New Hybrid Investment Option in St. Kitts and Nevis CBI

From year to year, more and more investors are interested in St. Kitts and Nevis Citizenship by Investment program. The country receives awards for one of the best countries offering such an investment opportunity, signs new visa-free travel agreements with other countries, and develops an investment direction.

St. Kitts and Nevis has launched a third option under the CBI program called Alternative Investment Option (AIO). It is the cheapest investment route compared to the real estate route to become eligible for Kittitian citizenship which requires:

• An investment of at least 200,000 USD in tourism properties.
• An investment of at least 400,000 USD to purchase private residential properties

Recently the clients prefer to have an equity stake in their investment. In other words, they would like a reasonable rate of return on their investments. The inventory and quality of the real estate projects have made St. Kitts and Nevis CBI program best suited for these clients. For clients wanting to invest in the Federation, Alternative investment options are also proving to be attractive.

St. Kitts and Nevis advertise approximately seven top branded hotels, with significant interest from new property development companies. That is the properties purchased under St. Kitts and Nevis CBI program can be sold after just five years of ownership and will qualify the next buyer for citizenship.

Alternative Investment Option (AIO)

The Alternative Investment Option (AIO) is a third form of investment under the Citizenship by Investment Program of St. Kitts and Nevis which provides the Government with the means of achieving its capital investments goals without having to endure the drawbacks associated with the use of its existing limited resources or from taking additional debt.

Eligible Investments

There will be two categories of AIO:

• A Public Good Project Developer (PGPD)

In this category, the State owns the asset at the end of an agreement. These projects are fully funded by the PGPD and locked in “upfront”. The Minimum Unit of Investment will be 175,000 USD All other fees will apply as per the real estate option.

• A Private Enterprise Developer (PED)

In this category, the built or funded asset is privately owned. In this option, the minimum Unit of Investment will be 200,000 USD and standard real estate government fees will apply.

Approved Projects

Potential projects need to be identified and listed by the Government or can be brought forward by private individuals with access to financing who approach the Government with potential projects, not on the Government’s infrastructure list. However, the asset when completed and operated for a reasonable period of time (that allows for a reasonable return on investment) must be turned over to the Government in a maintained condition consistent with prudent ownership.

For those projects on the Government’s infrastructure list, they can be advertised to attract interest for initial review by the Government and generate individual project “shortlists”. The Government will try to ensure that shortlisted companies will not only maximize local employment as much as possible but also start programs including transfer of technology and capacity building.

Other investment options

Investors still have other options to:

• Make a donation to the Sustainable Growth Fund

 An investment option for Saint Kitts and Nevis Citizenship by Investment Program was launched by Prime Minister Timothy Harris in March 2018. The minimum investment amount is 150,000 USD.

• Invest in real estate

In a government-approved project or private home. The minimum investment required by law for a real estate development is US$200,000 (resalable after 7 years) or US$400,000 (resalable after 5 years) for each main applicant. The sale of qualifying private homes under the Citizenship by Investment Program is permitted for a limited period until November 1, 2022. All homes with an appraisal value of over US$400,000 that meet the other criteria may qualify for sale.

Advantages of St. Kitts & Nevis Citizenship by Investment Program:

• Quick processing: the citizenship is granted in 60 days (via Accelerated Application Process – AAP).
• No tax: Kitts & Nevis imposes no income, wealth, or inheritance taxes.
• No need to visit the country: An applicant does not need to visit St. Kitts & Nevis in order to qualify for citizenship, although all applicants are subject to a strict due diligence check.
• Multiple citizenships allowed: Kitts & Nevis recognizes dual citizenship, so you can still benefit from your current citizenship.
• Visa-free travel: With a passport of St. Kitts & Nevis you can travel visa-free and worry-free to more than 140 countries in the world, including all Europe and Union countries, the United Kingdom, Ireland, Caribbean, and Commonwealth nations. Citizens can often acquire long-term travel visas to the United States of America.

As stated before, it has not been possible for Iranians to obtain the citizenship of St. Kitts and Nevis in recent years. Currently, only Iranians who have resided in a country other than Iran for two years in the last five years are eligible to take advantage of this unique opportunity.

For more detailed information on the requirements for obtaining Saint Kitts and Nevis Citizenship by Investment, please contact one of our advisers in the UAE, Denmark, or Canada, we will accompany you and your family until you obtain Saint Kitts and Nevis Passport.

If you have any questions or comments about Saint Kitts and Nevis Citizenship, you can share them with us in the comments section.