Caribbean Citizenship: Access to Schengen?

Soon, more than 20 countries will be granted the right of visa-free travel to Schengen countries, a right which will change the way citizenship in these countries will be perceived.

As some Caribbean islands are expected to be granted this right soon, an increased interest in the passports of these countries will be the logical result.

Luckily, the Caribbean region hosts some of the most accessible citizenship programmes in the world; programmes that are also dubbed ‘over-the-counter-programmes’ due to the ease with which a passport can be obtained.

Various citizenship options were discussed at the Citizenship by Investment & International Residence Summit in Dubai last month, and the Caribbean islands were well represented.

“Today, migrants move to, move from, and transit through every nation – big and small; rich and poor – including south-south migration,” noted Sergio Marchi, Member of the Global Agenda on Migration of the World Economic Forum.

According to a joint report presented by Wealth-X and Arton Capital, both experts in the field, the Caribbean accounts for 25 per cent of the applications for citizenship programmes, a remarkable representation considering these applications are spread over only four islands - St Kitts and Nevis, Antigua and Barbuda, Dominica, and Grenada.

Further, all four islands are ranked in the top 10 of the Arton Index, which compares jurisdiction by examining the overall cost, speed, global mobility, quality of life and simplicity of the programmes. St Kitts and Nevis ranked third, Grenada 5th, Antigua and Barbuda 6th and Dominica 8th.

“We call these the over-the-counter programmes; these are countries that basically sell passports,” said Yann Mrazek, Managing Partner, M/Advocates of Law.

Dominica

Dominca is the cheapest option in the region. It has not seen many applications so far because it does not have visa-free access to Schengen countries, points out Yann. However, with its name on the list of countries that will gain this right soon, this is about to change.

The government recently added the real estate investment option to its programme, where the applicant is required to invest a minimum of $200,000 in real estate, which must be held for a minimum of three years.

The more affordable option is the single contribution of $100,000 to the government fund, an option to which the country owes its reputation as offering the most affordable citizenship-for-investment programme.

However, there are requirements that must be met, such as the ability to speak English, and a single visit to the island for the initial interview. The citizenship and passport processing will take 5-9 months, and there is minimal taxation.

“I think we are doing well. I do not have the exact numbers, but I believe we are right behind St Kitts and Nevis in terms of applications,” said Vince Henderson, Ambassador and Permanent Representative of Dominica to United Nations on the sidelines of the summit.

“We approach it very cautiously, and we do not want to make it too easy. We do not want to risk losing visa-free access to some countries, so we have to be very careful,” he added.

Antigua and Barbuda

Antigua and Barbuda already offer visa-free travel to 130 countries, including Schengen countries. Nevertheless, it is a relative newcomer to the market, with its citizenship-by-investment programme up and running since January this year.

Although the programme was launched last year, the programme is subjected to a couple of changes in response to the initial feedback, explained Harold Lovell, Minister of Finance and Economy.

“We are looking at changing the 35 days rule,” he said. Whereas most islands in the region do require minimal to no physical presence of the applicant in order to obtain citizenship, Antigua and Barbuda requires the applicant to stay in the country for 35 days over a period of 5 years, after having obtained citizenship.

“This seemed to be a hurdle for many people, and we do not want to harm the process,,” the minister explained on the sidelines of the summit.

Citizenship can be obtained when a minimum investment of $250,000 is made in the National Development Fund (NDF), a minimum investment of $400,000 is made in the real estate sector, or a minimum investment of $1.5 million in an existing business. By means of incentive, the NDF option has been reduced to a minimum investment of $200,000 in the first 6 months, an offer which runs until June, 2014.

“We are going into the right direction with the programme. We have received 44 applications so far, from nationals of China, Syria, Iran and other Middle Eastern countries,” Lovell said, adding that the expected revenue from the programme is $20 million this year.

No minimum level of English is required, and citizens approved under the programme will not be taxed. A maximum processing time of 90 days is applied, although this usually results in 30-60 days in reality, added the minister.

Grenada

Late last year, Grenada launched its citizenship-by-investment programme. The country’s Minister of Finance Oliver Joseph presented the early details at the summit this year. “We will be granted visa-free travel to the Schengen countries soon,” he promised.

Travel benefits left aside, the programme offers two investment options, both with its own citizenship benefits. In order to obtain citizenship directly, an investor may opt for an investment in an approved real estate project.

Currently, one project has been approved, which is linked to the expansion plans of the resort on Mount Cinnamon. A minimum investment of $350,000 will grant the applicant not only citizenship, but also shares in the company that owns the freehold property and the operating business of the resort and the beach club.

A second option is the investment of a minimum amount in the National Transformation Fund, which will result in residency. When this residency is held for one year, citizenship will be granted, explained the minister.

There are no requirements to visit the island at any point, and processing times for citizenship are promised to be as fast as 60 days for one person.

As the programme has only just been launched, more approved real estate projects will be offered soon, added the minister.

St Kitts and Nevis

Like Antigue and Barbuda, St Kitts and Nevis already offers a visa-free travel to the Schengen region, making these passports eligible to travel to 130 countries without the arrangement of a visa. But unlike its Caribbean counterparts, it has been running a citizenship programme since 1984.

“St Kitts and Nevis is the most popular option, as it is the cheapest ‘good quality’ option,” believes Yann. Having been on the market for 30 years, the country has gained experience in establishing a successful programme.

For a minimum investment of $250,000 in the national sugar industry, or a minimum investment of $400,00 in the real estate market, citizenship for life can be attained in a period as fast as three months. Further, there are no language requirements, no tax obligations and the applicant does not need to travel to the country at any point.

St Kitts and Nevis is also dubbed the economic capital of the Caribbean and attracts many investors due to its stable economy. However, as stable as a country appears now, long-term risks should also be taken in consideration, explains Yann.

“In terms of residency rights a passport from St Kitts and Nevis can do almost the same as a passport from the UK, however, it is not the UK. The world can change tomorrow, and people eventually prefer to be citizen of a European country, as the security lies here.”

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