Caribbean CBI MoA Winners and Losers

Overview of the Caribbean CBI MoA

The Caribbean Memorandum of Understanding (MoU) was an agreement signed by the heads of state of the five Caribbean nations offering citizenship by investment (CBI): Antigua and Barbuda, Dominica, Grenada, Saint Kitts and Nevis, and Saint Lucia. Amidst the growing scrutiny and criticisms of CBI practices in the Caribbean, the Memorandum of Understanding (MoA) was introduced to improve the governance and transparency of the region’s citizenship by investment programs, including a standardized minimum investment threshold. The MoA was formally agreed upon in March 2024 and came into effect on 30 June 2024.

Winners and Losers of the MoA

Global investor excitement over recent alterations (price reductions and other modifications) to the Caribbean citizenship programs agreed in the Memorandum of Understanding Agreement (MoA) has ignited a flurry of activity within the CBI industry.

With the effects of the recent changes becoming apparent, industry experts have identified winners and losers.

Winner: The Caribbean CBI sector

Nisha McIntyre, managing director of My Grenada Solutions Inc., stated that the Caribbean CBI MoA was a significant victory for citizenship by investment in the Caribbean. She mentioned that these reforms which would be enforced by a Caribbean CBI regulator would make Caribbean citizenship programs even more attractive as premium offerings, eliminating the belief that Caribbean identity is accessible to everybody.

McIntyre reinforced that governments and authorized agents can curate products appealing to those seeking Caribbean citizenship while maintaining the value of sovereignty in Caribbean communities.

Patrick Peters, CEO of ClientReferrals, echoed Nisha McIntyre’s views, underscoring the overall victory for the Caribbean citizenship by investment sector. He acknowledged that while a short-term decrease in applications might occur due to recent pricing changes and program revisions, the long-term outlook remains positive, with programs gearing toward a surge in applications from more keen and affluent investors.

Losers: Caribbean governments

Managing Director of Alpha Immigration Associates Manpreet Kataria begged to differ, arguing that the governments would be among the MoA’s biggest losers. Manpreet Kataria asserts that the EU, UK, and US governments pressured Caribbean governments to raise prices, a move Kataria links to past mismanagement and uncontrolled financing.

Losers: Bad actors and finance-dependent companies

Kataria points out that, beyond government implications, the price hikes will also affect questionable CBI agents and firms that previously relied on selling discounted Caribbean passports.

While McIntyre views the governments as the overall winners, she aligns with Kataria and Omer Kahraman of Viya Citizenship in recognizing that the significant losers are the opportunistic agents and firms with minimal ties to the Caribbean who sought to exploit the system for quick gains.

Winners: European CBI programs

Higher Caribbean CBI prices agreed in the Memorandum of Understanding have formed a silver lining for European residency and citizenship programs. Golden Visa programs in Latvia and Hungary, and Turkey and Moldova’s citizenship by investment programs may appeal to those who have been priced out of Caribbean CBI. This is reflected in Omer Kahraman’s observation of growing interest in Turkey’s CBI program.

Which countries will benefit the most?

Anastasia Barna sees the real winners of the Caribbean’s MoA as St Kitts and Nevis, Grenada, and Antigua and Barbuda due to their prices aligning with other Caribbean programs, alongside Vanuatu who now offers to most affordable second citizenship.

Grenada

While Grenada’s minimum investment amount has increased, it no longer offers the most expensive program behind St Kitts and Nevis.

Antigua and Barbuda

Antigua raised all prices for its investment options, but its program remains the cheapest for family applications.

St Kitts and Nevis

The gap between the CBI cost in St Kitts and Nevis and other programs has narrowed as price increases in other Caribbean countries have minimized the difference.

Vanuatu

Given the Caribbean’s new $200,000 minimum investment for citizenship, Vanuatu’s budget-friendly option, at nearly half the price, will draw clients looking for cheaper alternatives. Moreover, as Caribbean programs face stricter due diligence and longer processing times, Vanuatu offers a quicker pathway to an alternative citizenship.

Which countries will face setbacks?

Dominica

One World Migration’s CEO, Anastasia Barna, pointed to Dominica as the country set to lose the most. Dominica’s price hike may not be sufficient to restore Ireland and UK visa free travel for Dominicans, yet it could still reduce Dominica’s appeal for offering a budget-friendly citizenship program.

The End of the Golden Passport Price War

The appeal of Golden Passports offered by Caribbean countries through citizenship programs fueled competition among several countries, resulting in a price war where nations slashed costs to attract more applicants. The Memorandum of Understanding (MoA) for Caribbean CBI programs signed by the five Caribbean countries offering citizenship by investment—Antigua and Barbuda, Dominica, Grenada, St Kitts and Nevis, and St Lucia—marked an end to this price war when it came into effect on 30 June 2024. The key factor behind this was establishing a $200,000 minimum investment requirement and stricter due diligence measures to prevent predatory companies from accepting discounted investments.

This move will enhance the quality, reputation, and sustainability of the Caribbean’s CBI programs.