Jean-François Harvey, Founder and Managing Partner of Harvey Law Group, an international law firm specializing in investment immigration.
Caribbean countries have long enticed business leaders and investors seeking their slice of island paradise. Growing economic opportunities have brought further attention to the region in recent years. Caribbean citizenship by investment (CBI) programs have emerged as a popular pathway to citizenship.
Before starting the journey to secondary citizenship, it is essential for business leaders and investors to understand the application process and consider key factors for success:
Contribution Options For Secondary Citizenship
In the Caribbean, prospective applicants are presented with various contribution options, usually an investment or a donation, each with its own set of considerations:
1. Real Estate Investments
Individuals seeking a tangible investment asset and potential rental income can meet the investment requirement through a real estate purchase. Many looking to invest in the Caribbean real estate market look at the location, quality and the potential return on investment for available properties.
However, prospective investors may be required to pay additional fees to the country for CBI eligibility. For instance, Dominica’s CBI program requires a minimum real estate investment of $200,000, plus government due diligence and application fees, which vary depending on the number of dependents to be included.
2. Business Investments
In some cases, entrepreneurs can apply if they invest in a new business in the Caribbean or relocate an existing business. This route may be attractive to those looking to venture into new markets or those seeking active involvement in local business communities. Such businesses may also benefit from lower costs, a skilled marketplace and access to the CARICOM free trade area.
3. Government Bonds
Investors seeking a low-risk investment option or those interested in supporting economic development initiatives may wish to purchase government bonds. This provides a useful option to investors that wish to prioritize capital preservation and allows for simpler recovery and exit-strategy of the investment, as this option provides a guaranteed means of recovering capital.
Government bonds will be subject to a holding requirement and generally do not pay interest, so inflation on the investment’s real value, and costs of the capital, should be considered.
4. Donation To Government Fund
Individuals seeking a straightforward route without the complexities of managing investments may want to consider donations to a government fund. Antigua and Barbuda’s CBI program, as an example, requires a donation of $230,000 to its National Development Fund.
This option may be most suitable for business leaders who want the simplest process and the least impact on tax return filings, as no asset that must be reported is acquired.
Donating to a government approved fund may be an attractive option to conscientious business leaders. By contributing to a government approved fund, business leaders may directly contribute to the local economy and the development of initiatives for the further benefit of the host country.
Typical Time Frames
It is important to note that time frames can vary depending on the country, the citizenship of the applicant, the number of dependents included and the time needed by the government to verify the information provided by the applicant.
From my experience, currently average application processing times hover around nine to 12 months from application submission to obtaining citizenship, due to application backlogs and price increases imposed in 2024.
Common Reasons For Application Delays Or Rejections
Applying for secondary citizenship demands meticulous attention to detail. Incomplete documentation and discrepancies in application details can create significant hurdles. Issues can also arise from background checks, such as criminal and financial record checks.
Common issues that may lead to rejections or delays include failing to comply with due diligence disclosure requirements, failing to fully demonstrate a source of funds, disorganized or improperly translated and legalized documents. The type of documentation required often vary depending on various factors, such as the source of the investment funds, in which further documentation could be required. Not having the right expertise and a lack of experience with the CBI process can cause delays and sometimes even rejection.
I’ve found full disclosure is the best way to mitigate potential pitfalls—particularly with regard to ownership of business entities, where a failure to disclose shareholdings or directorships of various companies can be a reason for refusal. To safeguard against unforeseen obstacles, engaging the expertise of qualified investment migration attorneys is recommended. (Disclosure: My law firm helps with this, as do others.)
The Home Country’s Impact On Existing Citizenship And Tax Status
For many applicants, acquiring secondary citizenship has some impact on their existing citizenship. Dual citizenship policies vary among countries, with some countries mandating renunciation of existing citizenship.
Ongoing tax obligations and required tax filings are another important consideration. Consultation with certified tax professionals can help applicants with the guidance they need to safeguard financial interests.
Evaluating Differences
Secondary citizenship in the Caribbean offers an array of benefits, but every country and CBI program has its nuances. Variations in healthcare provisions, educational opportunities and visa-free travel privileges underscore the importance of informed decision-making. Making a list of preferences and priorities can help serve as a compass to guide business leaders toward the jurisdiction that best aligns with their aspirations.
It’s a good idea for business leaders and entrepreneurs to seek professional advice if they are planning to establish new businesses in Caribbean jurisdictions, particularly with regard to taxes and duties, banking services, legal and regulatory considerations, as well as access to skilled labor resources.
Obtaining alternative citizenship may be useful for entrepreneurs as it opens borders for them to expand their business into the booming local economies in the Caribbean. If a CBI application is successful, entrepreneurs could not only reside, work and settle in the country that they are applying for but also reside, work and settle across many other Caribbean countries if those countries are CARICOM Single Market and Economy (CSME) member states. Further, many of these jurisdictions also have attractive tax policies including low business taxes, no wealth tax, capital gains tax or inheritance tax, and in several jurisdictions there is no income tax (automatic download).
Aspiring citizens must arm themselves with knowledge, complete the application process with clarity and diligence, and have patience.
The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
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