CARIBBEAN CITIZENSHIP BY INVESTMENT PROGRAMS: WAYS TO INVEST AND KEY FEATURES OF CBI SCHEMES

By Jean-François Harvey

Caribbean Citizenship by Investment (CBI) programs are some of the top programs available. While each program has unique benefits, a key appeal is visa-free travel to over 140 countries and territories for the applicant and qualifying family members.

The level of global mobility increases the availability of business opportunities and allows for a backup plan in case there is a need for urgent relocation to a different jurisdiction. Caribbean passport holders can also live, work and settle in any CARICOM Single Market and Economy (CSME) member states. The Caribbean CBI programs are also popular among retirees because of the beautiful weather, low cost of living and low crime rate.

Different ways to invest in Caribbean CBI programs

Most Caribbean CBI programs offer individuals and families the opportunity to invest via government donation, or individuals can invest in approved real estate. However, although St. Lucia has real estate listed as an option for investment, it is not generally recommended due to limited real estate project availability. Instead, they also offer a government bond option and are the only Caribbean CBI program to do so.

Caribbean CBI programs: Investing via government donation

Antigua & Barbuda remains the lowest cost ($100,000 USD) for families seeking a second passport via government donation. Whether there’s one individual or up to three dependent beneficiaries (spouse and dependents), the minimum required donation stays the same. Only when it gets to five or six applicants does Antigua &Barbuda’s minimum donation increase.

Dominica and St. Lucia both require a minimum donation of $100,000 (USD) for one person, but with a spouse or even up to three dependent beneficiaries, they begin to differ in pricing.

No matter the number of individuals included in the application, up to four for Dominica and St. Lucia and up to six for Antigua & Barbuda, the required government donation does not exceed $175,000 (USD) for these three countries.

Caribbean CBI programs: Investing via real estate

Some of the most popular real estate investment opportunities are found within Antigua & Barbuda. These include beautiful high-end properties, oceanfront views, and well-known luxury resort options throughout the Caribbean.

Dominica is known for its real estate program, which is viewed to have the best value. It has the lowest investment threshold and the shortest holding period, which is three years. Antigua & Barbuda and St. Lucia have the same minimum threshold for real estate investments, but these programs have a longer holding period, at five years.

Grenada offers an interesting option under real estate investments where individuals can purchase equities in approved commercial real estate. Some developers even offer a competitive 3-4% guaranteed return and a full buy-back at 100% of the original value after a six-year holding period.

Key Features of Caribbean CBI programs

A key feature of the Caribbean CBI programs is how fast and efficient they handle application processing compared to other countries. They also don’t have strict permanent residency or long-term physical presence requirements and provide significant tax benefits, visa-free access to numerous countries and flexible family applications.

Added benefits to Caribbean CBI programs

Aside from heightened global mobility, all Caribbean CBI programs are extremely tax-friendly and do not have any tax on overseas income, wealth tax, capital gains tax or inheritance tax.

The Caribbean CBI programs are also popular among families because parents, dependent children and parents/grandparents can be included in the application. It is important to note that children and parents/grandparents are subject to age and other limitations. Antigua & Barbuda, Grenada and St. Lucia CBI programs allow siblings to be included in the application, pending age and relation to the main applicant. Passports can also be passed down to future generations for all five Caribbean CBI programs – although the requirements differ.

Size of global immigration market

In total, there are 33 alternative CBI programs across the globe. European CBI programs have been popular in Italy, Greece, Ireland, Malta and Portugal.

The global investment immigration market is set to grow into a $100 billion (USD) industry by 2025, and at least one new Caribbean Citizenship Investment Program (CIP) is expected to open by 2025 as well.

In 2019 alone, $21.4 billion (USD) was raised through investment immigration programs (reported by the IMI Data Center). This shows the strength and growing interest in the investment migration market.

Caribbean CBI programs: Recent Updates

St. Kitts & Nevis has doubled its CBI program fees and added an in-person interview to the application process, making it a less attractive Caribbean CBI program. Individuals looking to establish secondary citizenship in the Caribbean can look to the four remaining programs: Antigua & Barbuda, Dominica, Grenada and St. Lucia.

As of right now, these four countries have not changed their program costs and processes. We anticipate these four countries may increase their minimum investment amount to $200,000 (USD) by June 30, 2024, based on a provisional agreement made between them.

There may be a rise in interest in alternative citizenship and residency by investment programs outside of the Caribbean region in areas such as Europe or Canada where there are pathways to citizenship through Residency-by-Investment (RBI). It will be important for potential investors to carefully compare the benefits and requirements of each program before deciding.

(Author is Founder and Managing Partner of Harvey Law Group)

2024-05-08T06:04:12Z dg43tfdfdgfd