There are growing numbers of South African high-net-worth individuals (HNWIs) relocating from South Africa to other countries that offer dual citizenship. We look at the St Kitts and Nevis Citizenship by Investment Programme for South African HNWIs and what it has to offer.
South Africa is facing economic turmoil and uncertainty about the future of South African citizens.
The driving forces behind South African HNWIs seeking alternative options
The economic factors influencing South African HNWIs include rising inflation rates that impact the cost of living and business operations in South Africa. The South African Reserve Bank Monetary Policy Committee recently voted to increase the prime lending rate to 11.75 per cent, which consequently led to the South African Rand becoming more volatile against the US Dollar. The South African rand weakened against the US dollar has persuaded international investors to not see South Africa as a desirable destination.
The load shedding energy crisis in South Africa impacts the national grid, and businesses of all sizes and households, contributing to economic instability and uncertainty for global investors in the future of South Africa’s economy.
Another factor influencing South African HNWIs to migrate is the alarming rise of crime around the country. A recent quarterly State of Security (SoS) report conducted by the Automobile Association of South Africa (AA), indicated that “76 per cent of all respondents reported being a victim of a crime in South Africa.” The report indicated that “South Africans feel most unsafe in outdoor public spaces (45 per cent) and during their daily commute (35 per cent).” The findings stipulated 36 per cent of South African citizens “either feel only ‘somewhat safe’ (29 per cent), or ‘not safe at all’ (7 per cent) in their homes.”
The appeal of St Kitts and Nevis for South African HNWIs: safety, security and stability
South African HNWIs believe that they are vulnerable to these economic factors and continuously seek the safety and security of their accumulated wealth and the future of their families. And are actively pursuing business and personal opportunities around the world to ensure financial and long-term sound decision.
St Kitts and Nevis is a twin federation located in the Eastern Caribbean region and is well governed, which creates economic and political stability in the country that provides additional security to South African HNWIs operating their businesses. According to CS Global Partner’s World Citizenship Report 2023, the twin federation has initiated multiple efforts to improve infrastructure developments, leading to enhanced safety and security to encourage South African HNWIs to create stability for themselves and their families.
St Kitts and Nevis Citizenship by Investment Programme
St Kitts and Nevis Citizenship by Investment Programme is the oldest and most reputable programme in the investment migration industry.
The Head of St Kitts and Nevis Citizenship by Investment Unit, Michael Martin, and his team have introduced new and updated regulations earlier this year to ensure that the programme retains the ‘premium standard’, transparency and more importantly integrity.
The Programme offers eligible South African HNWIs a multitude of benefits. These include becoming part of the global business community and extending citizenship to family members.
South African HNWIs can expand their business ventures and wealth management, which include tax incentives for becoming a citizen that includes no personal income tax nor capital gains tax, these types of tax incentives provide potential diversification of lifestyle planning and wealth management. The ability of South African HNWIs to diversify their assets into multiple markets results in increased returns on investments.
The Sustainable Island State Contribution (SISC) is one of the most effective investment options and has a straightforward application process for eligible high-net-worth individuals to acquire dual citizenship.
This investment option is used to support the economic and social development of St Kitts and Nevis following seven pillars of prioritisation:
- Increasing local food production
- Transitioning to Green Energy
- Diversifying the economy
- Attracting and supporting sustainable industries
- Evolving the Creative Economy
- Recovering from the impacts of the Covid-19 pandemic
- Expanding social protections and safety nets to protect the most vulnerable
The SISC provides discerning investors the option to contribute to their new nation. It’s a sustainable and secure solution for intelligent investors who want to make a smart move. All contributions are payable to the Federal Consolidated Fund.
The minimum SISC required by law are as follows:
- Main applicant only: US$250,000
- Main applicant and a spouse: US$300,000
- Main applicant and one dependant: US$300,000
- Main applicant, a spouse and one or two dependants: US$350,000
- Main applicant and two or three dependants: US$350,000
- Each additional dependant under 18: US$50,000
- Each additional dependant aged 18 or over: US$75,000
There are due diligence and processing fees that are included in each application.
This is a prime time for South African HNWIs to seek investment opportunities through St Kitts and Nevis’ SISC, and in return explore the economic freedom the twin federation has to offer.