Waterfront Condominiums
On Three Caribbean Islands

(See Corrections & Amplifications item below.)

The Caribbean is an attractive locale for many vacation-home buyers, both for its sunny clime and beaches and because of its reputation as a tax haven. We take a look at oceanfront condos in the Bahamas, Grand Cayman and Providenciales. Income tax is nonexistent on all three islands, and only the Bahamas levies a (low) property tax for permanent residents.

• Turtle Cove Marina, Providenciales
• Nassau, Bahamas
• Seven Mile Beach, Grand Cayman

PLACE/PRICE: Turtle Cove Marina, Providenciales/U.S.$745,900

PROPERTY TAX: No property tax; buyer pays a one-time stamp duty tax on a property purchase, which is 9.75% of the purchase price.

THE PROPERTY: The three-floor town home, located in The Yacht Club residential community, has two balconies with views of the Turtle Cove Marina, Grace Bay and the ocean. The 2,076-square-foot home has two bedrooms and three full and one half baths.

DESCRIPTION: The residence, built in 2003, is offered furnished in Caribbean decor. The master suite, which has its own balcony, is on the third floor. The main dining/living area and kitchen are on the second floor, which also has a balcony. The two bedrooms on the main floor have their own bathrooms.

NOTABLE: Condominiums are a hot commodity on Providenciales, so much so that waterfront property is nearly built-out in the Grace Bay area and developers are turning inland for new projects, says listing agent Richard Sankar of Prestigious Properties Group Inc. on Providenciales. Condo prices have been rising about 18% to 25% a year, he says. The Yacht Club is not directly on Grace Bay, which is about a two-minute walk away. Most purchasers in the development are North Americans and buy their home as an investment -- for both value appreciation and rental income, says Mr. Sankar.

Sources: Coldwell Banker Cayman Islands Realty, Damianos Sotheby's International Realty, Prestigious Properties Group Inc.

-- Ms. Kim is a senior editor at RealEstateJournal.com.

Email your comments to lauren.kim@dowjones.com.

Corrections & Amplifications:
A previous version of this article incorrectly said that the Atlantis resort is on Cable Beach on Nassau Island; the hotel is on nearby Paradise Island.