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Buying a Property in the Caribbean

Why buy in the Caribbean?

Updated July 2011

The answer to this question is simple: the Caribbean is synonymous with luxury. It is many people’s dream to holiday in these exquisite islands – to be able to buy your very own piece of such tropical paradise is often pure fantasy.

An amazing landscape, near-perfect weather and a laid-back lifestyle all help to entice buyers who are fortunate enough to be able afford to get on the Caribbean property ladder. And tax-free living, which many islands offer, is no small attraction either.

English is widely spoken, flights from the UK are frequent and political stability tends to be good. Tourist infrastructure, including golf courses and marinas, are good quality and mature – resulting in plenty of repeat business.

Ultimately, a home in the Caribbean is a lifestyle choice. Whether you intend to enjoy this lifestyle yourself, or plan to profit from others enjoying it, a property on one of these islands is the doorway to the playground of the rich and famous.

Popular property locations

The Caribbean is broken down into three main areas: the Bahamas and the Greater and the Lesser Antilles. Historically, islands such as St Lucia, Barbados and the Caymen Islands in the Lesser Antilles have been the most popular destinations to buy in – but this means that many buyers are now priced out of these markets. You do, however, get what you pay for, and as a result property here is still snapped up by those seeking a quality home.

Today, an increasing number of islands are emerging as a more affordable alternative to those established markets. Gated developments in the Dominican Republic for example provide the luxury expected of the Caribbean at a reasonable price. This however tends to be for a reason – crime is common on the island, making a home in a gated community perhaps the only type of property many Brits would feel comfortable buying.

Antigua has also witnessed somewhat of a property boom thanks to improved flights and the investment around Jolly Harbour on the West Coast. Like many of its counterparts, Antigua offers good golfing and yachting facilities for those after a sporting destination.

Legal issues

The legalities of each island differ enormously, so it is imperative that you seek advice from a local lawyer before committing to any purchase. In some islands, UK solicitors are not even allowed to practice, so this really is a case of seeking local knowledge.

If you are considering buying in Barbados, be aware that any non-resident will have to receive permission from the Central Bank of Barbados before they can proceed. In the British Virgin Islands and Anguilla, it may be necessary to apply for an Alien Landholders Licence. In the Caymans it is possible to purchase residency for a one-off fee. In Tobago, you will only need to acquire a Landholders Licence if you wish to buy more than five acres of land – it’s three acres in Dominica.

We’re sure you’re beginning to get the picture of how diverse the legal requirements can be, so again the advice here has to be to receive personal advice for your individual situation.

The buying process

Generally, when buying an off-plan property, you will be required to make stage payments. This will usually consist of an initial ten per cent deposit, but payments of the remainder of the balance will depend on the development in question. Even though you are purchasing a new-build home, your solicitor will still need to search for the Register of Title, so it is best to use an independent lawyer rather than one recommended by the developer.

If you are buying a resale property, you will need to acquire a solicitor as soon as a price has been agreed – just as you would in the UK. The good news is that generally, throughout the Caribbean, the red tape seems to be far less than we are used to, but the major difference is that you will be required to pay a ten per cent deposit on signing the purchase agreement. This money is then held in the vendor’s lawyer’s escrow account until you pay the balance on completion and it is all transferred to the seller. The buying process for a resale property should take around three months.

More pages

Page 1: Why buy in the Caribbean?
Page 2: Financing your property purchase
Page 3: Investment potential

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• Guide to the Dominican Republic

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