In a recent national address, Prime Minister (PM) Terrance Drew of St. Kitts & Nevis announced a sharp 60% decline in revenues from the Citizenship by Investment (CBI) program, following significant reforms that doubled the investment requirements and introduced stricter oversight mechanisms. The PM admitted that reforms aimed to safeguard the country’s reputation and visa-free access to the European Union. However, they have significantly impacted the CBI program’s application volume and financial returns.
Sharp Decline in CBI Revenues
Prime Minister Drew’s cabinet went into office two years ago in August 2022 and at that time 60-70 percent of the federal revenues of St Kitts & Nevis came from the CBI program, according to the PM. He pointed to the Team Unity Prison Project, which “resulted in tens of thousands of citizenships being issued from a single venture, putting our visa-free access to the UK and the EU in grave jeopardy”. PM Drew revealed interesting figures: in 2024 up to September, the CBI program has generated around US$80,7 million (EC$218 million), while in 2023 this amount was around US$229,4 million (EC$620 million), and in 2022 – US$247,5 million (EC$669 million).
St Kitts & Nevis CBI Revenues according years:
| Year | USD (millions) | ECD (millions) |
|---|---|---|
| 2024-Sept. | 80.7 | 218 |
| 2023 | 229.4 | 620 |
| 2022 | 247.5 | 669 |
| 2021 | 200.9 | 543 |
| 2020 | 100.3 | 271 |
| 2019 | 163.9 | 443 |
The impact of the reforms has been significant. Data from 2019 to 2023 shows that CBI revenues had been a major contributor to the economy, with consistent growth until recent changes decimated revenues. In 2022, the program generated nearly $250 million. However, following the reforms in 2023, revenue plummeted by 60%, marking the sharpest decline in years. The country now faces the dual challenge of economic stabilization while maintaining diplomatic ties.
PM Drew acknowledged that the decrease in applications directly resulted from reforms. But. these measures were necessary to align the program with international expectations, particularly those of the European Union and the United Kingdom, both of which grant St. Kitts & Nevis citizens visa-free travel.
The PM underscored the delicate trade-off between short-term economic benefits and long-term geopolitical priorities. “Without these reforms, St. Kitts & Nevis was at risk of losing visa-free access to the EU,” Drew emphasized. “This would have been a blow not just to our program but to the freedom of movement our citizens enjoy.”
Implementing the Memorandum of Agreement
The 2024 reforms in line with the Memorandum of Agreement raised the minimum contribution required for CBI applicants and introduced stringent due diligence procedures. These changes were designed to prevent program misuse and ensure correspondence with evolving global standards, especially those set by Western nations concerned about security risks and illegal financial activities.
As part of the overhaul, the minimum investment for the Sustainable Growth Fund (SGF)—one of the most popular pathways under the CBI program—was increased, nearly doubling the previous threshold. SGF was replaced by Sustainable Island State Contribution (SISC), which requires a minimum investment of US$250,000 for a family of four to qualify for St Kitts & Nevis citizenship. Applicants are also required to cover a due diligence fee of US$10,000 for a main applicant and US$7,500 for each dependent, and the process includes mandatory interviews with CBI applicants either in person or online.
The reformed St Kitts & Nevis program has the option to make a non-refundable contribution to the Approved Public Benefit project with the same US$250,000 threshold for a family of four. The program maintains options to invest in an approved real estate project starting from US$400,000. Fees apply for additional dependents, starting from US$25,000.
While these adjustments were necessary to maintain the program’s integrity, they resulted in a sharp decline in applications, contributing to a significant drop in federal revenue.
According to the PM, safeguarding relationships with key international partners remains a top priority. The EU and UK have grown increasingly cautious about CBI programs, with several countries in the Caribbean facing scrutiny over their compliance with anti-money laundering regulations and security concerns. “Our decision to reform was not easy, but it was essential to avoid the loss of these important partnerships,” PM Drew explained.
Reports by investment migration industry analysts suggest the changes were unavoidable given the geopolitical landscape. Several Caribbean nations have faced mounting pressure to adjust their CBI offerings to maintain good standing with Western partners.
Future Prospects
Despite the financial blow, PM Drew expressed optimism about the future of the CBI program. He hinted that 2025 may see a rebound in revenues as the program adjusts to new global realities and potentially attracts higher-quality investors willing to meet the revised requirements.
“There are always adjustments to be made,” the PM noted. “We are working on policies that will make the program more sustainable while ensuring that it continues to attract serious investors”.
Reforms are essential for the program’s long-term success, maintaining competitiveness and meeting international expectations.
The PM’s address highlights the importance of prioritizing sustainable growth and protecting diplomatic ties. The reforms, though painful in the short term, aim to position the country for future stability and success in the increasingly scrutinized world of investment migration.