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Citizenship by Investment (CBI) shares in St. Kitts refer to a pathway for obtaining citizenship in the country by making a financial investment in approved development projects, such as real estate.
St. Kitts and Nevis introduced its Citizenship by Investment program in 1984, making it one of the oldest programmes of its kind.
Anyone who crosses the Atlantic Ocean on British Airways will probably be very familiar with the commercials for the “oldest citizenship by investment programme in the world.” The programme is also widely promoted on YouTube.
It allows foreign investors to gain citizenship in exchange for contributing to the nation’s economic growth, often through investments in designated luxury developments or shares in these projects.
The CBI program typically involves buying shares in government-approved real estate projects, such as resorts, villas, or condominiums. These shares represent partial ownership in the property and are structured to meet the investment requirements set by the government.
The minimum required investment is usually set at $200,000, and the share in the property must be held for at least seven years. Alternatively, an investor can choose to invest $400,000, in which case the holding period is reduced to five years.
This does not necessarily mean that the investor owns an apartment or condomium in the development.
One key advantage of investing in CBI shares in St. Kitts is the opportunity to obtain a second passport.
Citizenship comes with several benefits, such as visa-free or visa-on-arrival access to over 150 countries, including the Schengen Area, the United Kingdom, and Hong Kong. Additionally, citizens of St. Kitts and Nevis enjoy tax benefits, as the country imposes no income, inheritance, or wealth taxes.
This makes the program particularly attractive to high-net-worth individuals seeking greater global mobility and financial advantages, even if they don’t necessarily want to live in St. Kitts or Nevis.
Applicants who choose the investment route must undergo due diligence checks to ensure they meet the program’s requirements, including proving the legitimacy of their funds.
Otherwise the requirements are not particularly rigorous and are about the same as for a residence visa for most countries–certified copies of a police record, birth certificate, passport, references, bank statements, proof of source of legal income, etc.
Once approved, the investor, their spouse, and eligible dependents can gain citizenship within a few months. The flexibility of including family members in the application adds to the appeal of the program.
Investors purchasing CBI shares often have the option to resell their investment after the required holding period, potentially recouping their initial outlay.
However, resale opportunities depend on market conditions and the popularity of the specific development. So a citizenship share could increase in value, or it could lose value.
For example, worst case scenario: If the EU decided that it would no longer allow visa free travel to citizens of St. Kitts, then citizenship shares in condo developments in St. Kitts and Nevis might potentially fall sharply in resale value.
Some developments also offer guaranteed returns or buyback options, making the investment more financially viable. So the investor might actually get their passport for free in the long run. Or make a profit.
This makes it really important for investors to carefully review the terms of their share purchase and the reputation of the development before committing funds to the programme.
Shares in an already established and popular condominium development are obviously worth more than shares in developments that are purely speculative.
The sale of Citizenship by Investment (CBI) shares benefits St. Kitts, its government, and its residents in several important ways, primarily by driving economic growth and attracting foreign capital.
If citizen investors occupy their residences in St. Kitts, then they will be bringing in foreign, currency to pay for maintenance, services, utilities, transportation, or groceries.
The program generates significant revenue for the government, which can be reinvested in public infrastructure, healthcare, education, and other essential services. This means that the islands do not need to borrow from overseas if they need funds to build new schools, prisons, or water delivery systems.
A key benefit is the development of the real estate and tourism sectors. Investments in CBI-approved real estate projects, such as luxury resorts, hotels, and villas, help to enhance the country’s appeal as a global tourist destination.
These developments create jobs for locals during construction and operation phases, boosting employment and providing skill-building opportunities. Furthermore, an improved tourism infrastructure increases the country’s ability to attract visitors, further contributing to economic growth.
Another benefit is the attraction of wealthy and influential individuals to the country. High-net-worth individuals who acquire citizenship and residency through investment often have the means to contribute further to the nation’s development through business ventures or philanthropy, not to mention hiring domestic help and local services.
The CBI program also diversifies St. Kitts’ economy.
As a small island nation group that depends on tourism, St. Kitts and Nevis derive income from the CBI program in a steady revenue stream, helping to buffer the economy during downturns or natural disasters or unforeseen events like Covid-19.
However in recent years the Citizenship by Investment (CBI) program has become the main source of revenue for the government of St. Kitts and Nevis. In 2022, the CBI program directly contributed between 60% to 70% of the federal revenue.
This substantial reliance on CBI revenues has raised concerns about the country’s economic dependence on the program.
Prime Minister Dr. Terrance Drew recently highlighted this issue, noting that the nation was “overly dependent on CBI—our proverbial economic eggs were all in one basket.”
Efforts are now underway to diversify the economy and reduce this dependency on sales of Golden Passports.
Sources: St. Kitts Nevis Observer, OpenAI, YouTube.
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