From the calming sounds of the sea to the awe-inspiring beauty of Mother Nature’s untainted creations, island nations have it all.
If you’re like most people, living on a peaceful island may sound like an expensive vacation that you can only experience in a dream.
But believe it or not, that dream can become a reality. With Caribbean citizenship by investment, you can enjoy the perks of having a home closer to nature and have an opportunity to grow your wealth through real estate investment.
Whether you’ve decided to relocate elsewhere, the Caribbean should be one of the first places to consider for your dream island home.
4 Reasons to Build Your Dream Island Home in the Caribbean
The Caribbean is one of the most famous tourist destinations in the world. But while this is a well-known fact, some people are still unaware that the region can also be a great place to call home.
If you’re planning to build your dream island home, below are the four crucial reasons the Caribbean should be your first choice:
Tourism is and has always been the bread and butter of the Caribbean nations, and this is all thanks to the region’s paradise-like locations.
Paradise is often painted as a place with azure waters, lush foliage, and pleasant weather. If this is the same as your definition, you can consider the Caribbean as paradise.
Many island nations under the jurisdiction of the Caribbean are known for their beaches and natural attractions of unparalleled beauty. This and the colorful culture and diverse population make the Caribbean a place worth considering as your second home.
Although it may not be the primary reason you’re buying in the Caribbean, one of the major perks you get from investing in a real estate property is international mobility.
With Caribbean investment properties, you can have a home to live in at a beautiful place while also enjoying easy access to many other countries and territories around the world.
Take the island of Antigua, for instance. Located in the Leeward Islands, the bigger of the twin-islands of the nation of Antigua and Barbuda is near Europe and several North American countries. With its strategic location, Antigua is a suitable place to stay for both business and leisure.
It also has close ties to other countries and is a member of both the United Nations and the British Commonwealth. Because of this, a passport from this country grants you access to over 100 countries worldwide without a visa.
As far as money is concerned, Caribbean citizenship offers more value than others because of the tax benefits you can enjoy.
As an economic citizen, you can save a lot on tax exemptions from wealth, global income, inheritance, and gift taxes. This is true for most of the islands in the region, especially popular tourist destinations like Antigua, Grenada, Dominica, St. Kitts and Nevis, and many others.
Potential for rental investment
Besides freeing yourself from some taxes, another way to get the most value from Caribbean real estate is by using it as a rental investment. With the region being quite famous among tourists, it’s safe to say that you are likely to fill your house with renters all-year-round.
On top of that, people are more than willing to pay a reasonable sum of money for a beachfront villa, especially when they are on holiday. The Caribbean is quite popular among couples, too, with the region once deemed as the top honeymoon destination by a Luxurious Magazine report.
By considering this, you can make the most of your real estate investment not just from soaring property values but also from the steady rental income you can get from it.
4 Things to Consider When Investing in Real Estate in the Caribbean
There are plenty of considerations you need to consider when buying a property for investment anywhere, but these four are the most crucial when it comes to the Caribbean:
Before you decide to invest in real estate, you should first determine whether you are eligible.
In some countries like St. Lucia, you will be required to be in the island to sign the conveyance documents necessary for the property purchase.
In Jamaica, the process won’t begin unless you have your own unique taxpayer registration number, which you can get from the Tax Administration Department. Meanwhile, other island nations would require you to accomplish other mandatory requirements before you can buy a property.
When buying a property, people usually have two primary purposes: for residence and for rental.
For the former, you can choose to live there permanently or use it as a vacation home for when you’re in the country. The latter comes with different rent modes you can choose from, such as long-term lease and vacation rental. All this is crucial in determining what kind of property you must invest in.
Living in the Caribbean is most recommended, but if that doesn’t fit your circumstances, you can always use the property as a stable source of a second income. If this is the case, you should buy real estate near amenities like restaurants, shops, beaches, and offer facilities that make your property more luxurious.
Whether you choose to stay in your Caribbean home permanently is up to you. However, it is still wise to think about the potential for long-term profit from the property you buy.
Besides the rent, the value of your real estate property matters when choosing where you must buy into.
In the Caribbean, you can expect properties to retain their value or appreciate because the islands are well-known tourist destinations. Plus, such places are geographically limited because only a few villas can be built near the best beaches or mountains.
Rental income potential
Besides value appreciation, island properties also have a high potential to become a stable source of rental income.
Since the Caribbean is popular among tourists, you have a better chance of having a steady income source because of the continuous stream of guests for vacation rentals and long-term leases.
Just don’t forget to crunch the numbers before you decide. Maintenance, utilities, and other expenses you incur on top of the actual price of the real estate can significantly affect your potential profit. If you’re a passive investor, you might even need help from property management experts.
Fulfill Your Dream to Live on an Island
Kal Kennard is a Partner at Citizens International, a white-glove specialist firm offering private client services necessary for citizenship, residency, and investment into the Caribbean, North America, and Europe. Based in the Caribbean for the past 15 years, she is an experienced consultant who works directly with many professional partners and advises clients worldwide.