St. Kitts and Nevis Citizenship by Investment
When a US Citizen wants to formally expatriate from the United States they are required to have already obtained citizenship in a second country. If they have not already obtained a second citizenship, the US government will not approve their expatriation application. The reason why is that USCIS will not approve applications that would leave a taxpayer stateless. While for some taxpayers who have a lineage and other types of family relationships in a foreign country, it is relatively simple to obtain a second citizenship, for many taxpayers this is not an option. Luckily, several countries offer a ‘Citizenship-by-Investment’ opportunity in which a taxpayer is able to become a citizen of that country simply by investing in that country’s economy. The United States has its own version of this which is the EB-5 visa which allows a person to quickly become a permanent resident and ultimately a citizen if they so decide. Let’s go through the basics of the Saint Kitts and Nevis Citizenship-by-Investment program.
Where are St. Kitts and Nevis?
Saint Kitts and Nevis are comprised of two islands. The islands are located in the Caribbean with a population of about 50,000 people. It is considered a sovereign federation and the capital city is named, Basseterre. Despite the fact that it has a relatively small population, Saint Kitts has entered into various agreements such as the Organization of American States (OAS) as well as a Model 1 FATCA Agreement (Foreign Account Tax Compliance Act) with the United States.
Tax Implication of St. Kitts and Nevis Citizenship
One main reason why American expatriates enjoy Saint Kitts and Nevis as their choice for citizenship is that there is no earned income tax on individuals. While there are other types of taxes on passive income for residents, in general, non-residents of Saint Kitts and Nevis do not have any tax liability. This is in sharp contrast to the United States, which follows a worldwide income tax model and means taxpayers are subject to US tax on their worldwide income – whether or not they are residents of the United States.
*Corporate taxes in Saint Kitts and Nevis can be relatively high so taxpayers considering launching a corporation in Saint Kitts and Nevis will want to carefully evaluate the tax implications before doing so.
About St. Kitts and Nevis Citizenship by Investment
The St. Kitts and Nevis Citizenship-by-Investment program is a good opportunity for taxpayers seeking quick and inexpensive citizenship. There is no residence requirement and compared to other Citizenship-by-Investment programs, the Saint Kitts and Nevis program is relatively less costly and requires less by way of investment. In addition, there are not many restrictions on maintaining citizenship and the passport offered by Saint Kitts and Nevis is versatile. The cost to apply for this type of citizenship by investment is around $125,000 for one applicant with additional fees depending on if there is a spouse or dependents. Taxpayers can also choose to invest in real estate and will generally have to hold the investment for at least five years. Taxpayers who are seeking to get their application through as quickly as possible may qualify for a reduced processing time as well.
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