Is it worthwhile to obtain Caribbean citizenship through investment and also become a tax resident in the Caribbean? 

According to the news, the five Caribbean countries with CIP (Citizenship by Investment) programs will require new citizens to spend a month in the country as physical residents to establish genuine links with their new nation. If you wish to become a citizen of a Caribbean CIP nation, you may be required to prepare for a short or extended period of physical residency. 

According to the plans, there is nothing to be afraid of. You will have five years to spend a month on a perfect, tropical island nation. 

However, if you must go there or you visit it a couple of times during the next five years, consider becoming a tax resident as well. 

Citizenship and taxation have traditionally been distinct issues. Unless someone lives in a place that is not by their citizenship. Taxation is usually paid where the taxpayer lives. However, if the citizen complies with the tax laws of his country, why shouldn't he be a taxpayer there? 

The Caribbean countries, following their English heritage, were also offshore financial and commercial centres; therefore, all five CIP countries offer excellent tax opportunities. These island nations also provide offshore banking and company registration services. Don't forget, "offshore" becomes "onshore" if you are a citizen and a resident; meanwhile, you can retain all the benefits of your offshore tax heritage.

Tax advantages of the Caribbean countries with a CIP 

First of all, there are no personal income taxes on foreign-sourced income in Saint Kitts and Nevis, Antigua and Barbuda, Grenada, Dominica, or Saint Lucia.

There is no personal income tax in Saint Kitts and Nevis, nor in Antigua and Barbuda. 

Which Caribbean country with CIP is the easiest to become a tax resident? 

Therefore, becoming a tax resident is not straightforward on the Caribbean islands. Typically, you must stay in the country for more than 183 days. However, in Saint Kitts and Nevis, tax residency is a direct benefit of the citizenship-by-investment program. Meanwhile, you must physically reside in Antigua and Barbuda for 30 days to qualify for tax residency, and you must also pay a flat annual tax of 20,000 USD.

Would you like to learn about the tax advantages of obtaining a second citizenship in the Caribbean islands or elsewhere? Our experts at Discus Holdings Ltd. are among the best, with over two decades of experience in the citizenship-by-investment program market. Contact us now for a detailed consultation! 

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