The European Commission has taken a tougher stance on Caribbean citizenship-by-investment programs, a shift that carries serious implications for Saint Kitts and Nevis, a long-standing operator of such schemes.

In its 8th annual Visa Suspension Mechanism report, the Commission stated that the very existence of investor citizenship programs in visa-free countries may now be enough to justify suspending access to the Schengen Area.

Saint Kitts and Nevis is one of five Eastern Caribbean nations running these programs, through which tens of thousands of passports have been issued over the years. Across the region, an estimated 107,000 citizenships have been granted, with high application volumes and low rejection rates raising EU concerns about security and due diligence.

In response, Saint Kitts and Nevis and its regional partners have harmonized minimum investment thresholds at USD 200,000 and strengthened screening and information-sharing standards.