Citizenship by investment programs has made the Caribbean Community (CARICOM) a popular destination for a second passport among investors over the years. Of the 13 sovereign states and 12 overseas territories, a couple of island countries have stood out as the most sought-after, including Antigua and Barbuda, St Kitts and Nevis, St Lucia, Dominica, and Grenada. But before you can relocate to a new country, it is important to understand the different cost of living associated with each.
- The cost of living in the Caribbean varies significantly by island, with Dominica, Grenada, and St Lucia being the most affordable, and the Bahamas among the most expensive.
- Housing costs fluctuate based on location and demand, with luxury properties in Antigua and Barbuda, St Kitts and Nevis, and the Bahamas reaching high price points, while more affordable options exist in Dominica, Grenada, and St Lucia.
- Utility costs are generally high in the Caribbean due to warm climates and reliance on imported energy.
- Food costs depend on local agriculture; islands like Grenada and Dominica benefit from affordable fresh produce, whereas places like Turks and Caicos and the Bahamas, which rely on imports, have higher grocery prices.
- Public transport costs differ per island, with some offering affordable bus services and others requiring taxis or ferries, which can be costly.
- Healthcare and insurance expenses vary, with some countries offering universal healthcare while others require private insurance, often a requirement for citizenship by investment programs.
General Cost of Living in the Caribbean
The cost of living in the Caribbean varies depending on the island and your lifestyle. According to Numbeo and expat testimonials, Haiti, the Dominican Republic, and Cuba are the most affordable states. For a single person, the average cost of living is around $300 to $700 (excluding rent).
The Cayman Islands, Turks and Caicos, and Barbados have the highest cost of living among the Caribbean islands, with monthly expenses for a single person exceeding $1,500 (excluding rent).
Housing and Rent Costs in the Caribbean
Real estate costs in the Caribbean change constantly, influenced by external factors like citizenship by investment programs, which attract high net-worth individuals to the country. Island states like Antigua and Barbuda are also popular for tourism, leading to high real estate prices. The average monthly rental costs vary from $700 to $1200. Places like the Bahamas have the highest utility costs – up to $350 monthly. Meanwhile, the Dominican Republic and Panama have the lowest costs.
We break down some of the most popular Caribbean countries’ housing and rent costs below:
Dominica
Dominica has one of the lowest cost of living in the Caribbean. For a one-bedroom apartment in Dominica, it costs $300 per month. This also depends on whether you live in or outside the city. For a three-bedroom apartment in the city, it costs $1,160. Outside the city, it is $740.
You can purchase luxury eco-friendly villas for as little as $255,000, or four-bedroom properties in St George for $270,000.
Grenada
Also one of the most affordable places to live in the Caribbean, a one-bedroom apartment outside the cities of Grenada costs $440 per month. A three-bedroom apartment outside the city is $660. A one-bedroom apartment in the city costs around $780 per month. A three-bedroom apartment in the city costs around $1,700.
To purchase a property costs between $160,000 to $7,000,000.
St Lucia
In St Lucia, a one-bedroom apartment ranges between $320 per month outside the city and $510 monthly in the city. A three-bedroom apartment is $650 per month outside and $890 monthly in the city. This makes St Lucia one of the more affordable places to live in the Caribbean.
St Luca also offers various apartments, villas, resorts, condos, and historical colonial homes to purchase. A local home’s price starts at $200,000, modern condos and bungalows go for around $300,000, and beachfront villas are over $1,000,000.
Antigua and Barbuda
In Antigua and Barbuda, the average property price for a square meter is $1,680. Modern tourist apartments and prime properties currently cost $5,000 to $8,000 per square meter, however, with some luxury homes going up to $12,500 per square meter.
Rent in Antigua and Barbuda varies depending on whether you live in a city or rural area; a one-bedroom apartment is $1,000 per month in the city and $760 per month in other areas.
St Kitts and Nevis
St Kitts and Nevis is slightly more expensive, with one-bedroom apartments ranging between $610 and $1,000 per month, and three-bedroom apartments between $1,560 and $3,500 per month.
Purchasing an apartment is also quite costly, ranging between $4,000 and $5,000 per square meter.
Barbados
In Barbados, renting can cost anywhere between $1,500 and $8,000 per month for a house, or $1,000 to $2,0000 per month for a one-bedroom apartment. One of the benefits of purchasing property in Barbados is that the cost stays the same whether you are looking in or outside the city, at $3,500 per square meter.
Bahamas
The Bahamas has one of the strongest economies in the Bahamas, with its Bahamian Dollar pegged 1:1 to the US Dollar. This, combined with the fame it has garnered from celebrities, makes it one of the most expensive places to live in the Caribbean. One-bedroom apartments in the capital city, Nassau, can cost up to $3,000 monthly. In other areas, rent for a one-bedroom apartment is much lower at $800 per month, while some three-bedroom apartments cost $1,350 monthly.
The average cost to purchase an apartment is $5,340 per square meter. The average purchase price for a home is around $3.5 million, although in some areas it can go as low as $591,830.
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Utilities and Services
Most countries in the Caribbean have higher than normal utility costs, with places like the Bahamas seeing around $200 to $350 in bills for small apartments. Because of the warm climate, however, investors prefer properties with pools, or at least air conditioning, which add a significant amount to your utility bill.
St Kitts and Nevis has the cheapest utilities, with bills of around $96 per month. Next is Dominica and St Lucia, at $110 per month. Then Grenada, with around $185 in utility costs per month. In Antigua and Barbuda, utility bills are around $290 per month. Grenada
Cost of Food and Groceries
Some Caribbean islands have strong agriculture sectors, which offer lower prices for locally sourced fruits, vegetables, and seafood. Grenada and Dominica, for example, are famous for their affordable food prices. Islands like Turks and Caicos and the Bahamas are more dependent on imported goods, making prices higher.
Antigua and Barbuda
If you do not mind street food, you can buy a meal for as little as $2. Casual dining starts at $10 per person and most mid-level restaurants average around $30 per person. Fine dining can cost up to $100 per person. Local fruits and vegetables are less than $2 per kilogram and local seafood costs between $5 and $10 per kilogram.
Dominica
In Dominica, casual dining costs around $7 per person and a three-course meal at a mid-level establishment costs $55, which is significantly cheaper compared to Antigua and Barbuda. One of the country’s benefits is its reasonably priced imported beers and wine in restaurants (around $2 to $3). Local produce costs between $1.30 per kilogram for white rice and $5.55 for chicken.
Granada
Grenada’s food and dining costs are very similar to Dominica's, with casual dining at around $7 per person, and a three-course meal for two at a mid-range restaurant costing around $80. Groceries are slightly more expensive, at $1.70 per kilogram for white rice. Tomatoes cost $4.60 per kilogram (compared to $4 in Dominica).
St Lucia
A meal for one at an inexpensive restaurant in St Lucia will cost around $7. A three-course meal for two at a mid-range restaurant is $80. You will pay $2 for a kilogram of white rice and $9 per kilogram of chicken, making it one of the more affordable places to dine out and get groceries.
St Kitts and Nevis
Casual dining in St Kitts and Nevis costs around $22 for two people. At a mid-range restaurant, a three-course meal costs $92 for two people. Local and imported beers and ciders are also reasonably priced here.
Groceries in St Kitts and Nevis are significantly more expensive than some other Caribbean countries, with a kilogram of white rice costing almost $3 and $12 per kilogram for chicken.
Barbados
Casual dining in Barbados is also around $20, with a three-course meal costing between $100 and $150. For groceries, you can expect to pay similar prices as St Kitts and Nevis.
Bahamas
In the Bahamas, dining out and buying groceries can be very expensive, as the country relies heavily on imported goods and luxurious experiences. A single person’s grocery bill can be as high as $600 monthly, with fine dining costing well over $200.
Transport Cost
Your traveling cost will depend on the island, its size, and how you prefer to travel. On some of the smaller islands, you can commute by foot, whereas bigger islands offer public transport, like buses and taxis.
Here is a breakdown of the transport costs per country:
Antigua and Barbuda
You can purchase a monthly public transport pass for $33 in Antigua and Barbuda. A one-way ride costs around $2.
Dominica
In Dominica, buses and taxis are privatized. Buses are known for their affordability, with fares typically ranging between $1 to $3 for local routes. A monthly pass is $45. The average cost per kilometer is $3.70 via taxi.
St Lucia
Minibusses and shared taxis are common in St Lucia. They are usually cheaper than private taxis, with fares as low as $2 to $4, depending on the distance. Taxi prices are over $5 per kilometer.
Grenada
Grenada is known for its colorful buses that travel all over the country. A one-way ticket costs only $1.11. Taxis are also available, but charge per kilometer.
St Kitts and Nevis
A local bus ticket in St Kitts and Nevis is around $2.22. Taxis are also available and the price is negotiated with the driver, making it relatively cheap. A ferry runs between the twin-island country and charges between $11 and $15 for passage one-way.
Bahamas
In the Bahamas, the transport costs are considerably higher, with taxi rates between $20 and $40 per hour. It’s also customary to tip taxi drivers 15% here. There are also ferries between the islands, with tickets costing $6 per person. Buses, known locally as “jitneys” charge around $1.50 per person for a one-way ride.
Investors can also import and drive their own cars in the Caribbean, although the costs of bringing a vehicle into any local country can be quite high. Not to mention there are also environmental levies and annual registration fees involved.
Healthcare and Insurance Costs in the Caribbean
Healthcare costs in the Caribbean are determined by the infrastructure, skills, and care available in a country. Countries with citizenship by investment programs provide investors free access to their healthcare system, although health insurance is privately funded in most countries. For some of the programs, health insurance is a requirement, as it includes coverage for medical evacuation to nearby countries like the United States in case of severe emergencies.
In Antigua and Barbuda, insurance plans range between $1,000 and $3,000. This is similar to the Bahamas because of the country’s high-quality healthcare. A monthly insurance policy in St Lucia can cost around $150 for an individual, or $280 for a family of four. In St Kitts and Nevis and Dominica, full health coverage ranges between $200 and $400.
The Grenada government offers universal primary healthcare at around $540 per resident (5% of the country’s GDP).
Tax Considerations in the Caribbean
The Caribbean countries are famous for their offshore banking and friendly tax policies. None of the islands impose taxes on capital gains or inheritance. Antigua and Barbuda and St Kitts and Nevis do not charge personal income tax either.
In other countries, personal income tax ranges between 10% and 35%:
- Dominica has no personal income tax up to $30,000, after which it is between 15% and 35%.
- Grenada has no personal income tax up to $36,000, after which it is between 10% and 30%.
- St Lucia has no personal income tax up to $25,400, after which it is between 15% and 30%.
All the Caribbean countries impose corporate tax:
- Antigua and Barbuda and Dominica charge 25% corporate tax.
- Grenada charges 28% corporate tax.
- St Lucia charges 30% corporate tax.
- St Kitts and Nevis charges 38% corporate tax.
Different countries also apply different value added tax (VAT):
- Antigua and Barbuda and St Kitts and Nevis apply 17% VAT.
- Dominica and Grenada apply 15% VAT.
- St Lucia applies 12.5% VAT.
When it comes to property and land tax, Antigua and Barbuda, Grenada, St Kitts and Nevis, and St Lucia all fall under 0.05%. Dominica’s property and land tax is between 1% and 1.27%, however.
Only tax residents qualify for tax benefits. You have to spend at least 183 days in a Caribbean country to get local tax residency.
How Mirabello Consultancy Can Help with Your Retirement or Investment Plans in the Caribbean
Navigating the investment landscape in the Caribbean requires a thorough understanding of the financial, legal, and regulatory aspects unique to each country. Mirabello Consultancy provides expert guidance to help investors and retirees make informed decisions, whether they are looking for a second home, permanent residency, or a strategic financial move.
As an immigration consultant with years of experience helping investors gain citizenship in the Caribbean, Mirabello provides comprehensive assistance in securing a second passport through government-approved investment schemes in Antigua and Barbuda, Dominica, Grenada, St Kitts and Nevis, and St Lucia.
From luxury beachfront properties to affordable eco-friendly homes, Mirabello Consultancy assists in identifying high-value real estate opportunities aligned with your financial goals. The team of consultants helps investors understand and leverage tax benefits, including personal and corporate tax structures, VAT considerations, and offshore banking options.
Most importantly, their team of experts can share professional insights into the cost of living, healthcare, insurance, and property taxes, ensuring a seamless transition for individuals and families relocating to the Caribbean.
The Caribbean is an attractive option for investors and retirees looking for a combination of economic opportunity, lifestyle benefits, and financial incentives. While the cost of living varies across different islands, there are affordable options for housing, healthcare, and daily expenses, particularly in Dominica, Grenada, and St Lucia. High-net-worth individuals may find value in premium real estate markets in Antigua and Barbuda, St Kitts and Nevis, and the Bahamas.
In these countries, property investment can lead to citizenship and tax advantages. But purchasing the property is not the only cost you have to keep in mind. Understanding the nuances of living expenses, tax policies, and investment opportunities is essential before making a financial commitment.
FAQ
The cost of living depends on the island and lifestyle choices. For a modest lifestyle, expect to spend between $1,500 and $3,000 per month, excluding rent. In more expensive areas like the Bahamas or Cayman Islands, costs can be significantly higher.
Antigua and Barbuda, Barbados, Dominica, and Grenada all have a “level one” travel advisory, meaning you can exercise normal caution when visiting these countries.
Dominica, Grenada, and St Lucia are among the most affordable, with low rental costs and affordable food prices.
Dominica and Grenada offer some of the most affordable real estate options, with entry-level properties starting at around $100,000. These islands have lower property taxes and residency incentives, making them attractive for investors looking for budget-friendly opportunities.
