St. Kitts and Nevis Investment Incentive Schemes
Eight industrial and commercial free-trade zones currently operate in St. Kitts and Nevis. They are located at Tacna, Ilo, Mollendo, Tumbes, Trujillo, Paita, Chimbote and Pisco. There are also four fully developed industrial sites where production facilities can be constructed to specification and leased at nominal rates. Projections are that factory space will increase annually by 15,000 sq. ft. in St. Kitts and 5,000 sq. ft. in Nevis. The sites are managed and serviced on behalf of the Government by the Development Bank of St. Kitts and Nevis.
Export processing free zones offer investors exemptions from customs duties for imports and exports, exemption from any St. Kitts and Nevisvian tax for 15 years, temporary labor agreements, and accounting in foreign currency. Special commercial treatment zones are generally located on the jungle frontier. They extend the following benefits to companies operating inside their borders: exemption from value-added taxes; a reduced 10 percent customs duty; and accounting is permitted in foreign currency.
The Hotel Aids Ordinance provides duty-free concessions (relief from customs duties and pier dues) on items for use in the construction, extension and equipping of a hotel of not less than 30 bedrooms. The Income Tax Ordinance provides special tax relief benefits for hotel proprietors granted licenses under the Hotel Aids Ordinance: the gains or profits of a hotel of more than 30 bedrooms are exempt from income tax for a period of 10 years, for hotels with less than 30 bedrooms, the gains and profits are exempt from income tax for a period of 5 years.
Companies which qualify for tax holidays are allowed to import into St. Kitts and Nevis duty-free all equipment, machinery, spare parts and raw materials used in production.
Under the Caribbean Basin Initiative, besides participating in the financial contribution allocated by Washington to the member countries, St. Kitts also qualifies for duty-free entry into the United States of more than 95% of its products, not including sugar. Under the Generalized System of Preferences (GSP), manufactured and semi-manufactured goods are also eligible for duty-free access to United States markets. Virtually all of St. Kitts-produced items and raw materials are eligible for GSP treatment under the list of some 2,800 products eligible for duty-free importation. However, to qualify, the product must have had 35% of its appraised value added in the beneficiary country. Again, this enhances St. Kitts’ status as a site for conversion of merchandise because of its skillful and well-trained labor force.
The St. Kitts Investment Promotion Agency (SKIPA) officially launched its long anticipated website on February 2, 2009. SKIPA, created in December 2007, proactively promotes St Kitts as an international finance centre and arranges local and foreign investment projects.
“This new website will be an important tool in promoting St. Kitts as a preferred investment destination by offering a wealth of information to potential investors worldwide,” said a SKIPA statement.
“The website features investment related news, information about SKIPA and St. Kitts and an Investor’s Guide that draws information from the various institutions that play a role in the establishment of sound businesses. The website also highlights the Priority Sectors that are crucial for the continued development of the nation, as well as investment opportunities that exist on the island,” said SKIPS’s Market Research Officer, Darien Belle.
He explained that visitors to the website will be provided with a unique opportunity to interact with the agency and other visitors through an interactive discussion forum.
“We are particularly excited about this medium of communication which is intended to foster discussions geared towards improving the business conditions in St. Kitts for existing firms and potential investors,” he said.
Shawna Lake, CEO, SKIPA, underlined the agency’s role in St Kitts.
“SKIPA is not only charged with the responsibility of promoting investment opportunities available in St. Kitts but one of our most important functions is to facilitate inward investment by working with persons who have made the decision to establish a business in St. Kitts. We assist these investors by providing them with general information on application requirements and procedures and we also facilitate the submission of their applications to the various government departments for review and approval.”
“Another important service offered by SKIPA is aftercare. This service has evolved from our belief that businesses in St. Kitts should have access to a capable support system. As part of our aftercare services, we follow up with investors who have already established their businesses in St. Kitts in an effort to understand the issues facing their business or industry and to assist them in developing viable solutions. SKIPA also provides support to businesses that are interested in expansion,” concluded the statement.
The exotically beautiful Caribbean Islands of Saint Kitts and Nevis, like most Islands in the Caribbean Sea, are lush tropical paradises. They have the kind of beauty that is commonly associated with the South Pacific. The atmosphere is luxurious and provides an inimitable blend of warm sunlight, clear blue seas, fresh, unpolluted air and wonderfully abundant vegetation. Officially the Federation of Saint Christopher (Saint Kitts) and Nevis, it is an independent island nation; the smallest in the Americas in terms of both land area and total population. The capital city is on Saint Kitts, which is the larger island, as well as the seat of the government.
The federation of Saint Kitts and Nevis welcomes foreign investment and offers incentives to buy Saint Kitts real estate in designated areas. Non-nationals are exempt from the 10% alien landholding tax if they buy property in the Frigate Bay and Turtle Beach areas. The purchase of Saint Kitts real estate in designated areas makes the Caribbean real estate investor and their family eligible for ‘economic citizenship’. Property financing is easily available from all the major financial institutions on the Islands for foreign investors. Loan applications are approved under international lending guidelines and banks usually require a 20% down payment of the total cost, proper appraisal of the property and proof of your income in the form of a letter of employment or a copy of tax returns. 
