For decades, the citizenship by investment (CBI) industry has been led by 5 CARICOM nations with programs for investors: Antigua & Barbuda, Dominica, Grenada, St. Kitts & Nevis, and St. Lucia. The island nation of St. Kitts & Nevis was the first to create a CBI program, and the other jurisdictions jumped aboard with their own versions as the industry evolved and opportunities for foreign investment mounted.
How CBI Benefits Caribbean Nations
While the advantages of Caribbean CBI with foreign investors are obvious—a swift path to a strong passport, a reasonably straightforward process, and the ability to secure a Plan B for the family—the benefits to the nations themselves are often overlooked. Caribbean nations maintain a limited tax base and natural resources, and they rely heavily on tourism and exports of raw materials. Still, with the ever-increasing threat from global warming, the Caribbean region is at risk of powerful storms on an annual basis. CBI programs in the Caribbean often account for up to 20% of GDP for some nations, and when storms batter the region, governments must tap into extra funds to clean up.
Evolving With the Times
Over the years, Caribbean CBI has seen a multitude of changes in price, requirements, and process. These changes are the result of external factors—often a reflection of supply and demand, but also political pressure from major geopolitical players: the US and EU. The US government has a vested interest in the Caribbean, which is often viewed by the superpower as its backyard more than its actual neighbor. The EU, which gives visa-free access to passport holders of each of the Caribbean CBI nations, is home to some conservative groups seeking to pressure the powerful bloc to tighten restrictions in the Caribbean for fears—unfounded though they may be—that CBI countries allow unsavory characters to slip through cracks and obtain passports when they should not. However, recognizing the more sophisticated due diligence done by Caribbean nations, it is now very frequent to see that newly naturalized citizens of all CBI nations obtain 10 years’ visa to the US which allows them to now enter Canada on an Electronic Travel Authorization.
With all this in mind, 2024 saw a major overhaul of the Caribbean CBI programs. A memorandum agreement was drafted and signed by all countries in June with key commitments:
- Minimum pricing increased to USD 200k by June 30, 2024.
- The Caribbean CBI programs will create a digital portal to share key applicant information to increase security and transparency.
- A regional authority will be established to regulate standards and program parameters.
- Post-approval screening of CBI citizens will be conducted.
- Marketing, promotion, and agents of the programs will be regulated under common standards.
These changes are in addition to a March 2023 agreement by the Caribbean CBI nations to abide by 6 principles suggested by the US government, all of which focused on increased due diligence standards and procedures around application denials.
Conclusion
The loudest change from the June agreement between the Caribbean CBI countries is the price floor, and new investors are understandably not thrilled with the news. Taken from a macro viewpoint, however, the overall changes will ensure a healthier and stable future for the programs. Additionally, the 5 Caribbean countries involved will continue to be able to benefit from consistent foreign capital that is so necessary given their unique economic and financial constraints as small island nations. A healthy outlook for the Caribbean CBI programs should ensure a promising landscape for investors seeking to capitalize on alternative citizenship opportunities.