With its strategic location in the Caribbean, its efficient infrastructure, and its reputation as an excellent tourist destination, St Lucia is certainly a place worth investing in. Whether you want to obtain St Lucia citizenship through the Saint Lucia Citizenship by Investment Program, enjoy the nation’s favorable tax environment, or benefit from its thriving tourism industry, there are many reasons to invest in St Lucia.
In this article, we’ll take you through some of the main reasons to invest in the beautiful island of Saint Lucia.
Why invest in St Lucia?
Well connected to the world
Efficient infrastructures
Tax incentives
Active and dynamic workforce
Top tourism destination
Stable political and economic climate
Invest and get the St Lucia passport in 3 months
Rich in natural resources
Key Sectors in Saint Lucia
As mentioned, there are many reasons to invest in Saint Lucia. Foreign investors can choose from various sectors on the island that speak to the sustainable and profitable development of diverse projects and industries, such as high-end real estate, agro-processing, renewable energy, and smart manufacturing. The different sectors include tourism and hospitality, renewable energy, agriculture, global business outsourcing, and manufacturing.
St Lucia’s tourism industry is thriving, providing everything from luxury experiences to more affordable living, particularly when it comes to real estate. St Lucia has many opportunities for foreign investors looking to obtain an investment unit that leads to profitable rental yields. This is even more attractive for those interested in obtaining citizenship, as St Lucia’s citizenship by investment program allows individuals to invest in approved real estate projects as a route to being granted citizenship.
Rules of Investment in Saint Lucia
Investment in St Lucia is defined through the nation’s legal and regulatory framework, such as the Companies Act (which provides comprehensive legislation regarding the formation and operation of companies), tax laws (which provide information and guidance on corporate taxes, incentives, and exemptions), and investment regulations (which provide rules and guidelines for foreign investment in the country).
The Saint Lucia Citizenship by Investment Program (or CBI program) is ratified by the Citizenship by Investment Act no.14 of 2015. The St Lucia Citizenship by Investment Program offers qualifying investors and their families St Lucia citizenship in exchange for an investment of at least $100,000 in the country’s economy. As such, they become St Lucia passport holders and benefit from the many advantages of citizenship, such as visa-free travel to over 140 countries, a favorable tax environment, and more.
Tax Exemptions for Expats in Saint Lucia
Saint Lucia residents and citizens benefit from a favorable tax regime. There are no capital gains, inheritance tax, or wealth tax on worldwide income or assets. However, local tax considerations do apply. Residents of Saint Lucia pay a personal income tax (PIT) scale deriving from domestic activities. Non-residents pay taxes only on income received from local sources.
Property tax is 0.25 percent of the market value of housing. Buyers of real estate who are non-residents of Saint Lucia should additionally obtain a license for land ownership, paying 7.5 percent of the property value.
Key tax considerations include:
PIT scale
- Up to 10,000 East Caribbean Dollars (XCD) – 10 percent
- 10,000 to 20,000 XCD – 15 percent
- 20,000 to 30,000 XCD – 20 percent
- over 30,000 XCD – 30 percent
- The minimum non-taxable PIT for individuals is 18,000 XCD
Company and wages tax
- Companies registered in Saint Lucia pay a corporate income tax at a minimum rate of one percent (in some cases, a zero rate applies) or an annual license fee, the amount of which depends on the size of the company’s charter capital.
- Wage-earners must pay a five percent tax on their salary to the social security fund, but this amount should not exceed 5,000 XCD.
VAT payment terms
- VAT rate is 15 percent. For a hotel business, a reduced rate of eight percent applies.
- Registration for VAT payment is required if the total annual cost of supplies exceeds the threshold of 180,000 XCD
St Lucia Citizenship by Investment Program
In 2015, the St Lucia government introduced its very own Citizenship by Investment Program. In fact, it is one of only five Caribbean countries that offer citizenship by investment programs.
The terms of the St Lucia Citizenship by Investment Program are straightforward. The minimum investment required is $100,000 and must be invested in the government’s economy through one of four established investment routes. Each investment route – real estate investment, government bond investment, government fund donation, or investment in an approved enterprise project – has its own requirements and associated fees, which will be discussed below. In exchange for this qualifying investment, individuals and their qualifying dependent family members will receive a St Lucia passport.
A Saint Lucia passport gives you permanent citizenship in one of the most beautiful Caribbean islands, with many tax exemptions and benefits, and the ability to enjoy visa-free travel to more than 140 countries – such as the EU, Singapore, and Hong Kong. This visa-free access can be particularly beneficial if you travel frequently, but your current passport allows for limited global mobility.
Take a look at our St Lucia Citizenship by Investment ultimate Guide
Saint Lucia Citizenship by Investment Options
The St Lucia Citizenship Unit (CIU) manages the St Lucia CBI program. To be granted St Lucia citizenship by investment, four investment routes are available to applicants:
National Economic Fund
Established by the government, the St Lucia National Economic Fund was created to receive contributions for government-sponsored projects. Funds are used by the government under the national development agenda to continue the country’s development. A single applicant has to make a non-refundable contribution of at least $100,000 to receive St Lucia citizenship. Additional fees include due diligence fees, processing fees, and passport fees.
Pre-approved real estate
In order to qualify for St Lucia citizenship, the main applicant has to make a minimum investment of $200,000 in either pre-approved high-end branded hotels and resorts or in a boutique property. In addition to due diligence fees and passport fees, you will also incur a government application fee when pursuing the real estate investment route.
Check out our article: Obtaining St Lucia Citizenship Through Real Estate Investment.
Enterprise investment
Applicants who choose to invest in approved enterprise projects have seven options available to them. They can either choose to invest in specialty restaurants, cruise ports and marinas, agro-processing plants, pharmaceutical products, ports, bridges, roads and highways, research institutions and facilities, and offshore universities. A single applicant has to make an investment of at least $3.5 million. Applicants can also make a joint investment, with the total minimum investment being $ 6 million and each applicant contributing no less than $1 million. This route includes a government fee, due diligence fee, processing fee, and passport fee.
Government bonds
Applicants can get St Lucia citizenship by purchasing government bonds. The bonds will be registered and have to remain in the name of the applicant for five years from the date of the first issue. An applicant has to make an investment of at least $300,000 in government funds in order to become a St Lucia citizen. This route includes a government fee, due diligence fee, processing fee, and passport fee.
Calculate the cost of citizenship for you and your family, including all associated fees.
Saint Lucia Investment Opportunities
Invest Saint Lucia (ISL) is the national investment promotion agency responsible for stimulating, facilitating, and promoting investment opportunities. On their website, you’ll find information relating to investing in the country’s different sectors.
Tourism
St Lucia is a fantastic place to invest in tourism, and it is presently the leading tourist destination of the OECS. Firstly, the island’s incredible beauty has attracted tourists from all over the world. Its iconic Piton mountains – a UNESCO World Heritage – crystal clear blue waters, impressive waterfalls, and enchanting tropical rainforest are major appeals to nature lovers.
The island is well connected to the rest of the world, having two international airports – Hewanorra International Airport and George F.L Charles Airport – with direct flights to the US, Europe, and Canada – and two seaports. Its two Marinas allow for hundreds of yachts and smaller boats to park. St Lucia welcomes individuals looking to invest in the tourism sector – such as in accommodation, restaurants, attractions, etc.
There are many real estate investment opportunities thanks to the nation’s thriving tourism industry, with projects such as Black Bay, River Doree, and Marigot Waterfront providing investors the chance to develop accommodations in areas such as luxury and eco-tourism.
Manufacturing
Strategically located in the Caribbean, endowed with efficient infrastructures, having a favorable tax regime, and well connected to the rest of the world – thanks to its seaports and airports – St Lucia is a key regional actor in the manufacturing sector.
A member of the Caribbean Community (CARICOM), St Lucia has privileged access to the international market due to its numerous trade agreements, such as the Caribbean Community Single Market and Economy (CSME) and the Organization of Eastern Caribbean States (OECS). It also has trade and economic partnership agreements with the European Union countries, the US, Central America, and Canada.
The nation maintains Free Zone Areas that provide incentives and facilities for export-oriented businesses and promote foreign investment in the country. The manufacturing sector welcomes investments in agro-processing, green technology innovations, beverage brewing, bottling and distilling, electronic assembly, textiles, and carbon fiber high-speed boats.
Infrastructure
Due to successful economic development and efficient trade agreements, St Lucia is a great place to invest. The country is focused on improving its renewable energy infrastructures – especially in the geothermal sector and the health sector. There are also many educational institutions that provide skilled labor and opportunities for workforce training. Local entrepreneurs and business networks also provide potential partnerships and local market insights.
St Lucia is actively looking for investments in the areas of renewable energy; roads, ports and bridges; Business and Knowledge Process Outsourcing (BPO and KPO); reputable offshore universities; hospitality, vocational and technology training institutions; medical research facilities; and ancillary health care facilities.
Talk to a Specialist about Investing in St Lucia
Do you have questions about investing in St Lucia? Talk to one of our specialists here at Global Citizen Solutions.
Our dedicated team will work solely on your behalf. We are committed to providing a specialized service to each of our clients with the knowledge that comes with years of expertise, as well as access to a proprietary database of market information.
We give insight and data analysis to allow our clients to make investments with confidence.
Frequently Asked Questions about Saint Lucia
What are St Lucia citizenship benefits?
St Lucia citizenship offers many benefits, such as residency in one of the best Caribbean islands and a second passport with visa-free travel to more than 140 countries – such as the EU countries, the UK, Singapore, and Hong Kong. There are also tax benefits for investing in St Lucia, including no capital gains tax.
Why invest in St Lucia?
St Lucia is a country full of natural resources, strategically located and connected to the rest of the world. It has a very young and active workforce, efficient infrastructures, and tax exemptions for investors.
How can I get the Saint Lucia passport?
Get the St Lucia passport in three months by applying to the St Lucia Citizenship by Investment Program. Providing that an investment of at least $100,000 is made in the country’s economy, investors and their families can get a St Lucia passport in three months’ time. All applications to the CBI program are processed by the Citizenship by Investment Unit.
What kind of investment can I make in St Lucia?
Investment options in St Lucia are multiple. Via the St Lucia Citizenship by Investment Program, individuals can decide to invest in the National Economic Fund, in pre-approved real estate, in enterprises or in government bonds.
