Suppose you suddenly needed to become a citizen of another country. “That can’t happen to me,” you say. But as the Chinese Communist takeover of Hong Kong from the British neared in 1995, thousands of wealthy locals opted to obtain second passports, “just in case.” Many moved to Canada as political refugees or as potential investors with special residence visas. Indeed, in recent times, millions of displaced persons escaping from wars and political tyranny wished they too could have obtained an instant passport to freedom. A limited number of potential refugees, able to afford the cost, have been able to purchase citizenship from the few sovereign nations that still offer this option to wealthy foreigners—the Commonwealth of Dominica, St. Christopher & Nevis, both in the Caribbean area, and Austria. We have written about Dominica and Austria before, but the latest news is about improvements in the “economic citizenship” program in St. Kitts & Nevis, that contains an interesting “sweetener” that I’ll explain in a moment. And St. Kitts & Nevis has everything you need for smooth offshore financial operations. The island of Nevis has a no-nonsense banking and business privacy law that even the U.S. government can’t crack. Plus, its pro-offshore laws have existed for two decades and the legislative assembly keeps the applicable laws current. Passport for the Rich and Private Before we get into the details, it’s worth noting that many wealthy individuals, celebrities, and international business people active worldwide have second passports. What they realize is that dual citizenship and a second passport gives them more personal flexibility, better security, and greater privacy, plus a powerful tool for international tax, asset protection, and estate planning. Most importantly, with the threat of terrorism, dual citizenship and a second passport issued by a small, peaceful country could save your life when traveling, shielding you from political unrest, civil war, and unexpected situations. The usual routes to acquiring dual citizenship are birth within the territory of a nation, descent from a citizen parent, marriage to a citizen, or naturalization. The latter usually requires a lengthy residence period, plus language, character, and other requirements. While residence (as compared to full citizenship), is granted to investors and wealthy individuals by many countries, only three, Austria, Dominica and St. Kitts & Nevis offer citizenship-by-investment. Since 1984, the St. Kitts & Nevis Citizenship Act has allowed foreign investors to be granted official citizenship without prior residence requirements.

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Tourism plays an important role in this little haven. The two islands offer approximately 19 fine beaches and an attractive mountainous landscape. The climate is tropical and the appropriate motto of local tourism is: Two islands—one paradise. Nevis is a tax haven for foreigners with a well-established regime of laws allowing the creation of offshore asset protection trusts, international business corporations, and other offshore entities presided over by a sympathetic judicial system.

An Even Sweeter Citizenship
Dating back to the 1700s, both islands have an historic dependency on growing sugar cane. At one time Nevis sugar production made it one of the richest islands in the Caribbean and a constant target for pirate attacks seeking sugar wealth. In recent years, the sugar industry declined sharply and had to be subsidized by the government. This ended with the last harvest in 2005 and the government looked for some way to support the unemployed sugar workers. Thus was born the “Sugar Industry Diversification Foundation,” a public charity. 

Under the latest 2006 changes to the citizenship-by-investment regulations, to qualify for St. Kitts & Nevis citizenship you must invest at least US$350,000 in designated real estate, plus pay considerable government and due diligence fees besides real-estate purchase taxes. Or you can make a one-time donation to the Sugar Industry Diversification Foundation, in the amount of US$200,000 (for a single applicant). Using the charitable contribution is an easier route for most applicants, because it allows a set cost and avoids further expenses associated with owning real estate in a foreign country. Plus you don’t have to live in St. Kitts & Nevis to secure your second citizenship, so buying real estate could just be an additional burden if you’re not interested in spending time there. 
There are four categories under the new official contribution options now in effect:

• Single applicant: US$200,000 investment required 
• Applicant with up to three dependants (i.e. one spouse and two children below the age of 18): US$250,000 
• Applicant with up to five dependants (i.e. one spouse and four children): US$300,000 
• Applicant with six and more dependants: US$400,000 

In each category the total amount includes all government and due diligence fees. The documentation required is reasonable and the average processing time is not more than three months. Imagine…a second citizenship in about 90 days. 

Should you prefer the real-estate option, it requires the purchase of a condominium or villa from an approved list of developers with a minimum investment of US$350,000. Transaction costs add 10% to the purchase price, i.e. at least US$35,000, and likely US$50,000 or more as real estate prices are now on a relatively high level in St. Kitts & Nevis. Add government fees of US$35,000 for a single applicant plus US$15,000 for each family member included. Finally there are application/professional fees of US$15,000 per application and a US$2,500 due diligence fee per adult applicant. So as a single investor (without family members) you would pay at least US$437,500 for the real-estate option.

Using the real estate option lengthens the average processing time from four to 12 months or longer. And, the real estate cannot be re-sold until five years after purchase.

Enjoy the Best of Visa-free Travel 
The St. Kitts & Nevis passport is well regarded internationally and the program has been carefully managed with very few passports issued. St. Kitts & Nevis citizens enjoy a passport with an excellent reputation and very good visa-free travel to many nations. For visa-free travel throughout Europe, a St. Kitts & Nevis passport can be combined with a residence permit in a European Union country.
In an unsettled world, acquiring second citizenship is a wise decision and an investment in the future. Your citizenship of choice is for life, your spouse and children can be included, and for Americans citizens and citizens of most other nations there is no need to give up your present nationality while you enjoy the benefits of a legal second passport.

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