Words by Harvey Law Group
For high-net-worth individuals looking to optimise their tax situation whilst gaining greater global mobility and greater quality of life, Caribbean Citizenship by Investment (CBI) programs offer a strategic solution. In return of a qualifying investment through real estate, donation, or government bonds, these programs provide a pathway to applicants and their families to secure a second citizenship in jurisdictions with attractive tax policies including no personal income tax, capital gains tax, or inheritance tax. If you are looking to reduce your tax burden, preserve wealth, or an enhanced quality of life, here is how you can take advantage of these opportunities and the specific benefits of obtaining Caribbean citizenship through investment.
Understanding the tax situation in the Caribbean
Several Caribbean nations offer a highly favourable tax environment for residents and citizens. Countries like St Kitts and Nevis and Antigua and Barbuda do not impose any personal income taxes. This means that once you secure citizenship or residency in these jurisdictions, you can potentially eliminate taxes on your worldwide income. Many Caribbean nations also do not levy taxes on capital gains, wealth, or inheritance which makes them ideal for long term wealth preservation and succession planning.
Simply obtaining Caribbean citizenship does not automatically exempt you from UK taxes. To fully leverage the tax advantages, you must establish tax residency in the chosen Caribbean jurisdiction and ensure that you become ‘non-resident’ in the UK to reduce your tax burden.
For individuals anticipating significant windfalls, such as the sale of a business, property, or receiving large bonus payments, the absence of capital gains tax in Caribbean jurisdictions offers a strategic advantage. By establishing tax residency before these transactions occur, you can significantly reduce or eliminate taxes on the profits and preserve more of your wealth.
Key benefits of obtaining Caribbean citizenship
The Caribbean jurisdictions of Antigua and Barbuda, Dominica, Grenada, St Kitts and Nevis, and St Lucia have no inheritance or capital gain taxes and do not tax overseas income. Furthermore, the jurisdictions of Antigua and Barbuda and St Kitts and Nevis have no personal income taxes at all.
Alongside this, Caribbean CBI programs offer more than just tax advantages. They provide a pathway to visa-free or visa-on-arrival access to over 140 jurisdictions, including the Schengen Area, the UK, and other key global destinations, as well as the ability to live, work and settle in CARICOM member states. Caribbean CBI programs allow a wide range of dependents such as spouses, children, and sometimes parents, grandparents, and siblings to be included in the application.
Caribbean citizenship also offers a hedge against political or economic instability, providing investors with greater mobility and security. The Caribbean offers low living costs, low crime rates, tax-friendly policies, and the allowance for multiple citizenships. Flexibility in physical presence requirements means that investors can maintain their citizenship without the need to reside in the country. There are no residency requirements for obtaining or maintaining Caribbean citizenship, other than for Antigua and Barbuda who require a minimal physical presence of only five days within the first five years of obtaining citizenship. These benefits, combined with favourable tax policies, make Caribbean CBI programs an attractive option for global investors looking to reduce their tax burden.
Choosing the right Caribbean program
Each Caribbean CBI program has distinct requirements and unique benefits.
Antigua and Barbuda is a highly tax efficient option, imposing no personal income tax, capital gains tax, or inheritance tax. Applicants have the choice of making a government donation of USD 230,000 for up to four family members or an investment into approved real estate starting at USD 300,000. A unique feature of Antigua and Barbuda is that the jurisdiction is crypto friendly, so all aspects of the application can be paid using cryptocurrency. This citizenship program is the most cost effective and flexible programs with a wide allowance of extended family members, allowing grandparents, grandchildren, married children, and siblings to apply as dependents of the main applicant as well as the ability to add a future spouse and children.
Dominica offers the lowest cost donation option for a single applicant at a minimum of USD 200,000 or a real estate investment starting at USD 200,000 plus government fees. A great feature of Dominica’s CBI program is the Secret Bay real-estate investment option, which has an excellent track record of providing excellent returns to investors and is one of the top ranked resorts in the Caribbean. Whilst there is no visa free access to the UK, Dominica is the only country in the Caribbean to allow Iranian citizens to apply, and allows for a wide range of dependents who can also enjoy the tax benefits of Caribbean citizenship.
Grenada’s CBI program is particularly appealing for potential access to the United States. After three years as a Grenadian citizen, investors can apply for an E-2 Investor Visa, allowing them to live and run a business in the US. Applicants must make a government donation of at least USD 235,000 for up to four family members, or invest at least USD 270,000 into real estate, and pay government fees. Grenada allows for parents and grandparents of any age and siblings to quality as dependents.
St Kitts and Nevis is the longest running program and offers unique options such as the Public Benefit option – a cost effective flat donation sum of USD 250,000 regardless of the number of dependents. Other options include a traditional donation sum starting at USD 250,000 for up to four dependent or a real estate investment of at least USD 325,000. St Kitts and Nevis is also the only program to allow for private homes to be purchased which must be held for at least seven years and cannot generally be resold to new CBI applicants.
St Lucia offers a unique Government Bond option to ensure recovery of capital outlay whereby applicants can invest USD 300,000 in government bonds which can be redeemed at 100 per cent without interest after five years. Investors can also choose instead to donate USD 240,000 for up to four family members.
Next steps
Caribbean CBI programs provide a clear pathway to those looking to optimise their tax situation and gain access to jurisdictions with low or no personal taxes whilst also securing a second citizenship and greater global mobility. Each Caribbean program offers unique advantages that can be tailored to your personal and financial needs.
Harvey Law Group is a leading international law firm specialised in residency and citizenship by investment programs since 1992. Operating in over 20 offices worldwide and representing over 25 countries for their respective programs, our firm mostly assists high-net-worth individuals, business executives, entrepreneurs, professionals as well as their families to secure residency or citizenship abroad.
If you would like to discuss Caribbean Citizenship by Investment further, or are interested in any of our other Residency or Citizenship by Investment programs, contact Harvey Law Group at london@harveylawcorporation.com or by telephone at +44 0203 405 5762 and we would be pleased to assist.
