Living in the Virgin Islands: the ultimate expat guide

Entry procedures for the US Virgin Islands depend entirely on your citizenship. As a US territory, the USVI follows American immigration policy with some unique considerations worth understanding before you travel.

American citizens: hassle-free entry

US citizens enjoy the simplest path to the USVI. No visa, no passport required—you can enter, live, and work freely with just a government-issued photo ID such as a driver's license. Alternatively, a birth certificate paired with photo identification works too. Starting May 7, 2025, all domestic flights will require a REAL ID-compliant identification card, affecting travel to and from the USVI. Your status as a US citizen means you face no immigration barriers whatsoever.

International visitors: standard US visa rules apply

Non-US citizens must comply with standard US immigration requirements. If you're from one of the 41 countries in the Visa Waiver Program, you'll need to obtain ESTA (Electronic System for Travel Authorization) approval before boarding your flight. This electronic authorization costs USD 14 and must be secured online prior to travel. Your passport needs to remain valid through your planned departure date from the USVI.

Citizens from countries outside the Visa Waiver Program must obtain an appropriate US visa from an American embassy or consulate. Common options include the B-2 Tourist Visa for leisure travel and the B-1 Business Visa for business purposes. The application process mirrors that for entering the US mainland.

Establishing bona fide residence

To access the USVI's substantial tax benefits, you must establish bona fide residence status. This requires physical presence in the territory for at least 183 days during the tax year. Bona fide residents file their worldwide income with the Virgin Islands Bureau of Internal Revenue rather than the IRS, potentially generating significant tax savings. Your residence must comply with sections 934 and 937 of the Internal Revenue Code to qualify for these benefits.

This status goes beyond simple physical presence—you must demonstrate genuine ties to the territory through factors like local banking relationships, USVI driver's license, voter registration, and community involvement. The US Department of State website provides comprehensive information on entry requirements.

The USVI job market demonstrates robust health with an unemployment rate of just 3.47% in 2024, well below the US national average. Combined with attractive business tax incentives, the territory presents genuine opportunities for both employees and entrepreneurs.

Employment landscape

Tourism and hospitality dominates the economy, welcoming over 2 million visitors annually and experiencing rapid post-COVID growth. The active workforce numbers 41,493 people, with approximately 36,000 jobs available and recent growth of 2.86%. Average hourly wages stand at USD 24.82, while the legal minimum wage remains at USD 10.50 per hour since 2018.

The financial services sector is expanding thanks to tax incentive programs attracting fintech and private credit firms. The technology sector benefits from the Research and Technology Park program designed for tech, fintech, and biotech companies. Manufacturing and renewable energy also receive specific fiscal encouragements.

Employment data

The following table presents key labor market indicators to give you a clear picture of employment conditions in the USVI.

Sources: Virgin Islands Department of Labor, Bureau of Labor Statistics

Starting your business

The USVI offers several business structures: Sole Proprietorship, General Partnership, Limited Liability Company (LLC), Corporation, and Exempt Company. The LLC remains popular for its flexibility and personal asset protection.

Forming an LLC involves several steps. First, choose and reserve a unique name through the online Catalyst platform. Next, file your Articles of Organization with the Lieutenant Governor's Office Division of Corporations and Trademarks. You'll need to designate a local registered agent, obtain an EIN (Employer Identification Number) from the IRS, secure a business license from the Department of Licensing and Consumer Affairs, and obtain a Tax Clearance Letter from the Bureau of Internal Revenue.

Formation costs run approximately USD 399 for basic fees, plus USD 389 annually for your registered agent. Annual reports cost 0.15% of capital employed with a USD 300 minimum and must be filed by June 30 each year. The complete process typically takes 1 week to 1 month.

Contact the Department of Licensing and Consumer Affairs at (340) 713-3522 in St. Croix or (340) 774-3130 in St. Thomas, or visit the official DLCA website for detailed information.

The USVI tax system operates under a unique "mirror" arrangement that replicates the US Internal Revenue Code, simply substituting "Virgin Islands" for "United States." This structure creates exceptional opportunities, particularly for business owners.

How the mirror system works

Bona fide USVI residents file their worldwide income with the Virgin Islands Bureau of Internal Revenue (VIBIR) instead of the IRS. The income tax follows a progressive system mirroring federal US brackets, with a maximum rate of 37% in 2025. Non-residents must file with both the IRS and VIBIR.

Economic Development Commission program

The EDC program represents the USVI's most powerful tax advantage. It delivers a 90% reduction on corporate income tax, dropping the effective rate from 37% to just 3.7%. Qualifying businesses also receive 100% exemption on excise tax, gross receipts tax, and business property tax. These benefits last 20 to 30 years depending on your initial investment.

EDC eligibility requires investing at least USD 100,000 (excluding inventory) in your business and employing a minimum of 10 full-time USVI residents who've lived in the territory for at least one year. Your business must also comply with sections 934 and 937 of the Internal Revenue Code. While these requirements seem substantial, the tax savings can be transformative for qualifying businesses.

Local taxes and fees

The USVI imposes no general sales tax, making it an attractive shopping destination. However, businesses pay a Gross Receipts Tax of 4% on gross revenues. Property tax runs at 1.25% of property value, due by June 30 annually with late penalties applied after August 30.

Social security contributions

The Social Security and Medicare (FICA) system functions identically to the US mainland. Returns are filed with the IRS in Philadelphia. For 2025, the Unemployment Insurance taxable wage base stands at USD 31,100.

Recent tax developments

The H.R. 858 - REVIVE VI Act, introduced in April 2025, aims to correct a tax issue affecting USVI businesses following the Tax Cuts and Jobs Act. Additionally, the June 2025 One Big Beautiful Bill proposal could potentially reduce the minimum tax rate for certain USVI businesses from 10.5% to 2.1%, further enhancing the territory's tax competitiveness.

For tax inquiries, contact the Virgin Islands Bureau of Internal Revenue at (340) 715-1040 in St. Thomas or (340) 773-1040 in St. Croix, or visit their official website.

The USVI healthcare system combines public and private facilities following the American model. While health insurance isn't mandatory, it's strongly recommended given US-level medical costs throughout the territory.

Healthcare infrastructure

USVI hospitals maintain US certification standards with medical staff trained in the continental United States. Each main island operates its own medical facilities, though capabilities vary significantly. Complex specialized procedures may require medical evacuation to Florida or Puerto Rico.

Major hospitals and health centers

On St. Thomas, the Schneider Regional Medical Center serves as the primary hospital with 169 acute care beds. Located at 9048 Alton Adams Sr Drive, this facility provides 24/7 emergency services plus general and specialized care. You can reach them through their official website.

On St. Croix, the Governor Juan F. Luis Hospital & Medical Center serves the local population. Situated at 4007 Estate Diamond Ruby in Christiansted, this hospital currently operates at reduced capacity but offers emergency services, general care, diagnostic services (laboratory and radiology), and cardiology. Expansion plans aim to increase capacity in the near future.

On St. John, the Myrah Keating Smith Community Health Center provides 24/7 emergency services and weekday outpatient clinics. For extended care, patients transfer by boat to St. Thomas, which takes 20-30 minutes depending on sea conditions.

Health insurance considerations

Though not mandatory, securing private international health insurance is highly recommended. Medical costs in the USVI follow US pricing, among the world's highest. US residents can maintain their Medicare coverage if they meet eligibility requirements. For non-US expats, several international companies offer suitable coverage including emergency medical evacuation.

For medical emergencies, dial 911 from any island. This toll-free number connects you with appropriate emergency services.

The USVI education system includes free public schools and fee-based private institutions. However, the public system faces significant challenges: insufficient funding, teacher shortages (127 retirements in 2023), and aging infrastructure. Most expat families opt for private or religious schools.

International and private schools

The Virgin Islands Montessori School & Peter Gruber International Academy (VIMSIA) stands as the territory's premier international school. Located at 6936 Vessup Lane in St. Thomas, this institution educates children from toddlers through Grade 12. It offers a Montessori curriculum combined with the International Baccalaureate (IB) program, including the Middle Years Programme (MYP) and Diploma Programme (DP) for the final two years. Tuition for 2025 ranges from USD 13,150 to USD 21,000 annually, plus a refundable USD 750 student bond and fees for materials and accreditation. Contact them at (340) 775-6360 or visit their website.

On St. John, Gifft Hill School welcomes students from Kindergarten through Grade 12. Located at 9-5 Estate Bellevue, this school follows National Core Standards for math and English, Next Generation Science Standards for science, and California/USVI standards for social studies. Annual tuition runs from USD 5,995 to USD 17,250. The school holds accreditation from the Association Montessori Internationale and Middle States Association. Reach them at (340) 776-1730.

Antilles School, situated at 7280 Frenchman's Bay in St. Thomas, also provides a complete curriculum from early childhood through Grade 12. Contact them at (340) 776-1600 for more information about their structured learning environment.

All Saints Cathedral School, an Episcopal institution in St. Thomas, accepts students from pre-kindergarten through Grade 12. Contact this faith-based school at (340) 774-0231 or through their website.

Higher education

The University of the Virgin Islands (UVI) serves as the territory's public higher education institution, with two campuses: the main Orville E. Kean Campus on St. Thomas and the Albert A. Sheen Campus on St. Croix. This public university enrolls 1,569 students (fall 2024) and offers Bachelor's and Master's programs in various fields including business, sciences, and education.

Tuition for 2025 stands at USD 5,956 annually for territory residents and USD 16,556 annually for out-of-territory students. Approximately 64% of first-year students receive need-based financial aid, with an average net price of USD 8,892 for federal loan recipients. UVI also offers online programs. For details, visit the university website.

The USVI housing market differs substantially from the US mainland. Limited supply and island economics drive prices higher than many US regions, requiring careful planning and realistic budgeting.

Available housing types

Apartments often form part of larger homes, with owners occupying the lower level and tenants the upper. Studios and one or two-bedroom units appeal to singles and couples. Unlike the mainland, large apartment complexes remain rare in the USVI.

Condominiums typically sit within developments offering amenities like pools, golf courses, or tennis courts. Some enjoy beachfront locations or proximity to hotels and resorts, creating an atmosphere similar to mainland residential complexes.

Houses suit families or larger groups. With multiple bedrooms and bathrooms, they represent the priciest option but deliver maximum space and privacy.

Popular expat neighborhoods

On St. Thomas, several areas attract expats. Frenchman's Bay offers convenient positioning near the airport and beaches. Red Hook, at the island's eastern tip, provides a lively atmosphere with direct ferry access to St. John and the British Virgin Islands. Mahogany Run appeals to golf enthusiasts, while Peterborg delivers panoramic ocean views. Secret Harbor attracts those seeking direct beach access.

On St. John, Cruz Bay forms the vibrant downtown with bars and restaurants, while Coral Bay offers a quieter alternative. Note that two-thirds of the island holds national park status, severely limiting beachfront accommodation options.

On St. Croix, Christiansted charms with its colorful historic center in the east, Frederiksted sits in the west, while the East End provides more residential, peaceful neighborhoods.

Rental and purchase costs

Average rent for a one-bedroom apartment downtown runs USD 1,597 monthly (range: USD 1,125-2,500). Outside downtown, similar apartments average USD 1,464 monthly (range: USD 899-2,200).

For a three-bedroom apartment downtown, expect around USD 3,250 monthly (range: USD 3,000-5,000). Outside downtown, average rent reaches USD 3,667 monthly (range: USD 2,500-5,000).

For purchases, price per square foot downtown averages USD 967 (range: USD 700-1,200), while outside downtown it hits USD 1,000. Mortgage rates on 20-year fixed loans average around 7.31% (range: 4.20%-9.90%).

Finding accommodation

Several resources facilitate your search. Local newspapers like the Daily News and Island Trader (weekly) in St. Thomas/St. John, or the St. Croix Avis in St. Croix publish real estate listings. Real estate agencies like Christie's International Real Estate (340-775-9000 in St. Thomas, 340-715-7749 in St. Croix), Sea Glass Properties, or Coldwell Banker St. Croix Realty can assist. Craigslist Virgin Islands also features rental and sale listings.

Moving to the US Virgin Islands requires thorough preparation, even with simplified procedures for American citizens. Here are the essential steps for a successful relocation.

Before departure

1. Identification documents: US citizens don't need a passport, but government-issued photo ID is required. From May 7, 2025, REAL ID-compliant documents become mandatory for all domestic flights.
2. Temporary accommodation: Book temporary housing for your first few weeks while searching for permanent accommodation. The rental market is tight—expect several weeks of searching.
3. Shipping your belongings: Arrange shipment of personal effects by sea container. Transit times vary from 2-6 weeks depending on your origin. Compare quotes from multiple international moving companies.
4. Customs restrictions: Sunscreens containing oxybenzone, octinoxate, or octocrylene are banned in the USVI to protect coral reefs. Check your product ingredients before packing.

Upon arrival

1. Banking: Open a local bank account immediately. Major US banks operate here, alongside local institutions like Banco Popular or FirstBank.
2. Driver's license: If establishing permanent residence, you may eventually need a USVI driver's license. Your US license remains valid for temporary stays.
3. Tax registration: Register with the Virgin Islands Bureau of Internal Revenue if establishing bona fide residence. This step proves crucial for accessing tax benefits.
4. Medical providers: Identify your doctor and dentist, and secure health insurance if you don't already have coverage including the USVI.
5. School enrollment: Register children at your chosen school as early as possible. International schools have limited spots and waiting lists.

Adapting to island life

Left-side driving can feel disorienting initially. This Danish heritage peculiarity requires an adjustment period. Gasoline costs approximately USD 5.05 per gallon, expensive even by US standards.

For utilities, you'll need to set up electricity, water, and waste collection at your new residence. Expect around USD 315 monthly for basic utilities in a standard apartment, USD 90 for high-speed Internet (60+ Mbps), and USD 110 for a mobile plan with 10GB data.

The hurricane season runs from June through November. Prepare an emergency kit with water, non-perishable food, flashlights, battery-powered radio, and first aid supplies. Familiarize yourself with evacuation procedures and designated shelters in your area.

The US Virgin Islands deliver abundant activities centered on their exceptional natural environment. From pristine beaches to renowned dive sites and historical landmarks, you'll find no shortage of leisure options.

Water activities

Diving and snorkeling rank among the top activities. Trunk Bay on St. John features a marked underwater trail allowing easy marine life discovery. Buck Island National Monument off St. Croix comprises an 880-acre protected marine park offering spectacular coral reefs and crystalline waters.

Kayaking thrives in several sheltered bays, notably Maho Bay and Cinnamon Bay on St. John, where you can paddle while observing sea turtles and rays. Sailing proves particularly popular, with numerous boat rental, private charter, and day trip options to neighboring islands. Deep-sea fishing attracts enthusiasts seeking marlin, tuna, and mahi-mahi (permits required for certain species).

Beaches constitute the main natural attraction. Magens Bay on St. Thomas regularly ranks among the world's top 10 beaches. Trunk Bay on St. John captivates with immaculate white sand and turquoise waters. Honeymoon Beach on Water Island offers a more intimate, less crowded atmosphere.

Land-based exploration

Virgin Islands National Park covers two-thirds of St. John, offering around twenty hiking trails through tropical forest with spectacular Caribbean Sea panoramas. The Annaberg Plantation ruins reveal the island's 18th-century sugar industry history.

On St. Croix, over 150 historic sugar mills still dot the landscape, witnessing the colonial-era sugar industry's importance. Fort Christian in St. Thomas, dating from 1680, represents the territory's oldest standing structure. Blackbeard's Castle, a historic defensive tower, offers immersion in Caribbean piracy history.

Golf enthusiasts appreciate the Mahogany Run course in St. Thomas, while the rainforest zipline delivers a more adventurous experience with aerial canopy views.

Dining and nightlife

Charlotte Amalie in St. Thomas concentrates most nightlife with its bars, restaurants, and late-opening duty-free shops. Cruz Bay on St. John offers a more relaxed vibe with several bars featuring live music and popular happy hours. Red Hook also serves as a favored evening gathering spot.

Local cuisine blends Caribbean, African, and European influences. Don't miss callaloo (spinach stew), conch prepared various ways, johnny cakes (fried dumplings), and fungi (local polenta). St. Croix earned recognition as "Caribbean Culinary Destination of the Year 2025," confirming its gastronomic scene quality.

Cultural events

Carnival stands as the year's major cultural event, featuring colorful parades, calypso and soca music competitions, traditional dances, and food fairs. St. Thomas Carnival generates an estimated media value exceeding USD 5.6 million. St. John Celebration runs from June 29 to July 4, combining cultural festivities with American independence celebrations.

Mocko Jumbies, traditional stilt dancers, animate numerous cultural events and represent a unique local tradition worth experiencing. The US Virgin Islands also earned designation as "Caribbean Yachting Destination of the Year" and "Event Destination of the Year" in 2025, attesting to growing appeal.

Life in the US Virgin Islands differs notably from the US mainland or Europe. Understanding these particularities helps you better anticipate adaptation and fully enjoy your Caribbean experience.

Getting around daily

The main transport peculiarity in the USVI is driving on the left, a Danish and British colonial heritage. This surprises many newcomers, especially since vehicles typically have left-hand steering (American configuration). Adaptation periods vary from several days to several weeks depending on individuals.

Your US or international driver's license remains valid for driving in the USVI. Purchasing a new vehicle represents a significant investment: a VW Golf costs approximately USD 47,500 and a Toyota Corolla around USD 40,000. Gasoline runs expensive at USD 5.05 per gallon, reflecting import costs.

The Vitran public transport system serves main islands with buses, but service remains limited compared to major cities. Single tickets cost USD 4 and monthly passes USD 140. Safari taxis, collective taxis following fixed routes, constitute a popular and economical alternative for daily travel.

Private taxis charge high rates with a USD 20 starting fare, then USD 5 per mile and USD 32.50 per hour waiting. For inter-island travel, regular ferries connect St. Thomas and St. John daily (Red Hook - Cruz Bay route), and services also reach neighboring British Virgin Islands.

Food and shopping

USVI supermarkets offer a complete product range, but prices generally run 20-30% higher than the US mainland due to import costs. Main chains include Plaza Extra, Cost-U-Less, and PriceSmart. Local fresh produce, available at weekly farmers' markets on each island, offers more affordable prices and better quality.

Local cuisine blends Caribbean, African, and European influences. Must-try specialties include callaloo (spinach stew), conch prepared multiple ways, johnny cakes (fried dumplings), and fungi (Caribbean polenta). Fresh fish and seafood are available directly from local fishermen.

Climate and lifestyle

The USVI tropical climate maintains pleasant temperatures between 75-90°F (24-32°C) year-round. The dry season from December to April represents the best period, while rainy and hurricane season runs from June through November. Constant trade winds temper the heat and make the climate particularly agreeable.

The pace of life adopts the famous "island time," noticeably more relaxed than the mainland. Appointments may start 15-30 minutes late without being considered rude. This more flexible time approach requires mental adjustment for newcomers accustomed to strict schedules.

Local culture reflects a blend of African, European (Danish, British, French), American, and Caribbean influences. Reggae, calypso, soca music, and steel pans rhythm daily life. Numerous festivals animate the year, creating a festive and welcoming atmosphere.

Connectivity and technology

High-speed Internet access is widely available with plans starting at USD 90 monthly for 60+ Mbps. Mobile coverage proves adequate on main islands with plans around USD 110 monthly for 10GB data. US streaming services (Netflix, Hulu, Disney+, etc.) function normally, enabling connection to American culture.

Safety

Crime rates in the USVI run higher than the US average, primarily concentrated in specific neighborhoods. Standard precautions apply: avoid isolated areas at night, don't display valuables, lock your vehicle and residence. The emergency number 911 works as on the US mainland, connecting you with police, fire, or emergency medical services.

Living costs in the US Virgin Islands exceed mainland US averages substantially. Island status drives up import costs, particularly for food and consumer goods. However, no sales tax and duty-free shopping opportunities partially offset these premiums. Here's a detailed breakdown of expected monthly expenses based on your situation.

Single person budget

The following table presents estimated monthly expenses for a single person living in the US Virgin Islands, based on Numbeo data updated August 2025.

Source: Numbeo, updated August 2025 (excluding health insurance)

Restaurant meals represent a significant expense: expect around USD 25 for an inexpensive restaurant meal, USD 11 for a McMeal, and up to USD 130 for dinner for two at a mid-range establishment. Supermarket food prices run high: USD 10.07 per gallon of milk, USD 6.95 per dozen eggs, and approximately USD 11.67 per pound of chicken.

Family of four budget

For a family of four, expenses increase significantly, particularly with private school tuition. Here's a realistic estimate of monthly costs.

Source: Numbeo, updated August 2025 (excluding health insurance)

School tuition represents the most variable and potentially heaviest budget item. At VIMSIA, annual fees range from USD 13,150 to USD 21,000 per child depending on grade level, or USD 1,096 to 1,750 monthly. At Gifft Hill School, rates prove more accessible with a range of USD 5,995 to USD 17,250 annually.

Regional comparison

The US Virgin Islands sit in the upper Caribbean cost spectrum. The territory costs more than Puerto Rico, Dominican Republic, Grenada, or Dominica, but remains less expensive than Cayman Islands, Turks & Caicos, Barbados, or St. Barth. Duty-free shopping enables substantial savings on certain products, with discounts reaching 60% compared to mainland US prices.