The Evolution of St. Kitts and Nevis' Citizenship by Investment Program

In 1983, the small Caribbean islands of St. Kitts and Nevis gained independence from Great Britain, making it one of the last colonies to do so. These two islands formed a single nation with a population of under 50,000, relying predominantly on an unpredictable sugar industry to support their fragile economy.

To foster economic growth and diversification, the government introduced a novel concept: the "citizenship by investment" program. This initiative allowed foreign investors to acquire St. Kitts and Nevis citizenship by making a substantial investment in the country, including a real estate purchase option.

This inventive strategy proved highly successful. Typically, small countries struggling financially resort to borrowing heavily, referred to as 'sovereign debt'. However, the St. Kitts and Nevis Citizenship by Investment program pioneered the concept of 'sovereign equity.'

This success led to its emulation across the Caribbean. By 2016, five Caribbean nations—St. Kitts and Nevis, Dominica, Antigua and Barbuda, Grenada, and Saint Lucia—offered similar programs.

When hurricanes hit in 2017 and the COVID pandemic affected the region, the Caribbean's tourism industry suffered significantly. Consequently, governments heavily relied on citizenship programs for revenue.

A price war ensued due to little differentiation among the programs, reducing the cost from typically $500,000 to as low as $100,000 (normally a donation rather than an investment with returns). Over time, around 88,000 individuals have obtained passports through these programs.

It's important to note that these programs are legitimate and established through transparent legal frameworks approved by respective parliaments. Nonetheless, the European Union expressed security concerns about these programs, pressuring Caribbean nations to halt the programs or increase investment costs to reduce participation in exchange for maintaining visa-free European travel.

Recently, all five Caribbean nations—Antigua and Barbuda, Dominica, Grenada, St. Lucia and St. Kitts and Nevis—agreed to raise the minimum investment to $200,000, effectively doubling the cheapest options.

The new price took effect on June 30, 2024, allowing quick applicants to benefit from existing rates.

Adding dependents increases costs, and our CBI calculator can help determine the most cost-effective option.

While economic citizenship offers a quick route to a second passport, it may not suit everyone due to its cost. Alternatives include ancestry-based citizenship through countries like Italy, Ireland, Greece, and Poland, or naturalisation by residing in a country like Argentina (two years), or Portugal (five years), or Spain, Italy, and Greece (ten years).

A second passport serves as an invaluable safeguard amid uncertain future risks, much like insurance. This is crucial given the US's deep societal divisions and potential future uncertainties. Although it won’t solve all challenges, a second passport ensures you and your family always have a place to turn to if needed.

Like insurance, hopefully, you won't need it. But if that day arises, it may be too late to start the process.

Register your interest via our website for more information on the above.