Retirement years refer to the opportunity to design a life that feels rich and meaningful, rather than constantly being caught up in the hustle and bustle of modern life. With this in mind, retirees are now turning their attention to the best places to retire in the Caribbean.
Why consider Caribbean countries to retire? The concept of island life gives a straightforward answer to this question. Retiring in the Caribbean offers a relaxed lifestyle, warm climate, natural beauty, and opportunities for well-being.
What to Discover in This Guide?
Why Consider Retiring in the Caribbean?
If you are considering retirement abroad, the Caribbean countries can be a dream destination. Here’s why:
1. Cost of living
Retirees typically rely on their passive income, including pensions, savings, rental income, and dividends. Therefore, they seek a comfortable life in which they can cover their basic living expenses and live comfortably.
However, sometimes their country of origin fails to do so. For instance, NCOA states that roughly 80% of American retirees are experiencing financial strain or remain vulnerable to economic instability as they age.
This economic instability leads retirees to search for a better spot where they can live without any financial hardship. At this point, Caribbean countries stand out with their low cost of living. While a retiree in the US has to spend $5,000 per month to cover his/her living expenses, a retiree in the Caribbean will approximately need $1,500 to $2,000 per month.
2. Citizenship By Investment Programs
Caribbean countries also stand out with their strategic citizenship by investment programs. Unlike Golden Visa programs in Europe, these programs help investors to gain citizenship by making a qualifying investment and undergoing the due diligence process. In the table below, you can see the minimum investment amounts for each program.
| Feature / Country | St. Kitts & Nevis | Antigua & Barbuda | Dominica | Grenada | St. Lucia | Vanuatu |
|---|---|---|---|---|---|---|
| Program Launch Year | 1984 | 2013 | 1993 | 2013 | 2015 | 2017 |
| Processing Time | 4–6 months | 6–9 months | 6–9 months | 9–12 months | 12–15 months | 1–2 months |
| Donation (min.) | $250,000 | $230,000 | $200,000 | $235,000 | $240,000 | $130,000 |
| Real Estate (min.) | $325,000 (7 yrs) | $300,000 (5 yrs) | $200,000 (3 yrs) | $270,000 (5 yrs) | $300,000 (5 yrs) | N/A |
3. Tax Advantages
Caribbean countries are known for being tax havens. Once you become a legal resident here, you do not have to undergo heavy tax burdens. Many nations in the region either have no personal income tax or offer very low rates. Thus, if you want to minimize your tax obligations, you can benefit from the tax incentives in Caribbean countries.
4. Tropical Climate
If you are looking for a tropical climate to live in, then go no further than the Caribbean countries to retire. Throughout the year, you can experience warm temperatures along with gentle trade winds. This encourages you to enjoy your golden years by joining outdoor activities.
You can take a long walk in the wide rainforests, or swim on the sunny beaches. Thus, you will have the chance to promote your health and well-being
5. Golden Beaches & Natural Beauty
The Caribbean is famous for its stunning golden and white sandy beaches, crystal-clear waters, and charming natural landscapes. Here, you can enjoy the serenity of mornings and picturesque sunsets as a retiree.
Beyond its beaches, you can also visit waterfalls and tropical forests. This will offer you a chance to explore and relax by bringing you into a higher level of consciousness.
6. Growing Expat Communities
When relocating to somewhere, it is quite natural to wonder: Will I find people like me? This is significant as you want to share a common ground with someone to exchange experiences or experience less culture shock.
According to the International Organization for Migration (IOM), by mid-2024, approximately 784,373 migrants reside across 21 countries and territories in the Caribbean, reflecting a 16% increase since 2020. This shows the growing presence of migrants and expatriates in the region.
10 Safest and Cheapest Places to Retire in the Caribbean Islands
Considering the top 6 considerations we have explained above, let’s see which Caribbean countries catch the attention of retirees.
1. Retiring in Costa Rica
Want happiness in your retirement years? Then, go no more. Costa Rica has been chosen as one of the happiest countries in the Happy Planet Index. Although Costa Rica is located in Central America, it has a Caribbean Coastline. That’s why it is also a popular retirement destination for Americans. According to SSA’s data, around 1,346 American retirees are receiving their benefits in Costa Rica.
The island life in Costa Rica provides expat retirees with many benefits. Initially cost of living is quite affordable. By spending a €792.7 per month, a single person can cover his/her basic life expenses without including rent, which is too low compared to any Western European countries, the UK, or the US.
Plus, only income earned in Costa Rica is subject to taxation. So, you will not have to pay tax on your pension as it is considered foreign-sourced income. As a retiree, you can also go for a long–term residency visa, which is called Pensionado, a type of retirement visa. To be eligible for it, you only need to show a monthly passive income of $1,000.
2. Retiring in St Kitts and Nevis
Ready to explore the concept of a twin island nation? St Kitts and Nevis stand out with its two distinct islands. The IOM states, as of the first half of 2024, Saint Kitts and Nevis had about 7,958 migrants, making up 17% of the total population. The migrants mostly come from Guyana, the US Virgin Islands, Montserrat, Antigua and Barbuda, and Trinidad and Tobago, respectively.
The safety of St Kitts and the low cost of living have made this place one of the best retirement destinations in the Caribbean. Considering the basic life expenses, you can expect to pay around €1,100 without rent. When it comes to tax benefits, St Kitts does not impose any income tax, capital gains tax, or inheritance tax. So, you do not have to worry about paying taxes on your worldwide income.
Besides, relocating to this Caricom island can be much easier with the St Kitts and Nevis citizenship by investment program. As one of the oldest and most reputable CBIs in the Caribbean, the program offers investors 4 options for real estate purchases or donations:
- Sustainable Island State Contribution (SISC): $250,000
- Public Benefit Option (BPO): $250,000
- Private Real Estate Investment: $325,000
- Approved Real Estate Investment Option: $325,000
The process requires all applicants to undergo due diligence to prove their financial resources, and it will probably take 4-6 months to complete. Once you get your citizenship status, you can get visa-free access or a visa on arrival in over 150 countries.
3. Retiring in Antigua and Barbuda
Looking for the best and beautiful beaches in the Caribbean? Antigua and Barbuda is notable for its “365 beaches,” which means one for each day. If you are looking for a spot far from a madding crowd, you can go to Fort James to witness its white sand beaches. If you want to experience some sea sports, you can visit Long Bay Beach or Jabberwock Beach for snorkelling or kiteboarding.
The Caribbean living here also has considerably low costs. By spending $1,100, excluding rent, you can cover your basic living expenses. So, at this point, you might also wonder about Antigua’s safety. According to Numbeo, it is a moderately safe country, scoring 48.90. The country also stands out with its favourable tax policies by imposing no income tax.
When it comes to its residency options, you can go for temporary long-term residence permits. On the other hand, you can think about applying for the Antigua Citizenship by Investment program. Within the framework of this program, you have these options:
- The National Development Fund: $230,000
- Real Estate Investment: $300,000
- Business Investment: $1,500,000 for a single application, $400,000 for a joint investment
- The University of the West Indies Fund: $260,000
You can complete the process within 6-9 months after you pass through your due diligence checks and submit the necessary documentation. Once you obtain your Antigua passport, you can benefit from visa-free or visa-on-arrival access to over 150 countries.
4. Retiring in St Lucia
Saint Lucia, on the other hand, is a paradise for retirees seeking natural beauty and tranquility. The country is home to the Twin volcanic peaks, Gros Piton and Petit Piton, which are a UNESCO World Heritage site and a symbol of the island. Besides, you can experience the beauty of lush rainforests and serene beaches.
Retirees can join in outdoor activities such as hiking, sailing, or even birdwatching. You can also witness the festival life here through events like the Jazz or the Flower Festival. Besides, the cost of living is quite affordable, with a monthly spending of $1,500 to $2,500. St. Lucia’s safety index is also quite moderate, requiring you to take only basic precautions.
However, to reside here for longer terms, you need to apply for a long-term residence permit. Accordingly, you can apply for St Lucia Citizenship by Investment. In this way, by making a qualifying contribution, you will have access to St Lucia citizenship. Here, the options are:
- Real Estate Investment: $300,000
- Enterprise Investment $3.5M (solo) or $6M (group)
- National Economic Fund: $240,000
- National Action Fund: $300,000
By making your contribution, you can complete this direct route to citizenship within 12-18 months.
5. Retiring in Grenada
Known as the Spice Isle, Grenada is one of the best Caribbean islands for retirees seeking a peaceful, tropical lifestyle along with large expat communities. There are many rainforests, volcanic beaches, and spice plantations, which offer a scenic environment.
You can relax on the stunning Grand Anse Beach or visit the waterfalls, such as the Seven Sisters or Annandale Falls. If you are a chocolate lover, you can visit the chocolate factory at Belmont Estate or the House of Chocolate. Apart from these, you can join hiking trails to see the Mona Monkeys.
Similar to many Caribbean countries, you can come across affordable living conditions and favorable tax incentives. Plus, it provides both public and private healthcare. You can benefit from them if you are a legal resident or citizen. However, it is mostly recommended for expats to have private insurance to avoid any extra fees.
To retire here, you need to get a long-term residence permit. For those looking for additional benefits, such as easier travel or eligibility for the US E-2 Visa, Grenada Citizenship by Investment is an option. Through this program, you can either purchase property or donate:
- Donation to the National Transformation Fund (NTF): $235,000
- Investment in Real Estate Approved by the Government:$350,000 for direct purchase or 270,000 for a joint purchase
6. Retiring in the Dominican Republic
If you are looking for a place to retire in the Caribbean on a budget, the Dominican Republic can give you what you are looking for. With a monthly budget of $860 or $1,500, you can cover your basic living expenses and live comfortably.
When compared to the US living expenses, which cost around $5,000 for a retiree for a month, Dominica is one of the cheapest Caribbean islands to live in. That’s why it is the most preferred destination for American retirees. Relying on the SSA’s 2024 data, it is stated to be around 5,283 retired people receive their benefits in Dominica.
Among the Caribbean nations, you can enjoy the slower pace of life through its rainforests, waterfalls, hot springs, and volcanic mountains, along with Dominica’s safety. These can offer you endless outdoor activities like hiking, birdwatching, and trekking. Plus, it offers affordable healthcare options in both public and private for its citizens or legal residents.
You can benefit from the Dominica Citizenship by Investment program as a retiree by making a qualifying contribution:
- Economic Diversification Fund: $200,000
- Pre-approved Real Estate: $200,000
By completing the process successfully within 6-9 months, you can benefit from the Dominican passport’s power, with visa-free access to places such as the European Union and the US.
7. Retiring in Vanuatu
Among other Caribbean destinations, Vanuatu welcomes retirees with its friendly locals. Plus, it captures attention with its active volcano, Mt Yasur. However, you should not give up exercising basic caution around this place due to the risk of natural disasters.
Expect to pay around $1,916.89 for a one-bedroom apartment in the city center and $4,000 for living expenses. Unlike other popular Caribbean destinations, it can be said that the cost of living is expensive. Plus, there is no well-developed infrastructure in basic healthcare due to its geographical location. Therefore, it is best to opt for private facilities and make sure your private insurance covers everything.
To reside in Vanuatu, you need a long-term visa. However, you can also go for Vanuatu Citizenship by Investment program by donating $130,000 to the Vanuatu Development Support Program.
8. Retiring in The Bahamas
Took place among the safest Caribbean islands, the Bahamas offer you the best part of the Caribbean Sea. It is located in located just off the coast of Florida. Thanks to its closeness to the US, it provides American retirees with easy access.
The capital city, Nassau, is home to beautiful beaches, delicious cuisine, and vibrant city life, thanks to its Festivals like Junjanooo. As a retiree, you can enjoy the benefits of natural life too by visiting its cities, such as Freeport on Grand Bahama or George Town in Exuma.
Additionally, by spending around $2,311 to $4,000, you can cover your life expenses for a month, which is ideal for many retirees. Apart from this, the healthcare facilities are well-improved compared to many Caribbean islands. If you obtain citizenship or residency, you can benefit from both public and private healthcare services.
9. Retiring in Barbados
Living in Barbados can offer retirees many benefits, including a laid-back island lifestyle, a high standard of living, and a strong sense of community. Plus, you can join many outdoor activities. For instance, you can swim with turtles at Carlisle Bay if you are a sea lover. On the other hand, you can visit Harrison’s Cave if you want to witness the history. Besides, you can consider joining tours that will show you the colonial history of the island.
What truly sets the Bahamas apart is its tax-friendly environment. The country has no personal income tax, capital gains tax, or inheritance tax. Plus, it has tax treaties with the United States, Canada, and the UK compared to the Cayman Islands and the British Virgin Islands.
Apart from these, you can benefit from low housing costs starting from $736.31 per month for a one-bedroom apartment in a city center. Along with this, Barbados has the best healthcare system in the Caribbean, with a high quality of public and private healthcare. To benefit from it, you need to receive a residency or citizenship status. Here, you can go to Barbados through a Special Entry and Residence Permit by investing at least $300,000.
10. Retiring in Belize
Belize is one of the best Caribbean countries to retire with its rich cultural heritage. If you enjoy history, you can explore Belize’s ancient Maya ceremonial sites. For a bit of adventure, you might float through jungle caves on a tube or zip-line above the rainforests.
If you love the ocean, you can explore the Belize Barrier Reef, the world’s second-largest. You might also enjoy Hol Chan Marine Reserve and Shark Ray Alley, where you can swim alongside stingrays, nurse sharks, turtles, and tropical fish.
In Belize, you can be subject to income tax with a flat rate of 25%. However, depending on your country of origin, you may be exempt from paying taxes on your worldwide income.
You can expect to pay around $2,820.2 for your living expenses per month. Plus, the country offers affordable or free healthcare at public facilities. However, you may face longer wait times for certain treatments. So, you can prefer private healthcare for fast processing. To benefit from the public healthcare, you can apply for the Qualified Retired Persons (QRP) Program if you are 40 or older and have a steady foreign income of at least $2,000 per month.
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Frequently Asked Questions on Caribbean Retirement
How much money do you need to retire in the Caribbean?
It depends on the island and lifestyle, but many retirees live comfortably on $2,000-$4,000 per month.
What is the best Caribbean island to retire to for US citizens?
The Bahamas, Belize, and Costa Rica are popular due to proximity, English language, and retiree-friendly programs.
Where is the most affordable place to retire in the Caribbean?
Dominica, Grenada, and Belize are known for lower living costs while still offering natural beauty and safety.
Which Caribbean country has the best healthcare system?
Barbados and Puerto Rico have strong healthcare services, including public and private options.
Which Caribbean island is most advanced?
The Bahamas and Barbados are considered the most developed, with reliable infrastructure and modern amenities.
Which Caribbean island is the easiest to move to?
Belize and St. Kitts & Nevis offer straightforward retiree residency programs, making relocation simpler.
