20 Apr Interview with Charmaine Quinland-Donovan, CEO, Citizenship by Investment Unit (CIU)
The Citizenship by Investment Unit (CIU) was established in 2013. To begin the interview, can you tell us about how the programme has grown or otherwise evolved in the several years since its inception? What main facts and figures would you like to share to give us a current snapshot of where you stand today with the programme?
The Citizenship by Investment programme was established as a result of the global financial crisis of 2008. The financial fallout of this crisis significantly reduced income and shattered Antigua and Barbuda’s main income generator, the tourism industry. Being a small economy with limited natural resources outside of sun, sea and sand, the government required creativity to navigate the challenging financial times. Following much research, consultation and assessment, in April 2013, the Citizenship by Investment Act was enacted.
Shortly thereafter, in August 2013, the Citizenship by Investment Unit was established to administer the Citizenship by Investment Programme. When the unit first began, it started with five employees, which quickly grew to about eight employees later on that year. Quite a bit of groundwork was needed as the programme was novel to all of us in Antigua and Barbuda. Work as granular as the design of the application forms, certificates and other things were required to get the process going.
Since that time, we have expanded to 24 employees and we are very excited about the continuing possibilities under the programme. Eight years later, we have processed more than 3500 applications from various countries across the world. When we first started, most of the applications received were from China, however, this has changed following more active promotion and participation in conferences across a more diverse geographic area. As such, whereas in excess of 70 percent of our applications were from China six years ago, we now process 30 percent of China applications and have expanded our appeal to more than 110 countries.
The Citizenship by Investment Programme has several “tracks” or options to invest. Can you introduce these different tracks and tell us what opportunities exist for prospective foreign investors?
By far, Antigua and Barbuda has the best and the most attractive offerings on the table. Currently, there are four investment options. The National Development Fund option is a one-time contribution to the Government of Antigua and Barbuda. The investment amount for that particular option, for a family of four or less, is $100,000. Where the composition of the family is five or more, the investment contribution then is $125,000.
The second option available is the real estate option. This option allows persons who want to own property to do so at a minimum of $200,000. There are three different pathways to obtaining citizenship under the real estate option. An applicant can choose to purchase a unit outright for $200,000 as one pathway or for $400,000 as a second pathway. Because the minimum investment threshold at the inception of the programme was $400,000, most of the units currently available are valued at $400,000 or above. The third pathway, allows the applicant to join with a family member, or any other person who would wish to co-own a unit. Through this pathway two applications can come together at the $400,000 investment level, with each application making an investment of at least $200,000. Again, I underscore that these options are the most competitive in the region and the best value proposition.
The third investment option available is by way of an investment in business. A single investor may invest a minimum $1.5 million in either an existing approved business in Antigua and Barbuda or establish a new business. A second pathway is through a collaboration. Two or more persons may come together to make an investment at a minimum investment threshold of $5 million; the minimum contribution for any investor in this arrangement is $400,000. Let’s say, you and your partner are investing in a business, if you are investing the minimum threshold in that arrangement, your investment amount will be $400,000, and your partner will need to invest the remaining $4.6 million. If you are seeking an equal opportunity partnership under this option, at least 13 persons would need to come together with each person investing $400,000.
The final option, which is our most recent addition to our suite of investments is the University of the West Indies Fund option. In 2019, the University of the West Indies established its fourth landed campus in Five Islands, Antigua and Barbuda. For Antiguans and Barbudans, this is a huge accomplishment since the University of the West Indies is rated in the top 1.5 percentile of universities worldwide which therefore makes it an extremely prestigious and highly regarded university. To be able to attract a campus of this caliber to our country has been a moment of extreme pride for us. Therefore, in an effort to ensure that the university is a sustainable addition to the tertiary education options in Antigua and Barbuda, and to allow for its expansion, the government established this fourth option to secure a continuous revenue stream. This option is also the most attractive large family option available in the global investment migration ecosystem. The minimum number of individuals who may form part of this application is six persons. A family of six pays $150,000, which includes government processing fees.
Government processing fees of $30,000 are required under all investment options except for the UWI Fund option. All applications are also required to be accompanied by due diligence fees, the total of which is directly related to the composition of the application. Due diligence fees are not required for children under the age of 12. Where dependents are between the ages of 12 and 17, the due diligence fee is $2,000 for each dependent, and where the dependents are 18 or older, the due diligence fees are $4,000 per person. Due diligence fees for the main applicant and the spouse are $7,500 for each. As an example, if we look at a family of four under the National Development Fund, with the application comprising husband and wife and two children under the age of 12, the cost of applying for citizenship, once approved, would be $30,000 for processing fees, $15,000 in due diligence fees (not required for the children under 12) and the investment $100,000, for a total of $145,000. Compared with all the programmes in the region, you will see that this is the most attractive option.
Where the number of individuals in an application exceeds four, a processing fee of $15,000 is required for each incremental dependent under all options except the UWI Fund option. As it relates to the UWI Fund option, where the number of individuals included in the application exceeds six persons, processing fees of $15,000 is required for every additional dependent.
You mentioned a little bit earlier some of the features that the program has, that other programs do not have. Why should potential investors choose Antigua and Barbuda?
The fact that you can access Antigua more easily and more readily than the other countries is a key competitive advantage. Airlift from Antigua is unmatched in the Eastern Caribbean as there are several daily flights from the United States of America, Canada and the United Kingdom. Additionally, Antigua and Barbuda’s healthcare and education systems are comparable with first world countries. There have been successful kidney transplants performed and we have a cancer treatment center which provides services not only to Antiguan and Barbudan citizens, but also citizens of neighbouring countries seeking to access such services. Our neighbours also access diagnostic services through our many medical care centres. Regarding education, Antigua and Barbuda has a literacy rate of 99 percent based on the national mandate which ensures all citizens receive primary and secondary education as a minimum. The fourth landed campus of the University of the West Indies has augmented the tertiary education options to which nationals have access. A number of medical universities also have physical campuses in Antigua, which attract a number of global students who study medicine in the beauty and warmth of paradise. A number of these universities have arrangements in place with universities in the United States of America to enable successful students to complete residency and practical training in the United States.
The stock of real estate on offer under the programme and in Antigua and Barbuda in general, is of a very high quality. Our structures are very well constructed due to the high building standards in place for the country as it is located in a hurricane belt. You will find that when you purchase real estate here, you receive superior value for your investment.
Becoming a citizen of Antigua and Barbuda affords greater mobility. Holders of Antigua and Barbuda passports obtain visa-free access to over 160 territories.
There are many advantages for choosing Antigua and Barbuda for second citizenship beyond increased mobility in travel. It is the ideal microstate location for business and leisure. For the astute investor, Antigua holds a number of untapped opportunities.
Antigua and Barbuda is present at Dubai Expo, which is an important international event. We’re speaking with the Middle Eastern potential investors and readers. I wanted to see how important the is Middle East and the GCC region for Antigua and Barbuda? Where do you see this market participating in the Programme?
The Middle East has always been a market of focus for us. I was in Dubai in November 2021 for Antigua and Barbuda’s national day, and we hosted several events for our stakeholders and our diaspora. Our intention is to change the perception of a transactional approach relating to citizenship by investment programmes because our citizens must feel comfortable knowing that Antigua and Barbuda is their home. This was the pilot for our new project focusing on the diaspora by providing more information to them about their new country, sharing with them the culture and additional investment opportunities, and getting them to understand that Antigua and Barbuda is a viable option for residency should they desire to relocate for retirement purposes, or even just another environment to live and work.
During the pandemic the government established the nomad visa, which appealed to a number of individuals looking for safety, freedom and flexibility due to the lockdowns imposed as a result of the pandemic. The visa allowed such individuals to reside and work remotely from Antigua and Barbuda for 24 months. Given that the country has been able to successfully manage its Covid-19 infections, Antigua represents a safe place to live and work and quite a number of individuals have capitalized on this opportunity. This underscores the options available to our citizens. They no longer need to be confined to their homes or apartments in the event of national lockdowns. They can easily relocate to their new country of citizenship and live and work freely with their family in the safety of their home in paradise, or on the beach with the warm sun on their skin.
Would you want to say anything particular that I didn’t cover or anything that you wanted to stress besides these questions?
The Citizenship by Investment Programme is not about inviting investors to purchase a passport. For us, citizenship is a very emotive issue; a topic close to our heart. We pride ourselves on conducting the best level of due diligence on all applicants and dependents to the programme, so that the people who are successful in becoming citizens are of good repute.
I’d like your readers to understand that choosing Antigua and Barbuda is choosing to becoming part of a very vibrant and culturally aware community, a nation of warm, friendly, genuine, loving, and caring people.
No Comments