The most common investment is the government fund donation since it is the least expensive upfront. However, I always recommend clients take a good look at the real estate investment opportunities as well. In the medium to long term, a well-chosen property investment can prove much more attractive, and St. Kitts’ tourism has shown very good growth in the last 10 years, especially with many more vacationers coming each year and more international flights landing at the airport. The property can be rented out and sold after the minimum ownership period of five years. If you are interested in researching the real estate options, as with any such purchase, the location, developer and quality is key. The government fund used to be called the SIDF (Sugar Industry Diversification Fund), but is now called the SGF (Sustainable Growth Fund). The St. Kitts and Nevis government publishes information on how it allocates the SGF funds on its website, though some of the information is a little outdated (including the name!). The regulations, published earlier this year, stipulate the SGF income must be used to: fund educational facilities, mitigate the effect of climate change in St. Kitts and Nevis, support economic growth though grants to businesses, build infrastructure that supports the island’s FDI, repay government loans, develop medical facilities, support tourism, promote and preserve culture and heritage, and support sustainable growth initiatives.
What is the more common investment type for the St. Kitts and Nevis citizenship program?
My wife and I are looking at obtaining a second set of passports. We are looking at the St. Kitts and Nevis program and wondered which investment type, SDIF or real estate, is more common? How does the SDIF use the funds it receives?
In recent times the contribution investment has been more popular than the real estate investment simply because it is cheaper. Many people do, however, still find the real estate investment attractive, as it has the capacity to yield returns on the investment, or where persons like the option of having property in St. Kitts. Firstly, the SIDF has been replaced by the Sustainable Growth Fund (SGF). The SGF would require a total contribution of $175,000 for you and your wife to be eligible to apply for citizenship. If you are looking for a second home, rental property or even some form of time share arrangement in St. Kitts, our property market offers several excellent options to choose from, with investments starting at $400,000. The application process and time are identical for both options; there is no difference except for the nature of the investment. The SGF, like its predecessor, the SIDF, is used to fund a number of socioeconomic and infrastructure projects on the islands of St. Kitts and Nevis, which form our tiny country of a total population of 50,000 people. Funding is made available to locals through low-interest loans and grants for programs such as farming and agricultural training, subsidized low- and middle-income housing, student loan guarantees, small hotel and restaurant modernization funding, the construction of roads, and repair of schools and hospitals and other medical facilities. This is just the tip of iceberg in relation to the use of our CBI funds.
The St. Kitts program is a very good choice, as it provides the best value for citizenship in the Caribbean. Most clients will opt for the real estate investment option, as this allows for a return on the investment for the investor as well as helping spur development of the island, which creates jobs in many sectors. We offer many diverse options for different types of real estate properties, from hotel/resort properties to freehold villas and condominium projects. When clients donate to the SIDF (now called the Sustainable Growth Fund, or SGF), the government uses the funds to develop the infrastructure of the island and undertake social projects aimed at improving the country.