Saint Lucia's Investment Program: Major Developments and Real Estate Market Overview

Saint Lucia has changed the conditions of its investment program. Is competition among Caribbean countries increasing?

Saint Lucia is one of five Caribbean nations offering citizenship to foreigners in exchange for investments. At the end of spring this year, the government approved changes to the country’s investment program. These changes mainly concern the size of investments as well as the composition of the main applicant’s family. Some other aspects, such as the payment deadlines, have also been adjusted.

Why were the changes introduced?

It is evident that competition in the investment program market is constantly growing. This is particularly noticeable in regions where countries have similar characteristics, such as size, economic potential, and geographic location. More and more nations are joining this "program competition," which pushes the more established players to offer concessions to attract new clients.

The global COVID-19 pandemic and the subsequent economic downturn also accelerated this trend. The downturn has been especially impactful on countries whose economies rely on tourism, such as Saint Lucia and its Caribbean neighbors, who sell their passports for investments.

In an attempt to mitigate the effects of the crisis, many of these countries have introduced changes to their programs aimed at attracting potential investors. Recently, Dominica announced new measures, which we previously covered on GARANT.in. So, what updates can applicants expect from Saint Lucia’s program?

Changes to the minimum investment amount

As a reminder, Saint Lucia’s program offers applicants several options, including:

• A donation to the National Development Fund,
• Participation in a government-approved business project,
• Real estate purchases with the option to sell after five years,
• The purchase of government bonds, which can also be sold later.

The latest changes apply to the last option, regarding the purchase of government bonds, while the payment amounts for the other options remain unchanged.

Before May of this year, investors seeking citizenship through the purchase of Saint Lucia’s government bonds had to invest at least $500,000 for a single person. This minimum threshold has now been halved to just $250,000. Additionally, the processing fee, which was previously required, has been waived.

Important: The government has announced that this new measure will be temporary and will remain in effect until the last day of 2020.

Here are the current payment conditions for Saint Lucia’s government bonds:

As the table shows, the cost of purchasing bonds has not only decreased by half but has also become particularly advantageous for larger families, as the minimum payment only slightly increases with the addition of more family members.

Important Note: Previously, investors buying government bonds were also required to pay a government fee immediately after their application was approved. Under the new rules, this fee can now be paid within two months.

Deferred payment options

The favorable payment terms extend beyond the government fee for bond purchases. Previously, investors had to make their investment within 90 days of their application being approved, regardless of the option they chose. In special cases, this period could be extended to six months.

The new rules now allow for indefinite payment deferrals if there are valid reasons for doing so.

Expanding the main investor's family?

The government has also taken significant steps toward expanding the definition of a family. Under the program, not only the main applicant but also their relatives can acquire citizenship. Here's who now qualifies as family members:

• The investor's parents are aged 55 and older if they are financially dependent on the investor (previously the minimum age was 65).
• The investor's financially dependent children up to 30 years of age (previously up to 25 years), with no requirement that they be full-time university students.
• The investor's financially dependent siblings are under the age of 18.

Additionally, changes have been made regarding when family members can join the citizenship program. Specifically:

• Children born to the main applicant after the submission of the application can now qualify for citizenship, regardless of how many years have passed since the application was filed (previously, the limit was five years).
• The same applies to the investor's siblings, who can also obtain citizenship regardless of when they were born.
• The investor’s spouse can apply for citizenship regardless of when the marriage took place. Previously, spouses were eligible only if the marriage occurred within five years of applying.

Important: The fee for adding a newborn child to the program has been drastically reduced from $25,000 to $500.

What conclusions can be drawn?

Saint Lucia’s program will become more accessible and attractive to investors. It’s not just about lowering the minimum investment threshold for one of the options (which had been relatively unpopular). The most significant change is the expansion of family eligibility by adding new members. The more flexible payment terms, including the possibility of long-term deferrals, also protect investors from potential losses due to unforeseen circumstances.

Finally, we would like to remind you that the entire process of obtaining a Saint Lucian passport usually takes no more than 3-4 months.

Another Government-Approved Development Project in Saint Lucia

Saint Lucia, one of the Caribbean countries, has the youngest government program for investment in exchange for citizenship. It has been operating since 2015. One of the investment options is the purchase of real estate, which must first be approved by the government.

Will the list of projects expand?

In 2019, the Saint Lucia Canelles Resort project was approved as part of the program. This is a luxurious all-inclusive hotel complex with high-end rooms. The resort is planned to be built on 160 acres (approximately 65 hectares) in the town of Micoud, in the southeast of the country.

In addition to spacious, well-equipped hotel rooms, the project includes the construction of condominiums, villas, and a golf course.

The developer is Caribbean GALAXY Real Estate Ltd, a subsidiary of the GALAXY Group.

Project organizers offer optimistic forecasts.

In mid-January 2020, all interested parties held a joint meeting in Saint Lucia.

At the meeting, Jiang Tang, the Vice President of Galaxy Group, confirmed the significance of the Canelles Resort for boosting the country's economy and made optimistic forecasts regarding the project's completion “in 2-3 years.” He also expressed confidence that the completed project would contribute to creating new jobs for the local population.

The Minister of International Trade and Investment, Bradley Felix, noted that the authorities are ensuring the preservation of the natural beauty of “Fair Helen” (a poetic name for Saint Lucia), while also understanding the importance of employing the younger generation. He also informed the attendees that the developer had undergone a thorough review and has extensive experience working in the Caribbean region.

Is there still a risk?

The minister’s statement surprised investment program experts, who reminded everyone that in the neighboring Caribbean country of Saint Kitts and Nevis, the GALAXY Group has been working on a similar project for six years but has yet to complete it. The cause has been attributed to a lack of funding, which led to Chinese workers blocking a road in protest over unpaid wages. The incident became widely known after a competitor offered to bet $5 million that the resort would not open on time.

The leader of the opposition in Saint Lucia’s parliament, Ernest Hilaire, is also skeptical about the choice of the development company. He believes that, given the delays in other regions, the Saint Lucia project may face the same fate.

Who will be proven right — only time will tell.