Aliens Landholding Regulation (Amendment) Act, 2015

The Aliens Landholding Regulation (Amendment) Act, 2015 (Act No. 17 of 2015) introduced significant reforms to Dominica’s approach to land ownership by non-citizens. Building on the original Aliens Landholding Regulation Act of 1995, the amendment was enacted to promote responsible investment, limit land speculation, and ensure that foreign-approved developments contributed meaningfully to the country’s economy and national development goals.

Purpose of the Amendment of the Aliens Landholding Regulation (Amendment) Act, 2015

The 2015 amendment responds to increasing interest from non-citizens in acquiring land, particularly in coastal and touristic areas. While encouraging foreign investment, the Government of Dominica recognized the need to regulate the pace and quality of such development. This amendment was introduced to enforce compliance timelines, development obligations, and financial commitments, ensuring that land acquisitions lead to timely and tangible contributions.

Key Provisions

1. Fee Upon Land Acquisition: Non-citizens acquiring land for an approved development must pay EC$6,000 to the Accountant General at the time of acquisition. This administrative fee acts as a baseline commitment toward the development process.
2. Development Permission Timeline: The purchaser must apply for planning permission under the Physical Planning Act, 2002 within six months of acquiring the land. This clause ensures that land is not left idle and that the development process begins promptly under national planning regulations.
3. Construction Deadline: Once development permission is granted, construction must begin within one year. This strict deadline prevents prolonged land hoarding and encourages quick mobilization of projects that contribute to employment, tourism, housing, or infrastructure.
4. Minimum Investment Threshold: To qualify as an approved development, the project must represent an investment of at least EC$3,000,000 and be approved by Cabinet. This ensures that only serious and large-scale developments are granted the benefits of alien landholding.
5. Penalty for Non-Compliance: If a purchaser fails to meet the requirements—either by not applying for development permission or by not beginning construction—the government may impose a penalty of EC$20,000. This must be paid within fifteen months of receiving the development permission.
6. Land Forfeiture: Failure to pay the penalty or failure to act within the prescribed timelines allows the government to forfeit the land, ensuring it can be redirected for productive use.

Broader Implications

This amendment plays a critical role in:

• Encouraging responsible foreign investment
• Discouraging land speculation
• Prioritizing projects aligned with national priorities, especially in the tourism, hospitality, and housing sectors
• Ensuring compliance with sustainable planning and land use standards

It reflects Dominica’s broader strategy to retain control over its land resources while benefiting from international interest in development opportunities. The Act also aligns with the country’s Climate Resilience and Development Strategy goals, as land management is central to resilience planning.

Link to Citizenship by Investment and Tourism

The amendment is particularly relevant given Dominica’s Citizenship by Investment (CBI) Programme, where many applicants purchase real estate as part of their investment. The legislation ensures that such acquisitions are not passive but contribute actively to tourism infrastructure, employment, and community development.