St. Kitts and Nevis - General Information

Geographical Location

Saint Christopher ("St. Kitts") and Nevis form a twin island federation ("the Federation") located in the northern part of the Lesser Antilles chain of islands in the Eastern Caribbean. St. Kitts, with an area of 69 square miles (168 km2) has a population of 31,880. It is located at 17°15' North latitude and 62°45' West longitude. This places St. Kitts approximately 1,300 miles from Miami (3 hours flight time), 2,000 miles from New York (4 hours flight time), and 4,000 miles from London (8 hours flight time). Nevis, with an area of 36 square miles (93 km2) has a population of 10,080. The two islands are separated by a channel which is about two miles wide. St. Kitts and Nevis are four hours behind Greenwich Mean Time (GMT -4). Average air temperature is 79°F (26°C) and humidity 71.5% with extremes in temperature and humidity tempered by breezes from the north-east trade winds. The average sea water temperature is 80°F (27°C). Average annual rainfall is 55 inches (1,397 mm).

Government

St. Kitts and Nevis is a parliamentary democracy within the Commonwealth of Nations. Her Majesty, Queen Elizabeth II, is head of State and is represented on the islands by a Governor-General. Basseterre is the capital of St. Kitts and at the same time the administrative capital of the Federation. The capital of Nevis is Charlestown.

Legal System

The legal system is based upon English Common Law served by a High Court of Justice, a Court of Appeal, and Her Majesty's Privy Council in London. St. Kitts and Nevis have agreed to be included in the Caribbean Court of Appeals Circuit.

Language

The spoken and official language of St. Kitts and Nevis is English. Interpreters are available for other major international languages. The education system has been rated very highly by the World Bank in its report on the Access, Quality and Efficiency in Caribbean Education. With 98%, St. Kitts and Nevis has the highest level of literacy in the region and its CXC and GCE results are among the highest in the English speaking Caribbean.

Currency

The currency used in St. Kitts and Nevis is the East Caribbean Dollar ("XCD") which is fixed at XCD 2.70 (2.6882 - 2.7169) per dollar of the United States of America ("USD").

Communication

The Robert L. Bradshaw International Airport on St. Kitts (IATA: SKB, ICAO: TKPK) has a runway of 8,000 feet and is equipped to handle large passenger jets. Vance Amory International Airport on Nevis (IATA: NEV, ICAO: TKPN) can accommodate smaller aircraft (4,000 ft. runway). Weekly direct flights are available from London Gatwick to St. Kitts. For other destinations, the islands are using Puerto Rico, St. Maarten and Antigua as their major gateways. Access from and to these gateways is by twin-engine turboprop aircraft operated by regional scheduled airlines on a daily basis and by smaller aircraft operated by local charter companies (Liat and Winair). Port Zante in St Kitts can host up to two mega-cruise ships and has a 61-berth marina for pleasure crafts and private yachts. The deep water port in St. Kitts has modern facilities which include roll-on and roll-off docks and easily accommodates large freight carriers. Passenger ferries operate a regular service between Basseterre and Charlestown, and Sea Bridge operates a car ferry service between Major's Bay, St. Kitts and Cades Bay, Nevis. St. Kitts and Nevis has a state-of-the-art telecommunication system operated by Cable & Wireless, Digicel and UTS CariGlobe "Chippie". Their modern network permits smooth and prompt telephone, telex and facsimile connections throughout the world. Residential and commercial internet service is available through Cable & Wireless and The Cable. Additionally, Cable & Wireless operates an online Telephone Directory and Yellow Pages web site. St.  Kitts and Nevis enjoys a 59-channel cable TV service, which provides 24 hours daily entertainment, sport and news programs from North America and England via satellite. On average, airmail letters from North America take 10 to 12 days and 7 to 10 days from Europe. Major international courier services are represented by Brinks, D.H.L., Federal Express, United Parcel Services, and Worldwide Express.

Political Stability

St. Kitts and Nevis has a history of political stability based on the Westminster model of government and continuity of national policy. Since St. Kitts and Nevis attained independence from Britain in 1983, it has consistently been adjudged to be among the world's freest nations by Freedom House, an independent and highly respected research organisation in the United States of America.

Economy

Sugar, which was the Federation's largest export and major income earner, has recently been marginalized as the economic mainstay. The Government's aggressive diversification program has brought tourism, light manufacturing and international financial activities to the fore. Gross domestic product at factor cost in constant (1990) prices for the Federation is as follows: (Date: April 2002. Source: St. Kitts Statistics Division / Eastern Caribbean Central Bank)

GDP: XCD 549 million (2000)

GDP growth rate: 5.53% (2000)

The Government of St. Kitts and Nevis wishes to promote the islands as a regional and international financial centre. Accordingly it actively encourages financial activities and is making a deliberate effort to maintain the Federation's present attractiveness. Financial operations are viewed as a principal economic sector with the Government constantly reviewing new ideas and improving financial legislation.

Banking and Finance

The Eastern Caribbean Central Bank, The Eastern Caribbean Home Mortgage Bank, and The Eastern Caribbean Securities Exchange have their headquarters in St. Kitts. Three international banks are represented in St. Kitts (Bank of Nova Scotia, First Caribbean International Bank, and RBC Royal Bank of Canada) and two in Nevis (Bank of Nova Scotia and First Caribbean International Bank).  Local and regional banks include St. Kitts-Nevis-Anguilla National Bank, Bank of Nevis, and RBTT Bank. There is currently limited investment banking services. Banks maintain deposits in XCD, USD and GBP. Local foreign currency regulations regarding the conduct of USD current accounts stipulate that an account may not be opened with less than USD 1,000 and if at any time its credit balance falls below that amount such account shall forthwith be closed and shall not again be opened within one year at the same bank.

The currency used in St. Kitts and Nevis is the East Caribbean Dollar ("XCD") which is currently fixed at XCD 2.70 (2.6882 - 2.7169) per dollar of the United States of America ("USD").

Professional Services

The legal profession is represented in St. Kitts and Nevis by Barristers and Solicitors of the High Court. They alone have the right to practice before the Courts of St. Kitts and Nevis, and alone may give advise on local law within the Federation. PricewaterhouseCoopers and PKF International auditing firms, are represented in St. Kitts and Nevis.

New legislation has permitted St. Kitts to offer a wide range of trust and corporate services. Trust companies such as Fidesco Trust Corporation, through their professional and prompt service, can assist establishing legal structures. For additional information see:

    Companies Act, 1996, as amended

    Limited Partnerships Act, 1996

    Foundations Act, 2003

    Trusts Act, 1996

Confidentiality

The Confidential Relationships Act of 1985 prohibits the disclosure of any information obtained in the course of business; and applies to banks and professionals as well as to Government officials.

Business Licences

Certain businesses need licences and applicants should seek advice locally on each occasion.

Investment Guarantee

The Federation and the United States of America have entered into an Investment Guarantee Agreement. See OPIC.

St. Kitts Real Estate and Nevis Real Estate Taxes

There is a tax on land located in the Federation, this tax is charged at various rates depending on the size and nature of the land concerned.

In Special Development Areas, such as the South East Peninsula on St. Kitts, there is a tax of 0.5% of the assessed market value of the land, or land and improvements.

The Property Tax Act of 2006, however, has introduced a new method of calculating property taxes. Additional information is available on the St. Kitts and Nevis Inland Revenue Department's website.

St. Kitts Real Estate and Nevis Real Estate Closing Costs

St. Kitts real estate and Nevis real estate stamp duty is 12% for free hold properties and 5% for condominiums. Stamp duty is payable by the seller only.

Stamp duty, payable by the vendor only, is 18.5% for the South East Peninsula and 14% for properties in any Special Development Areas.

St. Kitts real estate and Nevis real estate legal fees are approximately 2% of the gross sales and purchase price.

St. Kitts real estate and Nevis real estate alien land-holding licence is 10% of the gross purchase price (where applicable). Properties in Frigate Bay and a few other designated areas are exempt from the licence fee. Applicants should allow 2 to 4 months to complete the process.

Economic Citizenship Programme

Foreign individuals can obtain citizenship of the Federation of St. Christopher (St. Kitts) and Nevis if Cabinet is satisfied that such person has invested substantially in the Federation.

The minimum investment requirement is currently 350,000 dollars of the United States of America or its equivalent in dollars of the Eastern Caribbean in an approved investment project. Please see the St. Kitts and Nevis Economic Citizenship Programme for additional information.

Business Incentives

Under the Fiscal Incentives Act, four types of enterprises qualify for a tax holiday. The length of the tax holiday ranges from 10 to 15 years. St. Kitts and Nevis provides companies with a further tax concession effective at the end of the tax holiday period. Full exemption from import duties on parts, raw materials and production machinery is also available. Companies registered in St. Kitts and Nevis can repatriate all profits, dividends and imported capital. The Hotel Aids Ordinance provides relief from customs duties and pier duties in items brought into the country for use in the construction, extension and equipment of a hotel of not less than 10 bedrooms. In addition, the Income Tax Ordinance provides special tax relief benefits for a hotel proprietor who has been granted a licence under the Hotel Aids Ordinance. This stipulates that the gains or profits of a hotel are exempt from income tax for 5 years if the hotel has 30 or less bedrooms, and for 10 years if it has more than 30 bedrooms. St. Kitts and Nevis offers trade incentives under US Tariff Schedule 806 and 807, Generalised System of Preferences (GSP), Overseas Private Investment Corporation (OPIC), Caribbean Common Market (CARICOM), Lomé Convention, Business Advisory Services (BAS), Caribbean Basin Initiative (CBI), Caribican, Puerto Rico income tax credit under Section 936 of its Internal Revenue Code and financing under its Caribbean Development Program (CDP).