Nevis Country and Foreign Investment

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On this Page:

- Nevis Geography
- Nevis Population, Language and Culture
- Nevis Government
- Nevis Economy and Currency
- Nevis Entry and Residence
- Citizenship Act 1984
- Sugar Industry Diversification Foundation
- Nevis Business Environment
- Nevis Investment Incentive Schemes

Nevis Geography

Nevis is in the Caribbean Sea, about one-third of the way from Puerto Rico to Trinidad and Tobago.

Nevis Peak sits in the center of its almost circular namesake island and its ball shape complements that of its sister island, the baseball bat-shaped Saint Kitts.

The climate is tropical, tempered by constant sea breezes and there is little seasonal temperature variation. The rainy season is from May to November. There can be hurricanes between July and October.

Nevis is dominated by Nevis Peak, which rises to a height of 3,265 feet. The majority of the population occupies the capital of Charlestown, which is situated on the western, or leeward side of the island. Although Nevis has a typical West Indies maritime tropical climate, high temperatures are offset by north-easterly trade winds and humidity is relatively low.

Airline services to the twin-island Federation have been improving, and there are now direct flights to the United States as well as links to other Caribbean islands. Bradshaw International Airport on St. Kitts can handle large jets, while Nevis’s Newcastle Airport is only capable of handling light aircraft.

There are regular ferry services connecting Nevis to St. Kitts, the journey taking about 45 minutes.

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Nevis Population, Language and Culture

In 1493, Christopher Columbus was so impressed by the central mountain of Nevis, circled in white mist resembling snow that he named the island “Nuestro Senora del las Nieves” (“Our Lady of the White Snows”). In the course of time this name became abbreviated to Nevis.

Nevis was settled by the British in 1628, after which there followed a period of intermittent warfare between the British, French and Spanish, with the French taking possession in 1706. The island was ceded to Britain by the treaty of Utrecht in 1713, but fighting continued until 1782, when it was once again captured by the French. Nevis was officially returned to Britain in 1783 under the terms of the Treaty of Versailles. Following this, St. Kitts and Nevis was governed as part of the colony of the Leeward Islands and then of the West Indies Federation until 1967 when it became a governing state in association with Great Britain.

The Federation of St. Kitts and Nevis finally attained full political independence in 1983 and, in order to relieve the anxiety of Nevisians, Nevis acquired autonomy within the Federation, together with its own Legislature and Cabinet. In 1998, a vote in Nevis on a referendum to separate from Saint Kitts fell short of the two-thirds majority needed.

Nevis's desire for independence is not dead: Vance Amory, Former Prime Minister of Nevis, said in a televised statement in June 2006 that independence for his island was still a goal of his government. Amory was replaced as the Nevisian leader by Joseph Parry of the Nevis Reformation Party after an election in July 2006.

Nevis has created separate 'offshore' legislation parallel to Federation legislation, and many Nevisians believe that its economic progress has been due to having greater control over its own affairs.

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Nevis Government

Since gaining independence in 1983, St. Kitts and Nevis has been an independent participant of the British Commonwealth. Unlike most other English speaking Caribbean jurisdictions, it is neither a dependency, nor a crown colony of Britain. The Federation has its own representation at the United Nations.

Saint Kitts and Nevis is a constitutional monarchy with a Westminster-style parliament. The Head of State is Queen Elizabeth II (since 6 February 1952), represented by Governor General Cuthbert Montraville Sebastian (since 1 January 1996). The governor general is appointed by the monarch; following legislative elections; the leader of the majority party or leader of a majority coalition is usually appointed prime minister by the governor general; the deputy prime minister is appointed by the governor general in cabinet: the cabinet is appointed by the governor general in consultation with the prime minister.

The head of government (of the federation) has been Prime Minister Dr. Denzil Douglas since 6 July 1995 and the Deputy Prime Minister is Sam Condor.

The unicameral National Assembly has 14 seats, 3 appointed and 11 popularly elected from single-member constituencies. Members serve five-year terms. Elections were last held in January 2010 (next to be held by 2015).

There is an independent Nevis Island Government. Nevis therefore has its own unicameral legislature and its own island administration that has the authority to formulate economic policies.

The legal system is largely based on English Common Law, and appeal is to the East Caribbean Supreme Court in St Lucia.

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Nevis Economy and Currency

The major source of revenue on Nevis is tourism, followed closely by the international financial services sector. Over the years the island has experienced stable, economic development with minimal unemployment. However, the global economic recession hit the island hard, compounded by the closure of the Four Seasons Resort and the resultant laying-off of about 600 workers. This event spilled over into all sectors of the economy with the government’s revenue falling sharply by over 20%, especially in construction and the hotel sector.

After consultation with the federal government, in 2010 the Nevis Island Administration (NIA) approached the St. Kitts-Nevis-Anguilla National Bank with a financial proposal to assist the government in meeting its commitments for the fiscal year, with the expectation that the financial situation will improve in 2011. With the approval of the bank, ECD64m was converted to a long-term loan and a new overdraft facility created with a limit of ECD50m. The NIA also obtained an ECD10m loan from the St. Kitts and Nevis Social Security Board to use as economic stimulus funds. An additional ECD10m has been raised by a new law requiring St. Kitts branches of Nevisian companies to pay their income taxes to the NIA.

The official currency used on the island is the Eastern Caribbean Dollar (ECD), which is shared by eight states throughout the Eastern Caribbean and controlled by the Eastern Caribbean Central Bank. The ECD is pegged to the United States dollar (USD) and fixed at ECD2.70 to USD 1.00. The USD is generally considered to be a second currency and is freely accepted and interchangeable throughout the island. The exchange rate versus other currencies fluctuates according to world money markets. All major credit cards are readily accepted throughout the island.

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Nevis Entry and Residence

Work permits are granted on application by employers, provided that no local worker is available, and involve the production of a number of documents, including health certificates.

Tourist visas are granted readily, but visas for longer stays involve demonstration of adequate financial resources.

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Citizenship Act 1984

It is possible to acquire citizenship by making an investment into the Federation under sub-section (5) of Section 3 of the Citizenship Act 1984. This stipulates that a person is entitled, upon making application to the Minister, to be registered as a citizen of the Federation without voting rights, if the Cabinet is satisfied that the person has invested substantially in the Federation.

The minimum investment requirement may be satisfied with a substantial investment of at least USD400,000 or its equivalent in East Caribbean currency in an “approved investment project.”

The registration fees currently in force are USD50,000 for head of household (male or female), USD25,000 for spouse, USD25,000 for each child in the family under 18 years of age, and USD50,000 for each adult family member or other adult. An additional USD4,000 is payable for due diligence background checks for each applicant over the age of 16.

Each citizenship certificate of registration is USD47 and the cost for each passport is USD13.

Every citizenship application must be made on the prescribed form which must be submitted together with various documents relating to the applicant's identity, civil status, criminal record, financial resources, and health. All documents must be in English or translated into English, and all photocopies of any document submitted must be notarized and properly certified.

A passport is valid for ten years, unless otherwise stated. It remains the property of the Government of the Federation and may be withdrawn at any time.

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Sugar Industry Diversification Foundation

The recently-launched Sugar Industry Diversification Foundation (SIDF) has been designated a special approved project for the purposes of Citizenship by Investment. Persons making contributions at prescribed levels to this charitable Foundation, which was established to address a range of social and economic problems arising from the closure of the sugar industry in the Federation, will also be eligible to apply for citizenship by investment. The prescribed minimum contributions to the SIDF are: USD250,000 for a single applicant; USD300,000 for an applicant with up to three dependants; USD350,000 for an applicant with up to five dependants; and USD450,000 for an applicant with up to seven dependants. USD50,000 for each dependent above seven dependents.

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Nevis Business Environment

Lime, formerly Cable & Wireless (St. Kitts-Nevis) Ltd (a joint venture between Cable & Wireless and the St. Kitts-Nevis Government), provides all domestic and international telecommunications services to the islands, including fixed lines, mobile coverage and internet services.

Inter island links to Antigua and Barbuda and Saint Martin (Guadeloupe and Netherlands Antilles) are handled by VHF/UHF/SHF radiotelephone international: international calls are carried by radiotelephone to Antigua and Barbuda and switched there to submarine cable or to Intelsat; or carried to Saint Martin by radiotelephone and switched to Intelsat.

The Government runs a 39-channel cable television service that broadcasts daily news programs from North America and England via satellite. Three local newspapers are published: the weekly "Democrat" and "Observer" and the twice-weekly "Labor Spokesman". Tap water is rated as being of high quality and is considered safe to drink.

The Eastern Caribbean Central Bank and The Eastern Home Mortgage Bank are headquartered in St. Kitts. There are several accounting firms and law firms of international standing. A full range of legal, accounting, management and trust company services are available.

There are no exchange controls in Nevis and the invoicing of foreign trade transactions may be made in any currency. Importers are not required to make prior deposits in local funds and export proceeds do not have to be surrendered to Government authorities or to authorised banks. There are no controls on transfers of funds. The Government of Nevis guarantees the free transfers of profits and repatriation of capital.

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Nevis Investment Incentive Schemes

A landmark autonomous investment agency was launched on Nevis on 21st May, 2008.

The Nevis Investment Promotion Agency (NIPA), as it is known, evolved from the Marketing and Development Department in the Ministry of Finance in the Nevis Island Administration (NIA).

The agency, which was launched by Premier of Nevis and Minister of Finance in the NIA Joseph Parry, has responsibility for investment promotion, facilitation and aftercare services. It would also advocate policy changes to enhance the investment climate on Nevis.

During his feature address, Premier Parry underscored the importance of the new agency and said that the NIA had demonstrated its confidence in the private sector, through its support for the agency which was private sector driven.

"We have subsumed the Marketing Division of the Financial Services Division into this organisation. We believe it will strengthen its capacity to function and perform. This is a new venture for Nevis but new in the Caribbean. We look forward to positive results," he said.

Parry described NIPA as a one stop facilitator to promote the island, to give after care and support for future expansion and to lobby government to continually make Nevis more user friendly.

"We believe that this NIPA shall achieve these objectives. We believe that in the next few years the Federation and Nevis in particular will no longer be regarded as a difficult place to do business," he said.

The Premier said it was the intention of the Administration to equal or surpass any other jurisdiction in the world in due diligence regulations, supervision of regulations and the highest standards of conduct even as the island maintained its existing excellent record for good service. He added that the NIA anticipated cooperation from the United States.

Meanwhile, Junior Minister with responsibility for Trade and Industry, Consumer Affairs, Import and Export in the NIA Dwight Cozier, said the creation of NIPA by the Nevis Reformation-led NIA was in response to the interest shown by both local and foreign investors who were eager to place their confidence in a small but stable and growing economy.

"The broad purpose of NIPA therefore, is to create a healthy business climate in Nevis that will encourage increased investment even while the agency guarantees to protect investors by helping them to understand the relevant laws and policies designed to sustain their interests in investment on Nevis. Hence, the aim of the agency is to both maximise the economic development of Nevis while maintaining high performance standards in the business community," he explained.

The operations of the NIPA are governed by the Nevis Investment Promotion Agency Ordinance 2008.

Under the Caribbean Basin Initiative, besides participating in the financial contribution allocated by Washington to the member countries, the Federation 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 locally-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. This enhances Nevis’s status as a site for conversion of merchandise because of its skillful and well-trained labor force.

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