Introduction Of UAE
The demand for second passports remains robust globally, especially among UAE residents, but a noticeable shift is underway. With recent price hikes in the Caribbean citizenship-by-investment (CBI) programmes, many high-net-worth individuals (HNWIs) and families are now turning their attention to European options, particularly in the Schengen region. Despite this shift, Caribbean passports still attract interest due to their relatively swift processing times, affordability (even after the price increases), and minimal requirements.
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Rising Demand for Schengen Region Passports
Historically, the Caribbean nations of Antigua & Barbuda, Dominica, Grenada, St. Kitts & Nevis, and St. Lucia have been go-to destinations for UAE residents seeking a second passport. These countries offer visa-free travel to approximately 150 countries, including many in Europe and the Schengen area, making them a popular choice for those looking for global mobility without relocating.
However, with recent price adjustments implemented by Caribbean countries as part of a Memorandum of Agreement (MoA) signed in March 2024, individuals are now reassessing the value of these programmes. For many, especially investors from the UAE and Asia, the appeal of investing in European countries such as Portugal or Spain has grown stronger. These nations offer residency options that lead to full citizenship, with greater long-term benefits and similar investment thresholds.
Urusa Imran, Director of Business Development at Samana Group, notes that the increased costs of Caribbean programmes have narrowed the gap between Caribbean and European investment options. “People now realize that for the same investment amount, they could invest in Portugal or Spain, wait a few years, and obtain a European passport, which provides a higher level of benefits,” she says.
Why the Caribbean Remains Attractive
Despite the recent price hikes, Caribbean passports continue to be highly sought after due to the speed of processing and straightforward application requirements. Citizenship can be obtained in as little as four to six months, and no language proficiency or physical residency is required. For individuals prioritizing ease and speed, Caribbean programmes still present a competitive option.
Iñigo De Luna, CEO of Citizenship Invest, emphasizes that while the price increase has led some to consider European options, the Caribbean CBI programmes remain strong contenders for those prioritizing swift access to a second passport. “For investors focused on strategic planning, the Caribbean remains highly accessible, even with the new pricing. The demand for second citizenship in the Caribbean has shown remarkable resilience,” De Luna explains.
The rise in prices has also led to a surge in applications leading up to the July 1, 2024, deadline, as many sought to lock in the previous lower rates.
Comparative Costs of Citizenship by Investment in the Caribbean
The new minimum investment thresholds, effective as of July 2024, include:
- Dominica: The minimum donation requirement has increased from $100,000 to $200,000, with real estate investments starting at $200,000.
- Antigua and Barbuda: Fund contributions now start at $230,000, up from $130,000, and real estate investments begin at $300,000.
- Grenada: The minimum contribution has increased to $235,000 (up from $150,000), with real estate investment options starting at $270,000.
- Saint Lucia: The programme now starts at $240,000 for donations, up from $100,000, with real estate options beginning at $300,000.
- St. Kitts and Nevis: The minimum investment is now $250,000 for donations for single applicants and families of up to four. The real estate option remains at $400,000.
Despite these changes, Caribbean CBI programmes continue to provide a cost-effective route to global mobility, especially for those who value ease of application and visa-free travel access to key regions.
UAE Residents Weighing Their Options
For UAE residents and others in the Middle East and Asia, the choice between Caribbean and European second passports is increasingly determined by their long-term goals. Caribbean passports remain the fastest route for visa-free travel, particularly for those who do not plan to relocate. On the other hand, European programmes offer the allure of EU residency and citizenship, providing access to more comprehensive benefits, including the right to live and work anywhere in Europe.
For many, the decision boils down to a trade-off between speed and long-term value. The Caribbean offers quicker processing, while European countries, though requiring more patience, provide a more extensive range of opportunities.
In conclusion, while the Caribbean’s increased rates have prompted some investors to consider Schengen countries, the demand for Caribbean passports remains strong due to their efficiency, affordability (even post-hike), and straightforward requirements. Both regions continue to offer viable routes for those seeking enhanced global mobility through a second passport.
