Where to retire in the Caribbean
The island of Nevis, at left, may be just for you.
More often reserved for vacations than retirement, many Caribbean territories roll out the red carpet for baby boomers ready to rev up their next big adventure. Beyond the perks of warm weather and a closet without winter coats, the islands welcome those exiting the fast track with a laid-back lifestyle, tax incentives, affordable health care and lobsters on the grill. Live the dream, pack your bags and write the next chapter of your life under a palm tree. You’ve earned it. U.S. Virgin Islands
The trio that make up the U.S. Virgin Islands – St. Thomas, St. John and St. Croix – offers some of the best retirement scenes in the Caribbean. Easy to get to from the U.S. mainland, passports are not needed, and for those looking for a second career or a part-time job, a work visa is not necessary and there are opportunities as the islands get back on their feet after last year’s hurricanes. St. Thomas is the top choice for tax-free shopping, nightlife in the cruise port of Charlotte Amalie and lazy days in Magens Bay with a 1-mile stretch of perfect beach and acres of coconut groves. In St. Croix, the east end is mostly residential with a few restaurants and golf courses. On St. John, Trunk Bay Beach is recipient of umpteen “best beach in the Caribbean” awards courtesy of pearly sand and clear water. Nature lovers find plenty to do in the national park, which covers 60 percent of the island.
Puerto Rico
If you speak Spanish or want to learn, you’ll be right at home. Like the U.S. Virgin Islands, Puerto Ricans are American citizens (although without a vote in presidential elections). Attractive incentives, courtesy of the Individual Investors Act, exempt retirees from paying taxes on dividends, interest and capital gains. For U.S. citizens to qualify for the exemptions, Puerto Rico must be their real home for at least 183 days of the year. The currency is the U.S. dollar, Medicare is valid and electric plugs are the same as they are at home.
The Bahamas
The coral archipelago made up of 700 islands (only 30 are inhabited) is not only a magnet for sun-seeking tourists but also for retirees. The Bahamas’ close proximity to Florida means grandparents are not too far from the grandkids in the U.S., there is no foreign language to learn, and the pace of life is charmingly slow. Nassau, Freeport, Governor’s Harbour and Paradise Island are where you’ll find one-bedroom apartments priced lower than in U.S. seaside cities such as Miami or Tampa, Florida. Nassau is a 35-minute flight from Miami and offers a robust restaurant scene, streets lined with stores, a lively expat community and a busy business sector. Apart from marrying a local, buying real estate will get you permanent residency status and tax exemptions on income and capital gains with speedy consideration given to those who purchase pricey property. Also eligible for residency status are doctors in practice for at least 20 years and nurses, police officers and teachers with a minimum of 10 years.
Anguilla
The British Overseas Territory offers no taxation on capital gains and no personal income tax. Slightly bigger than Manhattan, Anguilla is a desert island with year-round temps about 80 degrees Fahrenheit and less rain than on the other more misty mountainous islands. The government grants residency status if you can show you have enough money in the bank to live for a year. The island impresses with 33 postcard beaches, more than 100 restaurants, swanky resorts, opulent villas, funky dive bars on the beach and a melting pot of expats from all over the world.
Next year, the government will launch the “Anguilla Residency by Investment” program based on a real estate buy or a contribution to the government’s capital fund. A Retroactive Fast Track Application Process will be available by the end of this year for retirees who already own real estate. The current rule allows those who have lived on the island for six months out of the year, for 10 years in a row, to qualify for permanent residence status and those who already own property considered favorably for a permanent residence permit.
Curacao
With year-round sunny weather and reliable infrastructure, the Dutch island 35 miles north of Venezuela is a top pick of retirees who covet a city vibe, vibrant art scene in the capital city of Willemstad, stunning beaches dotting the coastline, diverse community of expats and an increasing number of nonstop flights from the U.S. Without a lot of paperwork, American retirees no longer need to apply for a residence permit or renew a permit if they have one. Instead, a “Declaration of Admission by Law” can be requested at the Civil Registry Office in Willemstad or at the U.S. Consulate General along with necessary documents that include a U.S. passport, what the island calls a “certificate of good behavior” and enough money for housing and health insurance. While waiting for the declaration, retirees can live on the island up to six months. There are no taxes on capital gains, income is taxed at about 10 percent, property must be bought within 18 months and affordable health care is available.
Nevis
If a small-town vibe is what you’re looking for, Nevis may be your island. Across the channel from St. Kitts, the pretty isle is full of lures, such as no tax on inheritances, foreign income or capital gains, and a second passport with a real estate buy of at least $150,000 (U.S.), known as the Citizen by Investment program.
Antigua
Antigua is not as pricey as some other Caribbean islands. There are more than 300 sublime beaches, restaurant stock is growing, nightlife is worth staying up for and the sailing scene attracts fans from around the world. Homes are reasonably priced if you know where to look, and the diverse crowd of those who left the office behind is a global mosaic. Although there are no targeted incentives for retirees apart from no wealth, inheritance or personal income tax, those who want long-term residency status submit a bank letter or pension statement for approval. For retirees in a rush, the process often is completed within three months.
Cayman Islands
Sun, surf and Seven Mile Beach aside, another big ticket for retirees is health care. A pioneer in Caribbean medical tourism, the trio of islands – Grand Cayman, Cayman Brac and Little Cayman – also offer what the locals call a friendly tax system (you might call it offshore banking), high standard of living, top-notch restaurants, plenty of shopping, superb diving and a tightknit expat community mostly in Grand Cayman’s capital city of George Town.
Dominican Republic
With surprisingly little paperwork, wallet-watchers with a monthly income of $1,500 from pensions such as Social Security, private pension plans or independent income are given residency status courtesy of the Dominican Republic’s Law 171-07, introduced last year as an incentive to retirees. Personal items and a car are imported tax-free. Residency status is renewed annually, becoming permanent after four years, at which time retirees are issued a Dominican identity card known as a “cedula.” With a growing economy, seven international airports (more than any other Caribbean country) and five modern highways that crisscross the country in less than three hours, the tropical locale is more convenient than most islands. Prescription medications are sold over the counter and dentists, clinics and hospitals are affordable. On a monthly budget of $2,000, a couple can live the good life with nights out on the town, plenty of play on myriad golf courses, and household help.