Why invest in the Caribbean? Well, Caribbean countries boast an outstanding track record of economic and political stability, openness to international trade, and economic integration. The region’s privileged geographic location provides the perfect gateway to markets in North America, Central America, and South America, and its many thriving industries offer a wealth of profitable investment opportunities. It’s no wonder that international investors are looking to the Caribbean for their next investment and business opportunities.
Stay tuned as we look at the top ten reasons to invest in Caribbean islands.
1. Ideal Location
As mentioned above, the Caribbean is strategically located in the center of the Americas, providing easy access to markets in North, South, and Central America. It also serves as a bridge to European markets.
Most Caribbean countries have international airports that provide daily direct flights to Canada, the UK, the US, several European countries, and South America. Additionally, easily accessible, world-renowned regional ports enable access to raw materials and equipment.
2. Favorable Tax Environment
Governments are committed to supporting the development of key sectors. The region’s territories offer incentives for investment, tax holidays or preferential income taxes, exceptions from duties on imports, property tax exemptions, and an extensive range of free economic zones. Thanks to this favorable tax environment, many countries in the Caribbean are considered a tax haven.
3. Openness to Trade
Many countries in the Caribbean have preferential access to some of the largest markets in the world according to the World Bank Group’s most recent study. Regional Free Trade Agreements include:
- CARIFORUM-EU Economic Partnership Agreement, which grants preferential access to European markets
- Caribbean-Canada Trade Agreement (CARIBCAN)
- Caribbean Basin Initiative, which provides beneficiary Caribbean territories with duty-free access to US markets for most goods
- Dominican Republic-Central America FTA (CAFTA-DR), which facilitates increased trade and investment among five countries in Latin America, the Dominican Republic and the US
- CARICOM, which enables access to the 15 Caribbean markets at preferential rates
- Haitian Hemispheric Opportunity through Partnership Encouragement (HOPE)/Haiti Economic Lift Program (HELP), which grants access to the US market
4. Modern Infrastructure
The Caribbean offers a constant, affordable electricity and water supply. Telecommunications, broadband internet access, and if necessary, natural gas supplies are easily accessible from within the region. Land and office space are available and cost-effective.
5. Economic and Political Stability
As mentioned, the Caribbean is known for its stable democracies and thriving local industries, providing a secure location to conduct business and raise families.
6. Educated and Skilled Labor Supply
Thanks to its quality education system, the Caribbean has a highly skilled and knowledgeable labor supply who speak several key languages. The CARICOM agreement allows the free movement of skilled labor within member states.
7. Diverse Investment Opportunities
The Caribbean has garnered critical acclaim for its abundant natural resources. Caribbean islands also offer competitive sectors, including information communications technology or business process outsourcing, financial services, agribusiness, and the creative industries.
Various expanding industries, including renewable energy and sustainable development, mean diverse investment opportunities and profitable returns.
8. Obtain Citizenship by Investment
Did you know that you can invest in Caribbean islands and become a citizen? Five countries in the Caribbean carried the flag for some of the world’s top citizenship by investment programs: Antigua and Barbuda, Dominica, Grenada, St Kitts and Nevis, and St Lucia. Each investment program allows high-net-worth individuals to obtain Caribbean citizenship by contributing to the country’s economic growth through investments such as purchasing real estate. These nations recognize dual citizenship and allow applicants to include family members in their citizenship by investment applications.
Why not check out our Citizenship by Investment Comparison Guide to find out more?
You can also learn more about investing in the Caribbean in the following articles:
9. Ease of Conducting Business in the Caribbean
Caribbean economies have carried out record reforms that make it easier for enterprises to do business. The Doing Business 2020 study by the World Bank Group noted that these improvements were concentrated on starting a business, acquiring electricity, paying taxes, and enforcing contracts.
10. Responsive Investment Promotion Experts
The Region’s Investment Promotion Agencies have been recognized for their excellent websites and competent inquiry-handling services, making it a straightforward process to invest in Caribbean islands.
As you can see, there are many reasons (and opportunities) to invest in the West Indies. Whether you want to be a part of the Caribbean’s economic development, take advantage of the beneficial tax policies, or become a citizen, the right investment opportunity is waiting for you in the Caribbean.
Frequently Asked Questions about Investing in the Caribbean
What are the main opportunities for investing in the Caribbean?
The main opportunities to invest in Caribbean islands fall under the citizenship by investment programs. Investment options allow you to donate to a government fund, buy real estate, purchase government bonds, or make a business investment.
What sectors offer the best investment prospects in the Caribbean?
According to the Caribbean Association of Investment Promotion Agencies, industries with opportunities for significant growth in the Caribbean include high-tech agribusiness, renewable energy, niche tourism, technology, business support, among other competitive sectors. Real estate could also provide profitable returns on investments thanks to the region’s bustling tourism industry, particularly during peak tourism season when short-term rentals are in high demand.
Are there any tax incentives for foreign investors in the Caribbean?
Caribbean countries offer a variety of tax incentives for individuals and companies. Many countries in the region have special incentives, regimes, and policies aimed at attracting and retaining foreign investment in the country.