Endless days of sunshine, delectable cuisine, picturesque landscape, world-class beaches, rich art and architecture, natural beauty, excellent infrastructure, and more make the Caribbean one of the most attractive places to live. In addition to these factors, the cost of living in the Caribbean islands also strongly influences the decision to move to the region.
If you are planning to relocate to the Caribbean for business/work/post-retirement, you should definitely take into account the amount of money that you would require to stay, eat and enjoy the Caribbean coast. In this article, we will take you through the cost of living in the Caribbean and help you discover the cheapest Caribbean island to live on.
Cost of living in the Caribbean - Important Factors for Consideration
Before determining the cost of living in the Caribbean, you must consider the general things you need to go on with your daily life, like food, rent, transport, entertainment, and other utilities and activities. After considering the cost of all these things, you can calculate your monthly budget. Please keep in mind that these are variable costs and can change based on the island you decide to relocate to.
For example, if you’re considering shifting to the secluded side of the Bahamas, your cost of groceries can shoot up as they will be delivered to the place either by an aircraft or a ship. On the other hand, the rent will be relatively low due to less demand.
Buying Property and Renting in the Caribbean islands
The Caribbean region has a thriving real estate market. But your cost will depend on your ownership of the property – whether you want to rent or buy it. If you are looking for affordable property in the Caribbean islands, you should consider places like Jamaica, the Dominican Republic, Aruba, Honduras, and Belize, as they offer some of the most economical real estate options for you to buy or rent. To rent out one-bedroom properties in these locations, you must pay around $700-$1000 monthly. Please note that these properties will not be beach-facing.
Places like Barbados, the Cayman Islands, and the Turks and Caicos have more expensive properties than the ones mentioned above. But since the Turks and Caicos are a tax-neutral jurisdiction, it levies no annual property taxes, income tax, or capital gains tax on residents. People living in the Cayman Islands also don’t come under direct taxation by the government.
So if you plan to move to the Caribbean permanently, please keep all these factors in mind and assess them before making your big move.
Cost of Utilities
To live in your home comfortably, you need to manage a few essential utilities like water, gas, electricity, telephone bills, air conditioning, etc. The cost of all these can differ significantly in the Caribbean islands.
Places like the Bahamas, Jamaica, and Curacao have the highest cost of utilities compared to the other Caribbean islands. The expenditure on utilities in these places ranges between $200 – $350. Please note that this is the average cost of utilities if you live in a small apartment. When you get a bigger space, the utility cost will automatically rise since you will need more water, electricity, and air conditioning.
If you are looking for a place in the Caribbean with a low cost of utility, then you can consider shifting to the Dominican Republic, Belize, Costa Rica, and Panama region.
Cost of Food and Drinks
Owing to its location and island life, most of the groceries on the island get delivered by air or water transport. And this hikes the prices of the commodities as there is a delivery charge for almost everything. The cost of everyday items like milk, bread, eggs, and chicken is higher across the Caribbean islands than in the United States. If you are looking for affordable rates, check out places like Grenada, St. Lucia, Jamaica, and the Dominican Republic.
If you are fond of having fruits and vegetables, get them from the local markets or roadside stalls, this is often a cheaper option.
On the other hand, luxury items like beer, wine, and cigarettes are cheaper in the tropical islands than in the United States. Although destinations such as the Bahamas and the Turks and Caicos islands are attractive tourist spots, the cost of living, food, and drinks are more costly than the other parts of the Caribbean. The cost is high as these places offer a greater variety of imported things that are readily accessible.
If you are two people sharing a home, you would have to spend around $600 on groceries. But please keep in mind that this is an estimate for you. Your budget can go up if you indulge in good wine and food more than once in a while.
Restaurant and Entertainment Costs
The prices of restaurants and entertainment options vary from place to place in the Caribbean. If you’re a McDonald’s fan and live in Grenada, we have good news! A combo meal at McDonald’s in the country will cost you around $4. Whereas the same meal will cost you around $7 in the Dominican Republic, $10 in the Cayman Islands, and $15 in the Turks and Caicos.
Eating out in the Turks and Caicos is expensive compared to all the other places in the Caribbean. A regular meal in an affordable restaurant will cost you around $20.
The Cheapest Caribbean Islands
In this section, we will take you through the cost of living of the cheapest Caribbean destinations.
Dominica
Compared to the United States or Europe, the cost of living in Dominica is low. Whether renting, buying property, or purchasing things from the local markets, prices are lower than the other islands in this Caribbean paradise. If you are planning to retire in the Caribbean but are worried about the expenditure, then Dominica is the perfect place.
For example, the monthly expenses come to around $3,200 for a family of four, excluding rent. If you stay alone, your monthly expenditure will be around $860 (excluding rent).
St Lucia
Like Grenada, St Lucia is an affordable country in the Caribbean, and the cost of living in St Lucia is cheaper than in the United States or Europe. The country is tax-friendly and levies no capital gains, inheritance, or wealth tax on worldwide income. Not only is the country affordable, but it also provides its residents with a very high quality of life.
The cost of groceries in the country depends upon your consumption of local or imported food. The cost of local produce is relatively cheaper, and the cost of imported products is more expensive than in the United States. The rent prices here also depend on the location. For instance, if you rent a one-bedroom apartment in Castries’s city center, you must pay $480 per month. Whereas renting a one-bedroom apartment outside the city center will cost around $250.
Antigua and Barbuda
Renowned for its white sand beaches, tropical weather, and relaxed lifestyle, Antigua and Barbuda is a popular destination in the Caribbean. The country offers all modern conveniences to people and is around 20% cheaper than the United States and the United Kingdom.
As per Numbeo, the monthly expenditure for a single person is around $1,100 (without rent). For a family of four, the cost of living in Antigua and Barbuda will be around $3,900 (excluding the rent) per month.
Grenada
Grenada is also among the cheapest places to live in the Caribbean. In comparison to the US, and other Caribbean islands, the cost of living in Grenada is relatively lower, be it education, real estate, groceries, or restaurants. In Grenada, a meal in a local and inexpensive restaurant will cost you around $7. A three-course meal in a mid-size restaurant will cost around $70 for two people.
In terms of rent, you need to pay around $400 for a one-bedroom apartment in the city center. Whereas, outside the city center, it will cost you around $340. If you are planning to buy a property in Grenada, the price will vary from $160,000 to $7,000,000.
Frequently Asked Questions
What are the cheapest places to live in the Caribbean?
St Kitts and Nevis, Grenada, St Lucia, Dominica, Dominican Republic, and Jamaica are a few of the budget-conscious places in the Caribbean. Check our guide on the cost of living in St Kitts and Nevis
What is the most affordable Caribbean island to live on?
Dominican Republic, Belize, Costa Rica and Panama are a few of the most affordable islands to live on and double up as top destinations to visit.
