Introduction
St Kitts and Nevis ("St Kitts") launched its first citizenship by investment ("CBI") program in 1984 for eligible individuals and their families to gain full legal citizenship of the country. On 27 July 2023, St Kitts government announced major changes affecting almost all aspects of their CBI program. Nonetheless, this program continues to offer investors the opportunity to synergize lifestyle enhancement and the right to freely reside in many other Caribbean Community ("CARICOM") countries, thus remaining one of the most attractive and most popular immigration options.
This article highlights the recent updates and changes regarding the St Kitts CBI program, accompanied by a thorough discussion of its potential advantages and eligibility requirements.
Important Updates
As of 27 July 2023, the important updates regarding St Kitts CBI program are as follows:
- The Sustainable Growth Fund ("SGF") Contribution program has been replaced by the new Sustainable Island State Contribution ("SISC") program.
While the St Kitts government has suspended the SGF program, the newly launched SISC aims to channel investment funds into sustainable development of the islands based on the following seven pillars:
- Increasing local food production;
- Transitioning to green energy;
- Diversifying the economy;
- Attracting and supporting sustainable industries;
- Evolving the creative economy;
- Recovering from the impacts of the COVID-19 pandemic; and
- Expanding social protection and safety nets to protect the most vulnerable.
- The required amount of contribution under the SISC program has increased.
The minimum contribution has been raised to USD 250,000 for a single applicant. For an applicant with one dependent, the minimum contribution is USD 300,000. For a family of three or four, the minimum contribution is now USD 350,000.
- All applicants are now required to undergo mandatory interviews.
Applicants are now required to have mandatory interview(s), either online or in-person, at a location specified by St Kitts Citizenship by Investment Unit ("CIU") and approved by the Board of Governors. Interviews will be conducted by the CIU or by independent professional firms from the United Kingdom, the United States and Europe, who are commissioned by the CIU to perform background due diligence checks during the interviews in accordance with the requirements set by St Kitts' Board of Governors.
- The Authorized Agents and Advisors must now be registered business entities under the Laws of St Kitts.
Moreover, the Board of Governors have been empowered to regulate all Authorized Agents and International Marketing Agents of the St Kitts' CBI program, who must now be registered businesses under the country's laws. This new requirement will ensure that all International Marketing Agents, such as Harvey Law Group, continue to offer accurate and reliable services to prospective clients.
Advantages of St Kitts CBI program
First, successful applicants will receive St Kitts citizenship for life. They will be able to obtain a travel document valid for 10 years and renewable indefinitely, securing citizenship for themselves and for their future generations.
Second, this program ensures high international mobility and a wide range of business and career opportunities. As St Kitts recognizes dual citizenship, successful applicants may retain their original citizenship. Coupled with the fact that this program does not impose any residency requirement, citizens of St Kitts may reside and work in any other participating CARICOM Single Market and Economy (CSME) Member State, which include Antigua and Barbuda, Barbados, Belize, Dominica, Grenada, Guyana, Jamaica, Monserrat, St. Lucia, St. Vincent and the Grenadines, Suriname, and Trinidad and Tobago.
Third, St Kitts offers an appealing tax regime, which does not impose personal, capital gain and inheritance taxes upon its citizens. This favors the growth of business investments and household incomes.
Fourth, applicants may include their immediate family members in the application. Family members include a spouse, minor children, children up to the age of 25 in full time education and fully supported by the applicant, children over the age of 18 that are physically or mentally challenged, as well as parents of the applicant or spouse that are aged 65 or older if they are living with and fully supported by the applicant.
Last but not least, the processing time of this program is relatively short, typically ranging from 4 to 6 months.
Eligibility for St Kitts CBI program
Please note that there are four ways to obtain St Kitts CBI program:
- Donation to the Government Investment Fund
Focusing on sustainable development of the islands, the new SISC program sees a rise in the amount of contribution. For a single applicant, the required donation is now USD 250,000 whereas for an applicant with one dependent, the minimum contribution is USD 300,000. For a family of four, the minimum contribution is USD 350,000. For more than three dependents, additional contributions of USD 50,000 per dependent under 18 and USD 75,000 per dependent over 18 are required.
- Real Estate Investment
Alternatively, applicants may also seek the real estate investment option by investing in a real estate property officially designated as an "Approved Development". The investment threshold is USD 400,000. Please further note that investment in a real estate unit of an Approved Development cannot be resold for a period of seven years from the date of purchase.
- Private Home Sales Investment
Aside from the Approved Developments, applicants may make an investment in a private dwelling home or a single-family condominium unit designated as an "Approved Private Home". The minimum investment under this option is USD 800,000 for a freehold private dwelling home or USD 400,000 for a condominium unit. Likewise, the Approved Private Home cannot be resold for a period of seven years from the date of purchase.
- Donation to an Approved Public Benefactor
Lastly, applicants may also be qualified for the CBI program by contributing to an "Approved Public Benefit Project," that brings a substantial benefit to the people of St Kitts with a minimum donation threshold of USD 250,000. For applicants including any family members, the Approved Public Benefit Project has a lower cost relative to the donation option.
Aside from the above quoted amounts of donations and investments, please also note that other charges may be incurred in a CBI application, including but not limited to application fees and processing fees.
Conclusion
In conclusion, St Kitts CBI Program (View the program) is the longest established investment program worldwide. Ranging from approved developments to private residential properties, investors may enjoy substantive capital appreciation, rental income, and unlimited potential of financial gains in the long run. Hence, despite the new regulations, the program's extensive benefits are still likely to merit wide popularity, especially among those individuals seeking second citizenship and investment opportunities.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
