Saba, the smallest special municipality of the Netherlands, is an unspoiled paradise in the Caribbean. Known for its breathtaking mountain landscapes, tight-knit community, and excellent governance, Saba offers an appealing destination for those pursuing Financial Independence and Early Retirement (FIRE). With a low crime rate, stable economy, and tax benefits, the island provides a unique opportunity for early retirees looking for a peaceful and financially secure lifestyle. This guide explores the cost of living, tax advantages, residency options, and lifestyle in Saba.
Key Terminology
- FIRE (Financial Independence, Retire Early) – A movement focused on achieving financial security through disciplined saving and investing, enabling individuals to retire early.
- Territorial Tax System – Saba follows a system where only income earned locally is taxed, making it attractive for retirees with foreign income.
- Residency Options – Long-term residency is available for those meeting financial and legal requirements.
- Cost of Living – The total amount required for a comfortable lifestyle, including housing, food, healthcare, and utilities.
- Eco-Tourism & Sustainable Living – Saba’s economy is largely based on sustainable tourism, particularly hiking and diving, making it an environmentally conscious retirement destination.
What Is Early Retirement Like in Saba?
Saba is known for its untouched beauty, clean air, and relaxed atmosphere. Unlike more commercialized Caribbean destinations, Saba remains unspoiled and offers a high quality of life for those who appreciate tranquility.
- The Bottom – The capital, home to essential services, shops, and government offices.
- Windwardside – A popular residential area with stunning views and a small selection of restaurants and cafés.
- St. John’s & Zion’s Hill – Smaller, quieter communities with scenic mountain backdrops.
With reliable infrastructure, Dutch governance, and a welcoming community, Saba provides a secure and high-standard environment for FIRE seekers.
1. Tax Benefits for Retirees in Saba
Saba’s tax system is structured to be favorable for expats and retirees:
✅ No Tax on Foreign Income – Retirees with pensions or investment income from outside Saba are not taxed on these earnings.
✅ No Capital Gains Tax – Investments and real estate profits outside Saba are not taxed.
✅ Flat Tax Options for Expats – Special tax structures are available for foreign residents.
✅ Low Property Taxes – Real estate taxes are minimal, making homeownership attractive.
Tax Tip: Saba’s tax policies make it an appealing choice for FIRE retirees looking to protect their financial assets.
2. Cost of Living in Saba
Saba offers a moderate cost of living, though imported goods can be expensive due to the island’s remote location.
Housing Costs (Rent & Home Prices)
- Renting – A one-bedroom home in Windwardside or The Bottom costs $1,200–$2,000 per month.
- Buying Property – Homes start at $250,000, with premium cliffside properties exceeding $500,000.
✅ Stable Real Estate Market with Dutch Regulations
❌ Limited Housing Inventory Leads to Higher Demand
Food & Grocery Costs
- Local Produce – Limited local farming means most food is imported.
- Dining Out – Local meals cost $10–$20 per dish, while fine dining can be $40+ per meal.
- Imported Goods – Products from Europe or the U.S. are priced higher due to shipping costs.
✅ Fresh Seafood & Local Ingredients Available
❌ Higher Prices for Imported Groceries
3. Healthcare in Saba
Saba offers access to both public and private healthcare services, with strong medical ties to the Netherlands.
- Saba Health Care Foundation – The main medical facility providing general healthcare and emergency services.
- Specialist Care – More advanced medical treatments are available in St. Maarten or the Netherlands.
- Health Insurance – Affordable insurance plans start at $100–$250 per month.
✅ Reliable Dutch-Standard Healthcare System
❌ Advanced Medical Procedures Require Travel to St. Maarten or the Netherlands
4. Lifestyle and Outdoor Activities
Saba is a nature lover’s paradise, offering a quiet yet active lifestyle.
- Hiking & Eco-Tourism – The island is famous for trails like the Mount Scenery climb, offering breathtaking views.
- Diving & Snorkeling – Saba’s Marine Park is one of the best-preserved coral reef ecosystems in the world.
- Community Events – A close-knit island culture with festivals, art fairs, and local markets.
- Low-Key Lifestyle – Unlike bustling Caribbean hotspots, Saba offers a more relaxed and intimate social scene.
✅ Stunning Nature & Outdoor Activities
❌ Limited Nightlife & Entertainment Options
Pros and Cons of Retiring Early in Saba
✅ Pros of Early Retirement in Saba
✔ Tax-Friendly System – No tax on foreign income and low property taxes.
✔ Low Crime & High Safety – One of the safest places in the Caribbean.
✔ Strong Dutch Governance – Reliable infrastructure and political stability.
✔ Breathtaking Natural Beauty – Perfect for those who appreciate the outdoors.
❌ Cons of Early Retirement in Saba
❌ Limited Medical Services – Some procedures require travel to St. Maarten or beyond.
❌ Higher Cost of Imported Goods – Shipping expenses increase product prices.
❌ Few Entertainment & Shopping Options – No large malls or nightlife scene.
Conclusion
Saba is a hidden gem for FIRE seekers looking for a tax-friendly, peaceful, and nature-rich retirement destination. Its combination of financial stability, low crime, and pristine environment makes it an excellent choice for early retirees who value tranquility and outdoor adventure. If you’re looking for a safe and financially secure haven in the Caribbean, Saba might be the perfect place to call home.