Top Places to Retire in the Caribbean in 2025

Retirement today is being redefined – not as an end, but as a strategic new beginning.

For many retirees, it’s now a transition designed to optimise personal freedom, financial efficiency and quality of life – often while staying actively involved in business or investment pursuits. 

​​This shift is also driven by a growing realisation that a better life may lie beyond a retiree’s own home country.

Escalating taxes, cumbersome regulations, and a perceived decline in quality of life and personal safety are all prompting retirees to find ways to exercise more control over their future.

Retirement, for this generation, is a power move.

As a result, the criteria for selecting the ‘best retirement’ destination have fundamentally shifted: a pleasant climate is no longer enough.

Today’s retirees are looking for real-world advantages, such as tax exemptions, residency pathways, solid investment options, high-quality infrastructure, personal safety, and global connectivity. 

Seen through that lens, the Caribbean offers much more than just sun and sand. It’s a smart, strategic choice.

Many Caribbean destinations are long-established tax havens where local income isn’t taxed, and these systems are far more transparent and legally robust than in the past. 

Several countries are actively refining their offerings to meet the needs of globally minded retirees who are looking for not just a peaceful escape but a base from which to manage life, business and legacy.

These days, we’re witnessing the rise of destinations with modern healthcare, strong infrastructure and well-designed residency-by-investment programs offering long-term stability. 

But there are a lot of options out there, and the Caribbean is just one. So, the Nomad Capitalist team has put together this in-depth guide to the top Caribbean locations and why they should be on every retiree’s radar for 2025.

Pros and Cons of Retiring in the Caribbean

Swapping the daily grind for serene white sand beaches and turquoise waters is a powerful draw for many. Yet, like any major life decision, relocating to this tropical region involves balancing the advantages with the drawbacks.

The Allure (Pros)

When it comes to benefits, the Caribbean delivers in spades. 

Year-round sunshine and beachside living make dreary skies and hectic city life feel like a distant memory. The result? A genuinely relaxed, easy-going pace of life. 

For many retirees, language isn’t a barrier as English is widely spoken across most islands. Geographically, the Caribbean is convenient for those with ties to North America, and many islands also offer regular flights to the EU and UK.

On the financial front, several impose no income, inheritance or capital gains tax, which is a major draw for retirees looking to optimise their wealth. 

With established, welcoming expat communities on many of these tropical islands, finding support and building a new social or business network is surprisingly easy. 

The Realities (Cons)

Of course, even paradise has its challenges, and in the Caribbean, they’re worth considering.

The cost of living can be high, especially for imported goods and certain services, often exceeding those in major US or European cities. 

Nature here has a wild side, too. Residents need to plan for natural disasters, particularly during hurricane season, which runs from June to November.

Over time, the postcard-perfect charm of island life can fade, with some residents of the smaller islands succumbing to boredom or a touch of ‘island fever’.

The quality of local infrastructure varies immensely. While some islands boast excellent connectivity and healthcare, others lag significantly. Likewise with the local bureaucrats – don’t expect a lightning-fast service as ‘island time’ demands patience. 

Finally, while many Caribbean locations are safe, crime rates and safety concerns can vary, making it important to research specific islands before making a final choice.

The Best Caribbean Retirement Destinations for 2025 

Having weighed the general pros and cons, let’s discuss the best Caribbean retirement destinations for 2025. 

Retire in Belize

Belize consistently appears on retirement radars, and for good reason. 

This English-speaking Central American country offers a great mix of adventure, low costs and easy access. 

While it’s not a tax haven, it is a nature haven, with Mayan ruins, dense jungles and the world’s second-largest barrier reef.

Beyond pretty views, the major draw for retirees is the Qualified Retired Persons (QRP) incentive program. 

If you’re over 40 and can demonstrate a stable monthly income of at least US$2,000 (or an annual sum of US$24,000) from pensions, annuities or other reliable external sources, you’re eligible. 

On top of this, QRP status grants exemption from Belizean taxes on all income derived from sources outside Belize, including income tax, capital gains tax and inheritance tax. 

Beyond that, you’re allowed a one-time duty exemption to import personal household goods and even a vehicle during your first year, making it more affordable to move your assets and belongings.

Where to settle depends entirely on your preferences. 

Fantastic destinations such as Ambergris Caye and San Pedro town buzz with lively restaurants, bars and a strong expat social scene right on the water. For a more tranquil, eco-focused option, the Cayo District inland has what you need, often at a lower cost. 

Placencia Peninsula offers a laid-back beach vibe without the larger crowds of  Ambergris Caye.

The cost of living in Belize is generally low to moderate compared to its Caribbean neighbours, though slightly higher in tourist hotspots like Ambergris Caye. 

Healthcare for basic needs, some emergencies and minor procedures is available, but specialist care usually requires a trip to nearby Mexico or the United States. 

Retire in Dominica

If your vision of retirement consists of dramatic volcanic landscapes, cascading waterfalls and lush rainforests, Dominica might be the perfect alternative. 

For high-net-worth individuals seeking second citizenship, Dominica has one of the world’s top citizenship-by-investment (CBI) programs. 

With citizenship, you gain the right to live and work in Dominica along with a passport that grants EU access, often within a few months. 

The primary options involve either a non-refundable contribution to the Economic Diversification Fund (starting at US$200,000 for a single applicant) or an investment in approved real estate (minimum US$200,000, held for at least three years).

From a tax perspective, Dominica isn’t a tax haven. Instead, it uses a territorial system, which does not tax income that stems from foreign sources. 

In addition, there are no wealth, gift, inheritance or capital gains taxes in Dominica, which simplifies estate planning considerably. 

In terms of location, the capital, Roseau, has the most amenities and infrastructure. Portsmouth, in the north, can be a quieter base, often near CBI-approved real estate developments. For true immersion in nature, villages along the west coast or inland offer unparalleled serenity. 

Healthcare is suitable for routine matters, but full international health insurance is crucial, as serious medical issues usually require evacuation, often to nearby Martinique, Guadeloupe or the US. 

Dominica lies within the hurricane belt, a factor requiring preparedness, as demonstrated by past events.

Retire in St Lucia

Instantly recognisable by its majestic Pitons rising sheer from the sea, St Lucia appeals to those who appreciate relaxed luxury. 

For those considering this idyllic getaway, St Lucia’s citizenship-by-investment program is a compelling first step.

It’s efficient and well-regarded, offering routes like the standard donation to the National Economic Fund (minimum US$240,000 single applicant plus fees) or by purchasing real estate (a minimum of US$300,000 held for five years plus fees).

St Lucia offers a Government Bond option (currently US$300,000, held for five years with zero interest), which appeals to those prioritising capital preservation despite the associated due diligence fees. Much like Dominica, this pathway leads to a St Lucian passport with tax benefits and other benefits. 

St Lucia’s territorial tax system means income sourced outside the island generally remains untaxed – ideal for retirees funded by foreign pensions or investments. 

Add to that no inheritance or wealth tax, and the financial picture becomes very attractive indeed.

Life in the north of St Lucia centres around Rodney Bay, its hip expat hub. Here, you can expect marinas, bustling restaurants, shops and an active social life. 

Head south towards Soufrière, and the pace slows dramatically, with stunning scenery, boutique hotels and quiet coves. Marigot Bay remains a legendary natural beauty spot, particularly beloved of the yachting community.

Naturally, this desirability comes at a cost. Living expenses are moderate to high, reflecting the island’s popularity. 

And yes, the hurricane season is a factor, demanding sensible precautions. St Lucia blends island charm with modern comforts – ideal for retirees who want paradise with perks.

Retire in Barbados

​​Barbados is a Caribbean nation that blends island appeal with reliable infrastructure, political calm and excellent flight connections to the UK, US and Canada. 

It’s a practical choice for those seeking a high quality of living combined with the ease of an English-speaking, well-run and connected society. 

In terms of residency and tax, Barbados offers a Special Entry and Residence Permit (SERP), generally for retirees over 60 who can show they have enough funds to support themselves and have good private insurance.

What’s more, if you hold the right permit and structure things correctly, foreign income that you don’t bring into Barbados may escape local income tax altogether. 

To top it all, Barbados charges no tax on capital gains, inheritance or personal wealth. 

Life on the island has many distinct flavours. 

The West Coast, dubbed the ‘Platinum Coast’, is all about luxury living, where you can expect high-end properties, exclusive restaurants and world-class golf courses like Sandy Lane.

The South Coast brings the energy: think beach bars, great food and a buzzing local scene around St Lawrence Gap.

However, as with many Caribbean islands, be prepared for the higher cost of living, especially for prime real estate on the West Coast. 

And while Barbados has strong infrastructure, it is in the Caribbean, so the Atlantic hurricane season is a factor to be aware of, even though the island’s southern location often means it fares better than others.

Best Places to Retire in the Caribbean: FAQs

Is the Caribbean the Right Place for You?

At its core, Caribbean-living suits those who prioritise sunshine, a relaxed pace, potential tax incentives via permanent residency or citizenship programs, and the convenience of English-speaking communities. 

However, it’s important to recognise it’s not the only version of an idyllic retirement or Plan B destination. 

If world-class, readily accessible healthcare and deep cultural immersion are top priorities, destinations in Europe like Portugal or Spain might hold greater appeal. 

For those who crave cultural experiences combined with an extremely low cost of living, Southeast Asian hubs like Malaysia and Thailand are also viable alternatives.

The main point is that you have options. 

If you’re serious about exploring your global options and crafting a strategy that aligns perfectly with your personal goals, securing expert guidance is a must. Reach out to the team at Nomad Capitalist and we’ll help you go where you’re treated best.