The appeal of the Caribbean islands is expanding beyond their beautiful beaches and relaxed lifestyle. More buyers are looking to invest in property for a unique advantage: a second passport. This growing trend is largely driven by political and social instability in the United States.
Five Caribbean nations—Antigua and Barbuda, Dominica, Grenada, St. Kitts and Nevis, and St. Lucia—offer citizenship by investment (CBI) programs.
These programs start at $200,000 (£145,000) and provide buyers with not only a property but also a passport. This passport grants access to over 150 countries, including the Schengen Area in Europe and, in most cases, the UK.
In addition to travel benefits, these islands offer a favorable tax environment. There are no capital gains or inheritance taxes, and in some cases, even income tax is minimal. This tax advantage makes the Caribbean islands particularly appealing to wealthy investors.
Real estate agents, particularly in Antigua, are noticing a sharp increase in demand. Nadia Dyson, owner of Luxury Locations, notes that about 70% of current buyers are seeking citizenship, and most of these buyers come from the US.
The political instability in the US is often cited as a key factor in this surge of interest. “Last year, we mostly had lifestyle buyers. Now, nearly every buyer is looking for citizenship along with their home,” Dyson explains.
Investment migration experts confirm that US citizens now represent the majority of CBI applicants from the Caribbean. Other frequent applicants come from countries like Ukraine, Turkey, Nigeria, and China. Over the past year, the number of applications has increased by 12%.
For many US buyers, acquiring a second passport serves as a backup plan. “It’s an insurance policy against political uncertainty,” explains Dominic Volek of Henley & Partners, a global investment migration firm.
The ease of travel provided by a Caribbean passport is another key attraction for businesspeople who seek a politically neutral travel document.
Despite these advantages, Caribbean CBI programs are not without controversy. When Antigua first introduced its program in 2012, it sparked protests. Critics argued that selling citizenship commodified national identity.
Other Caribbean nations without CBI programs, such as St. Vincent and the Grenadines, have also criticized these initiatives.
International concerns about lax oversight have been raised, with fears that such programs could be used for illicit activities. The European Union, in particular, has warned that it is closely monitoring the situation. However, the five nations offering CBI programs maintain that their processes are transparent and secure.
The revenue generated from these programs has proven vital for many of these small island nations. In Antigua, for example, CBI funds have helped the country recover from financial challenges.
Prime Minister Gaston Browne emphasizes that this income has been crucial in rebuilding the economy, especially after natural disasters.
In response to global concerns, the Caribbean islands have pledged to strengthen oversight. New measures include enhanced due diligence, regular audits, and mandatory interviews for all applicants. A regional regulator will also be established to set standards and ensure compliance with international requirements.
For investors, the Caribbean islands offer not only an attractive property market but also a chance to secure a second citizenship and the advantages that come with it.
As interest in these programs continues to grow, the Caribbean islands are positioning themselves as a key destination for global investors.
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