Saint Lucia has followed St. Kitts and Nevis in announcing a series of changes to its Citizenship by Investment program.
The most significant change is the reduction in minimum investment for its real estate option and the replacement of its COVID Relief Bond option with a government bond option.
Real Estate Investment
Saint Lucia has reduced the minimum investment under the real estate option from US$300,000 to US$200,000. This change puts Saint Lucia’s program on par with most of the citizenship-by-investment programs offered in the Caribbean.
This is a significant move because it will help Saint Lucia attract investors who may have otherwise preferred programs offered by St. Kitts and Nevis or Dominica.
However, the country has just two approved projects, which may make it less attractive for investors who want to compare multiple options.
Read More
St Lucia CIP Slashes Bonds Investment Requirement by 50% in COVID-19 Change
St. Lucia: CIP Investments Surge Despite Struggle to Shake Off ‘Inexpensive’ Tag
IMF Compliments Saint Lucia Citizenship-by-Investment Program
Bond Investment
Saint Lucia has replaced its COVID Relief Bond option with the standard government bond route. This means the country is the only one in the region to offer the bond purchase route to qualify under its economic citizenship program.
Investors must buy government bonds worth at least $300,000 and hold them for at least five years to qualify for the CIP. These bonds will not pay any interest and the minimum investment has been hiked by $50,000 as compared to the $250,000 requirement under the COVID Relief Bond option.
Fee Hikes
Saint Lucia has balanced the reduction in minimum real estate investment by hiking the government fees and other charges payable under its CIP.
The due diligence and background check fee for real estate developers and enterprise projects has been increased to $7,500.
Also, there is a ten-fold hike in the fee for adding newborn dependents by investors within 12 months of qualifying through the CIP. This fee hike is applicable only to those who qualified by making a contribution to the National Transformation Fund.
Earlier, the fee for adding the newborn dependent was $500. This has been increased to $5,000.
While the hike in government charges may be a dampener, investors are likely to cheer the reduction in minimum real estate investment. The continuation of the bond purchase route will boost investor sentiment despite the $50,000 increase in minimum investment.
The bond purchase route gives investors the safest route to qualify for fast-track citizenship and a second passport. The assured return on investment after the end of the holding period makes it more attractive compared to the National Transformation Fund.
The real estate option may be suitable for those investment immigrants who may be planning to live in or at least visit Saint Lucia every year. The bond purchase route is more suitable for those who want to qualify for citizenship without the added cost of maintaining a second home in the country.