A Caribbean island passport can allow visa-free entry to many countries of the world
The price of the "Caribbean question"
As Gazeta.ru notes, citizenship in exchange for investment in the economy or upon purchase of real estate is offered by four Caribbean states: Antigua and Barbuda, Grenada, Dominica, St. Kitts and Nevis. In these countries, there are two ways to obtain a passport: buy real estate for a certain amount or invest in a state-chosen fund, i.e., effectively donate money to the country.
The minimum investment in real estate is in Dominica, where it is enough to purchase a property for $200,000. For a single investor, it may be easier to give money to the state, then a passport would cost $100,000. But a family of two adults with two children would have to pay the same $200,000 as for real estate.
The most "expensive" passport is from Antigua and Barbuda. For the real estate itself, one must pay $400,000 – the same as in St. Kitts and Nevis, but due to additional fees, the total amount will be higher.
INVESTMENT AMOUNT FOR OBTAINING CITIZENSHIP CountryInvestment in real estateMandatory holding period for real estateOther investmentsGovernment fees Antigua and Barbuda$400,000 5 yearsFrom $250,000 into the National Development Fund$50,000 for the main applicant and $50,000 for spouse, $25,000 for children under 17
Grenada$250,0004 yearsFrom $200,000 into the National Transformation Fund$50,000 for the main applicant, spouse free, $25,000 for each dependent after the first three
Dominica$200,0003 yearsFrom $100,000 directly to the state$50,000 for the main applicant, $25,000 for spouse, $25,000 for children under 17
St. Kitts and Nevis$400,0005 yearsFrom $250,000 into the Sugar Industry Diversification Foundation$50,000 for the main applicant, $25,000 for spouse, $25,000 for children under 17 * Source: NTL Trust Limited
At the same time, as a rule, the government decides which properties foreigners can invest in. The purchased real estate must be held for three to five years. Permanent residence in these countries is not required, but in Antigua and Barbuda one must spend at least seven days a year there.
Visa-free entry
Citizenship of Caribbean countries is most often acquired not for permanent residence, but to obtain the right of visa-free entry to other countries. As a rule, clients of such programs are entrepreneurs doing business in Europe or Asia who frequently make business trips, says Yulia Kozhevnikova, leading expert at the company Tranio.
A Caribbean passport grants the right to visit from 90 to 138 countries. The greatest opportunities are provided by Antigua and Barbuda. "Grenada also has an advantage – visa-free access to China. Now, when there is much talk about interaction with Asia, this is especially relevant for businesspeople," says Alexandra Erlander, consultant on emigration programs at NTL Trust Limited.
Overall, all countries boast visa-free entry to the Schengen area, Commonwealth nations, the UK, Hong Kong, and Singapore. Only Antigua and Barbuda can offer Canada to its citizens.
Return on investment
From the point of view of investment attractiveness, real estate in the Caribbean countries is not the best choice. The investment potential of Caribbean countries is currently extremely small, and their economic state does not allow for unequivocally optimistic forecasts.
According to Indriksons, the yield of properties in Antigua and Barbuda does not exceed 4% per annum, housing on the island of Dominica can bring only 4.2 to 4.9%, real estate on the islands of Grenada and St. Kitts and Nevis – 4 to 4.6% per annum. "In addition, the housing market on the islands is limited, there cannot be high demand, including in the rental sector, and therefore local properties can hardly be called liquid," says Igor Indriksons, real estate investment manager and founder of Indriksons.ru.
Another reason why real estate in these countries remains unattractive from an investment perspective is high taxes, which range from 15 to 35%. Taxes here are paid both on income from renting out real estate and on income from the sale of an asset. Therefore, the Caribbean islands are only suitable for those who want to quickly obtain a passport or intend to live there permanently themselves.