Fractional ownership of Caribbean real estate: existing types and which one to choose

Five Caribbean countries have citizenship programs that include purchasing real estate. To obtain a Caribbean passport, you can buy the entire property or invest in fractional ownership.

Caribbean citizenship: fractional ownership of a real estate

Fractional ownership of Caribbean real estate: existing types and which one to choose

The share is less costly and gives you a fixed additional income. Learn more about the features of fractional ownership of a property in the Caribbean.

What property can an investor buy?

There are three types of fractional ownership: a share in a physical object, a trust, or a company's stocks.

To participate in a citizenship program, investors can only buy real estate approved by the government. Usually, it is hotels. However, there are other tourist infrastructure facilities, such as marinas and bridges.

The approval of the project by the government means that the developer is verified and is not a fraudster. Immigrant Invest conducts its own Due Diligence on developers of approved properties and offers only the most reliable projects.

An investor must own property for at least 5 years. After that, the object can be sold. The return on investment period is the same for fractional ownership as for the entire property.

In Dominica, the property can be sold 3 years later. But the new owner will be able to get Dominica citizenship, too, only if the property is sold after 5 years of ownership. In St Kitts and Nevis, properties that cost $200,000+ can be sold in 7 years.  

The investor receives rental income as long as they remain the property owner. Tourists come to the Caribbean all year round, so the rental yield is stable and averages from 3 to 5% per annum. In the high season, in winter, the yield can reach 10% per month.

Caribbean countries offering citizenship for purchasing shares in government-approved real estate projects

CountryMinimum share priceOwnership period
Antigua and Barbuda$200,000+5 years
Dominica$200,000+3—5 years
St Kitts and Nevis$200,000+5 years
$400,000+7 years
Grenada$220,000+5 years
St Lucia$300,000+5 years

Fractional ownership of a physical property

A share in a physical property is a classical variant of fractional ownership.

In the Caribbean, investors buy shares in apartments, villas, or hotel rooms. In Grenada, purchasing a share in a university campus is possible. In this case, one object has several owners, and each has equal shares, for example, ½ or ⅓.

Each participant of the citizenship by investment program receives a certificate of ownership and the opportunity to stay in the hotel complex for 1—2 weeks a year. For the rest of the time, the property is rented out. The management company maintains the real estate, which also distributes the rental income among the owners.

If you buy a property under construction, it is important to consider the developer's reputation. There are world-famous hotel operators in the Caribbean, such as Hilton and Marriott. They have established themselves as one of the top developers for citizenship program participants.

Shares in university campus apartments in Grenada

Caribbean citizenship by investment: a share in a physical object in Grenada

The complex is located on the shore of the Atlantic Ocean in Hartman Bay. The St George’s University, which is considered one of the best universities in the Caribbean, is not far from the complex

Caribbean citizenship by investment: a share in a physical object in Grenada

A university campus, shopping and entertainment centres will be built on the complex’s territory. The construction of the first facility was completed in 2022; the entire complex is planned to be built in 10 years

Caribbean citizenship by investment: a share in a physical object in Grenada

Investors can buy a part of the apartment or the whole apartment. The cost of ⅓ of the apartment is $220,000

Ownership of real estate through a trust

The program conditions allow investors to purchase a share in a trust fund that owns and manages the property. The trust uses the money of citizenship program participant's to build a facility, for example, a hotel on the beach or an entire resort village.

The investor receives a declaration of trust, not a certificate of ownership of the real estate share. The declaration of trust also allows you to obtain Caribbean citizenship and stay in a hotel for 1—2 weeks a year.

During the ownership of the trust declaration, the investor receives income from real estate rental. The payment is calculated as a part of the hotel’s total revenue, proportional to the investor’s share in the trust, i.e. from 1.5 to 4.5% per annum.

Up to 4.5% per annum
Investors’ income on trust shares

A share in a trust should be chosen if confidentiality is important. The shareowner's name is not listed among the owners since it is a share of participating in the development but not ownership of a specific object.

When investing in a trust, choosing a company with a good reputation is crucial. Immigrant Invest specialists evaluate the trust's reliability, check the legitimacy of the trust agreement, and the existence of a contract between the developer and the management company. The investor doesn't have to independently understand the pitfalls of trust ownership of real estate as everything will be done by the lawyers of Immigrant Invest.

Share in the trust that owns the resort complex

Fractional ownership in the Caribbean through a trust

The cost of a share in the trust that owns the complex is $220,000

Fractional ownership in the Caribbean through a trust

The complex is expected to be open in 2025. It is located on La Sagesse Beach, 30 minutes drive from Maurice Bishop International Airport and the city of St. George’s

Fractional ownership in the Caribbean through a trust

The complex will offer 30+ private suites, restaurants and bars, a luxurious spa and a pool, a fitness centre, conference rooms and a business centre

Purchase of a share in the company’s stocks

The investor buys stocks from the developer company and becomes a co-owner of the property through the company. A certificate of ownership of stocks confirms their right to the property. 

The company remains the owner of the real estate, and the name of the investor is not listed in the register of real estate owners.

Stock ownership certificate is suitable for participation in Caribbean citizenship programs: the investor obtains citizenship and the opportunity to spend a vacation in a hotel for 1—2 weeks a year.

The investor gets income from the ownership of stock shares if this is specified in the contract. Only some deals offer this possibility. 

After five years, the investor has a right to sell their shares back to the developer if all the requirements of the shareholder agreement are fulfilled.

Shares in the hotel stocks

Caribbean citizenship by investment: a share in stocks of a company that owns real estate

The hotel complex is located on the shore of Dominica, 50 metres from the Atlantic ocean. The Hilton management company maintains the hotel 

Caribbean citizenship by investment: a share in stocks of a company that owns real estate

Investors can buy shares in the company’s stocks. The price of a share is $220,000

Caribbean citizenship by investment: a share in stocks of a company that owns real estate

The hotel has a spa, a wellness centre, a gym, a swimming pool, and a restaurant

How and what share to choose for investment

The investor's choice depends on their goals. If investors want to maintain confidentiality, fractional ownership through a trust or stocks will suit them. If the investor wants to obtain a certificate of ownership, it is worth investing directly in the property.

Before investing in the citizenship program real estate, it is better to understand whether the investor will be able to obtain citizenship under the state program. The investor explains their goals and budget to Immigrant Invest specialists.

The Compliance Department checks the investor for reliability. After checking, a real estate expert helps the investor to choose a property, checks the contract, and informs about possible risks.

Each country provides similar options for buying real estate shares. Understanding the investor’s goal is essential to help them choose the best option. Immigrant Invest specialists accompany the investor at every stage of the deal and for a year after that, which is free.

Natalia Oganesyan
Real Estate Chief Operations Officer, RICS certified professional

Benefits of fractional ownership of Caribbean real estate

Several available options. The investor can choose whether to buy a share in a physical object, a trust, or a company’s stocks.

Lower acquisition cost. Generally, buying a share is less expensive than buying a whole property. This allows purchasing more luxurious real estate or investing in shares in several properties.

Lower maintenance cost. When owning a property, the investor must also spend money on property taxes, insurance, utility bills, repairing and renovating, etc. As several persons own the property, these expenses are divided between them.

The process of maintenance is easier. As properties in fractional ownership are owned by different people, sometimes unknown to each other, they are usually maintained by specific management companies. They take care of everything and distribute the rental income among the owners.

Frequently Asked Questions

What is fractional ownership of real estate?

Fractional ownership is a real estate investment option in which several investors become the owners of one property.

Investors choose it because it is cheaper than buying the entire property. Some types of fractional ownership allow you to maintain confidentiality.

Investors don’t have to keep track of real estate. The management company maintains the property. The rental income is divided among the owners. Also, investors can relax at the hotel once a year for 1—2 weeks.

Why do most investors choose a share in an object?

Shares in physical objects are bought by investors who want to receive a certificate of ownership. This is a classic option, familiar and understandable to every investor.

What are the benefits of a share in a company trust?

The main advantage of owning shares in a trust is confidentiality. The name of the investor does not appear in the register of owners. A declaration of trust gives the same right to acquire Caribbean citizenship as a real estate certificate of ownership. As a bonus, the investor and their family can relax in the hotel for a couple of weeks a year.

Why is it profitable to invest in company shares?

Investors who want to maintain confidentiality choose shares in the company’s stocks. Like in trust, their name is not listed in the register of owners.

The investor signs a shareholder agreement and receives a certificate that gives the right to participate in the citizenship program of one of the Caribbean countries.

Schedule a meeting

Let’s discuss the details

Schedule a meeting at one of the offices or online. A lawyer will analyze the situation, calculate the cost and help you find a solution based on your goals.

Zlata Erlach
Caribbean Investment Program Expert
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