In the landscape of 2023, the demand for Caribbean passports among investors grew. In order to unravel the trends shaping this dynamic arena, we engaged in an insightful conversation with Zlata Erlach, Caribbean Programs Expert and Head of the Austrian office at Immigrant Invest.
Let’s discuss Immigrant Invest: why can investors rely on you?
Immigrant Invest is a government-recognized company with the legal authority to act as an agent for citizenship and residence by investment programs. This recognition empowers us to apply for citizenship on behalf of our clients, a privilege not extended to unlicensed agents or individual applicants.
A prudent approach to choosing an agent is to always request and verify a licence before entering into agreements or making payments for services. Immigrant Invest currently holds licences for all five Caribbean investment programs — Dominica, St Kitts and Nevis, Antigua and Barbuda, St Lucia, and Grenada.
Selecting the right passport can be a complex decision. To simplify this process and empower investors to make informed choices aligned with their specific needs and objectives, we have created our own Passport Index.
For instance, our Index shows St Kitts and Nevis as a prime destination for those who value global mobility first. St Kitts and Nevis’ passport is also recognised as the world's top passport by investment by Professional Wealth Management.
Meanwhile, St Lucia beckons as an excellent choice for those creating a solid Plan B. The country has a quick and secure passport acquisition process, coupled with a minimum investment threshold of just $100,000.
What’s citizenship by investment, and how can investors benefit from it?
Citizenship by investment is a legal way to enable individuals to acquire citizenship and the associated rights and privileges in a foreign country by making a specified financial investment.
The process of obtaining a passport in the Caribbean typically involves contributing to the host nation's economy, for example, investing in government-approved projects, purchasing real estate, or making a non-refundable donation to a designated fund.
Five Caribbean countries offer citizenship by investment, each with different minimum investment amounts:
- Antigua and Barbuda, Dominica, and St Lucia for $100,000+;
- Grenada for $150,000+;
- and St Kitts and Nevis for $250,000+.
Investors can benefit from citizenship by investment in several ways; the below listed are the most significant.
1. Global mobility. One of the primary advantages is enhanced global mobility. Second citizenship in the Caribbean grants visa-free or visa-on-arrival access to numerous countries and regions, facilitating ease of travel for business, leisure, and personal reasons.
As an illustrative example, the passports of Antigua and Barbuda grant their holders visa-free access to an impressive 152 countries.
2. Business opportunities. Investors can access new markets and business opportunities in the Caribbean, fostering economic growth and international expansion of their enterprises.
Most of the Caribbean countries have appealing tax regimes. To name a few, St Lucia does not tax global income, dividends, inheritance, capital gains or wages.
3. Political stability. Many investor-friendly nations offer political stability and a favourable business environment, reducing risks associated with political instability or economic uncertainty in the investor's home country. The Caribbean is not an exception.
A second passport is a guarantee that in case of a black swan event, an investor and their family will be able to move somewhere safe, including the country that issued the passport or one of the countries from the list of visa-free destinations.
4. Legacy and generational wealth. Citizenship in the Caribbean can be acquired by the investor's children as well. For example, investors who obtain a passport in St Lucia can include a spouse, children under 30, parents over 55, and siblings under 18. This is to create a lasting legacy and provide security for heirs, ensuring they can access the same privileges and opportunities.
5. No need to renounce first citizenship. All the Caribbean countries with CBI programs do not require applicants to renounce their first passports. Investors can enjoy multiple citizenship as long as their country of origin recognizes second citizenship.
What are the most in-demand Caribbean citizenship-by-investment programs in 2024, and why?
As of 2024, the most sought-after Caribbean citizenship by investment programs include those of St Kitts and Nevis, St Lucia, and Grenada. These programs remain highly desirable due to several factors.
St Kitts and Nevis boasts the Caribbean's strongest passport, providing visa-free access to 153 countries, including key business and travel hubs.
St Lucia offers an affordable investment option, with a minimum contribution requirement of $100,000, attracting cost-conscious investors.
Grenada's program is attractive for its access to the E-2 business visa to the United States, making it appealing to those seeking educational opportunities and a high-quality lifestyle in the US. Grenada’s citizens are also able to travel visa-free to China, a rare opportunity.
The countries mentioned above continue to provide political stability, well-regulated programs, and strong Due Diligence measures, assuring investor confidence.
Are there potential changes in regulations or new opportunities for investors on the horizon?
Specific changes to Caribbean citizenship by investment regulations in 2024 had not yet been mentioned. However, in 2023, the EU demanded that Caribbean countries implement changes in their citizenship by investment programs. These changes were aimed at tightening the programs’ conditions.
Previously, Caribbean countries sometimes made time-limited offers, allowing investors to acquire citizenship at a reduced investment threshold. For instance, St. Kitts and Nevis provided a $25,000 discount valid from January 1st to June 30th, 2023, for applicants choosing the Sustainable Growth Fund option.
As we look ahead to 2024, it's anticipated that changes may lean toward the more stringent side. Should the EU mandate new regulations, Caribbean countries might intensify their Due Diligence checks or increase the minimum investment required to obtain citizenship. For example, St. Kitts and Nevis has already raised its minimum investment amount from $100,000 to $250,000.
Failure to comply with EU demands could lead to the loss of one of the key privileges associated with a Caribbean passport: visa-free access to the EU. After the suspension of visa-free access to the UK for citizens of Dominica, other Caribbean countries are likely more inclined to adhere to EU regulations to avoid similar consequences.
In light of these potential changes, we advise investors to consider their options carefully and make informed decisions promptly.
