Why should I invest in the Caribbean? It’s a query gaining traction among global investors, as Caribbean islands present compelling opportunities for foreign investment. Most Caribbean countries boast an outstanding track record of economic and political stability, openness to international trade, and the ability to operate businesses at lower costs.
The Caribbean’s strategic location provides the perfect gateway to the North American market, with daily direct flights to Canada, the United States, and Europe.
Keep reading as we list 11 reasons you should invest in the Caribbean.
1. Favorable Taxes
Caribbean governments, including those of Antigua and Barbuda, the Cayman Islands, and St Kitts and Nevis, offer favorable tax environments for foreign investors. Investors can benefit from no personal income tax on territorial or worldwide income, in addition to no capital gains, inheritance, or wealth taxes.
These tax incentives ensure that foreigners investing in a Caribbean tax haven reduce their overall tax burden while contributing to the country’s economic development.
2. Citizenship by Investment
Beyond financial gains and incentives, investors in the Caribbean can explore the added benefits of Caribbean citizenship through investment programs. Five Caribbean countries provide the opportunity for foreign investors to gain citizenship through economic contributions in a range of options, including:
- Contributing to national development funds
- Purchasing Caribbean real estate
- Establishing businesses
Dominica, Antigua and Barbuda, Grenada, St Kitts and Nevis, and St Lucia each offer a citizenship investment program. Investors can contribute to the country’s economic growth, earn financial returns on their investments, and gain dual citizenship and a second passport for themselves and their family members.
Take a look at our Guide to Buying Property in the Caribbean
3. Ideal Location
The Caribbean has the ideal location for trading with some of the world’s largest markets. Located in the center of the Americas, the Caribbean borders, South America, Central America, and North America, positioning it as a strategic hub for international trade. It also serves for strategic transhipment between the American and European markets.
Most Caribbean islands, such as Jamaica, St Kitts and Nevis, Barbados, and Grenada, have international airports that provide daily direct flights to the US, Canada, the UK, several EU countries, South America, and other countries in the region. World-renowned regional ports also have advanced infrastructure to transport raw materials and industrial equipment.
4. Openness to Trade
As per the most recent study conducted by the World Bank Group, numerous Caribbean nations enjoy privileged access to some of the world’s largest markets. Regional free trade agreements include:
- CARIFORUM-EU Economic Partnership Agreement: Grants preferential access to European markets
- Caribbean-Canada Trade Agreement (CARIBCAN)
- Caribbean Basin Initiative: Provides beneficiary Caribbean islands with duty-free trade for most US products
- Dominican Republic-Central America FTA (CAFTA-DR): Facilitates increased trade and investment among five Latin American countries, the Dominican Republic and the United States.
- CARICOM: Enables trade with 15 Caribbean member states at preferential rates
- Haitian Hemispheric Opportunity through Partnership Encouragement (HOPE)/Haiti Economic Lift Program (HELP): Grants access to the US market
5. Economic and Political Stability
Most Caribbean countries have established democratic governance structures with regular elections, strong institutions, and systems of checks and balances. Many large corporations and high-net-worth individuals see the Caribbean as a secure location to protect their wealth. Caribbean countries like the Cayman Islands and St Kitts and Nevis offer favorable tax regimes and financial services for those seeking to safeguard their assets.
In addition to stable democracies and thriving local industries, regional free trade agreements establish peace and co-operation in the Caribbean region, offering a secure location to conduct business and raise families.
6. Modern Infrastructure
Many perceive the Caribbean as island nations that lack infrastructure, but the Caribbean offers a constant, affordable electricity and water supply and amenities, allowing those who invest in the Caribbean to thrive.
Broadband internet access is widely available across many countries in the region. An increasing number of islands, including Trinidad and Tobago and the Dominican Republic, now have 5G internet access.
If necessary, natural gas supplies are easily accessible from within the region. Land and office space are available and cost-effective, and a wide range of business process outsourcing facilities cater to diverse business needs.
7. Educated and Skilled Labor Supply
Thanks to the high-quality education system, the Caribbean has a highly skilled and knowledgeable labor supply who speak several key languages, including English, Spanish, French, and Dutch.
Many Caribbean countries invest in developing a workforce equipped with the necessary skills and expertise to meet the demands of various industries. The ready supply of workers is proficient in tourism, finance, information technology, and healthcare sectors.
8. Diverse Investment Opportunities
The Caribbean has garnered critical acclaim for its abundant natural resources. Caribbean islands offer competitive sectors, including information communications technology or business process outsourcing, financial services, agribusiness, and the creative industries.
Various expanding industries, including renewable energy and sustainable development, mean diverse investment opportunities and profitable returns.
9. Free Movement
The Organization of the Eastern Caribbean (OECS) allows the free movement of citizens between member states. Member states include:
- Antigua and Barbuda
- Dominica
- Grenada
- Montserrat
- Saint Kitts and Nevis
- Saint Lucia
- Saint Vincent and the Grenadines
The privilege of freedom of movement is an added benefit of Caribbean citizenship by investment. Additionally, the CARICOM agreement allows the free movement of skilled labor within member states.
10. Ease of Doing Business in the Caribbean
Caribbean economies have implemented significant reforms aimed at streamlining business processes and enhancing the ease of doing business in the region. The World Bank Group’s Doing Business 2020 study highlights that these reforms concentrated on starting businesses, a stable electricity supply, paying taxes, mobility through improved international airports, and enforcing contracts.
11. Responsive Investment Promotion Experts
The Investment Promotion Agencies in the region have garnered acclaim for their exceptional websites, providing investors with platforms to access available Caribbean investment options quickly. Furthermore, they offer competent inquiry-handling services and simplify the investment process in Caribbean islands.
Get in touch with a Caribbean Citizenship by Investment specialist
Frequently Asked Questions about Investing in the Caribbean
One of the primary opportunities to invest in the Caribbean is citizenship by investment. Five Caribbean countries offer citizenship to foreign nationals who contribute to their economic development. Foreign nationals can make investments such as purchasing real estate or establishing a business and receive citizenship in return.
Investors can buy real estate for tourism to take advantage of the Caribbean’s popularity as a tourist destination.
According to organizations such as CAIPA (Caribbean Association of Investment Promotion Agencies) and CARICOM, several industries are experiencing rapid growth in the Caribbean region, including:
- Hi-tech agribusiness
- Renewable energy
- Eco-tourism
- Information technology
- Business support
Other competitive sectors include Caribbean real estate investment, which can be a lucrative investment opportunity thanks to the robust tourism industry of many countries in the Caribbean, particularly during peak tourism season when short-term rentals are in high demand.
According to the Organisation for Economic Co-operation and Development (OECD), the Dominican Republic has been the fastest-growing Caribbean island over the last decade and is often considered the best Caribbean island to invest in. The country has introduced record reforms in its primary industries, including real estate, raw materials, creative industries, and other competitive sectors.
The Caribbean comprises over a dozen sovereign states and territories, and legal requirements for investing will vary depending on the specific country and industry. Generally, investors must register their businesses with the relevant government authorities and comply with local regulations and licensing requirements.
This may involve obtaining permits, licenses, or approvals from government agencies, such as investment promotion agencies, ministries of commerce, or regulatory bodies. Nevertheless, regional alliances, including CARICOM, facilitate the ease of doing business across Caribbean countries through standardized regulations and procedures for investment and trade.
According to data from Statista, the Caribbean’s biggest industry is travel and tourism, with the industry generating over $60 billion in 2022. The most visited Caribbean islands include the Dominican Republic, Puerto Rico, and Jamaica, which provide daily direct flights to the US, Canada, and Europe. Investors can find numerous Caribbean investment opportunities in tourism on these islands.
While certain Caribbean islands such as Anguilla, the British Virgin Islands, and the Cayman Islands primarily depend on tourism and financial services to generate income, most Caribbean economies revolve around exporting raw materials of their abundant natural resources, including natural gas.
Several of the Caribbean region’s territories offer incentives through taxes for individuals and companies. Caribbean islands like the British Virgin Islands and Anguilla allow foreigners who invest in the Caribbean to avoid paying taxes on corporate and personal income.
