St. Kitts CBI: The $250K Second Passport for Renunciation Strategy

St. Kitts and Nevis operates the oldest CBI program in the world (since 1984). A contribution of $250,000 to the Sustainable Island State Contribution (SISC) fund — or a $400,000 real estate investment — grants citizenship and a passport with visa-free access to 156 countries.

For US citizens pursuing formal citizenship renunciation as part of a comprehensive tax exit strategy, St. Kitts provides the most established, legally vetted second passport available.

The Investment Options

SISC Fund Contribution

• Single applicant: $250,000
• Family of 4: $300,000
• Non-refundable

Real Estate

• $400,000 in approved real estate (held for 7 years)
• Or $200,000 in shared ownership projects (held for 7 years)

The Processing

• Due diligence and background checks: 2-3 months
• Total timeline: 4-6 months (accelerated processing available for additional $25,000, reducing to 45-60 days)

The Tax Structure

St. Kitts has:

• No income tax
• No capital gains tax
• No inheritance tax
• No wealth tax
• No withholding tax

Revenue comes from VAT (17%), import duties, and tourism.

The Renunciation Context

The US is one of only two countries (with Eritrea) that taxes citizens on worldwide income regardless of where they live. To fully exit the US tax system, formal renunciation of US citizenship is required.

The renunciation process:

1. Obtain second citizenship (St. Kitts CBI or equivalent)
2. Establish tax residency in a non-US country
3. File 5 years of compliant US tax returns (the “covered expatriate” test)
4. Schedule a renunciation appointment at a US Embassy or Consulate
5. Pay the renunciation fee: $2,350
6. File Form 8854 (Initial and Annual Expatriation Statement)
7. Pay exit tax if applicable (net worth >$2M or average net income tax >$190,000 over the prior 5 years)

The Exit Tax

If you qualify as a “covered expatriate” (net worth exceeds $2 million), you face a mark-to-market exit tax: all worldwide assets are treated as sold at fair market value on the day before renunciation. Gains above the exclusion amount ($866,000 in 2024) are taxed at capital gains rates.

This is a one-time cost. After renunciation, you are no longer subject to US taxation on any income, anywhere, forever.

The Physical Presence

St. Kitts CBI has no physical presence requirement. You never need to visit the islands. Passport renewal is handled remotely.