C
aribbean real estate is no longer just a dream of sun‑soaked beaches; it’s a growing market projected to hit $2.69 trillion by 2029, according to Statista. Foreign investors are flocking for luxury homes, tax advantages, and the chance to gain citizenship through property purchase. This guide distills the essentials for 2025 buyers.
**Why Invest?**
1. **Citizenship by Investment** – Several islands grant passports for real‑estate purchases:
- Antigua & Barbuda: $300 k
- St Kitts & Nevis: $325 k
- St Lucia: $300 k
- Grenada: $270 k
- Dominica: $200 k
Fast‑track processing gives global mobility without the lengthy Golden Visa routes.
2. **Affordability** – The Dominican Republic offers homes from $1,668 /m², doubling U.S. prices.
3. **Luxury Demand** – Post‑pandemic, high‑net‑worth buyers from the UK, U.S., Canada, and EU seek upscale villas, beachfront condos, and private islands.
4. **Tax Haven** – No income, capital gains, or inheritance tax. Stamp duty ranges 2–10 % of sale price; annual property tax 0.1–1 %.
5. **Rental Income** – Yields of 3–7 % are common; St Kitts & Nevis can deliver 4–7 % on a $500 k investment.
**Pre‑Purchase Checklist**
- **Budget**: Include purchase price, legal fees, stamp duty, and ongoing costs.
- **Island Selection**: Evaluate tax regimes, legal requirements, disaster risk, and residency pathways.
- **Mortgage**: Some countries allow foreign mortgages, often at higher rates.
- **Site Visit**: Inspect the property to avoid surprises.
- **Local Experts**: Engage agents, attorneys, surveyors, and accountants.
- **Property Management**: Essential if you won’t live on the island.
**Top 10 Caribbean Islands for 2025 (Safest & Affordable)**
| Island | Price Range | Citizenship Threshold | Key Tax Notes | Rental Yield |
|--------|-------------|------------------------|---------------|--------------|
| St Kitts & Nevis | €51 k–€4.55 M | $325 k (condo) or $600 k (single‑family) | 0.1–0.5 % annual property tax | 4–7 % |
| Dominica | $200 k (gov‑approved) | $200 k | 15 % stamp duty (non‑resident) | 3–5 % |
| St Lucia | $300 k | $300 k | 0.25 % annual tax; 10 % stamp duty (non‑resident) | 3–6 % |
| Grenada | $270 k | $350 k (property) or $270 k (development stake) | 5 % (citizen) / 15 % (non‑resident) stamp duty | 4–6 % |
| Antigua & Barbuda | $300 k | $300 k | 0.1–0.5 % annual tax; 7.5 % stamp duty (seller) | 4–8 % |
| U.S. Virgin Islands | $150 k–$400 k | No passport needed for U.S. citizens | 2–3.5 % stamp duty | 3–5 % |
| Barbados | $300 k–$1 M | No citizenship by investment | 0–1 % land tax | 5–7 % |
| Cayman Islands | $500 k–$5 M | No citizenship; tax haven | 7.5 % stamp duty | 3–5 % |
| Jamaica | $200 k–$1 M | No citizenship | 0.1–1 % annual tax | 3–6 % |
| Dominican Republic | $200 k–$1 M | No citizenship | 0.1–1 % annual tax | 4–7 % |
**Buying Process (Step‑by‑Step)**
1. **Choose Country & Locale** – Decide between resort, city, or residential area; weigh taxes, safety, and lifestyle.
2. **Understand Local Laws** – Verify foreign ownership rights, annual taxes, stamp duty, and residency rules.
3. **Set Budget & Finance** – Include purchase price, closing costs, legal fees, and maintenance; consider mortgage options.
4. **Hire Local Professionals** – Agents, attorneys, surveyors, and accountants to navigate legalities.
5. **Make an Offer & Due Diligence** – Submit a written offer; verify title, permits, and conduct inspections.
6. **Close the Deal** – Sign agreement, pay deposit (5–10 %), transfer ownership, pay stamp duty, and register property.
7. **Post‑Purchase** – Arrange property management if renting; pay annual taxes and upkeep; stay compliant with local rental regulations.
**FAQs**
- **Best Island for Luxury & Stability?** Cayman Islands.
- **Cheapest Island?** Dominican Republic.
- **Can U.S. Citizens Buy?** Yes, many islands allow U.S. buyers, though some require extra permits.
- **Passport‑Giving Islands?** Antigua & Barbuda, Grenada, St Kitts & Nevis, St Lucia, Dominica.
This concise guide equips you with the core data, top destinations, and practical steps to navigate Caribbean real‑estate investment in 2025.
