
    • Police clearance certificate
    • Certified copies of the applicant’s passport
    • A letter from a recognized real estate agent

  3. Background Checks: The government conducts thorough background checks to ensure the applicant’s integrity and the legitimacy of the funds used for the purchase.

  4. Approval Timeline: The processing time for an ALHL application can vary but typically ranges from 4 to 8 weeks.

  5. License Fee: Upon approval, a fee of 10% of the property’s market value is payable to the government.

ALHL Additional Considerations

  • Designated Areas: The Minister responsible may designate areas in Dominica where foreign land acquisition is restricted or subject to additional conditions. Such designations are published in the official Gazette.
  • Penalties for Non-Compliance: Acquiring land without the necessary license or failing to adhere to the Act’s provisions can result in penalties, including fines and potential forfeiture of the property.
  • Exemptions: Participants in Dominica’s Citizenship by Investment (CBI) Program may be exempt from obtaining an ALHL, depending on the nature and location of the investment.

Prospective foreign investors need to engage with local legal professionals to navigate the complexities of the ALHL application process and ensure compliance with all legal requirements. This due diligence helps safeguard the investment and aligns with Dominica’s regulatory framework.