St. Kitts & Nevis’ Citizenship by Investment Unit (CIU) introduced in late December new changes to its citizenship by investment program to mark a new era for the investment immigration industry and assure its openness for business. The changes were announced by the country’s recently appointed Citizenship by Investment Unit Head Michael Martin and entered into effect on January 1.
Obtaining citizenship in 60 days
Thanks to the new changes, applicants will be able to obtain St. Kitts & Nevis citizenship in 60 days, through its Sustainable Growth Fund (SGF), but this is offered for a limited time starting from January 1 till June 30, 2023. An applicant following strict background checks, can make a minimum investment of US$125,000 to the fund and receive approval in principle within 60 days of submission of the application. The main applicant and a spouse should invest $150,000, and with additional two dependents, the cost surges to $170,000, and each additional dependent under 18 years ($10,000), and above 18 ($25,000). However, from 1 July 2023 onwards, the main applicant investing through the SGF will be charged $150,000 and can expect approval in principle within 90 days of submission of the application.
Revenues from the fund aim to facilitate economic development and social upliftment in the country. It will also be used to provide financial support to educational institutions, and medical facilities, as well as provide additional funding for the construction of infrastructure, and development of local tourism.
Approved Real Estate Developments
The CIU has also introduced a stricter set of rules for approved real estate developments. Only approved real estate developments will be eligible for the citizenship by investment program, and current \”Approved Projects\” will lose this designation once the new Citizenship by Investment regulations are approved and published in the gazette. Developers of these properties are required to apply again to the CIU to become an \”Approved Development.\”
Penalties on circumvention of investment sums
The minimum investment for approved real estate will remain at $200,000 but new penalties were introduced on people or entities that circumvent the payment of minimum investment sums including fines that would reach $200,000 on summary conviction, revocation or suspension of Approved Development status, removal of ‘Authorized Agent license’, and blacklisting on the Citizenship by Investment website as a person or entity not authorized to submit a Citizenship b Investment application.
New Public Good Investment Option
The CIU will replace the Alternative Investment Option (AIO) with a new Public Good Investment Option (PGIO), and focus on effecting real transformation for the country by investing into areas that will benefit the citizens of St Kitts and Nevis. All financial risks associated with the projects must be assumed by PGIO investors, and if the investment results in the development of real estate on State land, investors must agree to transfer all real estate to the State upon substantial completion. Investors looking to contribute to the PGIO will be required to apply to the Board of Governors to be designated as a Public Good Investor. To qualify under the PGIO, an applicant must contribute US$175,000, excluding relevant due diligence, processing and Government fees.
New investment options to gain citizenship
Investors can also apply for citizenship by purchasing a qualified private home for a minimum investment of $400,000 per main applicant. Unlike the preapproved real estate option, investing in a private home means purchasing a single-family home that cannot be converted into apartments, condominiums, or divided. It is also forbidden to use shares. A private home purchased through the Citizenship by Investment Program cannot be sold for five years after citizenship is granted, and the property may never be eligible for use in a subsequent Citizenship by Investment application.
New fee schedules
The CIU has also set out a new schedule of application-related fees, which will apply to non-fast-track application under the real estate, private home sale, and public good investment options. Main applicants are charged $25,000, the spouse ($15,000), each dependent child under 18 years ($10,000), and dependent child aged 18 and above or qualified dependent ($15,000).
For fast-track (accelerated) applications, the corresponding fee that applies for main applicants is $42,500, spouse ($32,500), each dependent child under 18 years ($22,500) and dependent child aged 18 and above or qualified dependent ($32,500).
Additional modifications
Also, some modifications were applied to the Saint Kitts and Nevis program as below:
- Reducing the age of dependent children who can be included in the application to 25 years but they should confirm that they are full-time students.
- Raising the age of dependent parents and grandparents from 55 to 65 years, in addition to the possibility of including dependent brothers and sisters under the age of 25 in the same application
Introducing Board of Governors, Technical Committee
The program will be underpinned by three fundamental principals that are sustainability, good governance, and pragmatism to ensure greater transparency and accountability. To achieve this, the CIU has introduced a professional Citizenship by Investment Board of Governors and a Technical Committee. The board will be responsible for high level supervisory matters such as providing general oversight of the operations in the CBI Unit, developing and implementing policies and procedures, ensuring that application processing is completed as swiftly as possible within the time frames advertised without comprising the integrity of the program and continuously monitoring the global investor immigration industry to ensure that the country’s Citizenship by Investment regulations align with and adjust to, international market forces.
The Technical Committee will be required to ensure that all due diligence background checks are comprehensive and that all citizenship by investment applications are reviewed thoroughly. This committee will also be tasked with making recommendations to the Prime Minister in his capacity as Minister of National Security, Immigration and Citizenship.