ST. KITTS & NEVIS

Name of country

ST. KITTS & NEVIS

 Region

Caribbean, islands in the Caribbean Sea, about one-third of the way from Puerto Rico to Trinidad and Tobago

Population

54,149 (July 2021 est.)

 General Introduction

St. Kitts and Nevis is a Caribbean destination with two islands that offers pristine beaches and tropical landscapes. Its culture is diverse, with influences from Africa, the United Kingdom, the Caribbean, and France. It is a desirable location for owning a second home in the Caribbean, with good air connections to Europe and North America.

Wifi Speed

With an average download speed of 35.45 Mbit/second for fixed-network broadband internet, Saint Kitts and Nevis ranked 103rd in an international comparison. The upload rate of only 15.20 Mbit/second was significantly lower (126th place).

Electrical outlet

Kitts and Nevis there are two associated plug types, D and G. Plug type D is the plug which has three round pins in a triangular pattern and type G is the plug which has three rectangular pins in a triangular pattern. St. Kitts and Nevis operates on a 230V supply voltage and 60Hz.

Per Capita GDP

$23,300 note: data are in 2017 dollars (2020 est.)
$26,200 note: data are in 2017 dollars (2019 est.)
$25,900 note: data are in 2017 dollars (2018 est.)

note: data are in 2017 dollars

Climate

tropical, tempered by constant sea breezes; little seasonal temperature variation; rainy season (May to November)

Citizenship-by-Investment

Several countries, including St. Kitts and Nevis, have implemented programs that allow for the acquisition of citizenship in exchange for an investment and/or a direct contribution to the state as a means of development.

Investment

The St Kitts and Nevis Citizenship by Investment Program is the world’s oldest of its kind. Established in 1984, it provides qualified applicants with citizenship and a passport through donation or real estate investment. The government requires either a $150,000 donation to the Sustainable Growth Fund (SGF) or a $400,000 investment in real estate (which can be reduced to $200,000 for connected investors), plus related government and due diligence fees.

Processing Time

Three–six months

Key Benefits

When you obtain citizenship through the St. Kitts and Nevis citizenship program, you and your family gain full citizenship for life, which can be passed down through descent to future generations.

A St. Kitts and Nevis passport allows visa-free or visa-on-arrival travel to 157 countries, including Hong Kong, Russia, Singapore, the United Kingdom, and the Schengen Area of Europe.
Citizenship by descent is a possibility for future generations. Applicants can include a spouse, children under the age of 31, parents, grandparents aged 55 and up, and unmarried dependent siblings under the age of 31 who do not have children, as well as add dependents after they have been granted citizenship. St. Kitts and Nevis is a Commonwealth member, which entitles citizens to certain benefits in the United Kingdom and other Commonwealth countries. With good air connections to Europe and North America, St. Kitts and Nevis is an appealing location for owning a second home. The country allows dual citizenship.  There is no requirement for a minimum length of stay.

Requirements

• The Citizenship by Investment Program in St. Kitts and Nevis requires applicants to make a significant economic contribution to the country. In exchange, the applicants and their families are granted full citizenship after undergoing a rigorous application process that includes extensive background checks.
• To be eligible for citizenship, the main applicant must be over the age of 18, meet the application requirements, and choose one of the two options listed below:
• A USD 150,000 non-refundable contribution to the Sustainable Growth Fund for a single applicant or a family of up to four (under a limited time offer, valid until 31 December 2021). Each sibling receives an additional USD 20,000, and each additional dependent receives an additional USD 10,000.
  Purchase of real estate from an approved real estate development with a minimum value of USD 200,000 (resaleable after seven years) or USD 400,000 (resaleable after five years).

Procedures and Time Frame

All applications are processed by the St. Kitts and Nevis Citizenship by Investment Unit (CIU). There is also an accelerated application process available, with a processing time frame of 45 to 60 days. The CIU thoroughly reviews the application and may request that the applicant attend an interview, though this is rarely necessary. The CIU conducts rigorous due diligence checks and will reject an application if the applicant makes a false statement or fails to provide any relevant information. The applicant must personally complete the prescribed government forms, which can only be obtained from a licensed service provider. The program’s documentary requirements are reasonable, and the procedures are simple. Most applicants will typically visit the islands before deciding to purchase real estate, but this is not a requirement for the application process, which typically takes three to four months from the time the application is submitted to the CIU for approval. The time frame for the real estate option may vary depending on the development, so it is critical to select a real estate project that complements the citizenship application efficiently.

The funds for the real estate, SGF contribution, government fees, and other fees will be released to the various parties once the application has been approved in principle. Following that, the prime minister will sign the certificate of registration, which grants citizenship. After receiving the certificate of registration, the applicant is eligible to apply for a passport.

Natural Resources

arable land

Ethnic Groups

African descent 92.5%, mixed 3%, White 2.1%, East Indian 1.5%, other 0.6%, unspecified 0.3% (2001 est.)

Languages

English (official)

 Religion

Protestant 74.4% (includes Anglican 20.6%, Methodist 19.1%, Pentecostal 8.2%, Church of God 6.8%, Moravian 5.5%, Baptist 4.8%, Seventh Day Adventist 4.7%, Evangelical 2.6%, Bretheren 1.8%, other .3%), Roman Catholic 6.7%, Rastafarian 1.7%, Jehovah’s Witness 1.3%, other 7.6%, none 5.2%, unspecified 3.2% (2001 est.)

Median Age

total: 36.5 years
male: 36.7 years
female: 36.3 years (2020 est.)

Urbanization

urban population: 30.9% of total population (2021)
rate of urbanization: 1.06% annual rate of change (2020-25 est.)

Physician density

2.68 physicians/1,000 population (2015)

 Government type

federal parliamentary democracy under a constitutional monarchy; a Commonwealth realm

Unemployment Rate

4.5% (1997)

Taxes

Headline Personal Income Tax Rate (highest marginal tax rate)

• 0%

Headline Corporate Income Tax Rate (excluding dividend taxes)

• 33%

For individuals in St. Kitts and Nevis, there is no personal income tax, no filing payment or penalties. There is a standard sales tax (VAT) of 17% and a 10% reduced rate which applies within the tourism sector.

Resident legal entities are companies that are officially registered in St. Kitts and managed by local directors. Corporate tax rate is 35%.

Taxation of individuals

• 3.5% – for employees with incomes from XCD 1,000 to XCD 6,500
•  10% – for employees with a salary from XCD 6,500 to XCD 8,000
• 12% – for employees with a salary of over XCD 8,000 per year. The Federation of Saint Kitts and Nevis has various corporate entities – resident entities are generally taxed on worldwide income at a rate of 33% (lowered briefly for COV19 to 25%) however resident companies that do business exclusively outside of the Federation are generally exempt from taxation.

Dividends are not subject to withholding tax (unless paid to a non-resident) but can be subject to corporate tax, capital gains tax is generally levied at a rate of 20%, branch remittance tax is also applied additionally at a rate of 15%.

VAT is at a standard rate of 17% which is reduced to 10% in the tourism industry, certain goods and services may also be exempt or zero-rated.

No economic substance requirements are applicable in the Federation.The Federation of Saint Kitts and Nevis has various corporate entities – resident entities are generally taxed on worldwide income at a rate of 33% (lowered briefly for COV19 to 25%) however resident companies that do business exclusively outside of the Federation are generally exempt from taxation.

Dividends are not subject to withholding tax (unless paid to a non-resident) but can be subject to corporate tax, capital gains tax is generally levied at a rate of 20% , branch remittance tax is also applied additionally at a rate of 15%.

VAT is at a standard rate of 17% which is reduced to 10% in the tourism industry, certain goods and services may also be exempt or zero-rated.

No economic substance requirements are applicable in the Federation.

Nevis is updating its legislative and regulatory framework commitments to the European Union Code of Conduct Group (EUCoCG) under its Tax Governance Initiative and at the same time to the OECD Base Erosion and Profit Shifting (BEPS) Inclusive Framework.

The parliament recently passed the Nevis Business Corporation (Amendment) Ordinance, 2018, and the Nevis Limited Liability Company (Amendment) Ordinance, 2018.

Under these amendments, LLCs and corporations incorporated on or before December 31, 2018, will still enjoy full tax exemptions until June 30, 2021, provided that they do not carry out business in Saint Kitts & Nevis.

LLCs and companies incorporated after December 31, 2018, will be subject to the local tax regime (currently, 33% tax on worldwide income). The amendments have also abolished the preferential tax regime for companies incorporated by non-residents that obtained a tax resident status.

However, the Nevis Island Administration is expected to shortly introduce additional legislation to implement a local territorial tax system for corporations and LLCs established from 1 January 2019, similar to the introduced in the above-mentioned amendments for companies incorporated on or before December 31, 2018. Therefore, income derived from foreign-sources would not be subject to taxation.

It is important to note that resident companies are taxed solely on worldwide income and for the non-resident companies are taxed on income sourced from St Kitts and Nevis.