These Caribbean Islands Have Zero Taxes
Many dream of spending the winter months on a peaceful and sunny beach in the Caribbean. But what are the options for making a move to the Caribbean? There are an abundance of tax haven countries to choose from in The Caribbean. Many of the British protectorates never had the need to introduce income taxes. The Cayman Islands is one of the few countries in the world that doesn’t even have property tax.
Move to The Caribbean: Tax Havens of the Caribbean
The Bahamas
The Bahamas is a popular destination for expats who want to move to the Caribbean and enjoy a tropical lifestyle with minimal taxes. The country consists of over 700 islands and cays in the Atlantic Ocean, offering stunning beaches, coral reefs and diverse wildlife. The weather is warm and sunny most of the year, with occasional hurricanes during the summer and fall.
The Bahamas has no income tax, capital gains tax, corporate tax or estate tax, making it attractive for investors and entrepreneurs. However, there is a payroll tax that funds the national health insurance system. To move to The Bahamas, you need to apply for a visa and residence permit, which can be based on employment, investment or retirement. Living in The Bahamas can be expensive due to the high cost of imported goods and services.
The Cayman Islands
The Cayman Islands are a British overseas territory located in the Caribbean Sea, south of Cuba. They consist of three islands: Grand Cayman, Little Cayman and Cayman Brac. The islands enjoy a tropical climate with warm and sunny weather all year round. The average temperature is 84°F (29°C) and the rainfall is low. The islands have no income tax, corporate tax or capital gains tax, making them attractive for investors and expatriates.
The islands also offer a high quality of life with beautiful beaches, snorkeling and diving opportunities, stable currency and friendly people . To move to the Cayman Islands, one needs to obtain a work permit from the Department of Immigration or invest in a property or business that qualifies for permanent residency.
Simplified Procedures to Move to The Cayman Islands
Anguilla
Anguilla is a small Caribbean island that offers a relaxed and laid-back lifestyle for its residents. It has a warm and sunny climate year-round, with an average temperature of 27°C (81°F). Anguilla has no income tax, capital gains tax, or inheritance tax, making it an attractive destination for investors and retirees. However, it does have a goods and services tax (GST) of 13% that applies to most transactions.
Anguilla is located east of Puerto Rico and north of Saint Martin, and can be reached by plane from Miami or by boat from other nearby islands. To move to Anguilla, one option is to invest at least USD$2.5 million in a local business and apply for permanent residency. Another option is to obtain a temporary residence permit that allows staying up to 12 months at a time.
Antigua and Barbuda
Antigua and Barbuda is a twin-island nation in the Caribbean Sea, known for its sandy beaches, coral reefs and tropical climate. The weather is warm and sunny all year round, with average temperatures ranging from 25°C to 30°C. The islands have a low tax regime, with no income tax, capital gains tax or inheritance tax for residents. The lifestyle is relaxed and laid-back, with plenty of outdoor activities, cultural events and nightlife options to enjoy. Antigua and Barbuda is also a popular destination for yachting and sailing enthusiasts.
To move to Antigua and Barbuda as an expat, you have several options. One of them is to apply for the Citizenship by Investment Program, which grants you an Antiguan passport in exchange for an economic investment of at least $100,000 in a government fund or $400,000 in a real estate project. Another option is to obtain a residency permit by showing proof of income or savings of at least $100,000 per year. You can also retire in Antigua and Barbuda if you are over 50 years old and have a pension or annuity of at least $50,000 per year.
St Barts
Saint Barthelemy, also known as St Barts or St Barth, is a French overseas territory in the Caribbean Sea. It is a popular destination for tourists and expats who enjoy its sunny weather, sandy beaches, chic lifestyle and low taxes. The island has a tropical climate with average temperatures around 27°C (81°F) year-round and occasional showers. There are no property taxes or income taxes on the island , but there is a one-time transfer tax of 5% when buying real estate .
The cost of living is high compared to other Caribbean islands, especially for food and drinks. To move to St Barts, you need a valid passport and a visa if you are not from the European Union or certain other countries. You also need to show proof of sufficient funds, health insurance and accommodation. You can apply for a long-stay visa at the French consulate in your country of origin before traveling to St Barts.
Stay on St Barts for 5 Years and Get an EU Passport
British Virgin Islands
The British Virgin Islands (BVI) are a group of about 60 islands and cays in the Eastern Caribbean, near Puerto Rico and the US Virgin Islands. They are a British Overseas Territory with a stable economy and a high standard of living. The BVI are known for their beautiful beaches, clear waters and excellent sailing opportunities. The climate is tropical, with average temperatures ranging from 24°C to 32°C throughout the year.
The BVI have low taxes, no income tax and no capital gains tax, making them attractive for investors and business owners. However, living costs are high and housing is limited. To move to the BVI, you need a valid passport, a work permit or residency permit, health insurance and proof of funds .
Conclusion
A move to the Caribbean may not be for everybody. It’s certainly for those who prefer a more peaceful and quiet lifestyle. However with the tax benefits available and the year round sunshine many may consider them as an option for part time residency and for tax residency.
