Buying Property in the Caribbean – What You Need to Know

A home in the Caribbean – with its year-round tropical climate and golden sunshine – does not only have to be an occasional getaway for the winter months. Purchasing a home here is an opportunity for you to make your dream of owning a home in paradise a reality. Navigating the process of becoming a homeowner in the Caribbean can be challenging, which is why we’ve put together this helpful guide to buying property in the Caribbean. 

In this guide, we’ll discuss the Caribbean property market, whether foreigners can buy property here, the purchasing process, Caribbean property prices, and more.

The Caribbean Real Estate Market

The Caribbean is an exceptionally large region that consists of over 700 islands, reefs, and cays that are collectively divided into 30 different territories. The different regions in the Caribbean all have different climates, economies, legal systems, cultures, and political landscapes, all of which should be considered when buying a house in the Caribbean.

As an example, let’s consider the weather. As mentioned above, you’ll find a tropical climate in the Caribbean. The main characteristics of this type of weather are year-round warmth and humidity. What you’ll also find are two main seasons, namely the wet and dry seasons.

An important aspect of the weather is the fact that the Caribbean experiences hurricanes, often affecting Caribbean residents or those with vacation homes in the region. For this reason, it is essential that the homes you look at purchasing are hurricane-proof to ensure your safety during hurricane season. Nevertheless, Caribbean countries like Costa Rica and Grenada are located outside the hurricane belt, making them appeal for Caribbean property ownership.

Finally, the Caribbean is a diverse cultural landscape. This means that different languages are more prevalent in different areas. For example, across several islands, you’ll find a significant population of people who speak Dutch, English, French, and Spanish. A number of these islands offer citizenship by investment programs, including Antigua and Barbuda, Dominica, Grenada, St Kitts and Nevis, and St Lucia.

The Process of Buying Property in the Caribbean

The process of buying property in the Caribbean varies among the islands thanks to the influence of legislation from different countries. For instance, in English-speaking regions like Antigua, Barbados, and the Cayman Islands, the purchasing process is influenced by British law. In contrast, in the French Caribbean territories such as St Barts, St Martin, and Martinique, the buying process is defined by French law.

Due to these variations, it is highly beneficial to consult with an attorney who is familiar with the purchasing process specific to your chosen area and who can provide professional guidance and advice before you proceed with the purchase of a property.

Foreigners must obtain an Alien Landholding License (ALHL) to buy a residential or commercial property in the Caribbean. However, five countries in the Eastern Caribbean allow foreign nationals to purchase property without an ALHL through their citizenship programs. 

Caribbean Real Estate: What are your options?

The Caribbean offers a diverse range of property types for sale and rent, from affordable condos and apartments to boutique hotels, luxury villas, resorts, and private island retreats.

If you’re in the market for a beachfront villa, why not look to the west coast of Barbados, also known as the Platinum Coast? Known for its stretch of white sandy beach and clear, warm waters, this coast is ideal for families, romantic getaways, and luxury real estate. You’ll also find a taste of luxury in locations such as the Bahamas, the Cayman Islands, St Barts, and Turks and Caicos Islands. If you’re more of a sailing enthusiast, you should consider the Bahamas, the British Virgin Islands, the Grenadines, Antigua, St Lucia, St Maarten, or the US Virgin Islands.

If you’re into water activities, there are several Caribbean islands that should be top of your list, namely the east coast of Barbados, the northern coast of the Dominican Republic, Martinique, and Puerto Rico, particularly if you like to surf. Scuba divers may prefer Belize, Bonaire, Grenada, or Roatan, as their waters are home to a variety of stunning marine life. If you’re looking for investment properties that provide a route to second citizenship, then you should consider Antigua and Barbuda, Dominica, Grenada, St Kitts and Nevis, and St Lucia, the only islands in the Caribbean that run citizenship by investment programs. Finally, if you are in search of a more secluded and tranquil escape, look to islands such as Bequia, Dominica, Montserrat, or Saba.

Caribbean Properties for Sale

St Kitts and Nevis: Sustainable, Caribbean-style cottages with panoramic views of the Caribbean Sea and Mount Liamiga are available in St Paul’s Belmont Farm Resort from $450,000. An advantage of buying a Caribbean property for sale in this development is the option to obtain St Kitts real estate citizenship by investment.

Turks and Caicos Islands: 7th Heaven Properties has a one-bedroom Laguna villa for sale. It is a stone’s throw from the beach in Sailrockm South Caicos. Properties in the area are in high demand, and this villa has an asking price of $1.5 million.

Bahamas: A two-bedroom condo is for sale through Sotheby’s International Realty in Harbour Island, Eleuthera. The property, which is listed for $600,000, is part of the Valentine’s Beach Resort.

US Virgin Islands: REMAX Caribbean has listed a four-bedroom villa with a lot size of over 15,000 square feet for $425,000. The property is located in Diamond, St Croix, and can be used as a primary residence or commercial investment property.

Pros and Cons of Buying Property in the Caribbean

Owning your dream property on an idyllic Caribbean island is certainly within reach, and while it may sound like a perfect situation, it is important to have a realistic idea of what to expect. Owning real estate abroad comes with its advantages and disadvantages, and the Caribbean is no different. So, in this section, we’ve outlined some of the pros and cons of Caribbean property investment.

Pros

Island life: The Caribbean is generally quite laidback with welcoming locals, a relaxing atmosphere, and plenty of diverse activities that cater to different interests. Whether you’re an adventurous traveler looking for adrenaline-filled experiences, a retiree in search of a private dwelling within walking distance of the ocean, a digital nomad interested in learning about the region’s rich history, or a family looking to start a new life outside of a bustling city, you are sure to find your ideal destination in the Caribbean.

Affordability: The Caribbean caters to a range of budgets, with everything from luxury resorts to affordable condos. When it comes to more affordable properties, there are many Caribbean islands – such as Dominica and St Lucia – where your property search will turn up a variety of budget-friendly options.

Tourist market: Many Caribbean destinations are popular stops for tourists from all over the world. Foreign buyers looking to take advantage of the thriving tourist market will find that earning rental income from a rental property can be quite a profitable venture.

Cons

Natural disasters: While the Caribbean is a tropical paradise, certain islands are more prone to natural disasters such as hurricanes and earthquakes. Owning property on one of these islands could result in unexpected costs from weather damage. On the other hand, investing in property reinforcement/protection measures early on can help minimize these costs down the line.

Cost of living: While some areas in the Caribbean offer an affordable cost of living, others can become quite expensive. It is important to research the cost of groceries, restaurants, transport, etc., when choosing the best Caribbean island to buy property on.

Property Prices in the Caribbean

As you may expect, the cost of buying property in Caribbean islands varies greatly from area to area. If you’re looking for something more affordable, locations like the Dominican Republic, Jamaica, or Puerto Rico offer some good options. Here, you will be able to find Caribbean homes for sale for under $200,000. 

If you’re looking for more luxurious Caribbean real estate investments, you may find what you’re looking for in locations like Anguilla, Barbados, St Barts, and the Turks and Caicos islands with prices from $1 million to $5 million. Here, you’ll be able to find fantastic beachfront homes for sale, allowing you to wake up each day with a view of the sparkling blue ocean.

Typically, the price per square meter of an apartment in the Caribbean is more affordable the further away you move from the city centers and financial capitals. When doing your research, it can be beneficial to use real estate websites to get an idea of the types of properties available, as well as the prices they tend to be listed for. You can also speak to local real estate professionals who will be able to give you expert advice tailored to your circumstances.

How to find your Caribbean home

If you’re feeling a bit overwhelmed at the prospect of finding your dream vacation home or rental property, you’re not alone. Navigating the real estate market and buying process in a foreign country can be tricky. That’s why we recommend using the services of a real estate agent with expert knowledge of the local market, processes, and laws. You can also use real estate websites to conduct searches and gain a realistic idea of what is available.

What is the cheapest island to buy Caribbean real estate?

Budget is often one of the most important factors when buying property, particularly when relocating to a new country. Fortunately, the cheapest Caribbean islands to live on will meets your budgetary requirements when buying property in the Caribbean.

It is best to speak to a real estate professional who is familiar with the local markets and can advise you on the most affordable places in the Caribbean. In general, however, locations like the Dominican Republic and Jamaica offer real estate options at affordable prices without compromising the value you can get for your money. For example, the price per square meter to purchase an apartment in the Dominican Republic can range between $1,000 and $1,500. In Jamaica, this will cost anywhere between $2,000 and $2,200 per square meter.

If you are interested in purchasing property through one of the Caribbean’s citizenship by investment programs, you can look at real estate in Antigua and Barbuda, Dominica, or St Kitts and Nevis. According to Numbeo, the price per square meter to buy real estate in Antigua and Barbuda ranges between $4,450 outside the city center and $6,000 in the city center. Here, you’ll find many property types on offer, including beachfront villas.

In St Kitts and Nevis, this changes to around $4,000 outside the city center and $5,000 in the city center. In Dominica, real estate prices drop to as low as $500 per square meter but can reach $5,000 depending on the location. In fact, you’ll find that prices are lower in Dominica than in other Caribbean islands.

The best place to find property for sale in the Caribbean will depend on factors such as the type of lifestyle you want to lead, your budget, your reason for relocating, and more.

Real Estate Ownership in the Caribbean Region: Can foreigners buy property?

A great benefit of the Caribbean is that most locations here allow foreigners to purchase property. What you will have to look for, however, is whether your chosen area in the Caribbean has any specific restrictions in place or bureaucracy that may extend the timeline of the purchasing process.

You will also need to consider how you will finance the purchase of the property, as well as any fees you may incur. For example, you will need to factor in the cost of services when using a real estate agent, lawyer, transfer taxes, and other fees over and above the purchase price of the property. Furthermore, if you are looking to take out a mortgage in order to purchase a property, you will need to obtain pre-approval from a lender before beginning your search for Caribbean real estate.

There are a number of lenders that offer mortgages to foreign buyers in the Caribbean, so you will need to determine which institution is the right fit for you. Mortgage loans are typically for a period of 15 to 20 years, and lenders consider factors such as your country of residence, the price of the property, the island on which the property is located, and the loan-to-value (LTV) ratio.

The purchasing process may vary slightly from island to island, which is why it is essential to employ the services of a lawyer who is familiar with the real estate laws specific to the location of your property.

Caribbean Citizenship by Real Estate Investment

One of the biggest appeals of the Caribbean is obtaining citizenship through their property investment. Caribbean property investors can qualify for Antigua and Barbuda, Dominica, Grenada, St Lucia, or St Kitts and Nevis citizenship through buying approved property.

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 Buying Property in the Caribbean