It seems that no topic is dominating the dinner tables of St Lucia residents and expats as much as the impending implementation of Value Added Tax (VAT) due to come in to force on the Caribbean island this September.

In this week’s Throne Speech, which is made before the start of St Lucia’s annual National Budget presentation and debate, Governor General Pearlette Louisy was quick to calm any worries about the island’s tax reforms. She highlighted that the government is treading carefully and that they will do all they can to ensure that they do not contribute to a depressed nation.

Despite the impending tax reforms, the number of expats flocking to the island doesn’t look set to abate. House prices on St Lucia have been steadily increasing over the last decade since an abundance of Europeans caught on to the island’s potential and entered the market. Properties are still only 60 per cent of the amount they would be in Barbados but this gap is closing fast as more and more people discover the wonders of this island haven.

St Lucia’s most popular areas

The Caribbean coast on the west side of the island is where the majority of investors and migrants congregate. Rodney Bay is particularly popular and over recent years new developments have been popping up all over the place. The constant development means that roads to the area have improved greatly as has the infrastructure in general. Rodney Bay Village is home to a number of bars and hotels lining Reduit Beach, and the Marina is a popular destination with property investors.

Castries, the capital of the island, is home to the majority of the island’s businesses which makes it an attractive investment opportunity for those who want to invest in long term rental properties. The capital has a large concentration of amenities and is close to some of the islands most beautiful beaches; La Toc, Choc, Vigie and Malabar. The only downfall is that the area can become overcrowded when cruise ships sail in to town.

Marigot Bay, its marina and surrounding emerald hills are popular with the yachting crowd and Soufriere, the island’s oldest settlement is another popular spot. Gros Islet is famous for the Friday night “Jump Up” which sees locals cordon off the streets and set up stalls selling steamed fish, barbecued chicken and the island’s very own Piton beer. A visit to St Lucia is not complete without attending this obligatory street party. The areas close proximity to Rodney Bay means that more and more developments are popping up here too.

For details of property for sale in St Lucia or all over the Caribbean, visit the listings on Rightmove Overseas. Preparation for anyone purchasing property in the Caribbean or moving there should include planning for the transfer of your pounds into the local currency. For information on how to do this safely and save money when doing so, download your free report here or visit the Currency Zone.