Saint Kitts and Nevis
Pioneer of citizenship-by-investment (1984) now faces competitive exclusion: CBI revenue down 60%, fiscal deficit at 11% GDP, tourism at 875,000 visitors providing partial offset.
Saint Kitts and Nevis pioneered citizenship-by-investment in 1984, creating a novel economic niche that now faces competitive exclusion as other jurisdictions replicate the model. GDP growth moderated to 1.5% in 2024 as CBI revenue collapsed 60% from peak years amid program reforms—classic boom-bust dynamics from over-reliance on a single innovation. The fiscal deficit surged to 11% of GDP. Tourism welcomed 875,000 visitors in 2024 generating $140 million, but this cannot offset CBI decline. October 2024 brought major reforms: real estate minimums dropped from $400,000 to $325,000, and the program transitioned from government department to statutory body. The flagship Sustainable Island State Contribution requires $250,000 for a family of four. Despite challenges, St. Kitts regained top position in the 2024 CBI Index rankings. The tax regime remains attractive: no personal income, capital gains, wealth, or inheritance taxes, with corporate rates reduced to 25% in January 2024. IMF projects 2% growth for 2025 with potential energy projects. At $1.13 billion GDP, the twin-island federation demonstrates the risks of first-mover advantage without sustainable differentiation—competitors have eroded the premium that early citizenship innovation commanded.