Reasons to buy a home in beautiful St Lucia 

•  No capital gains tax
•  Rental income tax holidays for 5 - 10 years*
•  No repatriation tax
•  No inheritance tax

There are plans to allow people who purchase a property for over 240k sterling to be allowed to apply for residency. (Check with your  local St Lucia embassy)

* Income tax holidays are subject to the development

St Lucia packs a lot into its 238 square miles and has big intentions too. In addition to its beautiful white beaches, banana plantations, coral reefs and tropical rainforest, it has grand plans for regeneration and redevelopment. This looks set to make it even more popular, not least with celebrity fans such as Amy Winehouse and Kelly Brook, both of whom have been spotted frolicking on the island recently. St Lucia is also becoming a regular haunt of Hollywood actor Eddie Murphy who has been spotted on his yacht, as well as an island which is favoured by chat show queen Oprah Winfrey.

                                                                                                                                                                                                                      

Minister for tourism Allen Chastanet knows that for St Lucia to attract the same crowds and wealth as Barbados and Antigua it needs to protect its natural beauty but not rely on it alone. "As a destination, St Lucia's done well," he says, "but there's a lot of potential for growth." Which means incentives to encourage more hoteliers and resort developers to come to the island, sleek new marinas, and the upgrading bad roads. This will make getting from one part of the island to another a doddlle. Hewanorra International airport is also to be upgraded. The the north, where some of the most beautiful beaches can be found. will be easily accesible.

There are also plans to regenerate the harbour at Castries, and an ambitious idea to promote villages and artisan communities, creating employment for locals and a bigger draw for tourists. None of this, says Chastanet, will be allowed to impact on the island's rainforest or coastline. "No destination can stay the same – St Lucia can't be a time capsule," he says, "So we need to identify the aspects that make us special and use them as a platform to build on."

Such has the island's tourism increased, that British Airways recently started a direct service three times a week. One of the biggest areas of growth has been in residential development and it's this, along with better hotels and business facilities, that the government wants to capitalise on by giving incentives and tax breaks to overseas investors. The strategy is already making five-star developments more sought after. The Landings, a 230-unit beachfront resort near Rodney Bay, on the northwest coast, for example, has seen its best sales year so far. It's one of a number of high-grade residential developments aimed at the second-home market, though the developers expect many owners will end up living there.

Sales director Oliver Gobat refers to resorts such as his as "private residential communities", and says The Landings is one of the few beachfront developments on St Lucia where properties are freehold, because the land is reclaimed. "It's a very sociable, mixed community and most people have bought here because it's far cheaper than Barbados," he adds. Prices start at £374,000 for a large one-bedroom property, to around £2m for beachfront with three bedrooms, which is consistent with other upscale resorts on the island. You can buy non-resort homes at lower prices but they probably won't have a coastal location or facilities that would make them appeal to the rental market.

"St Lucia is a stunning location," says Gobat. "The island could easily become the outstanding success of the Caribbean."