Nestled between the Caribbean Sea and a rainforest, Secret Bay is a luxury hotel that is consistently ranked as the best in the region. With rates ranging from $1,000 to $5,000 per night, guests can enjoy private plunge pools, access to pristine beaches, and relaxation in natural thermal springs in the resort’s secluded and lush setting, with personal concierges available to cater to their every need.
However, Secret Bay is not just a tourist destination. Starting at $1.4 million, interested investors can purchase cliffside vacation homes, which come with 10 to 24 weeks per year to enjoy the amenities. Additionally, the purchase includes citizenship to Dominica, a small mountainous nation near Barbados.
The program at Secret Bay is one of many in the world of residency and citizenship by investment (CBI)—initiatives where investors can obtain residency or citizenship without having to go through the usual processes or wait times. While some countries require significant investments in businesses or government projects, others allow individuals to simply buy or invest in specific government-approved real estate properties in order to secure a second or third passport.
Typically, investors find a real estate fund or project to invest in, or purchase a private residence that meets a certain capital level. This can expedite the investor’s path to citizenship in a country that may not have otherwise been accessible. Following this, investors undergo a due diligence process that varies depending on the country before being granted citizenship. The minimum investment required varies by country and family size.
In Dominica, the investor’s source of wealth is verified during the due diligence process to ensure they are a “person of good standing,” according to Gregor Nassief, the founder of Secret Bay. The minimum qualifying investment for citizenship for an individual in the country is $200,000, and the program at Secret Bay is approved by the government.
Since 2019, Secret Bay has been offering villas that qualify under the CBI program. Investors have the option to purchase entire villas starting at $1.4 million, or multi-villa estates starting at $4.5 million.
For those looking for a lower initial investment, fractional ownership of vacation properties is a common type of citizenship by investment scheme. At Secret Bay, investors can purchase ownership shares in the LLCs that hold the titles to the villas. In addition to citizenship, the investment grants the buyer two to 10 weeks of stay per year, depending on the number of shares purchased, and the possibility of a quarterly return-on-investment payout. Share prices range from $216,000 to $1 million.
Investing in Secret Bay also serves as a financial investment. The return comes from the weeks each year that the villas are reserved as vacation rentals—Secret Bay primarily operates as a luxury hotel. After expenses, rental income is shared with villa owners on a quarterly basis. While the return is not guaranteed, Nassief mentions that it has been paid out each quarter since the inception of the program, except for the second quarter of 2020 during the pandemic.
This fractional ownership model for CBI is popular throughout the Caribbean, especially at hotels. In addition to Dominica, other countries like Antigua and Barbuda, Grenada, St. Kitts and Nevis, and St. Lucia offer their own versions of the program, with well-known hotel chains such as Hilton and Marriott participating. Apart from the initial investment costs, some programs have annual fees, and there are usually holding periods for citizenship investors (in Dominica, investors cannot sell for five years).
According to Nassief, the majority of Secret Bay’s investors are interested in obtaining citizenship. When the villas went on sale in 2019, many investors came from the Middle East or Eastern Europe, seeking a “Plan B” passport due to instability or political conditions in their home countries. While passports from certain countries have strict travel restrictions, a Dominica passport allows visa-free travel to over 140 countries.
Currently, more investors are from North America, Nassief notes. While these investors appreciate the potential ROI, their primary interest lies in owning a vacation property that also provides them with second citizenship for ease of travel. The restrictions imposed during Covid-19 were particularly frustrating for these affluent investors, who are unaccustomed to being denied; by acquiring citizenship, they aim to ensure they will not face similar obstacles in the future, among other reasons.
Nassief explains that Secret Bay was not initially developed as a means to obtain second citizenship; it was established as a luxury resort. However, the investment program has facilitated the expansion of the resort and was more appealing to Nassief than traditional bank financing. In 2019, Secret Bay had six villas; by next year, the resort will have 28 villas. During this time, Secret Bay has added a restaurant, spa, wellness pavilion, and even a kombucha brewery, among other amenities, for the benefit of guests and investors alike.
The popularity of Secret Bay has led to the addition of more villas in recent years, as well as the introduction of the fractional share program. As of the first quarter of 2024, the resort has 188 investors.
Nassief describes the investment opportunity at Secret Bay as a unique intersection of financial value, lifestyle benefits, and citizenship advantages.
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