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Saint Kitts and Nevis

Executive Summary

The Federation of St. Christopher and Nevis (St. Kitts and Nevis) is a member of the Organization of Eastern Caribbean States (OECS) and the Eastern Caribbean Currency Union (ECCU).  The government seeks to facilitate a conducive business climate to attract more foreign investment.  St. Kitts and Nevis remains vulnerable to external shocks such as climate change impacts, natural disasters, and global economic downturns.  According to Eastern Caribbean Central Bank (ECCB) figures, the economy of St. Kitts and Nevis had an estimated GDP of $745 million (2 billion Eastern Caribbean dollars) in 2021, after contracting in 2020 due to the ongoing COVID-19 pandemic and the resulting impact on the tourism sector.  The IMF forecasts real GDP growth of 10 percent in 2022, effectively reversing this contraction.

The COVID-19 pandemic significantly reduced the economic gains St. Kitts and Nevis had made in recent years.  The impact of the pandemic on tourism, a mainstay of St. Kitts and Nevis’s economy that generates over 60 percent of GDP, has had ripple effects across the economy.  The government has introduced measures to protect workers and key economic sectors. After the introduction of vaccines in 2021 the government lifted a strict quarantine for visitors, effectively rebooting the tourism industry.

St. Kitts and Nevis has identified priority sectors for investment.  These include financial services, tourism, real estate, agriculture, information technology, education services, renewable energy, and limited light manufacturing.

The government provides some investment incentives for businesses that are considering establishing operations in St. Kitts or Nevis, encouraging both domestic and foreign private investment.  Foreign investors can repatriate all profits, dividends, and import capital.

The country’s legal system is based on British common law.  It does not have a bilateral investment treaty with the United States.  It has a Double Taxation Agreement with the United States, although the agreement only addresses social security benefits.

In 2016, St. Kitts and Nevis signed an Intergovernmental Agreement in observance of the U.S. Foreign Account Tax Compliance Act (FATCA), making it mandatory for banks in St. Kitts and Nevis to report banking information of U.S. citizens.

Table 1: Key Metrics and Rankings
Measure Year Index/Rank Website Address
TI Corruption Perceptions Index N/A N/A http://www.transparency.org/
research/cpi/overview
Global Innovation Index N/A N/A https://www.globalinnovationindex.org/
analysis-indicator
U.S. FDI in partner country ($M USD, historical stock positions) 2019 476 http://www.bea.gov/international/
factsheet/
World Bank GNI per capita ($M USD) 2020 19,080 http://data.worldbank.org/indicator/
NY.GNP.PCAP.CD

2. Bilateral Investment Agreements and Taxation Treaties

St. Kitts and Nevis does not have a bilateral investment treaty with the United States.  It has a Double Taxation Agreement with the United States, but this agreement is limited solely to social security benefits.  St. Kitts and Nevis’s Double Taxation Agreements meet Organization for Economic Cooperation and Development (OECD) standards, as well as Tax Information Exchange Agreements standards.  St. Kitts and Nevis maintains double taxation agreements with several countries including Denmark, Norway, Sweden, and the UK.  It has Double Taxation Conventions (DTCs) with Monaco, San Marino, and some Caribbean Community countries.  St. Kitts and Nevis is a member of the OECD Inclusive Framework on Base Erosion and Profit Shifting and is party to the OECD’s October 2021 deal on the two-pillar solution to global tax challenges, including a global minimum corporate tax. St. Kitts and Nevis is also party  to the following agreements:

6. Financial Sector

9. Corruption

The law provides criminal penalties for official corruption, and the government generally implements these laws effectively.  Media and private citizens reported government corruption was a problem.

Public officials are not subject to financial disclosure laws.  The Financial Intelligence Unit and the police force’s white-collar crime unit investigate reports on suspicious financial transactions, but these reports were not available to the public.

Government agencies involved in enforcement of anti-corruption laws include the Royal St. Kitts and Nevis Police Force, the Director of Public Prosecutions, and the Financial Intelligence Unit.  The Financial Intelligence Unit investigates financial crimes, but no independent body has been established to handle allegations of government corruption.

13. Foreign Direct Investment and Foreign Portfolio Investment Statistics

Table 2
Host Country Statistical source* USG or international statistical source USG or International Source of Data:
BEA; IMF; Eurostat; UNCTAD, Other
Economic Data Year Amount Year Amount  
Host Country Gross Domestic Product (GDP) ($M USD) 2019 927.4 2019 1,053 www.worldbank.org/en/country
Foreign Direct Investment Host Country Statistical source* USG or international statistical source USG or international Source of data:
BEA; IMF; Eurostat; UNCTAD, Other
U.S. FDI in partner country ($M USD, stock positions) N/A N/A 2020 472 BEA data available at
https://apps.bea.gov/international/
factsheet/
Host country’s FDI in the United States ($M USD, stock positions) N/A N/A N/A N/A BEA data available at
https://www.bea.gov/international/
direct-investment-and-multinational-
enterprises-comprehensive-data
Total inbound stock of FDI as % host GDP N/A N/A N/A N/A UNCTAD data available at
https://unctad.org/topic/investment/
world-investment-report

* Source for Host Country Data: Eastern Caribbean Central Bank  https://www.eccb-centralbank.org/statistics/dashboard-datas/ .

Table 3: Sources and Destination of FDI
St. Kitts and Nevis does not appear in the IMF’s Coordinated Direct Investment Survey (CDIS).

Investment Climate Statements
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