Dominica has a moderate cost of living with a Cost of Living Index of 53.78 (NYC = 100). Groceries (67.70) and restaurant prices (40.54) are also moderate, while rent (8.95) is very affordable compared to NYC.

The housing market is very affordable, with a property price to income ratio of 0.62 years. The rent index is also very low at 8.95, indicating highly affordable rental options.

The purchasing power index of 34.83 suggests a low buying power compared to the NYC baseline.

Dominica operates a progressive personal income tax system, with rates ranging from 0% on the first EC$30,000 to 35% on income above EC$80,001. The corporate tax rate is 25%. The standard Value Added Tax (VAT) is 15%, with a reduced rate of 10% for tourism accommodation and diving services. There is no capital gains, inheritance, or wealth tax. A municipal property tax of 1.25% applies in major cities like Roseau and Canefield.

Dominica was ranked 111th out of 190 countries in the World Bank's 2020 Doing Business Report. The government actively encourages foreign direct investment with incentives such as tax holidays and duty-free imports, particularly in eco-tourism, ICT, and education. The economy remains vulnerable to natural disasters.

Dominica has a mandatory social insurance system (Dominica Social Security - DSS) covering employed and self-employed individuals. The public healthcare system provides free primary care to citizens and permanent residents, funded by social security contributions and taxes. Benefits include age pensions, sickness, maternity, employment injury, and funeral grants. A non-contributory pension is also available for vulnerable seniors aged 65 and over.

Dominica does not have a comprehensive deposit guarantee scheme for all licensed banks and currencies. However, the banking sector is regulated by the Eastern Caribbean Central Bank (ECCB) and the Financial Services Unit (FSU), which establish stringent licensing and operational standards. The commercial banking sector was stable as of 2024, and Dominica maintains strict anti-money laundering and combating the financing of terrorism (AML/CFT) controls.