With the Caribbean’s gorgeous, secluded beaches and low-stress environment, the cheapest Caribbean island to live on is ideal for Americans and other foreigners looking to lower their monthly expenses in a tropical paradise with a rich culture. This detailed guide compares the options for Caribbean islands that offer an affordable lifestyle for expats.
The Cheapest Caribbean Islands to Live On
Suppose you’ve experienced the best cheap Caribbean vacations and plan to retire in the Caribbean; you’ll have other factors to consider when searching for the cheapest Caribbean islands to live on.
1. Dominica
Dominica’s living cost is low compared to the United States or Europe. Whether leasing rental apartments or buying property, Dominica’s offers the cheapest Caribbean real estate prices. Foreigners can purchase property that offers views of the Caribbean Sea for as little as $400,000. The tax benefits of Dominica real estate also include no annual property taxes for real estate outside Canefield and Roseau.
Dominica provides the cheapest option for people to move to the Caribbean permanently. Foreign nationals and up to three dependents can obtain citizenship for a minimum investment of $200,000 through a non-refundable contribution to the country’s government fund.
2. Dominican Republic
The Dominican Republic is a favored destination among Americans seeking cheap Caribbean destinations to relocate to and save money. As the cheapest place to live in the Caribbean, the tropical haven offers an affordable cost of living compared to the US, EU, and other islands in the Caribbean region. Housing, groceries, transportation and restaurant prices are relatively inexpensive and much lower than in the United States.
Expats can purchase low-cost fresh produce from local markets like Mercado Modelo. Public transportation, like “carros públicos” (shared taxis) and buses, is both accessible and affordable. However, due to high import taxes and fuel prices, vehicle ownership tends to be more expensive.
Utility costs are also reasonable, with an average monthly cost of basic utilities at $60. On average, expats can rent a centrally located one-bedroom apartment for as little as $450 and the cost to purchase real estate is one of the lowest in the Caribbean.
3. St Lucia
St Lucia is one of the cheapest Caribbean islands on which to live a laid-back lifestyle. The cost of living in St Lucia is lower than in many other Caribbean countries, the United States, and Europe. Not only does St Lucia offer the most bang for your buck, but it provides residents with a high quality of life in a vibrant culture.
Renting a one-bedroom apartment in Castries’s city center will cost around $510 per month. In comparison, renting a one-bedroom apartment outside the city center will cost around $370 per month. Monthly expenses for utilities are almost half the price of the United States with an average cost of $110 versus $205 in the USA.
Take a look at our Caribbean Citizenship by Investment Comparison Guide
4. Antigua and Barbuda
Renowned for its white sand beaches, tropical weather, and relaxed lifestyle, Antigua and Barbuda is a popular Caribbean getaway destination with inexpensive activities. The country offers all modern conveniences to people and is around 20 percent cheaper than the United States and the United Kingdom.
While there are more affordable Caribbean countries with beautiful beaches and lush landscapes, monthly expenditure for a single person are just $1,100, excluding rent. For a family of four, living in Antigua and Barbuda, monthly expenses are around $3,900. If you’re a large family and looking to move to a tropical paradise, the Antigua and Barbuda citizenship by investment program allows families of six or more to obtain Caribbean citizenship with a $260,000 non-refundable contribution to the University of the West Indies Fund.
5. Grenada
Grenada is one of the cheapest islands to live on in the Caribbean. Compared to the US and other Caribbean islands, the cost of living in Grenada is notably lower, be it education, real estate, groceries, or restaurants. In Grenada, a meal in a local and inexpensive restaurant will cost you around $7.40. A three-course meal in a mid-size restaurant will cost around $80 for two people.
You need to pay around $750 per month for a one-bedroom apartment in the city center of the capital city. However, it will cost you around $400 outside the center. To buy Grenada real estate, it will cost $160,000 to $7 million, depending on the property.
Foreign residents can enjoy free outdoor adventures, including exploring national parks like Levera National Park, which has no admission fee.
6. St Kitts and Nevis
St Kitts and Nevis’s reasonable housing, transportation, and utility costs make it one of the Caribbean’s most affordable islands to live on. The monthly rent for a one-bedroom apartment outside the city center costs $390 on average, compared to $1,430 in the United States. While groceries are more expensive than in many Caribbean countries, many locally produced products are affordable, allowing expats to maintain an affordable lifestyle.
The system for St Kitts taxes does not impose income taxes, lowering the overall tax burden for residents. Foreigners can combine the cost of buying a home with obtaining permanent residency through the St Kitts and Nevis citizenship by investment program, which allows foreign nationals to obtain Caribbean citizenship by purchasing a private home valued at least $600,000.
Tips for Moving and Living in the Caribbean
Compare the cost of living: The cost of each Caribbean island varies significantly, and how cost-effective Caribbean islands are varies from one person to another. Islands like the Dominican Republic and Grenada are known for their affordable housing, utilities, and daily expenses. In contrast, some expats prioritize low-tax living in St Kitts and Nevis and Antigua and Barbuda.- Consider residency options: Several Caribbean nations, including Grenada, Dominica, and Saint Lucia, offer Caribbean citizenship by investment programs that attract foreign capital by allowing foreigners to obtain citizenship and permanent residency by investing.
Evaluate housing expenses: Renting in the Caribbean is much more affordable than in the United States. The best Caribbean islands to buy property in are also worthy options, with houses available for as little as $100,000. Consider buying a home outside major tourist areas and city centers for better prices. - Factor in healthcare charges: Healthcare quality varies across the Caribbean region. Some have affordable public healthcare facilities, while others rely on private hospitals. Consider international health insurance, as many Caribbean islands, especially smaller ones, have limited medical services.
- Connect with the expat community: The best Caribbean islands to retire and live a leisurely paced daily life have thriving expat communities. Joining local forums, Facebook groups, or social initiatives provides valuable insights, support, and tips to live a comfortable island life while building friendships.
- Understand Caribbean taxes: Some Caribbean taxes, like those of St Kitts and Nevis, Antigua and Barbuda, and the Cayman Islands, offer tax-friendly environments with no personal income tax, inheritance, capital gains, or wealth. Consider using tax credits and exemption forms to lower your annual tax obligations.
Compare the cost of living: The cost of each Caribbean island varies significantly, and how cost-effective Caribbean islands are varies from one person to another. Islands like the Dominican Republic and Grenada are known for their affordable housing, utilities, and daily expenses. In contrast, some expats prioritize low-tax living in St Kitts and Nevis and Antigua and Barbuda.Discover Why You Should Invest in the Caribbean
Comparing the Cheapest Caribbean Islands to Live on
The prices below are based on data from Numbeo.
Country | Monthly Rent (One-Bedroom Apartment | Basic Utilities (Monthly) | Groceries (Milk, Bread, Rice, Eggs) | International Primary School (Annually) | One-way Ticket (Local Transport) |
Dominica | $300 | $139 | $14 | $3,330 | $0.93 |
Dominican Republic | $340 | $60 | $5 | $5,440 | $0.61 |
Grenada | $470 | $227 | $12 | $2,740 | $0.93 |
Antigua and Barbuda | $1,630 | $290 | $15 | $3,700 | $1.39 |
St Lucia | $440 | $110 | $9 | $8,510 | $1.11 |
St Kitts and Nevis | $860 | $96 | $16 | $3,520 | $1.85 |
Frequently Asked Questions about the Cheapest Caribbean Islands to Relocate to
What is the most affordable Caribbean island to live on?
According to most data, the most affordable Caribbean island nation to live in is the Dominican Republic, which offers the lowest cost of living in the Caribbean.
What is the best Caribbean island for the money?
The best Caribbean island for the money depends on your circumstances and requirements. If you are more budget-conscious, you may prefer to live somewhere like the Dominican Republic, Dominica, or Jamaica. If you want a more luxurious lifestyle, you may want to live somewhere like the Bahamas or Barbados. The ABC Islands (Aruba, Bonaire, and Curacao) in the southern Caribbean are popular among families due to their free activities and comprehensive access to pristine beaches.
What is the cheapest Caribbean island to buy a house on?
Dominica is the Cheapest Caribbean island to buy a house. Dominica realtors like Blue Sky Realtors list two-bedroom Caribbean home with sea views from $170,000.
Is Antigua or Aruba more expensive?
Aruba tends to have a slightly higher cost of living and tourism expenses than Antigua. Aruba’s popularity as a tourist destination reflects in the higher prices overall for accommodations, dining out, and leisure activities.
What is the cheapest month to go to the Caribbean?
If you want to visit the Caribbean on a budget, May, June, and November are good months for cheap Caribbean vacations. These months are outside the high season, allowing visitors to access cheaper rates as well as avoid the mass tourism seen in busier months.
What Caribbean country is the cheapest to stay in?
The least expensive Caribbean islands for a budget-friendly vacation are:
- The Dominican Republic
- Jamaica
- The Bahamas
- Grenada
- The US Virgin Islands
- Trinidad and Tobago
- Martinique
- St Lucia
What is the most expensive Caribbean island to live on?
St Barthélemy (St Barth) is widely regarded as the priciest Caribbean island to live on, earning the nickname “Billionaires Island” for its upscale real estate and lavish lifestyle.
What is the cheapest Caribbean island citizenship?
Of the five Caribbean countries offering citizenship by investment programs, the cheapest is Dominica’s. The Dominica citizenship by investment program starts with a minimum investment of $200,000.
What is the cheapest and safest Caribbean island to live on?
While the Dominican Republic is the cheapest island in the Caribbean to live with a family or as a solo expat, Dominica is the cheapest when comparing the safest and most affordable Caribbean islands to live on.
