Sustainable Growth Fund: Speedy, Straightforward and Secure

Friday, 21st February 2020

Boasting the world’s most longstanding Citizenship by Investment Programme, the Federation of St Kitts and Nevis has been a frontrunner in the investor immigration industry for 35 years and has earned a reputation as the “platinum standard” of citizenship by investment. After undergoing a multi-tiered system of due diligence, applicants seeking to obtain citizenship of St Kitts and Nevis may choose between two investment options, either: (1) a direct contribution to the Government’s Sustainable Growth Fund (SGF), or (2) the purchase of pre-approved real estate. The SGF option, however, offers a more straightforward, fast, and secure route to citizenship. Under the SGF, a single applicant must make a minimum contribution of US$150,000, whereas families of four can apply by making a minimum contribution of US$195,000 (plus US$10,000 for each additional dependant). In this way, the SGF is particularly favourable to larger family structures. The SGF option also boasts quicker application processing times. Despite applicants under either option being subject to the same strict due diligence checks, SGF contributions are made directly to a Government-held bank account with no use of intermediaries, and no additional contracts or agreements are required to be performed by the applicant. Paul Singh, Director at international legal advisory firm, CS Global Partners, attested to the speed and efficiency of application processing under the SGF route. According to Mr Singh, “clients who choose to make a direct contribution to the Sustainable Growth Fund frequently receive notifications of approval-in-principle within three months of submission. This is often not the case for real estate applicants.” In order to determine the top two citizenship by investment jurisdictions, Mr Singh recommends advising potential investors to consult the CBI Index, the world’s first independent comprehensive analysis of the citizenship by investment industry. One citizenship by investment industry stakeholder (who wishes to remain unnamed), commented that, despite the relative ease of the SGF route, Agents often rush to recommend the real estate option to potential applicants, motivated by a desire to receive substantial commissions from real estate developers. Commenting on the selling tactics used by Agents, the industry expert stated that in his ten years of experience in the industry, he is yet to hear of any investor who has profited from real estate obtained as part of their application. According to our stakeholder source, Agents also notoriously push potential investors to apply to St Lucia’s Citizenship by Investment Programme, despite the Programme’s poor standing in the industry. Ernest Hilaire, Deputy Leader of the Opposition, infamously claimed that should his party return to office, it will hike the National Economic Fund’s threshold back up to US$200,000, and will require those who received citizenship for the current US$100,000 threshold to not only pay the extra, but also complete an additional due diligence check. Such statements, in addition to the multiple project cancellations and suspensions under the country’s real estate option, have made St Lucia an unattractive destination for second citizenship. Notwithstanding this, however, the prospect of large commissions from the St Lucian Government for applications submitted through both the National Economic Fund and the real estate arm of the Programme encourage Agents to issue irresponsible advice to potential investors. In St Kitts and Nevis, SGF applicants can be confident that their investment is ensuring the prosperity of the twin-island nation and its people. Introduced in 2018 by Prime Minister Timothy Harris, donations to the SGF are channelled into fostering the country’s sustainable economic growth. Indeed, Chief Executive Officer of the St Kitts and Nevis Citizenship by Investment Unit, Les Khan, heralded the SGF for being closely aligned to the 17 Sustainable Development Goals of the United Nations’ 2030 Agenda for Sustainable Development. In return for their contribution to the advancement of the island, thanks to 25 new visa waiver agreements signed under the leadership of Prime Minister Harris and Foreign Minister, Mark Brantley, successful applicants can now gain visa-free or visa-on-arrival access to more than 160 destinations. In 2020, citizens naturalised under the St Kitts and Nevis Citizenship by Investment Programme truly gain status as global citizens.