Saint Kitts and Nevis Sets New Standards for Citizenship by Investment: At What Cost?

Our CEO, Dwayne Chauhan, recently returned from a visit to Saint Kitts and Nevis, where he met with government officials, and various local agents and partners. It was an immersive trip with inspiring impressions and thought-provoking conversations. The island nation continues to set a high standard for our industry and like many local agents he spoke with, he left the islands with the question: at what cost? 

Coming from his meeting with government officials it is clear to him that there are many reasons for the island state to be positive about its future. The government is working tirelessly to advance the interest of its citizens on the global political stage. Unfortunately, big changes are under threat because of the strain that resulted from changes in Saint Kitts and Nevis’ Citizenship by Investment (CBI) Program. These were necessary due to larger political power blocks, most notably the European Union. While the EU’s demands have throttled the country’s revenue from its program, we recognize the positive aspects in regard to tighter due diligence and a higher degree of transparency for Saint Kitts and Nevis’ program.

Pressures on the Saint Kitts and Nevis Citizenship by Investment Program

The EU continues to treat Saint Kitts and Nevis as part of the Caribbean nations. When it comes to the Citizenship by Investment Program, the country is not evaluated on its own merits but instead put in a box with the other programs of nearby nations. This was a frustration felt keenly by everyone, and our CEO could not but agree that there is considerable stress being placed on the CIU. This is a frustration shared by Nevis Premier, Hon. Mark Brantley, who said recently, “I am tired of the efforts, which are clear efforts, to derail the economic progress that is being made here.”

Despite quick compliance with the EU’s requirements to keep visa-free agreements, there remains uncertainty in the government as to the future attitudes of the EU toward the Citizenship by Investment program. Questions remain about how the islands should proceed with no assurances that further demands would not be made to require even more changes to the already gold standard compliance achieved by Saint Kitts and Nevis’ program. As a result, the CIU has seen a decline in revenue from the CBI program as neighbouring nations compete to attract investment.

However, there is hope on the horizon thanks to the Memorandum of Agreement (MoA) signed by four out of five Caribbean countries to prevent further discounts and set a $200,000 price floor. In addition, Saint Kitts and Nevis is committing to continuing their already active policy of diversifying their economic activities and thus reducing their reliance on outside sources.

Local agents and partners in Saint Kitts and Nevis are facing considerable challenges in promoting the CBI program, primarily due to the rapid and significant changes imposed by the government. These sudden shifts have necessitated a diversification of their business models and revenue streams. Despite these hurdles, partners share an appreciation for the increased regulation and efforts to strengthen the program's integrity. The anticipation is palpable as they await the effects of the newly signed MoA, hoping it will bring about greater equity in the market by the end of June.

The considerable influence of external forces, such as policies from the European Union and the United States, continues to influence the program’s direction. Local stakeholders are eager for clear, decisive guidance from the government. They seek a roadmap that not only addresses immediate concerns but also secures a stable and prosperous future for the program, ensuring that Saint Kitts and Nevis continues to offer a robust and appealing pathway to investment-based citizenship.

Saint Kitts and Nevis is a beautiful island nation filled with people who burn for their country. They celebrate their heritage and culture. They are well-travelled, well-educated, and incredibly entrepreneurial. This applies to everyone, from government officials to taxi drivers. The citizenship by investment program has been the country's major revenue driver, enabling a lot of growth for both islands. It is sad to see this jeopardised because of changing global politics.

At the same time, I am hopeful and optimistic as the people continue to fight for the betterment of their lives and find various ways to secure their future prosperity.

I strongly believe that Saint Kitts and Nevis will continue to grow and thrive as they diversify while still enjoying the benefits of income from the CBI program. Saint Kitts and Nevis is teeming with opportunities that are not only exciting but also diversely beneficial for investors and citizens alike. The government's strategic direction to expand revenue streams through sectors such as tourism, agriculture, and education presents numerous prospects for deeper involvement. Local developments like Chrishi Beach Club, Bananas Restaurant, the renowned Sunshines, and the luxurious Park Hyatt are prime examples. Moreover, the rise of tourism ventures initiated by citizens themselves offers further avenues for investment and growth, showcasing the entrepreneurial spirit prevalent across the island.