WHAT IS CITIZENSHIP BY INVESTMENT?
Before we get to the minute details about the St. Kitts and Nevis’ citizenship program, let’s get on the same page as to what a CBI program actually is.
A citizenship by investment program, also called economic citizenship, requires investors to make a significant donation or an investment in a country’s economy in exchange for citizenship.
Applicants are usually required to:
- Make a non-refundable donation
- Invest in (pre-approved) real estate
- Buy governmental financial instruments
- Set up and run a company
An application will have to be lodged, paperwork will have to be gathered, and an investment of a certain sum will have to be made.
After the application is approved and a certificate of naturalization is issued, the person will then be able to claim a passport of the country.
It will be a regular passport that can be used for traveling, working, and living abroad. In other words, full citizenship is granted.
WHY ST. KITTS AND NEVIS?
Getting a second passport in Saint Kitts is one of the easiest ways to lower your global tax bill.
Every good investment starts with knowledge about the origin of the investment. With that in mind, before we jump right into the St. Kitts and Nevis CBI program, let’s look at the country itself.
Also known as the Federation of Saint Christopher and Nevis, the two-island country is located in the West Indies in the Lesser Antilles in the Caribbean Sea.
St. Kitts and Nevis is an Independent British commonwealth nation. The islands were the first home of English and French colonists, earning them the name of the “Mother Colony of the West Indies.”
It is also the smallest sovereign nation in the Western Hemisphere – in both the size and population – with only approximately 54,000 residents.
Interestingly, the climate on these two islands is not the same. St. Kitts is classified as a tropical savanna climate. Meanwhile Nevis, by comparison, is classified as a tropical monsoon climate.
Either way, the mountainous regions of the islands are stunning and the ocean views are magnificent, making these islands a fabulous place to spend time.
- KITTS AND NEVIS’ CITIZENSHIP BY INVESTMENT PROGRAM
Not one for lounging around on beaches? Let’s get straight to business then.
That’s what we’re all here for – finding out how to get a second passport in the most efficient way possible.
Luckily, St. Kitts and Nevis has a solid CBI program in place and a highly efficient processing system as well. They have done this for over 35 years, after all.
The ‘Platinum Standard’ program was established back in 1984 when the sugar industry collapsed and the country found itself in dire need of money.
Fast-forward to today, the St. Kitts and Nevis’ program is one of the most trusted and successful ones out there.
The process is relatively quick, taking just three to four months, and it results in the new passport holder gaining access to over 150 countries in the world, including all of the EU, UK, Ireland, and Russia.
PRICE WARS
In 2017, Hurricanes Irma and Maria struck the Caribbean nation of St. Kitts and Nevis. The two-island nation was devastated by the hurricane, suffering severe damage to infrastructure and other key areas, such as schools, agriculture, main roads, police stations, and the fire department.
The damage totaled approximately $150 million and St. Kitts and Nevis needed money to rebuild.
This desperate need brought a new twist to the island nation’s citizenship by investment program. As of 2017, eligible donors could gain citizenship and a passport from St. Kitts and Nevis by contributing just $150,000 to the new Hurricane Relief Fund.
Compared to the previous price tag of $250,000, this was a bargain.
Of course, whenever anything like this goes into effect, you can expect complaining and opposition from the other side of the equation.
Eventually, they introduced a more permanent fund – the Sustainable Growth Fund – that effectively reduced the price for St. Kitts and Nevis citizenship by investment on a long-term basis.
The motivation?
St. Kitts and Nevis was not the only island country trying to rebuild from the 2017 hurricane season. Everyone was and still is competing for the money of folks looking to invest somewhere to gain citizenship.
This competition has created an ongoing price war in the Caribbean, driving down prices for existing programs like St. Kitts and Nevis and prompting the creation of new programs.
So, luckily for you, some really well-priced CBIs can now be found across the Caribbean, and St. Kitts and Nevis is one of them.
HOW TO BUY A ST. KITTS AND NEVIS PASSPORT
The St. Kitts and Nevis CBI program offers two different routes toward obtaining citizenship and a passport. They are the industry-standard ones: either make a non-refundable donation or invest in pre-approved real estate – straightforward stuff.
Let’s talk about each of these options in more detail.
NON-REFUNDABLE DONATION
All Caribbean island citizenship by investment programs offer the non-refundable donation route, and St. Kitts and Nevis is no different.
The fund that you will be contributing to is called the Sustainable Growth Fund (SGF) and you’ll be expected to donate $150,000 (plus fees) as a single applicant.
Meanwhile, a family of four can expect to make a donation of $195,000, as adding a spouse adds $25,000 to the total bill, and adding more dependents tacks on $10,000 for each.
[Update August 2020: Due to the Coronavirus pandemic, St. Kitts is offering a limited-time discount and is allowing an entire family of four to purchase citizenship for the same price as a single applicant, just $150,000.]
There are additional fees to keep in mind that will be used to pay for the due diligence process:
- $7,500 is due for the main applicant
- $4,000 is due for any dependent over the age of 16
The funds raised through CBI donations are used for healthcare, education, and alternative energy, among other things.
According to Mr. Les Khan, the CEO of the Citizenship by Investment Unit in St. Kitts, the fund money has recently been used to repave all of the roads on the islands, as well as to build a new pier to welcome larger cruise ships.
INVEST IN REAL ESTATE
Another option to qualify for citizenship and obtain a passport is to invest in real estate. It is notably more expensive, but you do have a chance to recapture some of your investment.
Do not expect to regain it all, though. You are only allowed to use approved real estate developments that are usually government projects with an inflated price tag.
If you decide to invest, you have the option of putting a minimum of $200,000 in a government-approved property. Again, it is unlikely you will regain all of that investment back, but it is still a good option.
You can resell the real estate after a holding period of five years.
Another option is to invest $400,000 in real estate with a non-related adult, (i.e., an investment partner). In this case, the property can be sold after a period of 7 years is up.
You should also note that this investment route has pretty hefty government fees:
- The main applicant will have to pay $35,050
- The spouse of the main applicant will owe $20,050
- Other dependents, regardless of age, will add $10,050 to the total
So, if you’re a solo applicant buying real estate on your own, you will have to pay a minimum of $235,050. Meanwhile, a family of four will have to spend at least $275,200.
This means that you are really only saving yourself from a portion of the donation amount compared to the direct donation option.
Finally, keep in mind that this is the longer of the two processes due to the extra steps required to finalize and purchase a property.
