BASSETERRE, St. Kitts - WITH little else to sell besides its sand, sea and sun, Antigua and Barbuda has now turned to selling another attractive commodity...its citizenship.
In March of this year, Antigua and Barbuda’s Parliament finally passed their controversial Citizenship-by-Investment Programme (CIP) Bill.
That country’s Prime Minister, Baldwin Spencer has hailed the programme a saviour to the economy.
“The singular goal of the Antigua and Barbuda Citizenship by Investment Programme is to generate investments and jobs for Antiguans and Barbudans and to put Antigua and Barbuda on the road to sustainable growth and development,” Spencer said.
“The economic development value of CIPs and related investment attraction initiatives has long been established. Many countries across the globe, including our neighbour St. Kitts and Nevis, in testament to the importance of attracting investment, offer residency status in exchange for a sizable financial contribution. In all cases, investors are offered the privilege of expedited residency with qualifying investments,” he added.
Antigua and Barbuda joins the ranks of only two other Caribbean countries that sell its citizenship through investment - Dominica and St. Kitts and Nevis. The latter has the longest running Citizenship-by-Investment Programme.
Modelling its CIP after that of St. Kitts and Nevis, investors applying for Antiguan citizenship by investment are required to make a US$250 000 contribution to the country’s National Development Fund or make a US$400 000 real estate investment in approved developments.
A third option is a US$1.5 million "business investment" that allows an applicant to put money in government-approved businesses.
Antigua and Barbuda, with a population of about 90 000, hopes to attract $550 million over the next three years by attracting some 1 800 new citizens, who would have to spend at least 35 days on the islands during the five-year span for which an initial passport is valid.
Concerns have been raised over Citizenship-by-Investment Programmes because the Programme usually attracts persons from volatile and terrorist-plagued geographical regions such as the Middle-East. Such persons are looking for a safe haven where they can escape from the ravages of war and conflict while at the same time enjoy a life where there are lower taxes and visa-free access to many countries.
St. Kitts and Nevis recently suspended its Citizenship-by-Investment Programme to citizens of Iran and Afghanistan. No specific reasons were given for the suspension of the two countries but a statement from the Office of the Prime Minister said that the Programme was under review to ensure that its integrity is maintained.
The programme is not an “open sesame for all and sundry”, Spencer said, adding that he was fully aware that one has to safeguard the image of Antigua and Barbuda and the integrity of being an Antiguan and Barbudan citizen.
“We are fully aware of the value of our passport and how passionately and with what great esteem the people of our twin-island nation regard this document…As such, we have structured the CIP to meet the most incisive scrutiny and to deliver the most rigorous review of the applications received by the Citizenship-by-Investment Unit,” said Spencer, the third Prime Minister of Antigua and Barbuda.
The Citizenship-by-Investment Programme in St. Kitts and Nevis was established in 1984 and there are two avenues to acquire a passport. The first is a contribution of US$250 000 to the country’s Sugar Investment Diversification Foundation (SIDF) which was started in 2006, and the second is a real estate investment of US$400 000.
The CIP in St. Kitts and Nevis has come under scrutiny for its lack of transparency in giving an account of how many passports have been issued and from which countries. The information has not been forthcoming and has led to suspicion, especially among opposition politicians who charge that there is no financial oversight of the programme, especially with respect to the SIDF.
Unlike St. Kitts and Nevis, Antigua and Barbuda’s Parliament has oversight of the Programme.
Austria is the only country in Europe to have a Citizenship-by-Investment Programme. One cannot attain Citizenship-by-Investment in Hong Kong; however, the country has a Residency-by-Investment Programme, where an investment of $1.3 million can earn one the lowest tax rates in the world and heavily subsidised, well regarded public healthcare.
Singapore has a Global Investor Programme where applicants can invest $2 million for permanent residency and gain citizenship after two years. Through the Significant Investor Programme, which was started in Australia in 2012, a 4.7 million investment can land one citizenship; after four years, holders can apply for permanent residency.
Very few countries sell their citizenship. However, countries like St. Kitts and Nevis, Dominica and Antigua, whose economies are in need of an injection of cash in the face of high debt and unemployment, the CIP is attractive. Barbados and Malta are now considering undertaking the same Programme.
