Top Caribbean Tax Havens: Which Island Offers the Best Residency by Investment?

Caribbean tax havens are becoming increasingly popular among investors looking for tax advantages and the opportunity to secure second citizenship. These islands offer various residency and citizenship programs, providing both financial benefits and a gateway to a more stable lifestyle.

Lyle Julien, Investment Programs Expert at Immigrant Invest, will explore the top Caribbean citizenship programs and how investors can benefit from their residency-by-investment options.

Best Caribbean Islands for Investors

The Caribbean offers several attractive destinations for investors. These tax residency options in the Caribbean are well-known for their low or zero tax policies, making them ideal for wealthy individuals looking to protect their assets. Here are some of the most prominent countries in the Caribbean offering residency by investment programs:

• Antigua and Barbuda;
• Dominica;
• Grenada;
• St Kitts and Nevis;
• St Lucia.

Each of these Caribbean tax heavens has its own set of advantages, including favourable tax regimes, political stability, and the ability to travel visa-free to numerous countries. Let’s take a closer look at what makes each island stand out.

Top Countries for Tax Residency in the Caribbean

Antigua and Barbuda offers one of the most popular residency-by-investment programs in the Caribbean. The country has a well-established framework for foreign investors looking for tax benefits. The government offers a range of investment options, including real estate, donations, and business ventures.

Antigua and Barbuda is a tax-friendly destination, with no inheritance tax, wealth tax, or capital gains tax. Additionally, the country does not tax worldwide income for residents.

To obtain citizenship in Antigua and Barbuda, applicants must make one of the following investments:

1. National Development Fund (NDF) donation: a minimum contribution of $230,000.
2. Real estate investment: a minimum of $300,000 in government-approved properties.
3. Business investment: a minimum investment of $1.5 million in a business, or a joint investment of $5 million — $400,000 contribution of each investor.
4. Donation to a higher education institution: a $260,000 donation, available for families of six or more.

Dominica is renowned for its citizenship-by-investment program, which is one of the most affordable in the Caribbean. Investors can obtain citizenship through a donation to the government or a real estate investment.

Dominica has no wealth tax, inheritance tax, or capital gains tax. This makes it a highly attractive tax haven for individuals looking to protect their assets and minimise tax liabilities.

Investors can either make a contribution to the Economic Diversification Fund starting at $200,000 or invest in government-approved real estate projects with the same threshold.

St Kitts and Nevis is one of the most well-established tax havens in the Caribbean. Its residency and citizenship-by-investment programs are among the most popular in the region.

St Kitts and Nevis has no income tax, no capital gains tax, and no inheritance tax. This makes it a top choice for individuals looking to minimise their tax obligations.

To obtain citizenship in St Kitts and Nevis, штмуыещкы must choose from two primary investment options:

1. Donation to the Sustainable Growth Fund (SGF). The minimum contribution required is $250,000 for a single applicant. Additional costs apply for family members.
2. Real estate investment. The applicant can invest a minimum of $325,000 in government-approved real estate projects. The property must be held for a minimum of seven years. There is also a $600,000 real estate option in a single-family private dwelling designated as an Approved Private Home.

Grenada offers a unique blend of residency and citizenship benefits. The country is known for its friendly tax policies, making it an ideal destination for investors.

Grenada does not levy wealth, inheritance, or capital gains taxes. There are also no taxes on foreign income for residents, which makes it an attractive option for those seeking to reduce their tax burden.

The investment options are flexible. You can either contribute $235,000 to the National Transformation Fund or invest at least $270,000 in approved real estate projects.

St Lucia offers another strong residency-by-investment program, with a focus on both long-term residency and citizenship.

Like the other islands, St Lucia does not tax worldwide income, capital gains, or inheritance. This makes it a highly attractive destination for tax planning.

Investment Options: Investors can either make a contribution to the National Economic Fund, invest in real estate, or purchase government bonds. The minimum investment starts at $240,000 for a single applicant.

How to Apply for Citizenship in Tax-Free Caribbean Countries

Obtaining residency or citizenship in one of these Caribbean tax havens is a straightforward process, although each country has its own specific requirements. Here’s a general overview of the steps involved:

1. Choose your country. Start by deciding which island offers the best benefits for your personal and financial needs.
2. Make the required investment. Depending on the country, you’ll need to either make a donation, purchase property, or invest in government-approved ventures.
3. Submit an application. Complete the required forms and submit necessary documents, such as proof of identity, background checks, and financial records.
4. Due Diligence. Each country conducts a thorough Due Diligence process to ensure that applicants meet all legal and financial requirements. This process helps maintain the integrity of the programs and ensures that applicants meet the standards set by the government.
5. Receive approval. Once approved, you’ll be granted residency or citizenship and can enjoy the tax benefits and other privileges associated with the program.

Conclusion

The Caribbean offers some of the most attractive citizenship-by-investment programs in the world. Countries like Antigua and Barbuda, Dominica, Grenada, St Kitts and Nevis, and St Lucia provide significant tax benefits, political stability, and opportunities for global mobility. For investors looking for both financial freedom and access to global markets, these tax havens are an excellent option. If you're considering a second citizenship for tax purposes, these islands are worth looking into.