The European Union is giving five Eastern Caribbean nations two years to end their lucrative citizenship-by-investment programs or lose visa-free travel to the 29-country Schengen area.
The nations — Antigua and Barbuda, Dominica, Grenada, Saint Kitts and Nevis, and Saint Lucia — generate significant revenue by selling passports to foreigners who invest in their economies, buy real estate, or pay directly into government coffers. Costs begin at $200,000.
Each of the five received a letter from Brussels last month advising that new EU rules make the existence of such programs grounds for suspending visa-free access. The bloc gave them until June 1, 2028, to phase out their programs.
The Revenue Stakes
Citizenship by investment is a critical economic pillar for these small island nations. Revenue from the programs made up an average of about 6.5 percent of GDP between 2019 and 2023, according to the International Monetary Fund. For Dominica, the program generated more than 30 percent of its GDP in 2022.
The money has funded “critical investments in climate resilience, disaster recovery, infrastructure, housing, healthcare, education, and fiscal stability,” the prime ministers said in a joint statement.
Antigua and Barbuda’s program generates nearly 60 percent of the country’s non-tax revenue, according to the U.S. State Department.
EU Concerns
The European Commission has long been wary of citizenship-by-investment programs. Critics say insufficient vetting of applicants can enable money laundering, terrorist financing, identity fraud, and illegal immigration.
Together, the five nations have issued more than 100,000 passports, according to the commission. Prospective citizens generally are not required to be present in the country to apply. Passports are typically issued within a year, and rejection rates are typically in the single digits.
The majority of applicants to at least four of the five in 2024 came from countries for whom the EU requires visas — including China, Syria, Iraq, and Nigeria.
The Caribbean Response
The prime ministers are coordinating a “collective response” and planning “a high-level mission to Brussels” to meet with European Commission President Ursula von der Leyen and other senior EU officials.
Didacus Jules, director general of the Organization of Eastern Caribbean States, defended the programs. “Investment migration, in its various forms, is a widespread and legitimate instrument of economic policy,” he said.
He noted that citizenship by investment in the Eastern Caribbean predates the visa deal with the Schengen area. The programs were established, he said, “as sovereign economic development tools to attract investment, diversify economies, and generate non-tax revenue. Visa-free access has enhanced their attractiveness, but it is not the foundation upon which they were built.”
The Bottom Line
The EU has given Antigua and Barbuda, Dominica, Grenada, Saint Kitts and Nevis, and Saint Lucia two years to end their citizenship-by-investment programs or lose visa-free travel to the Schengen area. The programs generate significant revenue for these small island nations, funding infrastructure and climate resilience. Critics argue that the programs enable money laundering and security risks. The Caribbean nations are planning a diplomatic push to preserve their programs.
