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Saint Lucia’s Citizenship by Investment Program Sees a Surge of 85%, with Real Estate Accounting for 70% of Applications
Saint Lucia has officially released the figures for its Citizenship by Investment Program (CIP) in the fiscal year 2022-2023 (FY22/23). The report, released over a year late, prompted a public apology from Deputy Prime Minister Ernest Hilaire, according to The Voice Saint Lucia. He attributed the delay to “a number of factors beyond the control of the Citizenship by Investment Unit.” Hilaire also emphasized that “the Board is required to submit an annual report within three months of the end of the fiscal year” and pledged to improve this process in the future.
Despite the delay, Saint Lucia’s CIP has achieved impressive results, breaking all previous records with a significant increase in the number of applications and approvals in FY22/23.
The program received 1,076 new applications, nearly equaling the total number submitted in the previous three years combined, marking an impressive 85% increase.
The number of approved applications also rose significantly, reaching 544, a 25% increase from the previous year. However, the disparity between the number of applications received and those approved suggests that the Citizenship by Investment Unit (CIU) is still grappling with a substantial backlog and may be facing challenges in processing applications efficiently.
Despite this, the number of rejected applications has decreased slightly, from 9 in FY 2021-2022 to 8 in the most recent fiscal year.
Real Estate Leads Investment Choices
The past fiscal year witnessed a record-breaking number of applications submitted to the government, with a staggering 343% increase compared to the previous year. The number of citizenships granted surged by 88%, while only one additional application was rejected (3) compared to the previous year (2).
Real estate emerged as the most popular investment option, accounting for a substantial 70% of total applications, representing a 222% increase year-on-year. The CIU received a remarkable 751 applications under this option, more than double the total number of real estate applications submitted in all previous years combined.
In FY22/23, only one real estate project qualified for the CIP, namely the Canelles Resort developed by Caribbean Galaxy Real Estate. This developer is estimated to have raised approximately $203 million from the CIP in the past year alone.
Meanwhile, the number of applications under the National Economic Fund (NEF) contribution option decreased slightly by 5%, accounting for approximately 20% of total applications. The bond option also saw a modest increase of 6%.
Real Estate Dominates Contributions
The real estate option emerged as the frontrunner, contributing a substantial 77% of the total funds raised, while the NEF came in second with 16%, and bonds accounted for the remaining 7%.
Data Shows FY22/23 as the Most Diverse Year in Applicant Nationalities in the Past Three Years
The top five nationalities accounted for only 55% of total applications, a significant drop compared to 74% in FY20/21.
Although Chinese applicants still lead, their share decreased by 11% (relative to the overall total). Nigeria holds second place but also saw a slight decline of 5%, while American citizens maintained a 10% share, reflecting growing interest from the U.S. as the number of approved applications continues to rise.
Revenue and Expenses
CIU’s total revenue increased by 11% year-on-year, with its revenue structure remaining largely unchanged:
- Administrative fees: 42%
- Due diligence fees: 33%
- NEF (National Economic Fund) marketing and promotion fees: 20%
CIU’s expenses grew by 43%, slightly lower than the 47% increase of the previous year, but overall, costs have surged 90% over the past two years. Marketing and promotion expenses dropped sharply by 77%, and commissions to agents saw a slight 4% decrease. However, the cost of commissions for marketing agents and settlement payments rose significantly, with the government spending approximately 2.7 million USD—a 948% increase from the previous year.
Positive Financial Results
CIU ended FY22/23 with a positive balance of 22.8 million EC$ (around 8.4 million USD). However, this is nearly 20% lower than the record figure achieved in FY21/22.
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