Unlock paradise: your guide to the cheapest islands to live on

Want to escape to paradise? It's a common dream: trading dreary commutes for sun-drenched beaches and a slower pace of life. You might be surprised to learn that living on a tropical island doesn't have to remain a fantasy. This post is all about the cheapest island to live on, and trust us, this isn't just about surviving – it's about thriving.

Believe it or not, you can find spots where your money stretches further than you imagined, letting you live that island dream without breaking the bank. So, let's explore some of the cheapest and nicest islands in the world.

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• 20 tropical islands to visit around the world
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• Explore the best of South America's islands: hidden gems

Top picks for the cheapest island to live on

Imagine stepping off a plane and into a world where worries melt away like the setting sun. This could be your reality on islands around Southeast Asia, the Caribbean or even in Europe. Check out our top picks.

Southeast Asia's affordable jewels

Let’s face it, Southeast Asia holds a treasure trove of affordable gems, and when it comes to the cheapest island to live on, a few contenders really stand out. Here are some of the beautiful islands where you’ll find laid-back vibes, vibrant cultures, and prices that won’t make your eyes water.

Phu Quoc, Vietnam

Think exotic beaches, lush jungles, and a relaxed pace of life. This Vietnamese island offers that and more. Imagine renting a villa for around $500 monthly while enjoying a cost of living roughly 70% lower than in the US.

It’s no wonder Phu Quoc is popular among those seeking the cheapest island to live on, especially since it boasts a welcoming expat community and direct flights from budget airlines.

Koh Samui, Thailand

Koh Samui, in Thailand, is another great choice. It's known for its beautiful beaches, lush mountains, and thriving expat community, offering a great mix of relaxation and exploration.

Expat couples are reportedly living comfortably on as little as $1,500 per month there. If you're looking for affordable island life, Koh Samui is calling your name.

Koh Tao, Thailand

Another good pick is Koh Tao. Thailand is already a reasonably affordable country, and this island is in the top 25% cheapest cities in the country.

This is the perfect destination if you’re into marine life, since this island is a hotspot for diving and snorkeling adventures. Besides the beach vibes, Koh Tao has many other gems, like the viewpoints Two View and John-Suwan and the super fresh seafood.

Penang, Malaysia

The island of Penang, located off the coast of Malaysia, also offers an alluring mix. Imagine a place with delicious street food, colorful colonial architecture, and natural beauty in spades. Plus, its cost of living is significantly lower than cities like New York City – up to 57% cheaper, in fact.

Cebu, Philippines

Cebu is a popular choice among budget-conscious expats and retirees seeking an affordable tropical retreat in the Philippines, which boasts over 7,000 islands.

Well-connected to various parts of the country, it provides an authentic Filipino experience with its rich Spanish colonial history, lively cultural life, and welcoming locals - who often speak English.

Healthcare in Cebu is both high-quality and affordable, and the overall cost of living is about 70% lower than in the United States. With a strong expat community and good climate throughout the year, Cebu stands out as a great choice for those looking for a cheap island to live on.

Affordable islands in Europe

If you’re based in Europe, you don't have to stray too far from home to find an affordable island to live on. Check out some examples.

Naxos, Greece

Living in a Greek island might sound too luxurious. However, it’s possible to enjoy some of these paradises on a much lower budget than that of typical honeymooners.

Naxos is one of the cheapest Greek islands - especially compared to more famous ones in the neighborhood, like Santorini and Mykonos. Beautiful beaches and hiking trails are among Naxos’ selling points, and you can enjoy it all for free.

Accommodation here is much cheaper than in the more popular islands. This is, after all, the largest Cycladic Island, which gives you more choice of places to rent. And although it's less touristic, it boasts the same beauty and charm than its neighbors.

You'll love exploring the main town Chora and watching the sunset at the ancient ruins of the Temple of Apollo. Naxos is also a great place for hiking, as we mentioned, and it's very accessible from Athens.

Malta

The breathtaking island nation of Malta awaits. This little slice of paradise boasts something for everyone, and with good weather year-round, it is about more than just idyllic landscapes. 

It’s a good destination if you want to meet people from all over the world, and it’s quite affordable – a couple can enjoy a comfortable lifestyle there on a budget of $2,600 a month.

Cheap islands to live in the Caribbean

Craving the turquoise waters and laid-back charm of the Caribbean? Let's be real; some islands are known for luxury prices, but dig a bit deeper, and you’ll find those offering affordability alongside breathtaking beaches.

You might also like these articles: 

• Best islands in the Caribbean: Top 7 islands to visit
• Which are the safest Caribbean islands? 
• Hurricane season in the Caribbean: expert guide for travelers

Caye Caulker, Belize

Caye Caulker embodies island life at its finest. The good news is that couples can experience this slice of paradise for as little as $1,500 a month, a price that certainly fits the bill when looking for the cheapest island to live on.

This place beckons you to embrace simple pleasures and let worries drift away. Plus, Belize is an English-speaking country, making the transition even easier. If you are looking for an off-the-beaten-path experience, this might just be your dream come true.

Isla Colon, Panama

The “go slow” motto sets the scene for a tranquil life with plenty of natural beauty to inspire in Isla Colon, Panama. The main hub there is Bocas Town, a charming seaside town with brightly painted buildings where most expats live. Enjoy activities like fishing or sailing while spending as little as $600 on rent.

Grenada

Grenada offers an affordable lifestyle, making it one of the most cost-effective Caribbean islands. Its relaxed atmosphere invites you to enjoy its scenic landscapes, water activities, and fresh local cuisine.

The cost of living, including education, real estate, groceries, and dining, is significantly lower compared to the United States and other Caribbean nations.

You can enjoy a meal at a local restaurant for about USD $8. Rent prices vary, with a one-bedroom apartment in the city center costing around USD $760 per month and about USD $390 per month in rural areas. The real estate market is also accessible, offering options for solo seekers and families across various budgets.

Las Terrenas, Dominican Republic

Craving a unique cultural blend? Then, Las Terrenas might be just the place for you. You'll experience the perfect mix of Caribbean charm with European flair. If you’re looking for a low-key destination with a good infrastructure, this is a great choice.

The village provides an affordable tropical getaway without sacrificing quality of life, with beautiful beaches and a nice small-town feel. You can enjoy a great lifestyle there for about $2,000 a month for a couple.

Roatán, Honduras

Dive into paradise with Roatán's gorgeous beaches, clear blue waters, and unique rocky coves. With a more laid-back lifestyle, Roatán attracts adventurers who enjoy the simple life and embrace its beauty. The infrastructure there is good and it’s been getting better, so moving there now might be the perfect opportunity.

Plus, the cost of living is significantly cheaper, with the possibility of finding places at approximately 65% less than the US. Roatán is a great spot to live if you are a single person. There’s a vibrant expat community there, and lots of social life.

How to live on an island for free

Looking for the most affordable way to live on an island? With Worldpackers you can make the dream of living on a picturesque island a reality by volunteering in exchange for accommodation and other benefits. It’s a great opportunity to have this experience temporarily, or to try out different islands while looking for a place to settle.

It's quite simple: Worldpackers is a platform that connects travelers with hosts offering volunteer opportunities worldwide. In exchange for your time and skills, hosts provide free accommodation, and sometimes additional perks like meals, activities or local tours. This setup allows you to experience life in beautiful locations without the hefty price tag.

By volunteering you can also immerse yourself in the local culture, learn new skills, and make friends from all over the world. This approach not only makes island living affordable but also enriches your travel experience through meaningful contributions and connections.

How it works

1. Create a profile: Start by creating a profile on Worldpackers, detailing your skills, interests, and travel goals. This helps hosts understand what you can offer and ensures a good match.

2. Browse opportunities: Use the platform’s filters to search for volunteer opportunities in your desired island destinations. You’ll find a variety of projects ranging from hospitality and eco-projects to teaching and community work, among other choices.

3. Apply and connect: Apply to the opportunities that interest you. If a host accepts your application, you can then coordinate the details of your stay directly with them.

4. Exchange skills for stay: Once on the island, you’ll contribute a set number of hours per week to your volunteer project. In return, you receive free accommodation and other benefits.

For more information, read our guide on How Worldpackers works.

Island volunteering opportunities

Many islands around the world offer incredible volunteering opportunities through Worldpackers. Here are a few examples:

Enjoy the Caribbean and help run a youth project in Grenada

This is a family run youth project on the island of Grenada, running many activities all year round. They offer an after-school program during school time and holiday camps when school is out, and you can help with varied tasks such as working with the children or helping with the maintenance of their farming land. 

On your days off can explore the lush rainforests, cooling waterfalls, spice markets, cocoa plantations, rum distilleries, snorkeling and much more. Click here to find out more.

Live for free in Naxos and help out at a guest house

This host is looking for volunteers to help with preparing breakfast and cleaning the apartments for guests. In exchange for your help you’ll get a free stay in a private room, breakfast, dinner, free use of their laundry room and equipped kitchen, and more. Click here to keep reading.

Volunteer with housekeeping at a hostel in Roatán

This hostel accepts volunteers to help out with cleaning, laundry, gardening and greeting new guests. They require about 20 hours of help per week (shifts are 3 to 5 hours-long). In exchange, you get a stay in a room shared with up to two other volunteers and use of their communal kitchen. Find out more about this position.

Help at an animal shelter in Koh Samui

This sanctuary provides a safe home for around 50 dogs and 35 cats. If you’re an animal lover and eager to help with cleaning, cooking and taking care of the cats and dogs, this is a great opportunity to contribute with an inspiring project. In exchange for your help you’ll get a stay in a shared dorm and access to their equipped kitchen. Click here for more information.

FAQs about the cheapest island to live on

What is the cheapest tropical country to live in?

While not technically island nations, places like Vietnam, Thailand, and Cambodia offer incredibly low costs of living in Southeast Asia, each with its own collection of beautiful, affordable islands to explore.

What is the most affordable Caribbean island to buy property?

Generally, the smaller islands that aren't as developed tend to be more affordable for property purchases. Look at Dominica, Belize, and Grenada – their real estate prices can be more appealing than their more developed counterparts.

Whether it is the charm of Southeast Asia, the allure of the Mediterranean, or the warmth of the Caribbean you seek, affordable island living isn't out of reach. It requires thorough research, an adventurous spirit, and the willingness to embrace new experiences, but it’s definitely worth it.

A great way to have a taste of island life and discover locations that align with your needs and budget is volunteering in exchange for accommodation. The good life is waiting! Create your free profile on Worldpackers and start planning your island adventure today.