Caribbean citizenship has become increasingly popular among investors and high-net-worth individuals seeking second passports or residency options. This region offers numerous emotional benefits including its idyllic climate and stunning natural beauty, relaxed pace of life, and secure and luxurious lifestyle.
However, beyond these attractive factors, there exist substantial rational reasons to consider Caribbean countries for second citizenship, as these nations boast stable political systems, robust economies, and favorable tax regimes. In this article, we will explore the benefits of Caribbean citizenship and why many global citizens opt for these nations to acquire second citizenship through investment, beyond the freedom to travel worldwide.
Caribbean Citizenship Benefits
Obtaining citizenship, not only residency
Residency programs, often known as “Golden Visa” programs, provide investors with a residence permit or permanent residency. However, eligibility for citizenship application is typically granted only after a residency period of 5 to 10 years. Requirements also comprise language proficiency and history knowledge tests. While the Caribbean Citizenship by Investment programs (CBI) offer a more direct path, and an opportunity to acquire citizenship immediately, bypassing the extended residency and testing prerequisites. This direct approach makes the Caribbean program appealing to affluents seeking accelerated citizenship. Citizenship can also be obtained for the whole family instantly. Getting a second citizenship is a powerful move in an era characterized by unprecedented global connectivity and mobility.
Rapid acquisition time
Acquiring citizenship is typically a prolonged process, often spanning several years. European countries offering citizenship through investment programs, such as Spain, Portugal, Malta, and Greece, have relatively swift residency programs, typically lasting 3 to 6 months. However, the path to full citizenship in these countries can be considerably longer, requiring a residency period of over 7 years with a residence permit. In contrast, Caribbean nations offer a much quicker route, granting qualified applicants citizenship in as little as 3 to 7 months, and no or little residency is required.
Affordable investment requirements
Although Caribbean countries providing CBI programs including Antigua & Barbuda, Dominica, Grenada, St. Kitts and Nevis, have agreed to increase and standardize the minimum investment threshold to $200,000 by June 30, 2024, but it is still an accessible entry threshold compared to other countries providing citizenship. For instance, acquiring Malta’s citizenship requires higher investors starting at a minimum of $700,000, and obtaining a residency permit in Greece starts from $350,000.
Tax haven!
Caribbean countries are considered tax haven as they provide low tax rates for individuals and businesses. Residents often pay no taxes for global income, dividends, royalties, and interest. Companies registered in tax havens also benefit from low corporate tax.
For instance, Antigua and Barbuda have no taxes[1] on personal income and capital gains. Dominica has quite high progressive tax rates for personal income[2] that range from 15 to 25%, but on the other hand, it has no taxes[3] for dividends, royalties, and interest, which is suitable for investors. Grenada has 0% taxes for personal income[4] if the source of that income is outside the country. The rates for domestic income vary between 10 and 28%, however, the dividends, royalties, and interest are not taxable. Corporate tax is 28% for global income. St. Kitts and Nevis has no personal income tax or capital gains tax on worldwide income. The corporate income tax[5] rate for companies registered in this country is set at 25% taxes.
St. Lucia[6] has a 0% tax rate for foreign income for both individuals and corporations. This is suitable for businesses to control the international company from the island and pay no corporate tax.
Safety and Stability
The Caribbean countries are renowned as safe havens, boasting some of the lowest crime rates globally. These nations prioritize the safety of both their citizens and visitors, recognizing the pivotal role of tourism in their economies. Using public transport is safe and easy for both minors and adults. The local Caribbean population is considered to be friendly and welcoming. Their culture is rich in art, music, literature, and more, however, each island has its historical influences, resulting in a variety of vibrant traditions, and cuisine. The Caribbean countries have maintained strong economic health for decades, largely due to the high volume of international business conducted in the area. The Caribbean region’s commitment to providing a safe and stable living environment for families reinforces its position as a secure harbor. Therefore, acquiring Caribbean citizenship implies investing not only in a travel document but also in a secure and stable lifestyle for the investor and his family.
Real estate investment opportunities
Investing in Caribbean real estate offers an exciting pathway to obtaining citizenship in the region. It can be financially rewarding, especially in the tourism sector, and can yield returns through rental income or property resale after the holding period. For instance, under the Dominica citizenship program, real estate investments can be resold after 3 years, while in other programs like St. Kitts & Nevis, the required holding period before resale is 5 years.
Owning property in the Caribbean offers dual benefits. Firstly, investors can enjoy potential rental income, especially given the region’s thriving tourism sector. Luxurious property features, such as private beaches and hotel services, provide a high quality of life and enhance the investment’s appeal for both personal enjoyment and rental purposes.
Secondly, Caribbean countries do not impose a capital gains tax, allowing investors to keep the full profits from asset sales. This means that after the mandatory holding period, you can potentially sell your property and enjoy significant tax-free profits. These dual advantages make investing in Caribbean real estate more than just a pathway to citizenship – it becomes a smart financial decision.
Banking opportunities
Acquiring a Caribbean passport significantly simplifies the process of opening an account with European banks, cutting through bureaucratic red tape. This streamlined banking access not only facilitates depositing funds but also enables investors to secure loans and conduct currency transactions with greater ease. For instance, banks in St. Kitts and Nevis provide highly secured accounts for individuals, businesses, and corporations, as the government protects all those who participate in legitimate business transactions. The economic stability in the Caribbean countries helps bank accounts remain protected and stable.
Preferential education in the UK
As members of the Commonwealth of Nations, the five Caribbean countries provide an educational advantage for investors’ children. This status grants them eligibility for preferential terms at certain schools and universities in the UK. The Commonwealth Universities Association, comprising over 500 member institutions in more than 50 countries across the Commonwealth, includes 80 universities in the UK. This affiliation offers unique educational opportunities and benefits for students from these Caribbean nations.
World-class health services
Besides the educational advantages, Caribbean citizenship offers access to premium healthcare facilities. Antigua and Barbuda’s system, for example, adheres to international medical standards, providing high-quality healthcare services. The commitment of Caribbean countries to the well-being of families, with countries like Antigua, St. Lucia, and Dominica offering excellent facilities for education, healthcare, and recreation, makes Caribbean citizenship a wise choice for families.
Retirement
With its mesmerizing beaches, tropical weather, and luxurious lifestyle, as well as the numerous benefits, including tax advantages, excellent medical care, and a relatively low cost of living, the Caribbean is an ideal location for retirees to enjoy their golden years. These countries have become popular retirement destinations due to their high quality of life, abundant travel opportunities, and overall appeal to retirees seeking a peaceful and fulfilling lifestyle.
[1] https://www.oecd.org/tax/tax-policy/revenue-statistics-latin-america-and-caribbean-antigua-and-barbuda.pdf
[2] https://taxsummaries.pwc.com/dominican-republic/individual/taxes-on-personal-income
[3] https://taxsummaries.pwc.com/dominican-republic/corporate/taxes-on-corporate-income
[4] https://www.finance.gd/index.php/taxes/28-taxes/167-all-you-need-to-know-about-personal-income-tax
[5] https://www.sknis.gov.kn/2023/12/13/corporate-income-tax-rate-in-st-kitts-and-nevis-set-at-25-from-january-2024/
