The business world is witnessing a surge in the number of High Net-worth Individuals looking for a Caribbean passport. And that's why today, the Caribbean recovery is majorly influenced by these individuals and private equity.
Most countries have citizenship by investment Program - all that differs is the time and price to secure it. One must go through all the research and base their decision according to the requirements and budget.
Where Are the Wealthy Moving These Days?
Without a doubt, it's the Caribbean islands - Caribbean passports that offer visa-free travel to nearly 140 to 160 countries.
Let's look at the secrets that make this region so attractive.
A Strong Economic Bounce-Back
The Caribbean is a tourist-dependent region, and it remains one of the most prominent destinations in the world. And yet, it's situated in the eye of the storm.
Hurricanes have passed through with high frequency and intensity. Some of them are utterly destructive for tourist operators. But many have adapted to the bitterness of rising again from the ashes.
COVID-19 impact may have been even more significant to these regions. It struggled with border closures, flight cancellations, and a near-fall of the cruise-ship market. The human impact of the virus affected tens of thousands.
A report by the Caribbean Tourism Organization shows a drop in tourism arrivals in 2020 compared to 2019. The decline was estimated to be at 65%, the biggest in the region.
Despite these challenges, more and more HNWIs are eyeing the region. It makes one wonder what secret lies here. One of the reasons is the region's quick adjustment to situations.
Experts indicate that Caribbean countries were quicker to implement measures for the pandemic. Tourists returned faster compared to other destinations, and it outperformed many other parts of the world, which experienced even steeper drops.
Such a strong economy would attract different investors, and it's one of the reasons why HNWIs come here.
The Caribbean enjoys some of the highest levels of Foreign Direct Investment (FDI) globally.
Many of its economies have FDI to GDP ratios above 10%.
Although the 2008 financial crisis significantly reduced its FDI flow, the region has witnessed a considerable recovery recently. It's still one of the significant economic destinations around.
The Best CBI Programs
Citizen-by-Investment is the process of obtaining a second citizenship and passport through investment. One can buy a property in a host country to acquire citizenship, and it's a much faster way of becoming a citizen than the traditional immigration method.
The investor does not need to visit or reside in the host country. CBI is the best way for HNWIs to invest in other opportunities globally.
An applicant can have approval roughly within three months. They will receive permanent citizenship, a valid passport, and visa-free travel, among other benefits.
This is what investors from third-world and developing countries look for. It's no longer just a luxury but rather a necessity.
Let's look at the two countries that have the highest number of investments in the Caribbean:
India
A press release from the Business Standard mentions a rise in Indian HNWIs investing in the Caribbean. They are looking for a better way of diversifying their wealth.
This country faces uncertainties around the healthcare industry, primarily influenced by the pandemic. Also, essential tax rules are affecting their investments. Affluent Indians are therefore looking for a better life for their families and more stable financial assets.
The Global Wealth Migration Review report indicates that close to 5000 millionaires migrated abroad in 2020 alone, and a more significant percentage of them ended up in the Caribbean.
The Indian government has created flexible policies that allow HNWIs to invest abroad in the past few years, allowing them to get citizenship in these countries.
Caribbean countries offer the best CBI programs for Indians. It's no wonder the Indian community is growing steadily. More and more affluent Indians are coming here for business and wealth diversification and a better life for their families.
Nigeria
Despite having vast resources, the Nigerian HNWIs community faces too many global travel restrictions by the Nigerian passport. It grants visa-free access to only 54 destinations, including other African nations.
This is a minimal number compared to her neighbours like Ghana, Cameroon, and Cote d'Ivoire. Passports from these countries grant access to other high-end destinations like Europe and the USA.
Investing in Dominica citizenship is the best move. Pairing the Nigerian passport with a Caribbean visa opens doors to more than 150 more destinations globally. This includes the UK, the USA, Russia, and China, which are economic superpowers.
The CBI process is quick and straightforward, and the process will take about three months to complete. Once done, the individual enjoys a wide range of benefits, including expanded visa-free travel to over 200 countries.
Also, investing in the Caribbean passport opens access to tax exemptions from different incomes, gifts, inheritance and wealth, and the best educational institutions. It's an excellent opportunity for any African investor looking for easy access to the global economy.
Other Reasons
There are several other reasons why the Caribbean has become a favourite destination for HNWIs. Consider the following:
A Safe Environment
The stable economic development of this region makes it an excellent place for investment. The entire region has enjoyed steady economic growth of about 5% per year, majorly from tourism.
Flexible Tax Policy
Caribbean countries like Grenada don't impose a foreign income tax, property tax, gift tax, wealth, or inheritance tax on investors. They offer corporate tax incentives to attract more investors, exempting all import taxes. Also, there is no limit to the flow of capital and profits back home. These are attractive offers for HNWIs investors.
Excellent Quality of Life
The Caribbean CBI program allows investors to own dual nationality. With this comes the lowest-paid family costs in places like Grenada and Dominica. One can also migrate to the USA using the E2 visa, which allows them to establish, advance, and operate businesses. Besides, their spouse will have the right to work, and the children can attend the school of their choice.
Final Thought
Investing in the Caribbean CBI is an excellent move for HNWIs who need better business opportunities. The use of FDI promotion policies is more extensive and prevalent here than in any other place, and it's evidence of stable economic growth. With such a welcoming environment, there is no question why it is so attractive to investors.
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