A Growing Demand For a Second Passport
Full citizenship by investment which are known as CBI programs have become a golden ticket for real estate investors. Citizenship by investment grants passports for people looking to invest in government-run projects or buy approved real estate, through this process the investor receives the country’s benefits and the country receives economic stimulus that leads to jobs and infrastructure. An estimate of more than 100,000 passports have been issued through this program and as a result of the growing popularity, islands may be implementing stricter requirements very soon. Americans are now making up 40% of all applicants compared to the significantly smaller percentage of 5% in 2018, this increase is due to the desire of Americans wanting a “neutral” second passport for a greater mobility in business.
How The Caribbean Islands Differ
Buyers should consider different islands for their specific needs, each island offers different advantages. St. Kitts receives more applications and therefore the processes may be longer, however it is one of the most tax-efficient islands and provides visa-free travel to 155 countries. Dominica is the cheapest and fastest but has slow turnover due to the seven year hold restriction so if an investor isn’t planning on holding on to a property for too long this island is not for them.
The Breakdown of Costs and Requirements
CBI programs are expensive and extremely regulated, the process can also take up to 6-8 months and could be rejected if files aren’t submitted correctly. All processes must be complete by authorized agents and each applicant must go through an extensive background check to ensure the security of the different countries. Aside from the strict requirements, applicants typically pay about $40,000- $60,000 in consulting fees and about $10,000- $20,000 in government costs which don’t include the investment itself.
