Caribbean Real Estate Investment: Is it Worth It?

Foreign investors choosing Caribbean real estate investment has become increasingly popular with the introduction of citizenship by investment programs in several Caribbean countries.

With growing demand from tourists and real estate investors alike, individuals with both luxury and affordable properties in the region benefit from multiple aspects of the Caribbean property market.

Moreover, property prices here are relatively lower compared to European countries, so if you plan to purchase luxury property or commercial real estate, you can potentially acquire a larger and more lucrative investment for your money.

Thinking of buying Caribbean real estate? Then, keep reading to discover the Caribbean real estate landscape, the advantages of property investment, and how it can lead to Caribbean citizenship.

Why purchase real estate in the Caribbean?

Investing in the Caribbean real estate market can be a path to second citizenship through one of several Caribbean citizenship by investment (CBI) programs.

• With a Caribbean passport like the St Kitts and Nevis passport, you can visit more than 150 countries without travel restrictions, including visa free access to Canada, the UK, and Schengen countries.
• Many Caribbean countries are tax-friendly, with lower transfer and property taxes.
• The cheapest Caribbean islands, like Dominica and St Lucia, offer a luxurious lifestyle by the Caribbean Sea at a lower cost.

Property values in the Caribbean are steadily rising, and foreign nationals can secure lucrative long-term investments when moving to the Caribbean.

Real Estate Investments in the Caribbean under Citizenship Programs

Caribbean real estate investments in five countries allow investors to obtain citizenship.

Rental Income in Caribbean CBI Countries

Many foreigners invest in Caribbean real estate to enter the rental market. It is essential to determine potential rental earnings before buying Caribbean investment properties.

Annual rental income

The approximate price for renting an apartment, villa, or hotel accommodation approved under a citizenship by investment program is costlier – $1,500 to $2,500 per week. Investors can expect an annual rental yield of three to five percent.

Approximate cost of renting a three-bedroom apartment

According to Numbeo, these are the average costs of renting a three-bedroom apartment.

Choosing Property in the Caribbean – Things You Should Know

Apartments with two or three bedrooms are primarily purchased to rent out. Besides physical properties, you can also purchase land or a yacht dock. The primary requirement for buying property to obtain citizenship is that they’re pre-approved for the program.

Why are approved projects a good investment?

• You’ll qualify for citizenship by real estate investment.
• Projects approved for investment programs undergo rigorous vetting, ensuring increased protection against fraud.
• All approved projects are strategically located, typically in proximity to local tourist attractions, thus drawing visitors year-round.
• Investing in approved projects during the construction phase could potentially result in shortened construction timelines and decreased overall expenses.
• Private investors of approved projects enjoy free vacation days.
• Property management companies assume all expenses to maintain, manage, and upkeep the property.

What are the restrictions in purchasing and reselling Caribbean investment property?

For investment property, Caribbean CBI countries may limit property purchases depending on the type of property. For instance, Dominica prohibits buying land to build customized houses. Antigua and Barbuda only allows investors to sell their investment properties twice.

Real Estate Investment in Antigua and Barbuda

Investing in Antigua and Barbuda real estate is a worthy choice for obtaining a second citizenship. In addition to year-round sunshine, the country offers attractive real estate investing  opportunities and a powerful passport.

Benefits of real estate investment

• Stable property prices
• Various property types are available – from apartments to beach-facing luxury villas.
• Tax friendly, with no worldwide income tax, capital gains tax, wealth tax, or inheritance tax
• Obtain Antigua and Barbuda citizenship by investment through a $200,000 real estate investment.
• Enjoy a slower pace of life in a safe and secure environment.

Average prices for Antigua and Barbuda real estate

Antigua and Barbuda real estate prices range from $255,000 to $12 million. You can buy a one-bedroom apartment for about $250,000. A 22-acre private island will cost you around $1,500,000. On average, two-bedroomed villas in the North Finger of Jolly Harbour will cost about $265,000. A 12-bedroom commercial building in St Johns costs $395,000 or more.

Real Estate Investment in Grenada

Renowned for its white sand beaches, exotic wildlife, waterfalls, and attractive investment opportunities, Grenada real estate is ideal for those seeking life on a Caribbean island.

Benefits of real estate investment

• A safe country and stable political environment
• Situated outside the hurricane belt, so no threat of hurricane damage.
• Obtain Grenada citizenship by investing $270,000 in real estate.
• Visa free access to China with Grenada citizenship
• Owing to its strategic location, the country is well connected to other parts of the world.

Average prices for Grenada real estate

The average price for Grenada real estate varies significantly depending on the property and location. Investors will find properties ranging from $160,000 to $7,000,000. Eligible Grenada citizenship by investment program properties range from $3,000 to $5,000 per square meter. A joint share of a qualifying property requires a $270,000 investment.

Real Estate Investment in St Kitts and Nevis

The world’s smallest sovereign federation, St Kitts and Nevis, is a twin island offering white sandy beaches, beautiful natural landscapes, and properties such as secluded homes, luxury resorts, and beach-front villas. There are various advantages of investing in approved real estate in St Kitts and Nevis, and many expats consider it the best Caribbean island to invest in real estate.

Benefits of real estate investment in St Kitts and Nevis

• Life in one of the Caribbean’s most stable economies
• Obtain St Kitts and Nevis citizenship by investment through a joint real estate investment worth $400,000
• Multiple types of properties are available
• Gain the most powerful Caribbean CBI passport after obtaining citizenship
• Thriving tourism industry provides consistent rental income

Average prices for St Kitts and Nevis real estate

A two-bedroom apartment in the capital city of Basseterre has an average price of $600,000, and luxury villas go for $1.5 to 2 million. Be ready to shell out $4 to 5 million if you plan on buying a super luxurious home with a swimming pool.

If you’re seeking citizenship in St Kitts and Nevis, you must make a minimum investment of at least $400,000 for joint ownership and $800,000 for sole ownership. It is estimated that around 70 percent of real estate transactions are undertaken within the citizenship by investment program.

Real estate investment in Dominica

Famous for its natural hot springs, tropical rainforests, botanical gardens, and welcoming population, Dominica real estate is highly sought after among expat investors. The Island is the cheapest Caribbean country to purchase property to obtain citizenship.

Benefits of real estate investment in Dominica

• Cheapest average prices for property among Caribbean CBI countries
• Pre-approved property starting from just $200,000
• Lowest cost of living among Caribbean CBI countries
• Cheapest total investment for a single applicant

Average prices for Dominica real estate

With an average monthly rent of $2,300 for a three-bedroom apartment, Dominica offers one of the cheapest Caribbean rent prices compared to other Caribbean islands. Approved property prices for the Dominica citizenship by investment program start at about $3,000 per square meter.

Investors can secure real estate investments in approved projects, including Bois Cotlette, Jungle Bay Villas, Cabrits Resort Kempinski, Secret Bay Residences, The Silver Bay Development, and Tranquility Beach Dominica.

Real Estate Investment in St Lucia

Renowned for its turquoise waters, raw beauty, relaxed beach lifestyle, and flourishing real estate market, St Lucia real estate offers its citizens an excellent standard of living and the perfect environment to live, invest, and work. Whether buying a holiday home, investment property, or apartment, St Lucia is one of the best Caribbean real estate investments.

Benefits of real estate investment in St Lucia

• Among the best Caribbean islands for a high standard of living at low living costs
• Profitable real estate investments
• No tax on worldwide income and a high threshold for income tax
• Obtain a St Lucia citizenship by investment through buying property valued at least $300,000.
• The island is well-connected to other parts of the world through various routes.

Real estate prices in St Lucia

Property prices in St Lucia vary depending on the type, size, and location of your real estate purchase. $200,000 can buy property in local areas and towns. Sought-after modern real estate starts at $300,000, and beach-facing villas will sell for around $1 million.

What is the process of purchasing real estate in the Caribbean?

If you are applying for citizenship by investment: 

1. Select your property – Look at the pre-approved Caribbean real estate developments list and choose the best option.
2. Reserve your property – Once you’ve selected the property, settle your agreement, paying around 10 to 15 percent of the total price into an escrow account.
3. Apply for citizenship – Submit all your documentation, including the purchase agreement, to the Citizenship by Investment Committee of the country you are applying to.
4. Receive approval and complete the purchase – After two to six months, you will receive an approval letter once your application is approved. You can then complete the purchase and send the documentation.
5. Receive citizenship – You will receive the citizenship certificate, and after that, your passport will be delivered to your preferred address through a delivery service.
   If you are not applying for citizenship by investment: 

1. Choose the property – Once you select your property, settle your agreement for securing the property by transferring 10 to 15 percent of the total amount. The property will be taken off the market.
2. Get a license – If you are an investor not from the Caribbean countries, apply for an Alien Landholding License (ALHL, which is the land ownership license). It costs ten percent of the price of the property.
3. Complete the purchase – Transfer the amount to the developer’s account. It takes around a week to complete the entire process. You can sign all contracts in person in the presence of a notary or remotely through a lawyer with power of attorney.
4. Register the property – Register your property with the local land department.

Other Expenses when Making Caribbean Real Estate Investments

In addition to buying real estate, a foreign investor has to buy an AHL License that amounts to five to ten percent of the transaction amount. The investor should also take into account the license processing time. For example, processing your license in Antigua and Barbuda takes around six months.

Moreover, the foreign investor must also pay taxes and fees to the agency. Please keep in mind that if your real estate is bought for citizenship, then in some cases, you might have to pay special government fees.

The investor must also pay a commission of around three to six percent of the transaction amount. Therefore, purchasing a property directly from the developer is always more cost-effective. You don’t have to bear this expense if buying the property through the citizenship program.

Fees and Taxes when Buying Real Estate

There are various Caribbean taxes to consider when you buy real estate on many Caribbean islands.

Income tax rate

Maintenance Costs of Property in the Caribbean

Utility bills in the Caribbean: In Grenada, the cost of utilities like water, internet, electricity, and telephone are the lowest and start from $83. Meanwhile, in St Kitts and Nevis, the utility costs amount to $200 to $260, the highest in the Caribbean. In Antigua and Barbuda, the cost of utilities comes to around $150-$250. The estimated costs are for apartments that are between 60 and 80 square meters

Real estate insurance: The property insurance for residential property in Caribbean CBI countries is about 0.2 percent of the property’s value.

Service cost of the management company: The service cost completely depends on the property type. For example, you need to pay a service cost of around one to two percent for villas and apartments that cost around $200,000.

If you are a buyer of Caribbean real estate shares or an applicant of the citizenship program, then you don’t need to pay direct maintenance costs of real estate. This is because the management company deducts the costs from the lease payments made to the investor.

Renting out Property in the Caribbean

Foreign buyers can list Caribbean real estate investments for rent while obtaining citizenship. A management company manages the entire process. Generally, the private investor and the developer share the rental income equally. The investor’s share is mentioned in the contract alongside the management companies.

The tax regime on rental income differs for tax residents in the Caribbean. A non-resident gets a tax ID to pay taxes. If you have a Caribbean state ID, it will help you to invest in business in the Caribbean.

Associated Costs with Real Estate Ownership in the Caribbean

Annual property tax

Tax and fees of a sale

The seller of the Caribbean real estate must pay a stamp duty that is a certain amount of the property’s value. But you must remember that stamp duty changes from country to country. For instance, the tax rate for international investors is much higher than for residents in Grenada.

Why use Global Citizen Solutions?

Global Citizen Solutions is a multidisciplinary firm offering bespoke residence and citizenship solutions in Europe and the Caribbean. In a world where the economy and politics are unpredictable, having a second citizenship opens up opportunities and creates flexibility for you and your family.

So, why work with Global Citizen Solutions to obtain Caribbean citizenship?

• Global approach by local experts: We are corporate members of the Investment Migration Council, with local expertise in all five Caribbean CBI programs.
• 100 percent approval rate: We have never had a case rejected and will offer you an initial, free-of-charge, due diligence assessment before signing any contract.
• Independent service and full transparency: We will present to you all the investment options available, and all expenses will be discussed in advance, with no hidden fees.
• An all-encompassing solution: A multidisciplinary team of immigration lawyers, investment specialists, and tax experts will take into consideration all your and your family's mobility, tax, and lifestyle needs.
• Confidential service and secure data management: All private data is stored within a GDPR-compliant database on a secure SSL-encrypted server.

Frequently Asked Questions about Caribbean Real Estate Investment

Which is the cheapest Caribbean real estate market?

You can find affordable properties across the entire Caribbean region. Dominica has a cheap property market with a low minimum investment requirement of $200,000 to obtain citizenship.

Is real estate in the Caribbean islands a good investment?

Caribbean real estate investments are suitable if you’re seeking a tropical country with a welcoming population, affordable property options, and proximity to the United States. Foreign buyers can also gain citizenship by buying approved residential and commercial property, in addition to earning a high rental yield on licensed property.

How is the Caribbean real estate market?

The State of the Caribbean real estate market varies as the Caribbean consists of many countries. Cayman Islands real estate is particularly renowned for its stability, luxury properties, and attractive investment opportunities. The St Kitts and Nevis property market is largely propelled by foreign investors seeking second citizenship.

Is owning rental property in the Caribbean profitable?

Owning rental property in the Caribbean can be profitable, but success of Caribbean real estate return on investment hinges on factors such as which Caribbean island the property is located, property management, and rental market demand. The Caribbean’s appeal as a tourist destination for many Americans, with the warm Caribbean Sea, year-round sunshine, and stunning beaches, ensuring a steady flow of visitors seeking rental accommodations.

Can a US citizen buy property in the Caribbean?

US citizens can typically buy property in the Caribbean region without restrictions, as many Caribbean nations have relatively straightforward processes for foreign property ownership. Certain countries, including Dominica and St Lucia, actively encourage US citizens and other foreign investors to invest in property as part of their citizenship by investment programs.

What is the safest Caribbean island to buy a home?

The safest Caribbean island to buy a home depends on factors such as crime, natural disasters, political stability, and infrastructure. Many Caribbean islands, like St Kitts and Nevis, the Cayman Islands, and St Lucia, are considered relatively safe due to consistently low crime rates and stable governance. Grenada presents secure property investments due to its minimal risk of damage from natural disasters, as it lies outside the hurricane belt that frequently affects the region.

What is the average price for a home in the Caribbean?

The average price for a home in the Caribbean varies significantly depending on the island, location, size, amenities, and other factors. The Caribbean real estate landscape encompasses developing island nations with affordable real estate as well as expensive residential properties and luxury living in highly sought-after tax-haven destinations. You can secure a three-bedroom villa with a sea view or a pool in Caribbean nations like Dominica or St Lucia for $200,000 to $300,000.

How can I maximize the ROI on my Caribbean real estate investment?

To maximize your return on investment property in the Caribbean, start by thoroughly researching locations with high tourism demand and potential for property value appreciation. Invest in real estate, such as Caribbean vacation homes or beach houses in popular tourist destinations or emerging markets, to yield the highest rental income and long-term gains.

What are the best Caribbean islands for real estate investment in 2024?

The Caribbean offers attractive real estate investment opportunities in 2024, with top islands including Antigua and Barbuda, Grenada, Dominica, St. Lucia, the Bahamas, the Dominican Republic, and the Cayman Islands.