The longest running Citizenship by Investment program in the world undergoes extensive reform to enhance competitiveness.
In a recently published CIU circular, Michael M. Martin, the new Head of St. Kitts and Nevis’ Citizenship by Investment Unit, has announced the restructuring of the country’s Citizenship by Investment Program.
The changes, which came into effect on January 1st, 2023, include updates to the governance structure, fees and investment options, as well as new and stricter rules. These reforms aim to strengthen the program’s integrity and bring about administrative improvements.
Furthermore, the CIU will also now be run under a new Board of Governors, who will operate under 3 fundamental principles: sustainability, good governance, and pragmatism. The Board of Governors will advise the Prime Minister on the operation and activities of the CIU, and oversee the development and policies of the program.
The new limited time offer introduced under the Sustainable Growth Fund Option, extends a considerable discount of US$25,000, effectively positioning the CIP as one of the most affordable paths to second citizenship in the entire Caribbean for a family of four.
For comprehensive details about the changes, read more below:
Sustainable Growth Fund Option – Limited Time Offer
For a limited period of 6 months, the CIU is now offering a discount of US$25,000 on the Sustainable Growth Fund Option. Until June 30th, 2023, the contribution requirements under the limited time offer are as follows:
• US$125,000 – Main applicant
• US$150,000 – Main applicant and a spouse
• US$170,000 – Main applicant, spouse and two dependants
• US$10,000 – Each additional dependant under 18
• US$25,000 – Each additional dependant over 18
60-day Accelerated Processing
At no additional cost, each application submitted under the LTO will be eligible for the Accelerated Application Process (AAP), which will shorten the processing time from 90 to 60 days.
From July 1st, 2023, the contribution requirements for the SGF will increase to the following:
• US$150,000 – Main applicant
• US$175,000 – Main applicant and spouse
• US$195,000 – Main applicant, spouse, and two dependants
• US$10,000 – Each additional dependant under 18
• US$25,000 – Each additional dependant 18 or over
Real Estate Option
Under the restructured CBI regime, only Approved Developments will be eligible for the Real Estate Investment Option.
By law, the minimum real estate investment is US$200,000. Properties purchased under this option can be resold after a holding period of 7 years.
Private Homes Sale Option
The Private Homes Sale Option is being retained permanently, whereby investors can acquire a single-family property for a minimum of US$400,000. To quality, the property must have been designated as an Approved Private Home.
For bigger properties, two or more investors can apply together each contributing the minimum investment of US$400,000 to acquire the property. The full purchase price will be placed in an irrevocable escrow account.
Under the new CBI regulations, a 45-day period will be granted to the owners of any previously designated Approved Private Homes, who will need to reapply to the CIU Board of Governors to retain their status as an Approved Private Home and have their properties reaccredited.
The following restrictions will apply to Approved Private Homes:
• It cannot be resold within seven years;
• It cannot be resold to any other CBI applicant; and
• It cannot be converted into apartments or condominiums.
New Public Good Investment Option
The Alternative Investment Option has now been replaced with a Public Good Investment Option (PGIO). Under the PGIO, the minimum investment requirement per application is US$175,000 in an Approved Public Good Investment, payable to an Approved Public Good Investor.
Previously designated AIO developments will lose their status within 45 days upon coming into effect of the new CBI regulations and must reapply to obtain accreditation. Only approved Public Good Investors and Public Good Investments will benefit from this option.
Following an approval-in-principle granted by the CIU, the following application fees are applicable for every non-accelerated CBI application in Real Estate, Private Home and PGIO investment options:
• US$25,000 – Main applicant
• US$15,000 – Spouse
• US$10,000 – Dependant child under 18
• US$15,000 – Dependant child/other qualified dependant over 18
Under the accelerated route, which offers processing within 60 days of the filing date of the application, the following fees apply:
• US$42,500 – Main applicant
• US$32,500 – Spouse
• US$22,500 – Dependant child under 18
• US$37,500 – Dependant child/other dependant over 18
The above fees do not apply to the Sustainable Growth Fund Option as they are included in the contribution amount.
Due Diligence Fees
Each applicant is responsible to pay non-refundable due diligence fees upon submission as follows:
• US$7,500 – Main applicant
• US$4,000 – Each dependant over 16 years of age (or who will turn 16 within 3 months of submission of the application).
Application Processing Fees
A non-refundable application form processing fee of US$250 is payable to the CIU on every application.