I’ll never forget what my mentor told me when I first started looking at Caribbean Citizenship by Investment (CBI) programs. He didn’t hesitate: “Skip the real estate. Make the donation.” I looked at it like an investment, because as the name suggests, Citizenship By Investment…so it was hard to justify just giving away $150 to $200K dollars and have just a booklet to show for it.

At the time, I didn’t understand why he was so adamant — but now I do.

Many advisors and brokers push the real estate option as if it’s an investment — a way to get your passport, hold property, and then sell later to recoup your funds. Sounds like a smart investment, right? Until you get into the details.

Caribbean CBI real estate isn’t just any real estate. You’re limited to government-approved developments, often inflated in price and valuable only to a very specific type of buyer: a person going for a passport. When it’s time to sell, your market is tiny and you magically find out that your estimated “loss” is about the same as your donation amount.

Add in the high commissions, and the agents telling you how good the investment is…that checks off two of my red flags.

There are other CBI options where the deal can actually be an investment. Here, I’m just focusing on the Caribbean options, perhaps the oldest, longest running programs.

The donation option, on the other hand, is transparent and straightforward. You know the fixed cost upfront. No games. No dependencies on any conditions like if your property qualifies. No need to plan out your exit plan as with a proper real estate investment.

Don’t get me wrong, this piece isn’t meant to convince to get a Caribbean passport for 6 figures. It’s really for those looking for a second passport but do NOT want any baggage, time commitment, traveling and 6 figures is less than 10% of their income portfolio, ideally 5% or less.

There are other ways to access a second passport with this option, check out the other articles here for other paths to second or third citizenships.