Real estate in the right place not only offers the potential for investment profits, but also offers you a safe alternative if things go bad at home. Since real estate you own offshore will never show up in a domestic asset search, it also provides practical privacy and asset protection advantages.

If these advantages weren't compelling enough, in one of the Caribbean's premier jurisdictions for international real estate investments, St. Kitts & Nevis, when you purchase qualifying real estate, you're eligible for a remarkable and almost instant benefit: an alternative citizenship and passport.

A passport from a peaceful, neutral and non-controversial country such as St. Kitts & Nevis carries many benefits. To begin with, it lets you travel more freely and discreetly; protect yourself and your affairs from privacy invaders; and, in some cases, even provides tax advantages. And if you are ever in the hands of someone with a grudge against your home nation, being able to present yourself as a citizen of another country may even save your life.

Unless you qualify for a second passport because of family ties or marriage, ordinarily, the only way to obtain one is after a period of extended residence in another country. St. Kitts & Nevis is a very rare exception.

Here's a way to combine two great offshore benefits into one very appealing package: international real estate investing and a second passport…with both of them from a stunningly beautiful and peaceful Caribbean tropical paradise: St. Kitts & Nevis.

Since 1984, the St. Kitts & Nevis Citizenship Act has allowed foreign investors who acquire qualifying real estate to obtain citizenship and passport. This makes it the oldest existing citizenship-by-investment program. To apply for citizenship, you must invest a minimum of US$250,000 in real estate. In addition, Government fees of US$35,000 or more apply, depending on the number of applicants. But this is hardly a sacrifice, because St. Kitts & Nevis has some of the Caribbean's most stunning beaches and some beautiful real estate developments, with prices steadily rising in recent years.

These two sister islands form a federation that has been independent from Great Britain since 1983. Located about 1,400 miles southeast of Miami, world travelers often describe them as a corner of the South Pacific in the Caribbean. Densely forested mountains, waterfalls, brilliant tropical flowers and crystal-clear waters abound. The truly appropriate motto of the local tourism authority is: Two islands – one paradise.

The World's Leading Citizenship-by-Investment Program

For the last two decades, various countries have offered foreign nationals immediate citizenship in exchange for a substantial investment.

From the outset, the St. Kitts & Nevis economic citizenship program has been one of the most expensive. But it is also one of the three programs that remain in existence (the other being Dominica and Austria). Most of the discontinued programs have been shut down because of scandal, resulting in a diminished reputation for the passports of the issuing countries.

However, the St. Kitts & Nevis program has always been operated to the highest standards. It has never been easy to qualify and all applicants must undergo a thorough background check. The relatively high cost of the passport means that only a small number have been issued. Among other requirements, applicants must provide bank references and letters of recommendation and demonstrate a clean police record (extract from the register of criminal convictions) of their home country.

The purchase of the real estate is made contingent upon approval of the citizenship application, and all monies are kept in an escrow account pending approval. If citizenship is not granted, all monies except a small portion for due diligence fees is returned.

The result is that the St. Kitts & Nevis passport remains a highly respected travel document, permitting visa-free travel to more than 90 countries, including the United Kingdom, Canada, Switzerland and many others. The passport issued as a result of economic citizenship is the same as for all other citizens, indeed there is no difference in the citizenship status whatsoever.

As a citizen of St. Kitts & Nevis, you can live and work in the islands anytime, although there is no obligation to do so. You also enjoy special rights and privileges in the United Kingdom. You are not liable to taxation in St. Kitts & Nevis as there is no income tax, capital gains tax, wealth tax or inheritance tax!

The whole procedure—from submitting the application up to the issue of the citizenship certificate and passport—takes about three months. You don't need to travel to St. Kitts & Nevis for this purpose, but we highly recommend that you do so that you may personally choose the property you would like to invest in.

Buying Real Estate in Paradise

While real estate in St. Kitts & Nevis is not inexpensive, prices are quite reasonable in contrast to the price of oceanfront property on the U.S. coastline, or on other comparable Caribbean islands. While the minimum investment is US$250,000, you should expect to spend at least US$300,000 for a quality-built single-family home in a well-tended residential estate. For about US$400,000, you can purchase a substantial villa with its own swimming pool.

In addition to these costs, you should budget about another 9% to cover real-estate transfer taxes, conveyance fees and title insurance. Furnishing your home will also be an additional expense. However, all furniture and fittings can be imported duty-free.

While there are no personal taxes in St. Kitts & Nevis, there is an annual 5% tax on the rental value of property based on an assessment of its annual rental value. This tax rarely exceeds US$1,000/year, and if you do rent out the property, your actual rental income is tax-free.

Not all real estate in St. Kitts & Nevis is considered a qualifying investment for purposes of acquiring economic citizenship. You must purchase real estate in developments that possess a corresponding special authorization issued by the government. However, practically all projects desirable to foreign investors have this authorization.

For More Information

In an unsettled world, acquiring real estate outside your home country, and an alternative citizenship and passport, is a wise investment in your personal security, freedom and privacy. It also returns countless other benefits for life.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.