We will try to identify some of the most important considerations a prospective real estate investor might have and then provide a brief list of the islands or countries which offer a good option for that criterion:

• ease of access - primarily, this means a good airport or airports and regular international flights.  The busiest airports in the eastern and southern Caribbean are San Juan in Puerto Rico, the Dominican Republic, St Maarten, Curacao, Grand Cayman, Jamaica, Nassau in the Bahamas and St Lucia.  All Central American countries have good-sized airports with fairly heavy international flight traffic.  Flight times from the mainland US can be as short as 20-30 minutes to parts of the Bahamas from Florida to one to four hours to Central American and central Caribbean locations up to five hours to Aruba, St Lucia or other southern Caribbean destinations from mainland US airports which service these locations (further from Canada, obviously).

• overall tax climate - some islands or nations offer no property taxes (Dutch Sint Maarten), others no capital gains taxes (Dominica, Dutch Sint Maarten, Aruba, Bonaire and Curacao) and others still no taxes of any kind with the exception of a transfer tax and import duty (the Cayman Islands).  Most islands which charge property taxes are quite reasonable, though some are exceptions.  French islands such as Martinique, St Bart's and Saint Martin tend to have higher property taxes (and 1-2% higher transfer fees and capital gains taxes of 33%).  In the Bahamas, property taxes are between 1-2% for most parcels.  This is typical of most.  Some places have higher transfer fees, e.g., Dominica at about 20% for alien landholder's license and transfer, Anguilla, which charges about 17.5% for license and transfer fee; in the Bahamas, expect approximately 15% for transfer or higher depending on value for most homes; 16%+ in the British Virgin Islands (transfer tax, duties, legal fees, non-belonger's license, etc.).  Conversely, Dutch Sint Maarten, the Dominican Republic, Bonaire, Curacao and others average around 6-7% total (transfer fees and notaries). Belize appears to be offering a ten-year exemption from transfer taxes to investors, at this time, though they have changed fees so much over the last ten years, it is best to check back often.  In many places, there will be additional fees for notaries or notaires (e.g., all Dutch and French islands and many former British Crown colonies) or fees for attorney closings/titlework (e.g., Belize, BVI, the Bahamas).

• weather - remains very similar throughout the Caribbean basin, though there are areas of much higher humidity or much higher rainfall.  Dominica and Martinique, for example see much more rain and humidity than most other islands.  Aruba, Bonaire and Curacao are very dry.  Southern Belize, much of Nicaragua, Honduras, Guatemala, Panama and the like see much greater rainfall, seasonal weather variations and humidity.  Southern locations (Aruba, Bonaire and Curacao or Panama and Costa Rica) rarely see hurricanes while those further to the north are likely to see a significant storm every 4 to 10 years, though the impact to infrastructure is not generally as severe from most storms as it once was, due to higher building standards.

• value - this is a very subjective measurement.  There is largely a corollary between ease of access and land values, though this is not always the case.  The more heavily touristed areas tend to be the most developed and most expensive.  They also are, by definition, those which are easiest to get to and which offer the most amenities, best infrastructure and most modern options for purchase.  Recent years have seen development explosions in Barbados (late 1990s), St John in the US Virgin Islands and Costa Rica beginning around 2000, then Anguilla and St Bart's saw a strong resergence, then the Dominican Republic, the Mayan Riviera in Mexico and Belize and Grand Cayman saw price skyrocket upwards before recent economic events have slowed real estate markets throughout the Caribbean.  There remain relative bargains out there like St Croix, Nevis, much of Belize, Panama and others where water view land may be had for as little as $20,000 or less.  Nicaragua and Honduras offer many inexpensive options further inland on large freshwater lakes or in the mountainous areas further from the coast.  Word of warning: There has been a history - some fairly recent - of political instability in many of these Central American countries.

Copyright 2007-2012

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