Given the inherent limitations that a single residency/passport can have on one’s lifestyle, freedom and financial future savvy investors, retirees and entrepreneurs the world over are becoming ever more aware of the potential rewards that holding a second passport/residency can deliver.
There are an ever-expanding number of jurisdictions now offering a second residency/passport options. Each of those will be canvassed over the course of the coming weeks in this Blog site. The purpose of this Article today meanwhile is to examine the second residency/passport options currently on offer from the picturesque Caribbean (dual) island Federation of St Kitts & Nevis.
Saint Kitts and Nevis – Overview
Saint Kitts and Nevis (officially known as the Federation of Saint Christopher and Nevis or “SKN”) is an island country in the West Indies. Located in the Leeward Islands chain of the Lesser Antilles, it is the smallest sovereign state in the Western Hemisphere, in both area and population. The country is a Commonwealth realm, with Elizabeth II as Queen and head of state (it gained its independence from Great Britain in 1983) and is the only federation in the Caribbean. SKN boasts a high degree of political stability, stunning natural scenery/beaches and an enviable tropical climate; Its primary economic pillars include Tourism (mainly Cruise ship visits) Agriculture, Commercial Fishing and Financial Services.
St. Kitts & Nevis permits foreigners to obtain the status of a St. Kitts & Nevis citizen by means of a government sponsored Citizenship-by-Investment program. Established in 1984 following decades of stagnant to negative population growth (many young people move to the bigger islands or the US upon finishing school), the St. Kitts’ citizenship program is the oldest remaining economic citizenship program of its type in the world. Notwithstanding its age, the program began to truly rise in prominence from around 2006 when the program was restructured to allow donations to the country’s sugar industry as the basis for residency/citizenship entitlements.
Further amendments to the program in 2020, post Covid (see below) have seen the Nevis citizenship by investment rise substantially in prominence.
Advantages of Holding a Second Passport?
There are a number of valid reasons as to why someone would want to secure residency entitlements in a second country including:
- As insurance against political, economic or social upheaval in the person’s historical home country
- To make international travel simpler (eg Depending on where you are from if you hold a passport that is considered “problematic” by the country you intend to visit entry VISAs, even for holiday visits, can be very hard to come by)
- As a vehicle to enable you to avoid being discriminated against (ie by virtue of your country of origin)
- To enhance employment prospects outside of your home country
- To avoid the risk of potentially hostile treatment by Government officials, kidnappers and hostage takers
- To access new opportunities for the tax structuring of one’s personal or corporate tax affairs. Generally, an individual’s residence and citizenship are the ultimate basis for the majority of taxation rulings
- For enhanced privacy – Modern day information sharing protocols make it possible for your local authorities to be automatically informed by “reporting entities” (ie banks, asset managers etc) if you hold certain assets outside of your home county. (In such instances information is usually only shared with the country which appears as your home state as noted in the proof of address document as provided by you to your non local Bank/Asset Manager)
- Citizens of certain countries are subject to tax on their worldwide income, regardless of where they may be residing. By relinquishing one’s current passport/citizenship and taking up a new one such persons might be able to take advantage of residence-linked tax planning opportunities that would otherwise be beyond access.
What Does a St Kitts & Nevis Passport Offer?
- Applicants do not need to travel to St Kitts & Nevis for the application and there are no annual residency rules to maintain the passport.
- A single application can include children up to a maximum age of 30 and parents with a minimum age of 55.
- New fast track processing enables receipt of a St Kitts & Nevis passport in 45 days (usual time is 3-4 months).
- Passport holders enjoy full Schengen privileges and can travel to approximately 120 countries worldwide, either on a visa free, or visa on entry basis. A visa is not required to visit the UK.
- If holders of the passport choose to move to St Kitts & Nevis there is no personal income tax, no gift tax, no death duties, no estate tax, no inheritance tax and no capital gains tax on worldwide income.
- The passport allows the holder to reside in other Caribbean Community countries (Caricom) if they wish to do so. There are 15 Caricom member states.
St Kitts & Nevis Citizenship by Investment Options
Currently there are three investment routes available for persons looking to take out SK&N Citizenship:
- Contribution to the sustainable growth fund
- Approved property development
- Luxury Real Estate Purchase
Sustainable Growth Fund (SGF) Contribution
- A single applicant must make a contribution of US$150,000 to the Sustainable Growth Fund (SGF).
- For families looking to obtain SK&N Citizenship (usually, see below), the contribution for a family (of up to 4 persons) is US$195,000.
- For additional dependants (ie over 4), regardless of age, the contribution requirement is US$10,000 per dependant.
NEWS FLASH: The St Kitts & Nevis Government have announced, for applications lodges between 1 July 2020 and 15 January 2021, that the citizenship contribution for a family of four has been reduced from US$195,000 to US$150,000 per family.
Approved Property Development
In this category the applicant must invest a minimum US$400,000 in an approved property development. AND the property must be held for a minimum of 5 years after citizenship has been granted.
A registration fee is payable by the applicant and additional fees are required for the spouse, children under the age of 18 and additional family members over the age of 18.
If this route is selected, OCI can help source management services for the property, which can be sold on after 5 years.
NEWS FLASH: The St Kitts & Nevis Government have announced, for such purchases made between 1 July 2020 and 15 January 2021, that stamp duty has been reduced from 10% to 2.5%.
A registration fee is payable by the applicant and additional fees are required for the spouse, children under the age of 18 and additional family members over the age of 18.
Luxury Real Estate Purchase
With this category citizenship can be obtained if you invest a minimum US$200,000 in new luxury real estate. AND The property must be held for a minimum of 7 years after citizenship has been granted.
NEWS FLASH: The St Kitts & Nevis Government have announced that between 1 July 2020 and 15 January 2021, stamp duty for such purchases has been reduced from 10% to 2.5%.
A registration fee is payable by the applicant and additional fees are required for the spouse, children under the age of 18 and any additional family members over the age of 18.
Dependants & Citizenship by Descent
Dependants outside of the normal parent child gamut are also catered for:
- Unmarried, dependant children who are older than 18 but younger than 30 may be included in your Citizenship application.
- If you have dependant parents aged 55 or above they may also be included.
- Citizenships so obtained can be passed on to future generations by descent.
Fast Tracking
As regards any/all of the above 3 SK&N Economic Citizenship routes the application process will take 3-4 months. BUT If you’re willing and able to pay an additional US$46,000, however, your application can be fast-tracked, meaning your passport will issued in approximately 45 days’ time.
Would you like to know more? Then please Contact Us:
info@offshorecompaniesinternational.com
