The Rising Demand for Caribbean Citizenship: Insights from Immigrant Invest Experts

The 2024 Citizenship by Investment Index has ranked the Caribbean Five—St Kitts and Nevis, Dominica, Grenada, Antigua and Barbuda, and St Lucia—as the premier Citizenship by Investment (CBI) programs globally. According to Immigrant Invest expert Elena Ruda, several factors contribute to their ongoing popularity among global investors.

The Caribbean Five: A Top Choice for Citizenship by Investment

The Citizenship by Investment Index consistently places the Caribbean Five at the forefront of CBI programs. St Kitts and Nevis tops the list, followed by Dominica, Grenada, Antigua and Barbuda, and St Lucia. These programs are attractive because they provide numerous benefits that appeal to international investors.

Key Advantages of Caribbean Citizenship

Caribbean citizenship offers a wide range of advantages, with global mobility being one of the most significant. Investors enjoy visa-free or visa-on-arrival access to many countries. This includes access to the Schengen Area, the UK, South Korea, Singapore, and Australia. Notably, Dominica allows visa-free entry to China for up to 30 days.

Moreover, citizens of the Caribbean countries with CBI programs can obtain B-1/B-2 Tourist Visas to the United States. These visas are valid for ten years and permit travel, business activities, and medical treatment in the US for up to 180 days each year.

Grenada also has a unique agreement with the United States. This agreement allows Grenadian citizens to apply for the US E-2 Business Visa. This visa enables them to establish and manage a business in the US, allowing E-2 Visa holders to reside in the country while their business is operational.

Why Choose Caribbean Investment Options?

One of the appealing aspects of Caribbean citizenship is the low investment threshold. The minimum investment for citizenship is generally around $200,000. Other programs have competitive thresholds, such as $230,000 in Antigua and Barbuda and $235,000 in Grenada. For those seeking even lower costs, Vanuatu offers a CBI program with a minimum investment of just $130,000.

All Caribbean citizenship programs allow investors to purchase real estate. Importantly, property owners do not need to reside in their purchased properties. They can rent them out, typically earning an annual yield of 3%–5%.

Tax Advantages for Investors

Caribbean nations provide favorable tax regimes. Many countries do not impose personal income tax, wealth tax, inheritance tax, or capital gains tax. Vanuatu is particularly appealing as a tax haven, offering no personal income tax, capital gains tax, estate tax, or wealth tax.

Entrepreneurs and shareholders who establish International Business Companies in Vanuatu can benefit significantly. These companies, which do not generate local income, are exempt from corporate taxes. Instead, they pay a fixed annual fee of $300 for 20 years.

Efficient Processing of Citizenship Applications

The process for obtaining Caribbean citizenship is generally straightforward, taking around 6 to 8 months. Investors cannot file applications independently; legal experts guide them through each step. The entire process occurs remotely, meaning investors do not need to travel before, during, or after applying. Passports and naturalization certificates are sent directly to the applicant’s chosen address.

Notably, there are no residency requirements for maintaining citizenship. The only exception is Antigua and Barbuda, which requires investors to visit the country for five days within the first five years after obtaining citizenship.

Additional Benefits of Caribbean Citizenship

Caribbean citizenship programs are particularly family-friendly. Investors can include close family members in their applications. This includes spouses, children, parents, and sometimes even grandparents and siblings. However, the requirements for including relatives can vary by program.

Additionally, these citizenship programs create a haven for investors. Applicants do not need to reside in or visit the country to retain their citizenship, except for Antigua and Barbuda’s minimal visit requirement.

The Caribbean region also boasts a warm climate year-round, making it an attractive destination for living and leisure.

Overview of Popular CBI Programs

St Kitts and Nevis

As the pioneer of CBI programs, St Kitts and Nevis offers three main investment routes:

• Real Estate Purchase: At least $400,000
• State Fund Contribution: At least $250,000
• Investment in a Public Benefit Project: At least $250,000

Dominica

Dominica stands out for its affordability, requiring a minimum investment of $200,000. Investors can choose to make a donation to the Economic Diversification Fund or purchase real estate.

Antigua and Barbuda

The Antigua and Barbuda program requires a minimum donation of $230,000 to the National Development Fund. Other options include:

• Real Estate Purchase: At least $300,000
• Business Investment: At least $400,000
• Contribution to Higher Education: At least $260,000

The higher education option is especially suitable for families with six or more members, offering a cost-effective route.

Grenada

In Grenada, investors can obtain citizenship by contributing at least $235,000 to the state fund or purchasing real estate valued at a minimum of $270,000.

St Lucia

St Lucia provides five investment categories to cater to different preferences:

• Contribution to the State Fund: At least $240,000
• Infrastructure Project Investment: At least $250,000
• Government Bonds Purchase: At least $300,000
• Real Estate Purchase: At least $300,000
• Business Investment: At least $1,000,000

Vanuatu: A Unique Option

Vanuatu, located in Oceania near Australia, is not a Caribbean nation, but it offers a highly regarded citizenship by investment program. It features the lowest investment threshold globally, at just $130,000, with a rapid acquisition process that can take as little as one month.

Investors have two main options in Vanuatu:

• State Fund Investment: Minimum of $130,000
• Purchase of CNO Future Fund Holding Company: Minimum of $157,000

The state fund investment is non-refundable, but shares can be redeemed after five years, potentially yielding returns of up to 5%.

Vanuatu attracts investors seeking a haven, tax optimization, and enhanced global mobility. It offers visa-free or visa-on-arrival access to over 100 countries, including five-year B-1/B-2 tourist visas to the US.

Port Vila serves as the capital and largest town of Vanuatu. The country is multilingual, with Bislama, English, and French commonly spoken. Over 100 Indigenous languages reflect Vanuatu’s rich cultural diversity.

Choosing the Right Country for Citizenship by Investment

When considering which CBI program to choose, here are some recommendations:

• St Kitts and Nevis: This program is the most established and trusted option. Launched in 1984, it has a proven track record of reliability and credibility, ideal for investors seeking stability.
• St Lucia: Best suited for those interested in investing in securities, St Lucia allows the purchase of government bonds. It also permits groups of investors to contribute to businesses, a unique feature in the Caribbean.
• Antigua and Barbuda: This program is ideal for larger families. The higher education contribution option is particularly cost-effective for families with six or more members.
• Dominica: Known for its affordability, Dominica offers the lowest investment threshold of $200,000 for both real estate and state fund contributions.
• Grenada: This program is perfect for entrepreneurs. Grenada uniquely provides visa-free access to China and eligibility for the US E-2 Investor Visa, facilitating business opportunities.
• Vanuatu: With the fastest and most affordable investment options, Vanuatu grants citizenship in about one month, making it an excellent choice for those prioritizing speed and cost-effectiveness.

Conclusion

The surge in demand for Caribbean citizenship programs reflects their appealing benefits and opportunities. With favorable investment thresholds, tax advantages, and efficient processing, these programs attract global investors. Understanding the unique features of each program will help potential investors make informed decisions.

Ultimately, Caribbean citizenship offers a pathway to enhanced global mobility, financial benefits, and a warm, welcoming environment.