What is known about Pavel Durov? According to Forbes in 2018, this man had a fortune of $1,7 billion. He had a hand in the creation of the VK social network and the Telegram messenger, launched the Telegram Inc cryptocurrency. and held an ICO in the summer of 2019. And Durov left the Russian Federation in 2014, saying that he was not going to return.
But did you know that a year earlier, Durov prudently prepared an “alternate airfield”, having received citizenship for money in the Caribbean - more precisely, in the country of Saint Kitts and Nevis, spending a quarter of a million dollars on this? For a number of reasons (mainly price competition), a similar service is now much cheaper. Why not a reason to make yourself a gift and prepare a plan "B" like Durov's? Moreover, a Caribbean passport gives a lot of advantages, although there are enough disadvantages.
Citizenship by investment Saint Kitts and Nevis: discount
In 2017, Hurricanes Irma and Maria hit the Caribbean. The country of Saint Kitts and Nevis also got it. Serious damage was caused to its transport infrastructure, schools, police stations and other important facilities. The cumulative damage was estimated at about $150 million.
The country needed money to rebuild. Therefore, it was decided to issue economic citizenship at a discount. If earlier the entry threshold was $ 250 (that's how much Durov gave in 000), then in September 2013 it became possible to obtain citizenship and a passport of St. Kitts and Nevis, contributing only $ 2017 to a specially created Hurricane Relief Fund (HRF ).
It was originally planned that the discount would be available for 6 months, after which the HRF fund would close and prices would return to the previous level. But St. Kitts and Nevis is not the only island country that grants citizenship by investment and is trying to recover from the 2017 hurricane season with a similar financial instrument.
The launch of HRF in St. Kitts and the introduction of the discount forced other Caribbean countries that issue passports to investors to take similar measures. As a consequence, when the six-month period for the HRF expired, it was decided to create a permanent Sustainable Growth Fund (SGF) without changing the floor price tag.
Citizenship by investment Saint Kitts and Nevis: pros and cons (risks)
The Saint Kitts and Nevis Citizenship by Investment Program is the oldest in the Caribbean and in the whole world. It was founded in 1984 and has long been a popular choice for the wealthy. Today, the program still continues to be a great option for those looking for alternatives to their current citizenship. But before applying, you need to evaluate the advantages and disadvantages.
| pros | Cons |
| The price tag is lower than in many other states that grant citizenship to investors, including Malta, Turkey, Cyprus and Montenegro (the launch of the corresponding program in the Balkan country is scheduled for the end of 2019), | If you look for alternatives, you will find that in the Caribbean are available and |
| In this country, you can get the fastest citizenship if you pay extra (see below). The standard procedure takes 4-6 months, accelerated 1,5-2 months. | You will have to pay extra for the accelerated consideration of the application by 20 - 000 US dollars for each person involved in the application. |
| The St. Kitts passport is great for international travelers and business travelers, allowing you to travel visa-free (or e-visa/visa-on-arrival) to about 15 dozen countries and territories, including the Schengen states, the UK (even after Brexit), and Russia. Durov also wrote about this advantage of a Caribbean passport on his VKontakte page, . | The right to visa-free travel to a particular country may disappear. A similar thing happened in 2014, when the islanders lost the right to visa-free visits to Canada. |
| All the same Durov noted the possibility of obtaining a Caribbean passport remotely: “I have never been to St. Kitts itself - you can get a passport without leaving Europe.” | Yes, the passport is issued quite easily. But you can also easily lose it if you make a serious mistake or withhold information when applying for citizenship, and this will be found out later. The commission of a serious crime after obtaining it can also lead to the revocation of Caribbean citizenship. |
| Among the advantages of the St. Kitts and Nevis passport is a low tax burden. Thus, the country has never had an individual tax on personal income from sources in its territory and abroad. There's also no capital gains tax and inheritance/donation taxes. | The bonus associated with the absence of personal income tax is available only to fiscal residents of the country, which you can enter only if you spend most of the year on its territory. In addition, taxes can rise at any time if officials urgently need money. |
| The legislation of St. Kitts allows dual citizenship, while investors can issue passports in the country anonymously - officials in their homeland will not know anything. | In some countries, having multiple citizenship is prohibited, and if a native of such a state receives a St. Kitts passport, and information about this becomes public, serious trouble awaits him. |
| A foreigner can receive passive income if he decides to apply for citizenship by investing in resort real estate in St. Kitts and Nevis (you need to spend from $ 200 with the possibility of exiting investments after 000 years; see below). | The region is often visited by powerful hurricanes, as noted above, which damage or even destroy resorts and reduce the flow of tourists. In addition, some resorts are not completed, turning into "financial pyramids". |
| After obtaining citizenship, it will be possible to open to expand the customer base, or even register a startup in this low-tax jurisdiction for a nominal fee. | It's actually not that easy to open a bank account, especially if you don't open it in East Caribbean dollars (the local currency). |
| The country's economic citizenship program is considered one of the most stable in the world, allowing investors and their families to obtain passports for more than three decades. | It is possible that the issuance of passports to investors will be stopped or the conditions of the relevant procedure will be tightened. or after the change of power in the country. |
| St. Kitts is trying to maintain geopolitical neutrality, paying equal attention to the development of relations with both the West and the East (in particular, with the Russian Federation). | A number of Western countries such as the US are putting pressure on St. Kitts, forcing local banks to conduct additional checks on funds associated with the economic citizenship program, which slows down the passport process. |
Citizenship by investment Saint Kitts and Nevis: how much exactly do you need to pay to get a Caribbean passport?
The program offers 2 ways to obtain citizenship and a passport: a gratuitous endowment donation or a returnable investment in St. Kitts and Nevis property approved by the authorities.
| Grant | Real estate investment |
| The applicant must make a one-time, non-refundable donation of $150 to the Sustainable Growth Fund.
A family of four (main applicant and 3 dependents) can qualify for citizenship for a donation of $195.
Funds received from donations are used to finance healthcare, education and alternative energy, among other things. |
This option is slightly more expensive, but you have a chance to return most of the money invested or even earn money (if you rent out housing and / or prices rise). But remember that it is allowed to invest only in approved development projects.
If you choose to invest in real estate, you have the option of investing $200 in part of the resort that you can sell in seven years. In this case, you will need to find a like-minded person who is ready to contribute the same amount to the same asset with you. Another option is to invest $000 in real estate that you can resell in just five years.
This option is more complicated, since you will have to pay increased attention to choosing an asset from more than a hundred resorts (their list is available on programs), avoiding frankly unviable projects (there are enough of them). |
As in the case of most other citizenship by investment programs, a subsidy or return on investment alone will not be enough to obtain a passport. You will also need to pay additional government fees.
| Additional government fees | |
| Grant | Real estate investment |
| If you include a collective application of more than three dependents, you will need to pay $10 for each additional dependent, regardless of age. That is, if there are 000 people in the application, you will have to pay 6 US dollars (215 + 000 x 195). | Approval is subject to a $35 government fee for the main applicant, $050 for their spouse (if any and included in the application), and $20 for any other dependent of the main applicant of any age (if availability and inclusion in the application). |
| Regardless of the financial option chosen, US$7500 will be required for due diligence of the principal investor and US$4 for the same service for each dependent over 000 years of age. | |
| The possibility of accelerated processing of the application within one and a half to two months is provided when ordering the AAP procedure (Accelerated Application Process). In this case, the main applicant pays a copayment of $25 for himself and $000 for each dependent over 20 included in the collective application. In addition, any dependents under the age of 000 will be charged an additional fee of USD 16 per person when applying for a St. Kitts and Nevis passport. | |
Citizenship by Investment Saint Kitts and Nevis: Document Package and Step-by-Step Process
Saint Kitts and Nevis is one of the few countries where the procedure for obtaining economic citizenship is completed on time. When applying, your documentation must include but is not limited to the following (a complete list of forms and documents can be found here):
- Birth certificates for the applicant and each dependent;
- Certificate of no criminal record from the police (should not be older than three months);
- Bank statements;
- Address confirmation;
- Photograph and signature certificate;
- A medical certificate that covers the results of an HIV test for any person over the age of 12 (should not be older than three months);
- A completed application form about the desire to obtain the status of a citizen;
Please note that you cannot directly apply for citizenship to the authorities. This can only be done through an accredited immigration agent, paying the appropriate agency fee. The amounts of agency fees are not regulated / regulated by the state and can vary widely, but as a rule they are about 20-30 thousand US dollars.
The step-by-step process of obtaining economic citizenship, carried out under the guidance of the relevant department of the CBIU (Citizenship by Investment Unit), includes the following:
- Contacting a licensed agent;
- Preliminary verification of the applicant by an agent;
- Collection and submission of documents to CBIU;
- Due diligence of the applicant and his dependents for security reasons (including verification of data on the presence in the sanctions lists, commission of crimes and sources of funds), which usually takes 2-5 months (if you do not pay extra for APP);
- If the official verification is successful and the main investor and his dependents (if any) are approved, it will be possible to invest / make a grant and issue passports.
It should be noted that Saint Kitts and Nevis does not currently accept applicants from the Republic of Iraq or the Republic of Yemen. It is possible that in the future the "black list" may be expanded.
Citizenship by investment Saint Kitts and Nevis: instead of a conclusion
In general, we can say that Durov chose St. Kitts and Nevis for economic citizenship for a reason. The country has a high-quality program with well-established processes. It may not be the cheapest, but recently the St. Kitts passport has been offered at a very reasonable price.
If you need visa-free access to Central and South America, Europe, or even Russia, this is a great option. If you're looking for a prestigious economic citizenship program, keep in mind that the St. Kitts and Nevis scheme is the oldest in existence.
One way or another, the choice is yours. Before applying, you need to weigh the pros and cons, and, if possible, consult with experts. If you need help figuring out if this option is right for you or not, feel free to ask questions in the comments!
Source: habr.com