Citizenship-by-Investment Program: A Caribbean Comparison

The authoritative international agency Bloomberg has spread information that the Caribbean countries, which are actively using their programs for selling citizenship, are reducing the minimum size of investments. It is reported that this measure is temporary, valid until the end of this year. Everything that is happening resembles a real sale of passports.

Reasons for the situation

The coronavirus pandemic and the subsequent quarantine measures have significantly weakened the world economy. Small countries, whose economies were oriented on income from tourism, as well as economic investments, suffered the most.

And if the flow of tourists is still far from the usual norm, the conditions of investment programs can be quickly changed, attracting potential customers with low prices. At least, this is what the governments of small island countries of the Caribbean decided.

Important! Let us remind you that these countries (and there are only five of them), selling their own passports, receive substantial profits, in some cases reaching a quarter of their national gross income.

What the changes are

In this short news article we will not touch on the details of each of the five programs. They can be found on our website GARANT.in. Besides, the situation is developing, and it is possible that by the end of the summer the number of innovations will increase. We will mention only the most significant ones at the moment.

Commonwealth of Dominica

According to some options of the program, it became $25 thousand cheaper. This applies to the cost of the family package and the package for two people (spouses). It is about the non-refundable contribution to the National Development Fund. Also, the authorities of Dominica have significantly expanded the range of persons that the principal applicant can add to his family.

St. Kitts and Nevis

Here also cheaper package for a family of 4 people, and immediately by $ 45 thousand (Option of non-refundable grants to the Development Fund).

St. Lucia

Significantly, halved, reduced investment in the purchase of government bonds, which will not pay interest for five years. Now for one applicant this option will be only $250 thousand (instead of the previous five hundred). A family of four will be able to obtain passports for the country, buying bonds for $300 thousand.

Antigua and Barbuda

Non-refundable contributions per applicant remained the same, but now their size does not grow as fast as the number of dependents in the family. Mandatory administrative fees are also announced to be reduced.

In addition to these financial changes, countries are adopting more liberal conditions on other items. For example:

• expand the lists of countries whose citizens were previously prohibited from participating in investment programs;
• increase commissions for licensed agents;
• change the conditions of document processing, making the procedures simpler and more accessible for remote processing.

To summarize, potential investors planning to acquire a second passport in the Caribbean should hurry. It looks like now is the time to use the situation caused by the coronavirus to your advantage!

Caribbean real estate investments. Why they are becoming in demand.

Talking about the global investment market, it is almost impossible to ignore the countries of the Caribbean region. There are only five of them - states that have their own working programs for the direct sale of citizenship in exchange for investment. Here they are on our map.

It is immediately apparent that even in appearance they have many things in common. All of them are tiny in size, all of them are small islands in the Caribbean Sea, all of them are located in similar climatic conditions. Let's add that all of them have rather weak economies, largely oriented on the development of the tourism industry.

In this part of the article we will focus on the purchase of real estate in these states as one of the ways to formalize their second citizenship.

Why buying real estate? Advantages of this option

The investment programs of the Caribbean states were developed at different times, but they have many similarities. All of them, without exception, have two main options:

1. non-refundable contributions to special Funds;
2. the purchase of real estate (an investment that can be partially or fully repaid over time).

Antigua and Barbuda, as well as Saint Lucia, have introduced additional options in their programs, including, in particular, the purchase of government bonds, or participation in significant business projects. However, these options have not yet gained popularity, they are used by a small percentage of investors.

For a long time, gratuitous contributions to the National Development Funds remained the undisputed favorite among all options. They were the cheapest, besides, they did not bring investors any hassle. The principle attracted them: pay, get your passport, and forget it. The fact that the money goes forever, successfully compensated for their small amounts, which ranged from 100 to 200 thousand dollars, if we talk about one applicant.

Why did the purchase of real estate remained on the second roles?

Several reasons contributed to this.

1. Initially in the programs laid too high minimum threshold for the price of real estate, on average it was not less than $ 500 thousand.
2. The choice of objects offered for purchase was scarce, and the quality of housing often remained poor.
3. In countries that have launched their programs relatively recently (and these are the majority), there were simply no ready for sale properties.

In addition, the case was new, investors feared whether they would be able to sell the purchased “square meters” later.

The situation is changing: the real estate option is “coming on the heels” of non-refundable contributions to the Funds

Experts noticed this trend about three years ago. At first, the purchase of real estate came first in Grenada, but now this method of citizenship is becoming more and more in demand in other countries in the region.

The main impetus to the process gave the fact that the island states sharply increased the number of development projects. At the same time here came solid developers with world names, which sharply increased confidence in their projects.

In turn, the investor began to be offered not only the purchase of ready-made objects, as it used to be before. Now he can buy a block of shares - a share in a development project, or a part of an already completed object. This has increased competition in the market, and led to the fact that governments began to lower the minimum threshold for investment in real estate.

It is also important that the quality of new housing has become much better, as large developers design and build it with the expectation of powerful hurricanes, which are characteristic of these countries.

In the last 3-5 years, investments through the purchase of housing have become profitable.

1. In terms of price (per person) they are comparable to donations to Foundations.
2. The housing (unlike the option with donations) remains with the investor. It can be sold (after 5 or 7 years), and even at a profit, returning the money spent, and leaving yourself and your family a second passport.
3. All these years, the property can be rented out, receiving an annual profit of 1.5 to 6%. It is very important that the investor does not have any hassles - all of them fall on the management company, usually closely associated with the developer of the project.
4. In addition to everything, the investor has various bonuses. For example, he can stay for free in the hotel, in which he bought a share.

What kind of real estate to buy?

The question is by no means idle, it arises before every investor. On the one hand, you can not buy any real estate, but only that selected by the government commission in each country, and included in special lists. This makes the investor's task easier.

Interesting! Such lists are quite different in individual countries. Usually, the older the program, the longer the list of its objects (example - St. Kitts and Nevis). Countries with young programs, adopted only a few years ago (Saint Lucia), have not yet had time to acquire a sufficient amount of necessary real estate, their lists consist of only a few positions.

On the other hand - approved projects can be:

• separate apartments;
• a separate villa (or part of a villa);
• a condominium;
• a separate hotel room;
• some part of a hotel;
• a share in a development project (share package);
• yacht parking lot, etc.

All these objects, in addition, may be already completed, commissioned, but may also be in various stages of construction. Sometimes only the land plot is sold, on which the investor can start his own construction. In the vast majority of cases, the closer the object is to completion, the more expensive its value.

Overview of real estate in individual countries

Now, armed with the general knowledge gained, it is possible to review each of these countries separately, citing a few of its investment properties as an example.

Antigua and Barbuda

In addition to the two main islands, the country includes several other tiny, uninhabited islands. The coastline is complex, broken, and full of both gentle, spacious beaches and underwater reefs. Canadians, British and U.S. citizens predominate among the tourists here.

Many famous show business stars, world famous athletes and even retired politicians have bought apartments on the islands: Eric Clapton, Silvio Berlusconi, Giorgio Armani. Now the list of objects approved by the government for investment consists of 37 positions.

It is worth paying attention to the resort complex in the western part of Antingua. It is estimated at 5 stars, and consists of various objects: villas, townhouses, individual apartments. You can buy housing, already furnished. The complex is located on a gentle mountainside, it offers an amazing view of the Caribbean Sea. In addition, there is perfectly developed infrastructure: from the beautiful highway and stores, to golf courses.

Prices in the complex:

1. 2 bedroom villa - about $1 million;
2. villa for 4-5 bedrooms - from $2 million and more;
3. apartments - 400-600 thousand dollars.

Grenada

It is located further south than the other islands, so typhoons are not as rampant here. Its bays and beaches are especially popular with yachtsmen, and world-class regattas are held here. Grenada is closely connected with the USA. In particular, there is a medical university here, graduates of which have the right to work in the USA. And among investors from Russia Grenada is also popular because its citizenship allows you to qualify for a business visa E-2 in the United States.

The list of authorized for sale objects in Grenada is small, only 17 positions. One of the reasons is that the country's authorities are very strict in selecting developers.

Now on the island of Grenada, a quarter of an hour's drive from the international airport, a huge resort complex is under construction. It offers investors 575 shares, at $220 thousand each. The complex is expected to be completed in a year and a half, after which it will be put at the disposal of a well-known hotel brand.

According to the developer's information, now the profitability of the shares is 2-3%, but after the complex is put into operation it should double.

Dominica

Of the five countries, Dominica is the weakest economically. Its resorts and beaches are not often visited by tourists from rich countries, and the infrastructure leaves much to be desired. But this state of affairs attracts a certain part of multimillionaires, satiated with the wealth and luxury of other islands. They are interested in the inaccessibility and “off-the-beaten-path” nature of the country. Ecotourism is developed here, there are a lot of small but interesting rivers with waterfalls and hot springs.

There are only 7 proposed objects in the list of Dominica. One of them is a spa resort, consisting of seven dozen individual villas, cozily located in a dense tropical forest. But, at the same time, just 20 minutes from here you can drive to the outskirts of the capital - a small town of Roseau.

The development company, which is building the resort complex and plans to deliver it in 2023, sells investors shares in the project. One share costs only $200 thousand, which is quite comparable to investing in a non-refundable Development Fund. It is stated that the profitability of the purchased share will be equal to about 3% per year.

As a bonus, the investor and his/her family can stay free of charge at the resort from 7 to 14 days per year, depending on the season. If they wish to extend their stay, they will be entitled to a 25% discount.

St. Kitts and Nevis

Known for its beaches, with both white and black (volcanic) sand. There are also excellent places for diving, yachting and underwater hunting.

Among the projects proposed for investment is a luxury hotel already in operation, consisting of both rooms and separate cottages. The cost of a share in this project is $ 220 thousand, and all shares have already been sold.

At the same time, since the complex was built several years ago, there are shares of the “second stage” on the market, which are resold by the previous owners.

Interesting is also the project in the south of the island, at Fregat Bay. Here are sold individual apartments or villas, mostly furnished. Apartments can be purchased from $225 thousand, while the villa for 5 bedrooms - about 400 thousand. Income from renting it can be expected at a rate of about $ 3.2 per month.

St. Lucia

Its program is the youngest of all, launched only in 2016. The country is also interesting for foreign tourists, because the local nature is characterized by diversity: in addition to the traditional beaches, there are amazing bays with colorful underwater world, lush tropical forests, submerged volcanoes and hot springs. St. Lucia's program is the richest in the region in terms of options.

At the same time, investors most often choose a non-refundable contribution to the Development Fund. When it comes to buying real estate, there are only two projects at the disposal of investors.

The first is the luxury hotel complex Saint Lucia Canelles Resort, managed by hotel firm AMResorts. It is located on the southeastern coast, and, in addition to fine luxury rooms, will include a golf course, condominiums and villas.

The second is the Fairmont Saint Lucia resort, near the village of Choiseul, due to be completed next year. It will have 93 hotel rooms, as well as 43 bungalows and about 40 villas. The minimum level of investment is stated at $300 thousand, and partial ownership is provided.

Caribbean citizenship for investment in 2024.

Why is Caribbean citizenship for investment consistently in demand?

The answer lies in the history of these countries. At one time, they were all colonies of the huge British Empire. Subsequently, having gained independence in the last century, they remained part of the British Commonwealth of Nations. This fact makes their passports very attractive, allowing citizens of the Caribbean visa-free visit a huge number of countries, including the UK (for 180 days a year) and all Schengen states. It is only worth mentioning that the authoritative passport index compiled by Henley & Partners consistently ranks “our” Caribbean countries among the top 40 among nearly two hundred.

The four whales of Caribbean passports

As in any market, the investment “commodity” - citizenship - also has its merits. Caribbean passports have become popular because of four critical advantages.

1. They give the investor the ability to move freely around the world (we have already looked at this feature).
2. Their cost is the lowest among all other offers.
3. It is possible to buy citizenship in the Caribbean, and process all the necessary documents, quickly - in a matter of months.
4. Checking of clients during the issuance of these passports is usually milder and more loyal than a similar procedure in European countries.

Agree, these are good reasons to interest a potential investor!

Description of investment programs

It has already been mentioned above that these countries are similar in many ways: size, history, nature, economy. There are also many similarities in their investment programs, although there are still differences. We will tell you about them a little later. And for convenience - look at the summary table, which reflects some important points for each of the countries.

Note. The table shows the initial investment volumes without taking into account various fees, service fees, real estate taxes, etc.

Based on the data in this table, it will be convenient to briefly outline the specific features of each program.

Antigua and Barbuda

Obviously, the main difference and special advantage of this program is that the size of the charitable contribution does not increase with the increase of the family up to 4 persons. Thus, the program is especially beneficial to investors with large families. At the same time, real estate investments here are among the highest in the region.

Attention! The charitable contribution is non-refundable money. The investor simply gives them to the state forever, unlike investments in real estate, which can be sold over time, and return the money spent in part or in full.

Another feature of the Antigua program is the fact that, in addition to a non-refundable contribution or the purchase of real estate, it involves other ways to buy a second passport.

These are:

• Investing in local companies of at least $1.5 million;
• purchase of local government bonds of $0.5 million or more.

Although such investments can also be repaid over time, in practice these methods are used in exceptional, rare cases.

Another important feature of Antigua is that the authorities do not issue a full passport at first, but a so-called “travel document”. Practically, its capabilities do not differ from a passport, but after 5 years, the investor is obliged to undergo a repeated verification procedure, and only then to receive a “real” passport.

Grenada 

This country's program is the most popular in the Caribbean. This is largely due to the fact that the holder of a Grenada passport gets the opportunity to apply for an E-2 business visa in the United States, which, for example, is prohibited for Russian citizens. Another advantage is the right to visit China visa-free (which is prohibited to citizens of other Caribbean countries).

In Grenada, you don't necessarily have to buy real estate, you can buy equity (essentially shares) in a project. This is reflected in our table. Such a purchase is much more popular than buying the property outright.

Dominique

It follows from the table that the cheapest real estate is here. Together with the low minimum charitable contribution, this makes the Dominica program one of the most affordable in the world. But the passport is only issued for 4 generations, after which the descendants of the investor will have to apply for citizenship again.

St. Lucia

Similar to Dominica, has a very low minimum non-refundable contribution threshold. But real estate is more expensive here, and the passport obtained by the investor and his family members is not inherited at all. As in Antigua, alternative types of investments are also possible here: buying bonds and participating in the development of local business projects.

St. Kitts and Nevis

The program of this country is the oldest in the region, all the others to some extent on it equaled. Here, as in Antigua, expensive real estate, and it can be sold without losing your passport only after 7 years (in other countries after 5). As in Dominica, citizenship is retained only for four generations.

Vanuatu

In addition to being one of the cheapest programs, it is also the simplest. There is only one option - a non-refundable contribution to the government's Development Fund.

Another significant advantage is the speed of citizenship processing. Vanuatu is the “world champion” in this respect. There have been cases when the whole procedure took the client only 5 weeks!

Vanuatu is also known for the most loyal checking of its potential investors. Here it is easier to obtain citizenship even if the client was previously rejected in another country.

Buy a passport in 2020 here you can absolutely remotely, without ever visiting the territory of the island. In addition (and this property is not found anywhere else), the purchase can be paid for with bitcoins, having previously converted them into dollars.