When someone speaks of the Caribbean, the first thing that comes to mind is a laid-back lifestyle. What about if you know that there is a potential real estate market here? According to Statista’s latest market report in 2024, the Caribbean real estate market value is expected to reach $2.69tn trillion by 2029. This number reveals a strategic investment opportunity lying here.
Today, many foreign real estate investors are looking for luxurious properties in the Caribbean, increasing the demand. In this guide, we will reveal everything you need to know and the best Caribbean islands to buy property in 2025.
What to Discover in This Guide?
Is it Worth Investing in the Caribbean Real Estate?
So, why should you make the Caribbean real estate investment? Well, several aspects make it unique for foreign property buyers. Let’s uncover them.
1. Caribbean Citizenship
Some Caribbean countries offer citizenship by investment programs. One of the eligible pathways to get Caribbean citizenship is to make a real estate investment. Considering this, it gives a huge opportunity for those who want global mobility and flexibility at the same time, with their fast-track processing times unlike Golden Visa countries.
Islands That Will Give You a Caribbean Passport If You Buy a House
Here, you will see the list of islands that offer a Caribbean passport if you purchase real estate.
- Antigua and Barbuda: $300,000
- St Kitts and Nevis: $325,000
- St Lucia: $300,000
- Grenada: $270,000
- Dominica: $200,000
2. Affordable Real Estate Market
The global housing market is experiencing significant changes, and property and rental prices are increasing day by day. So, finding a stable and cheapest real estate market seems like a faraway dream. However, there is still a chance for you to find affordable real estate prices in the Caribbean.
For instance, the Dominican Republic still welcomes foreign investors with affordable and cheap properties. You can purchase a property starting from $1,668 per square meter, which rises to $3,224.27 in the US, doubling it.
3. Luxury Caribbean Properties on Demand
After the pandemic, the Caribbean real estate market has realized a huge prospect: Luxury properties. With their natural beauty and favorable tax regimes, foreign investors have shown a huge interest in the luxurious properties. This created an opportunity for many developers and homeowners within this concept.
Accordingly, the investors are mostly those who want to settle a quiet life, and are tired of the 9-5 corporate life. In the meantime, people who want to retire in the Caribbean also tend to these properties. These international buyers are mostly from the UK, the US, Canada, and EU countries, according to Knight Frank Research’s report.
4. Favorable Tax Environment
In most of the Caribbean countries, there is no income tax, capital gains tax, or inheritance tax, making it a tax haven. Plus, you can enjoy low tax rates when it comes to stamp duty taxes or annual property taxes.
In most of the Caribbean islands, you can expect to pay around 2% to 10% of the sale price of your property for stamp duty taxes. Besides, you may need to pay annual property taxes, which are around 0.1% to 1%.
5. Diverse Real Estate Options
The Caribbean countries offer a diverse range of real estate options. The high-net-worth individuals mostly invest in luxury villas, beachfront properties, condos, and even private islands.
6. Rental Income Potential
If you do not want to live in the Caribbean full-time, you can rent your property too. You can earn 3% to %7 annual rental yields. The growth of tourism contributes to the Caribbean real estate development. Thanks to this, especially, the resorts and short-term rentals have a huge demand.
For instance, St Kitts and Nevis investment property has a potential around 4-7% yield. This means $500,000 village can $35,000 in a year, making it an attractive spot for many investors.
What to Consider Before Purchasing Real Estate in the Caribbean?
Now that we have a glimpse of the property market worth in the Caribbean, it is time to move on to what to consider before making your real estate investment:
- Make your calculation. How much money do you want to spend on Caribbean real estate? And wait for additional costs like legal fees, stamp duty taxes, or notary fees.
- Decide on the island you want to invest in. Evaluate each country, its potential benefits, tax regimes, legal requirements, and propensity to natural disasters. Then, make sure that it suits your interests and budget.
- Think about residency or citizenship pathways. Some countries can make you and your family direct citizens through real estate investing.
- Consider mortgage options for foreigners in your target country. Check if there are available opportunities.
- Before purchasing the property, always visit and see it in order not to come across any surprises. You can also work with real estate agents in the Caribbean.
- Lastly, if you do not plan to live in the Caribbean, you must think about property management.
Top 10 Caribbean Countries to Buy Property in 2025: Safest & Affordable
The Caribbean real estate market offers a lot of outstanding investment opportunities. Here you can see the top 10 Caribbean Islands to buy property in 2025.
1. St Kitts and Nevis
Among the best Caribbean islands to invest in real estate, St Kitts and Nevis stands out with its potential for capital preservation and property appreciation, along with tax benefits. Property prices start from €51,000 to €4,550,000. However, the annual property tax value depends on the property’s location.
| Property Type | Building / Land | St. Kitts | Nevis |
|---|---|---|---|
| Accommodation | Building | 0.002 | 0.003 |
| Land | 0.002 | 0.002 | |
| Commercial | Building | 0.003 | 0.003 |
| Land | 0.003 | 0.002 | |
| Residential | Building | 0.002 | 0.00156 |
| Land | 0.002 | 0.0075 |
St Kitts and Nevis also provides a citizenship pathway via real estate investment. As one of the most reliable and fast-track programs in the Caribbean, the St Kitts and Nevis citizenship program provides a path for real estate investment via a condominium purchase or share in government-approved private properties at $325,000.
Other investment options include buying a single-family home in an approved private home for at least $600,000. In both, you must hold your investment for at least 7 years.
Once you choose your path and make your purchase after passing through due diligence checks, you can get your St Kitts passport in 4 to 6 months. Then, you can enjoy the global mobility and laid-back island life.
2. Dominica
Dominica is known for being the “Nature Island of the Caribbean”. That’s why it attracts thousands of visitors each year; tourism makes a profound contribution to its GDP. This points out a huge potential for property appreciation and rental income.
The Dominican government also gives importance to eco-friendly and sustainable tourism to keep up with the needs of the evolving world, contributing to the development of sustainable properties.
Rental Income Taxes:
| Taxable Income (XCD) | Tax Rate |
|---|---|
| Up to EC$20,000 | 15% |
| EC$20,000 to EC$50,000 | 25% |
| Over EC$50,000 | 35% |
Dominica’s citizenship by investment program offers a unique opportunity to benefit from this growing real estate market. You can buy a second passport in exchange for a property purchase. The available option is to purchase a property from Government-approved projects, which are valued at a minimum of $200,000, and keep it for 3 years.
3. St Lucia
In St Lucia, foreign ownership is pretty straightforward; it gives a potential market for rental properties and vacation homes. The annual real estate tax rate is 0.25%. You may also be required to pay stamp duty tax if you sell your property. If you are a non-resident, you need to pay around 10% stamp duty tax. For residents, the tax rates are stated below:
| Property Value (XCD) | Tax Rate |
|---|---|
| First XCD 50,000 | Exempt |
| XCD 50,001 – XCD 75,000 | 2.5% |
| XCD 75,001 – XCD 150,000 | 3.5% |
| Over XCD 150,000 | 5% |
Buying a property can offer many benefits, including a path to citizenship. Unlike most of the Golden Visa programs, you can indeed invest in a property and be granted your St Lucia citizenship.
The available investment options include making $300,000 investment in either high-end resorts and hotels or high-end boutique houses. You must keep your investment for 5 years. If you are looking for a second home among the Caribbean Islands, you can obtain your citizenship within 12-15 months by purchasing a property.
However, the property market here is mostly prone to fluctuations, which can easily be affected by global economic conditions and natural disasters.
4. Grenada
Grenada’s property market is a promising hub for many foreign buyers. The average home value is around $130,575, with an 8.9% rise since 2024. Therefore, it can be analyzed that the real estate market here offers a potential for property appreciation and rental income generation possibilities.
When it comes to property taxes in Grenada, you can expect to pay 5% of the sales price if you transfer the property as a citizen, 15% for non-residents. Additionally, you need to get an “Alien Landholding License Fee” if you are a non-citizen purchasing property in Grenada, which is around 10% of the total property price.
As one of the best Caribbean islands to invest in real estate, Grenada offers a Grenadian passport by investment via real estate, but you must keep it for 5 years. These are:
- $350,000 investment in qualifying properties, including an apartment, villa, or resort unit.
- $270,000 investment in a stake in a real estate development project
You can also look for these abovementioned options by checking out the available projects approved by the government.
5. Antigua and Barbuda
Antigua and Barbuda is one of the best Caribbean islands to make foreign investment. You can either purchase a property for property appreciation or rental income around 4%-8%, or get an Antigua passport via investment and benefit from visa-free access to 150 countries.
You do not have to pay taxes on your foreign income, as Antigua and Barbuda does not have personal income tax, capital gains tax, or inheritance tax.
However, the country requires annual property taxes of around 0.1% to 0.5% of the property’s market value. Similarly, if you are a non-resident, you must purchase a Non-Citizen Landholding Licence Fee, which accounts for 5% of the property value. Plus, you have to pay rental income taxes if you rent your house. When it comes to stamp duty, you must pay around 7.5% as a seller and 2.5% as a buyer.
You can also benefit from Antigua and Barbuda’s real estate investment program and grant citizenship. According to this, to get an Antigua passport, you must invest $300,000 in an approved real estate project and hold it for at least 5 years.
6. The US Virgin Islands
As one of the US territories in the Caribbean, the US Virgin Islands does not require a passport for the Caribbean for Americans. Therefore, it is one of the best Caribbean islands to live in for US citizens.
The real estate market in the US Virgin Islands also provides investors with a dynamic landscape with many opportunities lying here. The average housing prices start from $150,000 to $400,000. The rising opportunities arrive in specific locations, including St John, St. Thomas, and St. Croix.
You can expect to pay stamp duty taxes highlighted below:
- 2% for properties up to $350,000.
- 2.5% for properties valued from $350,001 to $1 million.
- 3% for properties valued from $1,000,001 to $5 million.
- 3.5% for properties valued over $5 million.
Note that you are also required to pay annual property taxes.
7. Barbados
In Barbados, the real estate market shows steady growth. Property sales have risen by around 34% compared to last year. For example, luxury properties have seen price increases of 3%-7%. There is also an increasing demand for rental properties of around 10% due to the tourism growth. Therefore, the market looks active and promising for both buyers and investors.
There are also property land taxes:
- 0.0% on land valued up to $150,000
- 0.1% on the excess of the improved value greater than $150,000 but not exceeding $450,000
- 0.7% on the excess of the improved value greater than $450,000 but not exceeding $850,000
- 1.0% on the excess of the improved value greater than $850,0
The tax year runs from April 1 to March 31 of the following year. If you miss the date, you might incur across 5% penalty and 1% interest per month.
8. Cayman Islands
Considered one of the safest Caribbean Islands, the Cayman Islands offers a relatively stable real estate market. Accordingly, the Residential Property Price Index (RPPI) recorded only modest short-term growth of about 0.4% year-over-year in Q2 2025.
It is also an international tax haven. There is no annual property tax, no capital gains tax, and no inheritance tax. This makes it highly attractive to foreign investors and high-net-worth individuals seeking long-term asset protection and tax efficiency.
That’s why the real estate market protects its measured stability, while contributing richness of this Caribbean country. Instead of ongoing taxes, foreign buyers pay a one-time stamp duty, typically 7.5% of the property’s market value, at the time of purchase.
9. Jamaica
The residential real estate market in Jamaica is valued at around US $74.21 billion in 2025. It is one of the more active property markets in the Caribbean. Growth is steady, not explosive, but consistent. The market is expected to expand at a compound annual growth rate of 2.46% from 2025 to 2029. By the end of this period, the total market volume is projected to reach US$81.80 billion.
Several factors support this growth. Jamaica’s expanding middle class and continued foreign investment are key drivers. Similar to many Caribbean islands, its stable tourism sector and improving infrastructure also help sustain real estate demand.
10. Dominican Republic
The Dominican Republic offers one of the most affordable Caribbean real estate options. Additionally, if you want to live here, you must be aware that it is the cheapest Caribbean country to live in 2025.
The overall real estate market is projected to reach US$750.99 billion in 2025, with the residential segment accounting for about US$603.96 billion. Between 2025 and 2029, the market is expected to grow at an annual rate of 2.75%. Therefore, the property sector is developing here, particularly in the luxury beachfront market.
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How to Buy Property in the Caribbean?
Now that we have a glimpse of the real estate market in the Caribbean, it is time to move on with the property purchase process step by step.
Step 1: Choose the Country and Location
As you know, there are 26 countries in the Caribbean. Each one of them has a diverse environment when it comes to real estate. Each has different laws, costs, and investment potential. Therefore, the first thing you need to do is to choose whether you want a resort area, city property, or residential community. In this process, you must consider factors like taxes, safety, lifestyle, and local regulations.
Step 2: Understand Local Laws and Taxes
We highlighted that each country has its own rules for foreign property ownership. So, you must understand the local laws and taxes for each country in terms of:
- Property ownership rights for foreigners
- Annual property taxes and fees
- Stamp duty or transfer taxes
- Visa or residency requirements
Step 3: Set a Budget and Secure Financing
Determine how much you can spend, including:
- Property price
- Closing costs
- Legal fees
- Taxes and ongoing maintenance
Some Caribbean countries allow mortgages for foreigners. However, you can pay higher interest rates than in your home country. During this process, you can choose cash purchases to simplify the process.
Step 4: Hire Local Experts
If you do not know the country or the market here well, you can work with trusted local professionals. Thus, you can comply with local laws and stay away from the common pitfalls:
- Real estate agent familiar with foreign buyers
- Attorney or notary for legal contracts
- Surveyor to check property boundaries
- Accountant for tax guidance
Step 5: Make an Offer and Conduct Due Diligence
If you have completed the previous steps and found your property, the next step that comes is making an offer:
- Make a written offer to buy the property.
- Check the property’s ownership to make sure no one else owes money on it.
- Confirm rules and permits to make sure the property can be used as you want.
- Have the property inspected to check for problems, if needed.
Step 6: Closing the Deal
To close the deal, you first sign the purchase agreement and pay a deposit, usually 5–10% of the property price. Next, you complete the transfer of ownership with a notary or attorney and pay any stamp duty, transfer taxes, and other fees.
Finally, you need to register the property in your name to make it official.
Step 7: Post-Purchase Considerations
After buying the property in the Caribbean, you should set up property management if you plan to rent it out or live abroad. You also need to pay annual property taxes and maintenance fees. If the property is an investment, make sure you understand local rental rules and regulations.
Frequently Asked Questions on the Caribbean Real Estate
What is the best Caribbean island to buy property?
It depends on your goals. For luxury and stability, the Cayman Islands are popular among the best Caribbean islands to buy property. For affordability and growth, the Dominican Republic is a top choice.
What is the cheapest Caribbean island to buy property on?
The Dominican Republic is generally the most affordable Caribbean Island to buy property.
Can a US citizen buy a house in the Caribbean?
Yes, US citizens can buy property in many Caribbean countries, though some may require additional permits or fees.
What Caribbean islands give you a passport if you buy a house?
You can obtain citizenship in Antigua and Barbuda, Grenada, St. Kitts and Nevis, St. Lucia, and Dominica through real estate investments.
