Last year Anguilla became the latest Caribbean jurisdiction to offer Residency by Investment. RBI schemes are often seen as a more palatable middle ground to their CBI counterparts – inviting overseas investment without having to hand out passports in return.
Unsurprisingly, the islands that benefit most from these programmes are those with a high-demand residential market, an established luxury property niche, favourable tax systems and an easy to navigate legislative framework. STAR Businessweek takes a look at RBIs around the region.
Anguilla
The newly-created Select Anguilla is the government agency charged with running the country’s two new RBI programmes and, according to CEO Philip Kisob, will “strongly embrace concepts of best practices; robust due diligence; training and certification of key personnel; use of technology; integrity; understanding the market and building a dynamic migration programme”.
The programmes are designed and implemented by investment migration firms Arton Capital and Latitude Group. The first RBI programme offers residency to applicants purchasing or building a property worth a minimum of US$ 750,000, and who are committed to maintaining it for at least five years. RBI applicants can also qualify by making a single donation (worth US$ 150,000 or above) to the Anguilla Capital Development Fund, which is used to bankroll public projects.
The second scheme, the High Value Resident Programme, comes with a laundry list of requirements. To successfully qualify, applicants must pay US$ 75,000 a year in annual worldwide income tax to Anguilla’s treasury, own and maintain a property valued at more than US$ 400,000, establish links in the country, spend a minimum 45 days there a year, make an annual written declaration to the effect that they spend less than 183 days elsewhere, demonstrate that they can meet their tax obligations under the RBI programme for the first five years, and pay the necessary RBI fees.
Bahamas
The investment threshold for residency in the Bahamas has been subject to heated debate over the years as successive governments have gone back and forth on the numbers. Prior to 2018, investors had to buy property worth US$ 500,000 or over to qualify but this threshold was recently raised to US$ 750,000 (the government has signalled, however, that this may be lowered for the more economically depressed Bahamian islands to encourage investment throughout the archipelago rather than just Nassau and other developed hubs).
At present, foreigners can qualify for permanent residency in the Bahamas if they buy a property worth at least US$ 750,000, but those homeowners whose property is worth US$ 1.5mn or above can fast-track the process, receiving accelerated consideration of their application.
There are also ongoing plans to codify the Bahamas’ tax residency initiative. To qualify for tax residency, applicants must reside in the country for a minimum of 90 days a year and not spend more than 183 days elsewhere. The financial services industry is currently urging government to enshrine the tax residency certificate into law, giving greater certainty to investors.
Barbados
When it comes to residency investment, Barbados sets a high bar. The Barbados Special Entry and Reside Permit (SERP) was introduced in 2012, offering permanent residency to those investing US$ 2mn or more into the country (either through property or other vehicles).
Barbados has also added an age component to its regime, specifying that High Net Worth Individuals aged 60 and over can gain an open-ended SERP, lasting indefinitely, whereas applicants younger than 60 are issued a permit for the number of years until they reach that age.
Cayman Islands
A veteran of RBI, the Cayman Islands has a clear framework for high net worth would-be residents. There are four options, covering wealthy retirees, property-hunters and business backers, and they don’t come cheap.
Anyone investing a minimum of CI$ 2mn in property is eligible for the Certificate of Permanent Residency for Persons of Independent Means, which gives them the right to reside there indefinitely. A similar certificate is available for foreigners who want to live in the Caymans without the right to work and can demonstrate that they have invested in real estate and meet financial standing requirements. This residency permit lasts up to 25 years and comes with some strings attached depending on where investors want to live. For Grand Cayman, applicants must have an annual income of at least CI$ 120,000 or open an account on the islands and maintain a balance of at least CI$ 400,000.
They must also invest CI$ 1mn, of which at least half must be in real estate. The figures are lower for Cayman Brac and Little Cayman.
A Certificate of Direct Investment eliminates the real estate requirement, asking for a CI$ 1mn investment in an employment-generating business.
A Residency Certificate (Substantial Business Presence) is available to those who invest in, or are employed in a senior role, in an approved category of business in the islands. This permit requires no minimum investment and is valid for 25 years.
Montserrat
Unsurprisingly, given its size and relative lack of demand, Montserrat’s Economic Residence Permit carries one of the lowest thresholds in the region. To qualify, applicants must maintain a balance of at least EC$ 400,000 in a local bank, or invest in property worth at least EC$ 400,000, or hold Montserrat goverment securities worth a minimum of EC$ 400,000.
Turks & Caicos
Invest Turks and Caicos, created in 2015, runs the country’s residency programmes and caps the total amount of permits issued each year at 200. Foreigners can gain permanent residency by investing in property or business with the threshold for both set at a minimum of US$ 1mn.
