The peculiarity of the Caribbean region is its dependence on the tourist sector. This means that the property prices are constantly growing, and buying real estate in this area is like a lucrative asset, which can bring benefits in the following years through renting or future resale. Not to mention that you can buy here luxury villa just for yourself, and it will appear relatively cheap compared to European countries.
For example, a square meter in Antigua and Barbuda costs $3,501. In Saint Lucia, it is $1,860, and in Saint Kitts and Nevis —$3,496.
At the same time, the average price of a square meter in Hong Kong is 31,863.37, in Singapore — $19,790.76, in London — $16,382.89, and New York — $15,403.97.
Big difference, does it?
The good thing is that the Caribbean’s flourishing property market can also be your way to a second citizenship. This means that investing in real estate in this region can help you generate more revenue and lower your tax burden, as 5 Caribbean countries offer a zero tax regime along with other benefits. One example is Grenada, which citizenship you can obtain through investing in real estate for $350,000. Some other Caribbean countries offer their citizenships for even lower prices.
Being a legal citizen in the Caribbean is a chance to relocate to a country with a fantastic climate, turquoise water, and white-sand beaches.
Buying real property in the Caribbean is a way to apply for a second passport. The latter does not only give you freedom of travel to 100+ countries but also entitles you to apply for long-term visas to the United States and Canada as well as to protect your assets and reduce the tax burden. Investment requirements vary across the jurisdictions and the level of profitability of the real estate items will also be different. Which one of the Caribbean countries will be the best option in terms of return on investment in real estate?
To acquire the citizenship of Antigua and Barbuda, it is required to invest at least $ 400,000 in real estate (sole ownership). Fractional ownership is also possible. The minimum investment — $200,000. The investor must either find this second person himself, or the developer can offer such an option (rare case). After 5 years, the investor can sell the real estate unit or keep renting it out.
According to statistics, since the launch of the program until June 2017, 215 investors have chosen to invest in real estate. At the same time, 771 applicants have chosen an option of donating to the government fund. This trend is not surprising at all. Acquisition of real estate in the Caribbean is associated with risks posed by Atlantic cyclones. For example, the infrastructure on Barbuda was destroyed by the recent hurricane Irma which, though, didn’t touch the island of Antigua.
For this reason, the real estate in Antigua is more attractive for the investors. One of Antigua’s advantages is its developed infrastructure. In addition to the picturesque beaches, the island attracts visitors due to its excellent conditions for yachting. It has a large airport with a modern terminal and 6 ports for yachts and ocean liners. Antigua is popular with tourists, including celebrities and wealthy people.
AVERAGE RETURN ON THE REAL ESTATE IN ANTIGUA IS 3-4% PER ANNUM.
The government of Antigua and Barbuda approved an impressive list of objects, the purchase of which allows to qualify for a second passport. Investors may buy a share in the hotel or completely buy out a villa, apartments or condominiums. The apartment with an area of 60-80 square meters will cost from $ 400,000 to $ 600,000. The amount of $ 600,000 to $ 950,000 is sufficient to buy a 2-3 bedroom mansion within 100-200 meters from the sea. Villas of 200-400 square meters are offered for $ 1-2 million, and luxury homes with a pool and private yacht harbour will cost more than $ 2 million. One of the most interesting development projects on Antigua is Moon Gate.
Invest in a competitively priced, free-hold property in a Caribbean region and get a passport of Antigua and Barbuda.
Moon Gate Antigua is a boutique hotel & spa with more than 40 suits offering 3 types of apartments for those who want to get a second citizenship. Choose on your own what makes sense for you as an investor live and enjoy this beautiful resort on the island or participate in an income-producing rental program.
To participate in the Grenada citizenship by investment program, it is required to buy real estate worth at least $ 350,000 (sole ownership). As for fractional ownership, the minimum investment is $220,000. The investment amount may be recovered by reselling the real estate object in the future or by renting it out.
Important note: Unlike the other countries of the Caribbean, Grenada is practically not exposed to the danger of natural disasters since hurricanes pass north of the island.
COUNTRY’S REAL PROPERTY MARKET IS GROWING VERY RAPIDLY. ONLY IN 2015, THE REAL ESTATE SALES INCREASED BY 71%. AVERAGE RETURN ON THE REAL ESTATE IN GRENADA IS 3-4% PER ANNUM
Those wishing to invest should choose only from the projects approved by the government. The investment is to be held for a minimum period of 4 years.
Saint Kitts and Nevis’s passport may be acquired by investing at least $400,000 in real property (resale is possible after 5 years) or $200,000 (resale is possible after 7 years). Experts estimate that about 70% of all real estate transactions in the country are carried out within the Citizenship-by-Investment program.
Approximately 80 projects are available for purchase from the list approved by the government. After 5 years, an item may be sold, in particular, to another investor wishing to get the country’s passport. Two-bedroom apartments in Basseterre, the country’s capital, are offered for about $ 600,000. A luxury villa may cost from $ 1.5 to 2 million, and elite homes with a pool and sea view are offered for $ 4-5 million.
Tourism is the basis of the economy of Saint Kitts and Nevis. The development of this industry is facilitated by the presence of a modern Robert L. Bradshaw airport and two major ports: Basseterre and Charlestown. The islands are also popular among the owners of mega yachts. In 2015, the construction of the marina for elite ships at Christophe Harbor was completed.
IN 2014, THE MARGIN OF PROFIT ON RENTAL OF REAL ESTATE WAS 3-5%
The hotel is located in the marina of Christophe Harbor. It has all chances to become popular among yachting enthusiasts, and investing in its share can bring a good income.
The minimum amount of investment in real estate in Dominica ($ 200,000) is one of the lowest among the Caribbean programs. An investment item should be selected from the list of projects approved by the government. There are already 10 projects: Bois Cotlette, Jungle Bay Villas, Cabrits Resort Kempinski, Secret Bay Residences, The Silver Bay Development, and Tranquility Beach Dominica.
Despite its attractive price, the property in Dominica didn’t gain popularity among the investors. 8 out of 10 candidates for citizenship choose the donation option. There are several reasons for this. First, the island has a poorly developed tourist infrastructure, especially in other Caribbean countries.
There are no direct flights to Dominica from the USA and Great Britain, which negatively impacts the influx of tourists. Secondly, Dominica is located in an area vulnerable to natural disasters. In the last 5 years, only the country has experienced serious destruction due to three powerful hurricanes. Almost the entire infrastructure of the country was destroyed.
However, Dominica is actively promoting the philosophy of sustainable tourism. And this is what the country embodies in its real property market.
AVERAGE RETURN ON THE REAL ESTATE IN DOMINICA IS 3-4% PER ANNUM
Secret Bay is the best option for those who want to relax in a five-star resort near the Caribbean sea and white sandy beaches, invest in commercial property, and obtain citizenship in Dominica. Having received the title of the “World’s Best Boutique Hotel,” this Caribbean property is available through sole or fractional ownership ($208,000 or $1,500,000).
This means you can buy a share in the resort complex or the whole private villas. But, of course, it all depends on your choice and budget. Along with the citizenship of Dominica, you can also enjoy your investment property 7 days a year absolutely for free.
Thanks to the flourishing tourism and the introduction of one of the best investment programs, it is fair to say that Saint Lucia takes its rightful place in the Caribbean real estate market.
An average price for Caribbean property range from $1,207 to $2,649 per square meter, and this means that foreign investors can buy a competitively priced high-end villa on the Caribbean coast, with a swimming pool and a large living space, and it will not cost them an arm and a leg. Buying real estate here is easy.
Another benefit is buyer’s interest. While investors can buy property, it can be later resold or leased with high rental yields. The yield of real estate units related to the CBI Program is 3-5%, so your real estate investment can be the best value for money. Real estate taxes are almost dwindling to single digits.
As an example, the property tax rate for residential property is 0.25%. Commercial property is taxed at 0.4%. In addition, this country’s citizenship also exempts you from global income, dividends, wealth, inheritance, and capital gains tax.
This guide will walk you through things to keep in mind, highlighting the most important advantages and differences of each country!
For sure, foreign buyers can make Caribbean real estate investments.
It is hard to determine which island is better. It all depends on your preferences and expectations.
Yes, US citizens can purchase real estate on the Caribbean islands.
It is fair to say that a whole Caribbean region can boast a low crime rate. However, in terms of statistics, the safest is Montserrat.
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