Retirement year are special and often referred to as the golden time for a reason. Many studies suggest that retirement can affect a person’s sense of purpose and identity. Seniors can find a new meaning and purpose in their lives. (Oxford Academic: Impact of Retirement)
In this special times of their lives, retirees deserve to live peacefully at a special place. And that is, exactly why, retirees are increasingly choosing islands like St. Lucia to spend their precious years. That island is much more than vibrant landscapes and lush green beauty, living there can bring various financial benefits as well.
In this post, we will dive deeper into this subject and discuss four financial reasons why retirees should consider St. Lucia. So, continue reading to discover more.
KEY TAKEAWAYS
St. Lucia is one of the best retirement destinations.
In addition to hospitable environment, this place offers several monetary benefits to retired seniors.
By making profitable investments, seniors can easily obtain the citizen here.
The tax system favors retired individuals, and offers various tax reliefs.
The supportive banking system saves them from unwanted complications of monetary operations.
The cost of living is quite affordable on this Caribbean island, that too, without compromising the standard of living.
Top 4 Financial Reasons Retirees Choose St. Lucia
The financial position of an individual plays a key role in every major or minor decisions of their life. For something as significant as retirement, this need to be considered. St Lucia provides numerous financial benefits to seniors, four of the most noteworthy ones are as follows:
Profitable Investment Opportunities for Retirees
For seniors who wish to make big investments or start a business of their own in this chapter of life, St Lucia is the place. The government, here, supports foreign retirees to easily obtain citizenship by making economic investments. Individuals can consider the three policies as follows:
1. Real Estate Investment & Citizenship by Investment Program (CIP):
St Lucia Citizenship by Investment policy allows foreign individuals to obtain the country’s citizenship by simply investing in government approved real estate programs, contributing to national economic funds and purchasing government bonds. It provides a series of additional perks, including:
Applicants can include their family members. A spouse, children under 31, siblings over 18 and parents above the age of 55.
With so many exceptional advantages, CIP in St. Lucia proves to be an intelligent choice.
DO YOU KNOW? 50% of seniors retired earlier than they thought, the infographics below provide the reasons for that.
Government bonds & enterprise investment:
Individuals can secure citizenship in St. Lucia through government bonds and enterprise investments. For this, an applicant needs to invest at least $300,000 in any non-interest bearing government bonds and keep them for the next five years.
For everyone concerned, this is completely safe and refundable. The government assures everyone that their funds will be returned to them after five years, offering peace of mind.
Offshore funds & stock market investment:
Unlike the mutual funds, offshore mutual funds allow individuals to purchase international stocks and bonds, enabling them to access the foreign market with the added perk of tax-free capital gains. These are limited to a certain number of participants and have a specific minimum investment charges.
Let’s understand with an example, in general, funds require around 40 collaborators with about $80,000 balance, while in St. Lucia, it may turn into the limit of 80 people with a minimum of $40,000 balance.
With minimum government investments, these are perfect for seniors who wish to gain maximum benefits from their holdings and potential in their foreign investments.
Favorable Tax System
St. Lucia does not burden the citizens or immigrants with the additional stress of taxes, and offers the retired people to save notable sums of money with their tax-friendly policies. Unlike other countries, the government of this Caribbean island favors retirees.
The fact that this place does not require them to pay any capital gains tax, inheritance tax, wealth tax, and taxes on worldwide income or assets, is a reason enough why this place makes the perfect retirement destination.
Apart from these benefits, one thing should be made clear, that the goods and services here are charged with a 12.5% value added tax (VAT).
Robust Banking System & Financial Security
The banking system in St. Lucia is regulated by the Eastern Caribbean Central Bank (ECCB) and offers a variety of benefits to retired seniors on the island, some of which include:
Under the International Business Companies Act (1999), the authorities at this place makes it essential to comply with the international banking standards.
Most financial bodies provide the option of online banking, allowing the elderly to perform essential accounting functions conveniently from the comfort of their house.
Based on their pensions, and investment income from abroad, St. Lucia provides stable infrastructure, with competitive interest rates and seamless banking operations.
In addition to this, there are various other banking advantages such as, tax-efficient transactions, wise range of services offered, and offshore banking. All these factors serve as the part of the reasons why seniors choose this Caribbean island as their retirement destination.
FUN FACT According to the most recent survey of consumer finances, people over the age of 75 are the most likely group to directly own stocks.
Affordable Cost of Living
Compared to US, Canada, and other European countries, the cost of living in St. Lucia is quite reasonable. Anyone can afford a decent standard of living on this island, with a monthly budget of $2,000 to $3,000, excluding the rent.
The rental prices of a one-bedroom apartment in the main cities like Castries and Rodney Bay range from $500 to $800 per month.
Additionally, seniors can easily find fresh fruits, vegetables and other essential in the local markets of this place, that too, at very modest prices.
Finding Your Ideal Caribbean Lifestyle
Everyone deserves to live the golden years of their lives with utmost peace and satisfaction. St. Lucia, with its incredible natural beauty, welcoming atmosphere and slow-paced lifestyle, is one of the best destinations to spend these years in.
Not only this, but this Caribbean island also supports seniors with several financial benefits including, excellent investment opportunities, favorable tax system, robust banking system, and affordable yet convenient lifestyle.
Retirees should definitely consider spending this precious time of their lives on this therapeutic island, surrounded by the scenic panoramas, rich culture, and benefitting from the additional economic perks.
Frequently Asked Questions
Is St. Lucia really a good place to retire to?
According to many expats and retirees, St. Lucia is one of the best tropical islands to retire to.
What are the special tax benefits in St. Lucia?
There are no capital gains tax, inheritance tax, wealth tax and tax on worldwide income or assets.
Why is St. Lucia considered a tax haven for retirees?
St. Lucia does not apply any wealth tax, and require any accounting reports to be submitted to the authorities, hence considered a tax haven.
Can retirees get St. Lucia citizenship by making investments?
Yes, by making significant investment in the country’s economy, retirees can obtain a St. Lucia citizenship.
How much does it cost to invest in a citizenship in St. Lucia?
The minimum investment costs can vary depending on the type of investment chosen. In general, a minimum investment (including fees) of $250,000 is enough for an individual to obtain St Lucia citizenship. While for a family of four,
