Planning For Retirement In Barbuda: How Much Is Enough?

Antigua and Barbuda is a sought-after retirement destination, offering a high quality of life, stunning natural scenery, and a range of activities for retirees. However, the cost of living in this Caribbean paradise is relatively high compared to other islands in the region. So, how much money do you need to retire in Barbuda?

Citizenship by investment

The Antigua and Barbuda Citizenship by Investment Program was established in 2012/2013 to attract foreign investment and boost economic development. It offers individuals and their families a second passport and visa-free or visa-on-arrival access to over 150 countries, including the EU Schengen Area and the UK. The program is appealing to high-net-worth families seeking access to markets in Europe, Asia, and the Caribbean.

Investment Options

There are several investment routes to acquiring citizenship, with options starting at $230,000. These include:

• A contribution to the National Development Fund: a minimum non-refundable donation of $230,000
• A contribution to the University of the West Indies: a minimum non-refundable donation of $260,000 (this option is more cost-effective for larger families)
• Real estate investment: a minimum investment of $300,000 in pre-approved real estate projects, maintained for at least 5 years
• Business investment: a minimum investment of $1.5 million in an approved business venture, or a joint investment of $5 million with each applicant contributing at least $400,000

Benefits of Citizenship

Becoming a citizen of Antigua and Barbuda offers several advantages, including:

• Visa-free travel to over 140-150 countries
• Dual citizenship is allowed
• No residency requirements
• Tax benefits: no tax on worldwide income
• Access to high-quality healthcare and education systems
• Efficient processing time: citizenship is typically granted within 3-7 months of application submission
• Right to live, work, and study in Antigua and Barbuda, as well as other CARICOM member states

Eligibility and Requirements

To be eligible for citizenship by investment, applicants must:

• Be at least 18 years old
• Have a clean criminal record
• Pass due diligence checks
• Demonstrate a legally obtained source of funds
• Commit to one of the investment options

Dependents can also be included in the application, such as a spouse, children under 28-31, and parents over 55-58.

To apply, applicants must submit the following documents:

• Completed application forms (AB1, AB2, AB3, AB4, AB5)
• Passport-sized photographs
• Certified copy of current passport
• Marriage certificate (if applicable)
• Police clearance certificates
• Medical examination results
• Professional and educational certificates
• Bank statements and financial references
• Source of funds documentation

All documents must be in English or accompanied by certified translations.

Cost of living

The cost of living in Barbuda and Antigua is considered more expensive than in most Caribbean islands. However, it is about 20% cheaper than in the US and the UK. The local currency is the East Caribbean Dollar (XCD), where 1 United States Dollar is equivalent to 2.70 XCD.

Eating Out

Barbuda and Antigua offer a variety of restaurants, with a basic meal in an inexpensive restaurant costing around $9, and a three-course meal for two in a mid-range restaurant costing $92. Street food is also available for just a few dollars. A cappuccino costs around $5, while domestic and imported beers cost $3 and $3.70, respectively.

Transport

Private taxis are the most common mode of transportation, but public buses are also available, offering one-way rides for $1.40 and monthly passes for $33. Importing your own car is an option, but be aware of high import taxes. A gallon of gas costs around $5.

Healthcare

The healthcare system in Barbuda and Antigua is primarily free, thanks to the Medical Benefits Scheme. However, it is advisable to have private health insurance for enhanced medical services and emergency evacuation costs. A short doctor's visit in St. John's costs around $70, while monthly healthcare costs for a private health insurance policy range from $240 to $375 for a middle-aged expat, including medical evacuation cover.

Groceries

Imported food items in Barbuda and Antigua tend to be more expensive than average, but the overall cost of groceries and basic necessities is relatively cheap. Here are some average costs for everyday groceries:

• Fresh white bread (500g): $2.50
• Bottle of wine (mid-range): $10
• Milk (1 gallon): $5.50
• Chicken fillets (1 lb): $6.50
• Beef round (1 lb): $8.50

Accommodation

Renting property in Barbuda and Antigua is relatively affordable. A one-bedroom apartment in the city centre costs around $740 per month, while a three-bedroom apartment in the same area costs approximately $1,450. Outside the city centre, the prices drop to around $370 and $1,110, respectively.

Utilities

Utility prices, including electricity, are comparable to those in Europe and the US. Basic utilities, including garbage collection, for a 915 sq ft apartment cost around $300 per month. High-speed broadband service is also available for about $70 per month.

Leisure Activities

Leisure activities in Barbuda and Antigua are generally inexpensive. A cinema ticket costs around $7.40, while unique activities like a visit to Stingray City cost $50 per person.

Education

According to Numbeo, the monthly tuition fee for kindergarten is about $175, while yearly fees for an international primary school are around $5,550.

Healthcare

Antigua and Barbuda offer high-quality healthcare, with several hospitals and medical facilities providing excellent medical care. Mount St. John's Medical Hospital and the Adelin Private Clinic are the two main medical facilities, both located in St. John. Many of the physicians and medical staff have received foreign training, and the healthcare system is easily accessible and reasonably priced. However, for some specific conditions or treatments, patients may need to seek treatment abroad.

When retiring in Antigua and Barbuda, it is highly recommended to purchase private insurance with full medical coverage. Bupa and Allianz are two companies that offer international expat insurance plans.

The country's citizenship by investment program also provides access to a larger variety of investment options, which may include additional healthcare benefits.

Overall, Antigua and Barbuda's healthcare system is a notable perk for retirees, offering both quality and affordability.

Additional Healthcare Considerations

• The cost of living in Antigua and Barbuda is generally higher than in other Caribbean countries, but it is still approximately 20% cheaper than in the US. This higher cost of living may impact the pricing of healthcare services and insurance plans.
• The country has a very low crime rate, which contributes to a safe and peaceful environment for retirees. This can also positively impact the overall accessibility and affordability of healthcare services.
• Antigua and Barbuda has a brand new international airport in St. John, which provides easy access to the country for retirees and their families. This can be especially important in cases where specialised medical care is required abroad.

Immigration options

To enter Antigua and Barbuda, you must present a passport or other valid identification documents to an immigration officer. This includes documents that establish your identity, nationality, or permanent residence. These documents must be valid beyond the date of your return ticket. If you are a citizen of an OECS country, you may present a photo ID or birth certificate as proof of identity.

If you are a citizen of Antigua and Barbuda, you may use a passport with a work permit or residency endorsement as proof of citizenship or residence. Alternatively, you can present a citizenship certificate or passport.

For visitors, it is necessary to possess a passport or other valid documentation beyond the date of the return ticket. Visitors must also demonstrate sufficient funds to support themselves and any dependents during their stay. The length of stay for visitors is typically up to six months, with the possibility of extensions for additional periods not exceeding six months each.

If you are sponsoring a tourist visitor, you may be required to provide a written undertaking to be responsible for the visitor's maintenance and accommodation during their stay. It is also your legal responsibility to inform the Chief Immigration Officer within 24 hours if the sponsored visitor overstays their granted permission.

For those arriving by sea, an Eseaclear notification is required in advance, including a crew and passenger list with relevant details. If the electronic process is unavailable, a manual process can be followed, including the submission of specific forms, crew and passenger lists, and passport copies.

The Citizenship by Investment Programme (CIU) offers another pathway for immigration. This programme is overseen by the Honourable Prime Minister of Antigua and Barbuda and processes applications for Agent's Licenses and Citizenship by Investment.

Real estate investment

Investing in real estate in Barbuda offers a host of benefits, from potential financial returns to residency and citizenship opportunities. Here's a comprehensive guide to real estate investment in this Caribbean paradise:

Market Overview

The real estate market in Barbuda, located just north of Antigua, is currently in a state of revival following the impact of Hurricane Irma in 2017. The government has plans to develop tourism on the island, and future projects are expected to offer property buyers the chance to own a home in this tranquil and secluded island paradise.

Investment Opportunities

The island boasts pristine beaches and breathtaking natural beauty, making it an attractive destination for investors seeking a combination of enjoyment and profit. The dynamic real estate market presents a range of investment options, including:

• Luxury villas and residences
• Boutique hotels and resorts
• Condominiums and apartments
• Eco-tourism ventures
• Mixed-use developments
• Beachfront properties

Citizenship and Residency

One of the most appealing aspects of investing in Barbuda is the opportunity to obtain citizenship and residency through the nation's Citizenship by Investment Program (CIP). This globally recognized program offers investors and their families the chance to become citizens in exchange for specified investments, including real estate purchases. The minimum investment requirement is $200,000 in approved projects, maintained for at least five years.

Financial Returns

Investing in Barbuda's real estate market offers promising financial returns. With an anticipated annual return ranging from 2% to 4%, investors can expect to recoup their initial investment within approximately five years. Additionally, the country's favorable tax regime, with no taxes on foreign income, wealth, gifts, inheritances, or capital gains, provides lucrative tax planning opportunities.

Visa-Free Travel

Acquiring property in Barbuda grants investors a passport with visa-free travel privileges to over 140 countries, making international travel seamless and hassle-free. The remote citizenship application process is typically completed within six months and allows for dual citizenship, providing investors with greater global flexibility and mobility.

Types of Properties

The type of properties available for investment in Barbuda varies, including studios, apartments, villas, townhouses, and shares in hotel complexes. The cost of property depends on the location and type, with hotel shares starting at $200,000, apartments at $400,000, and villas at a minimum of $1,000,000.

Buying Process

When considering purchasing property in Barbuda, it is essential to follow these key steps:

• Legal Assessment: Engage the services of a reputable firm specializing in real estate transactions to assess the legal status of the property.
• Sales and Purchase Agreement: Work with an attorney to draft a sales and purchase agreement outlining the terms and conditions of the transaction.
• Landholding License: As a non-citizen, apply for a Landholding License, which is required by law and involves a fee of at least 5% of the property's value. This requirement may be waived if you are participating in the CIP.
• Deposit Payment: Pay a 10% deposit to the seller to secure the property while your license application is being processed.
• Legal Registration: Register a restriction on the property to prevent unauthorized transactions and protect your investment.

Investing in real estate in Barbuda offers a unique opportunity to own a piece of paradise while also providing potential financial gains and citizenship benefits. With its pristine beaches, tropical climate, and breathtaking landscapes, Barbuda is an ideal location for those seeking a laid-back lifestyle surrounded by natural beauty.

Frequently asked questions