iGuide Saint Lucia

All foreign individuals and companies wishing to do business in Saint Lucia must first obtain a trade license. The license is approved by the minister with responsibility for commerce and trade based on the recommendation from the Trade License Advisory Board. The validity of a trade license, no matter when issued during the calendar year ends on 31 December of the year in which it was issued. Trade licenses must therefore be renewed from the first working day of January of the following year. 

Applications for a new or renewal of a trade license can be done by an individual but preferably by an attorney-at-law in Saint Lucia.

Under the Tourism Incentives Act, an approved tourism project could benefit from:

• Up to 100% exemption from the payment of import duty on furniture, fixtures, fittings and other materials required for the construction of the approved tourism product.
  
• Up to 100% exemption from the payment of income taxes from income accrued from a new hotel or other approved tourism product up to a maximum of 15 years.
  
• Up to 100% exemption from the payment of income taxes in respect of income attributable to any extensions to an existing approved tourism product for a period not exceeding a maximum of 10 years.
  

Under the Tourism Stimulus and Investment Act which now expires on March 31, 2024, new and existing tourism projects can benefit from:

• 100% waiver of the payment of value added tax during the development period on building material, furniture, equipment and locally produced art and craft.
  
• 100% waiver of all duties and taxes as it relates to property tax and aliens landholding licence fees
  
• 100% waiver of stamp duty and vendor's tax on the conveyance or transfer on sale of any immovable property for a tourism project on the initial transfer
  
• 100 % waiver of customs duty on imports including fixtures and fittings for a period to be determined by Cabinet
  
• 100% waiver of duty on imports of alternative energy and energy saving equipment, devices and fittings used for the approved development
  
• 100% waiver of the payment of corporation tax for the duration of the development period
  
• 100% waiver of payment of income tax on interest earned by an investor on any loan of any sum of money raised for the purpose of financing an approved development during the development period
  

The exemptions granted above shall be valid for the duration of the development period of the approved project but shall not exceed 25 years. The duration of the development period shall be approved by the Cabinet of Ministers.  

Under the Agriculture and Fisheries Incentives Act, 2014, a person who applies for and benefits from incentives may receive the following for the approved agricultural project:

• Up to 100% exemption from the payment of import duty and excise tax (where applicable) on the importation of agricultural inputs and other articles needed for an approved agricultural project.
  
• Up to 100% exemption from the payment of income tax on income accrued from the approved agricultural project for a maximum period of 10 years in the first instance.
  
• A person may submit an application for the renewal of income tax exemptions by submitting an application on the form prescribed in the Act.
  
• Up to 100% exemption from the payment of service charge applicable under the Service Charge Act on the importation of agricultural inputs and other articles needed for an approved agricultural project.
  

According to the Act, an approved agricultural project includes the purchase of agricultural inputs, development of a facility, the purchase of related transport equipment and the introduction of clean and renewable energy.

Saint Lucia's education system is fashioned off the British model with more recent modifications. It is governed by the provisions of the Education Act No. 41 of 1999 which makes it mandatory for students ages 5-15 to participate in the educational process. The sector comprises early childhood, primary, secondary and tertiary institutions. It comprises a mix of government and private institutions. 

The country achieved universal secondary school education in 2006 and in so doing, made it possible for every child who has taken the eleven-plus national examination to be guaranteed a place at a secondary school. Adult literacy is 90.1 percent.

There are 74 primary and 23 secondary schools. The Sir Arthur Lewis Community College is the main tertiary level institution. 

Tertiary education is also provided, with the following institutions:

Most students who receive a tertiary education attend the Sir Arthur Lewis Community College. The College offers associate degrees and certificates in a range of professional subject areas. The University of the West Indies offers Saint Lucians the opportunity to pursue degree programmes at any of its major campuses at Cave Hill, Barbados; St. Augustine, Trinidad; and Mona, Jamaica or through the Open Campus. The Open Campus makes it possible for people to pursue university training while still remaining in the workforce and thereby contributing their new knowledge and skills immediately in their work environments.

The Government also provides annual scholarships to full-time students at the UWI in the form of economic cost to qualifying students in areas that it has prioritized. Skills training is also provided through the National Skills Development Centre where learners receive training in a range of disciplines which qualifies them at different levels under the CARICOM Vocational Qualification Programme. In addition, training is also provided to the youth through programmes offered by the Centre for Adolescent Renewal and Education and the National Enrichment and Learning Programme. 

The government also provides opportunities for students to pursue university education in a range of areas through scholarships it has secured with friendly countries through diplomatic arrangements. These programmes allow young Saint Lucians to not only benefit academically at universities outside the Caribbean but also to experience new cultures which serve to enhance the international outlook of the Saint Lucian workforce. Grants are therefore received for study in countries such as Mexico, Turkey and Taiwan (Province of China).

• a contract without reference to limit of time;
• a contract for a specified period of time; or
• a contract for a specific task.

A contract of employment may be terminated by either party but this shall be done in a manner consistent with the provisions of the Labour Code concerning unfair dismissal and notice of termination.

An employer may prepare a written contract describing the terms and conditions of employment that have been agreed upon. This should be done within 14 days from the commencement date of employment. Where a contract of employment is not written, the employer shall explain to the employee the contents of the contract of employment.

Where a contract of employment for a specified period or specific task is the filling of a post within the normal and permanent activity of the enterprise and that the period of employment extends for over two continuous years, that contract shall be deemed a contract without reference to limit of time.

The Labour Commissioner is responsible for the administration of the Labour Code. This includes the settlement of any differences between employers and employees; encouraging the development of tripartism and collective bargaining and providing technical advice to employers and trade unions on industrial relations.

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Non-Wage Benefit Provided by an Employer

Any business in which at least one person employed either on a part-time or full-time basis must register with the National Insurance Corporation (NIC) within seven days of starting the business. Upon registration, a number will be issued which becomes the business's permanent identification at the NIC. It never changes and is never re-issued at the cessation of business. It must be quoted on all correspondence between the employer and the NIC.

Employment Injury

A person who is in insurable employment and sustains an injury as a result of his employment which hinders or prevents the person from performing duties is entitled to employment injury benefit. The insured person must have been authorized to perform the said task, at the time of his or her injury. An employment injury benefit is paid for a maximum of 52 weeks. It is paid at 65 percent of the insured person’s insurable earnings in the month of the injury. National Insurance refunds medical expenses incurred as a result of the accident, up to a limit of EC $20,000

Sickness Benefit

This is paid to a person who has contributed at least six months since registering in the programme. This is paid at the rate of 65 percent of the person's earnings for a maximum of 26 weeks.

Maternity Benefit

A maternity benefit is a combination of a maternity allowance and a maternity grant paid to a woman who has paid contributions for at least seven months in the ten months immediately preceding the month of expected confinement. It is paid at a rate of 65 percent of the person's earnings for a maximum of three months. The maternity grant is a lump sum of EC$ 600.

Funeral Grant

A funeral grant of EC$ 1,750.00 is payable on behalf of a deceased insured person.

Any employed or self-employed person who is not a national of the Organization of Eastern Caribbean States (OECS), nor a CARICOM National qualifying under the Free Movement Regime of the CARICOM Single Market and Economy (CSME), requires a work permit to be employed or manage a business in Saint Lucia.

Foreigners who have obtained residency in Saint Lucia also require a work permit.

Work permits are approved by the Department of Labour.

In applying for a work permit, employers are required to demonstrate that having called for applications through the publication of a job vacancy, a suitable applicant could not be found locally.

In reviewing applications, the Department of Labour considers:

• whether the use of expatriate personnel is part of a human resources strategy in which the skills of local personnel are developed in order to assume such roles in the future;
• whether a work permit is required for key roles (such as CEO/general manager, finance director) or other roles; and
• whether the permit is for a temporary assignment or an ongoing one.

Once approved by the Department of Labour, the worker may travel to the country. If from a country not requiring a visa, the worker enters at the port of entry and obtains an entry stamp indicating permission to work. If from a country requiring a visa, the worker applies online for a visa. 

Once in the country, the employer brings the passport to the Immigration Department, along with a written undertaking to pay the worker's return ticket and the passport is endorsed with a work permit of up to a year. The permit is renewable on a yearly basis.

The spouse of a worker receives an extension of stay in the passport, linked to the work permit.

Children of a worker must obtain a letter of enrolment from an educational institution in Saint Lucia. This qualifies them for a student permit.

A CARICOM national, apart from OECS nationals, does not require a work permit if he/she is a holder of a CARICOM Skilled National Certificate. These certificates are issued to CARICOM Nationals in their home countries or in Saint Lucia during their first six months of stay. It is however preferable to obtain the CARIOCM Skilled National Certificate before entering the country.

St. Lucia Electricity Services Limited (LUCELEC) is the sole commercial generator, transmitter and distributor of electricity in Saint Lucia. LUCELEC operates an 86.2MW diesel-powered generation facility at Cul De Sac in Castries (North West), a 3MW solar farm at La Tourney in Vieux Fort (South) and a 2 MW standby facility at Belle Plaine in Soufriere (West). Electricity is supplied to customers via a 66kV transmission network, seven substations and an 11kV distribution network at 240V single phase or 240/415 3-phase. The electricity supply is very reliable.

Applications for electricity supply can be completed at any of LUCELEC’s administrative offices. The applicant must provide a certificate of approval of the electrical installation from the Chief Electrical Inspector of the Ministry of Infrastructure, Energy, Port Services & Transportation.  Proof of legal ownership of the property on which the connection is required via a copy of the appropriate extract from the Land Register no older than 30 days or proof of permission to be connected on the property from the property owner must also be provided.

A security deposit equivalent to an estimated 2-months consumption must be paid at the time of application. The deposit will be retained by LUCELEC and accrue interest. The deposit and interest are refundable once the service is no longer required and all charges due are paid.

For commercial 3-phase installations, there may be additional charges if the distribution network needs to be upgraded to facilitate the connection. LUCELEC will schedule a site visit to evaluate the needs and provide a cost estimate for the scope of work identified within fifteen (15) working days from the time the request was received. The customer will be asked to pay this cost in addition to the security deposit.

For connections not requiring any improvements to the distribution network, LUCELEC will seek to provide electricity supply within 24 hours of payment.

Cost of Electricity

The management of water resources and the regulation of the provision and delivery of water and sewerage services in Saint Lucia is governed by the Water and Sewerage Act.

Most of Saint Lucia’s portable water is sourced from surface water via abstraction from rivers. The Water and Sewerage Company Incorporated (WASCO), a wholly owned entity of the government is responsible for the abstraction, treatment and distribution of portable drinking water island-wide. The company processes and distributes approximately 13 million gallons of water daily and plans to increase production to about 20 million gallons per day by 2024.

Applications to obtain a connection to WASCO can be made by completing an online application form or by obtaining the form from the company’s offices and returning same to any of the company’s offices. The particular requirements for a connection depends on the type of user (domestic or commercial); whether the applicant is new or seeking a reconnection or whether the applicant is a tenant or property owner. Key elements of the approval process involve proof of permission to construct the building where a water connection is requested and proof of ownership or the right to access the property.

Prices (Water)

Prices

Saint Lucia's two airports are the Hewanorra International Airport located in the south of the island and the George F.L. Charles Airport situated in the north alongside the Vigie Beach and a mere ten minute drive from the city centre, Castries. The runway is 6,200ft long and caters mainly to regional aircraft and small jets.

Hewanorra International Airport is located within 5 miles of the southern Seaport and Freezone area. It has a runway of 9,000ft (2,743.2m) and is 11ft above sea Ievel. It accommodates long-haul aircraft of the 747 class. In 2016 the airport handled almost 650,000 passengers and recorded over 16,000 aircraft movements. An airport expansion project (see growth sectors and opportunities) is scheduled to commence in 2019 and will result in the creation of new arrivals and departures terminals. New parking aprons will be constructed with five jet bridges and six new parking positions for wide-bodied aircraft.

Both airport and seaport operations are managed by the Saint Lucia Air and Seaports Authority (SLASPA). This is a statutory authority established under the Saint Lucia Air and Sea Ports Authority Act No. 10 of 1983. 

Saint Lucia has five official seaports of entry. The largest of these, Port Castries, accommodates both cargo and cruise ships. There are two dedicated cruise berths on the northern side of the harbour capable of accommodating vessels measuring up to 1,141 ft on the primary berth and up to 787 ft on the secondary berth. In addition the original Queen Elizabeth (QE) pier which for over a century was the primary cargo berth in Castries has been turned into a secondary cruise facility which adjoins the newer container terminal. The combined continuous length of the QE dock and Container Terminal is capable of accommodating passenger ships up to 1082 ft in length.

Cargo operations

The Authority is the custodian of all cargoes imported into the country by sea. There is a Shed available with a total floor space in excess of 100,000 sq. ft (30,480m²). In addition the port has 400 TEU ground slots for containers

Cargo operations are handled at Port Castries in the north and Port Vieux Fort in the south of the island. Both ports provide a 24 hour service and are equipped with mobile harbour cranes with lifting capacity of up to 104 tons. Vessels with a draft of up to 30ft could be accommodated in Port Castries while Port Vieux Fort can cater to vessels with a similar draft of up to 30ft .Port Vieux Fort is designed to cater mainly for transshipment cargo operations.

Cruise operations

The dedicated cruise berths at Pointe Seraphine can accommodate ships with a draft of up to 31ft. Recent investments in a breasting berth extension now make it possible to cater to cruise ships of the Royal Caribbean Quantum class with passenger capacity of 4,905.  There are duty free shopping facilities at all cruise berths that provide ample opportunity for shopping.

Yachting operations

Three of the five seaports cater primarily to the yachting subsector. The largest is the Rodney Bay in the north. In there, the IGY Marina has 253 slips and can accommodate 32 mega yachts. The two other ports are the Marigot seaport in the northwestern part of the island and the Soufriere seaport in the southwestern part of the country. For the last 33 years, Saint Lucia has welcomed the cruisers crossing the Atlantic as part of Atlantic Rally for Cruisers (ARC) which begins at Las Palmas de Gran Canaria. There is every indication that Saint Lucia will continue to be the final destination for this global event in the foreseeable future.

In more recent times there is a growing presence of mega yachts berthing at Port Vieux Fort primarily to make convenient connections at Hewanorra International Airport due to its close proximity.

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Prices

All land in Saint Lucia is registered by block and parcel number with the Registrar of Lands. Land is also classified by use and can be designated for conservation, industrial, commercial, agriculture, residential, recreational, touristic, institutional, or any other purpose.

Development approval is needed from the Development Control Authority (DCA), prior to commencement of any land development work on the Island. An application for permission to develop land has to be made on the prescribed application form accompanied by necessary maps, drawings, and related documentation for review. Depending on the nature of the proposed development and likely negative impact on the environment, an Environmental Impact Assessment (EIA) report has to be submitted in order to evaluate the application and make decisions. 

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The Physical Planning and Development Act provides the legal framework and requirements for the development of land in Saint Lucia. Under the Act, the Head of the Physical Planning and Development Division may require that an environmental impact assessment be carried out in respect of any application for permission to develop land. 

There are however areas of economic activity for which an environmental impact assessment shall be required. The full list of areas is contained in the fourth schedule of the Physical Planning and Development Act. Some of these areas include:

Hotels of more than the number of rooms specified in the Regulations

• Marinas
• Ports
• Coastal zone developments
• Desalination plants
• Development in wetlands, marine parks, national parks, conservation areas, environmental protection areas or other sensitive environmental areas

In addition to the Act, a detailed guide to the process of undertaking any development which involves use of land or construction of buildings in Saint Lucia is provided below.

Apart from industrial free zones and a goods distribution free zone, there are no geographic areas in Saint Lucia defined or set aside for specific economic activity. However the government makes it possible under the Special Development Areas Act for certain types of investments to benefit from special incentives once these investments are made in specified areas of the country. The aim of these incentives is to encourage investment in the specified locations as a means of promoting balanced spacial and economic development.

The special development areas are Vieux-Fort, Anse La Raye, Soufriere, Canaries, Micoud, Cul de Sac Valley and Choc Estate.

Under the Act, an investor who invests in the construction of an industrial building or structure in the locations just listed will benefit from the special incentives regime if the building is for the purpose of:

• the generation, transformation, conversion, transmission or distribution of electrical energy
  
• manufacturing of goods
• storage of raw materials for the manufacturing of goods
• computer software development, data processing or agro-processing
  
• agriculture, including horticulture and husbandry including the keeping or breeding of livestock and poultry or the growing of crops of fruits or vegetables
  

Other activities which qualify for incentives when undertaken in the special development areas include:

• conference centres
• residential complexes
• commercial or industrial buildings, including office complexes
• other facilities directed towards the improvement or expansion of services to the tourism sector
• water-based activities
• tourism projects highlighting the heritage and natural environment of Saint Lucia
• arts and cultural investments
• agricultural-based activities
• fisheries-based activities

An investor must apply to the Minister for Finance to become an approved developer. The Minister may approve the application with or without special conditions. All approved developers are published in the Official Gazette.  

The Free Zone Act provides for the establishment and operation of free zones in Saint Lucia to foster commerce, trade and investment with other countries and to promote economic growth and development. While the Act does not limit the activities within free zones solely to exports, the focus of the incentives provided is aimed at businesses whose primary activity is export oriented.

An investor desirous of obtaining a free zone licence must apply to the Board of the Free Zone Management Authority (FZMA). Once a licence is granted, the free zone operator must seek services from a free zone developer.

There are two existing free zone developers namely Invest Saint Lucia and the Free Zone Management Authority (FZMA). These developers have the authority to lease or sell land to private parties which have been issued a licence to operate in a free zone. They also have the power to:

• make improvements, construct facilities and develop infrastructure to enhance the economic development of a free zone;
  
• provide public or other services within a free zone;
  
• construct roads, drains, railways and other infrastructure to facilitate trade within a free zone and between a free zone and international trading parties;
  
• charge fees for any services or facilities it provides within a free zone;
  

Cabinet may designate any geographical area a free zone.

In deciding whether to grant a free zone licence, the Board takes into consideration whether the business will:

• conduct trade and investment activities such as a commercial office, warehousing, manufacturing, insurance services, telecommunication services, financial services, banking services, or other professional, or related activities;
• not have a deleterious effect on the environment having regard to any environmental impact assessment made for the purpose of the business; and 
• be conducted in compliance with all applicable, legal and regulatory requirements under the laws of Saint Lucia.

All merchandise, articles, or other goods entering a free zone for commercial purposes are exempt from all customs duties, taxes and related charges. This includes all fuel, building materials, furniture, equipment, supplies and parts required for the proper functioning of a free zone business.

Motor vehicles and fuel for personal use entering a free zone are not exempted from taxes and duties.

Imports or exports by a free zone business do not require an import or export licence except for goods, the importation of which is restricted under the External Trade Act.

All exports from a free zone to the domestic economy are subject to duties under the national customs regime.

All corporations, partnerships and sole enterprises must register with the Inland Revenue Department (IRD) and file income tax returns (regardless of profitability) no later than three months after the end of their financial year.   

To register with the IRD as a corporation, a registration form must be completed, signed by either a director or secretary of the company and submitted to the IRD. The Articles of Incorporation as well as the Certificate of Incorporation must accompany the registration form. A tax identification number (TIN) will then be issued to the company. The TIN must be used on all correspondence to the Inland Revenue Department including remittances for PAYE, Instalments and any other tax type.

Corporate Tax

Value-added tax

Level of exemption from property tax

Contract tax

Witholding tax

Sample customs duties

Saint Lucia bases its legal system on the British Common Law system but its Civil Code and property law is greatly influenced by French Law (Code Napoleon). The Constitution guarantees the independence of the judiciary. The judicial system consists of lower courts, called Magistrates’ Courts, as well as a Family Court. The Eastern Caribbean Supreme Court (Saint Lucia) Act establishes the Supreme Court of Judicature, which consists of the High Court and the Eastern Caribbean Court of Appeal. The High Court hears criminal and civil matters and makes determinations on the interpretation of the Constitution. Appeals are made in the first instance to the Eastern Caribbean Supreme Court, an itinerant court that hears appeals from all Eastern Caribbean States. The Eastern Caribbean Supreme Court sits in the Saint Lucian capital of Castries. Final appeal is to the Judicial Committee of the Privy Council. All laws must conform to the provisions of the Constitution and are void to the extent of any inconsistency.

The Caribbean Court of Justice (CCJ) is the regional judicial tribunal, established in 2001 by the Agreement Establishing the Caribbean Court of Justice. The CCJ has original jurisdiction to interpret and apply the Revised Treaty of Chaguaramas. In its appellate jurisdiction, the CCJ considers and determines appeals from Member States of CARICOM, which are party to the Agreement Establishing the CCJ. Saint Lucia is subject to the original jurisdiction of the CCJ.

Saint Lucia is a small open economy located in the mid Eastern Caribbean between the islands of Martinique and St. Vincent. With a resident population estimated in 2018 at 173,165, Saint Lucia has the largest population among the seven member countries that comprise the Organization of Eastern Caribbean States. Real GDP at market prices was estimated at US$1.34 Billion in 2018 and the economy expanded by 1.5% when compared to 2017. 

Saint Lucia is primarily a services based economy with the lead sector tourism, (measured by activity in hotels and restaurants) contributing 9.3% of GDP in 2018. The performance of the tourism sector was driven by improved economic conditions in the major source markets contributing to increased external demand for Saint Lucia’s tourism product; increase in bednights from improved airlift in all major markets; expansion in the tourism plant; and increases in both the number of cruise ship calls and the size of the ships.

Other sectors of the economy also recorded improved performance in 2018 with expansion recorded in the manufacturing, agriculture and wholesale and retail sectors. Agriculture, while contributing a statistically small percentage of GDP at 1.9% continues to be an important part of the economy due to its contribution to the rural economy and its role in food security.

The government has also approved a National Investment Strategy and a National Export Strategy. These two policies provide the strategic framework through which growth and expansion of the private sector will be pursued. The National Export Strategy has identified the key sectors with capacity for export and addresses the interventions that will be pursued to increase exports. The National Investment Strategy supports the National Export Strategy in focusing on attracting investment especially in areas identified in the export strategy. Another key element in the investment strategy is its identfication of the key reforms that must be undertaken in the domestic business environment to make it easier to transact business.   

Saint Lucia is a member of the Eastern Caribbean Currency Union. The Eastern Caribbean Central Bank issues the East Caribbean dollar, which is pegged to the US dollar, for all members of the Union. The Bank also manages monetary policy and regulates and supervises commercial banking activities in union member states.

Saint Lucia's tourism industry assumed the status of lead sector of the economy from the late 1990s following the drastic contraction in the agricultural sector, primarily the banana sub-sector. Tourism has since expanded steadily and is today the largest foreign exchange earner and employment generator. 85.9% of tourism spending is attributed to leisure spending while 14.1% to business spending. 

In 2018, more than 1.23 million persons visited Saint Lucia; a 10.2% increase over 2017. 394,780 were stayover visitors with 44.3% coming from the United States while strong numbers came from the UK, the Caribbean and Canada respectively. Cruise arrivals reached a record high of 760,306. This was a result of increased berthing facilities at Pointe Seraphine allowing for the berthing of oasis class vessels. 

The factors driving Saint Lucia's tourism success are the uniqueness of the tourism product, government policy wiith respect to investment in the tourism sector and an aggressive and tactical marketing strategy.

The beauty of Saint Lucia has earned her the title "Helen of the West". With a number of white sandy beaches, look-out spots, the World Heritage "Pitons" rising almost vertically for more than 2,000ft from the Caribbean Sea, to the drive-in volcano.

To showcase these assets, emphasis has been placed on developing the tourism product. This includes:

• Tours and visitor attractions: These continue to grow and provide an opportunity for visitors to get a deeper understanding of the culture and history of the people of Saint Lucia. Investment in this area increases the opportunity for Saint Lucians to provide added value to the product within their own communities and villages. There is therefore opportunity, through joint venture arrangements, to expand the number and types of tours and create new attractions in Saint Lucia.
• Training and human resource development: Strong emphasis has been placed on training and human resource development to ensure a high and acceptable standard is maintained in delivering service in the industry. Professional certification for various positions in the industry is provided by the Sir Arthur Lewis Community College.
• Expanding the accommodation sector: The type of accommodation is varied providing high-end all inclusive products; villas, small resorts, bed and breakfast, ep products and now the Airbnb experience. Five thousand new rooms are required within the next 10 years to double the existing room stock. Incentives are offered to support investment in the sector.
• Culinary experience: The focus is on development of speciality restaurants to produce both local and international cuisine. Opportunities exists for investment in this sub-sector not only in physical plant but also in research on how local food can be used in innovative ways to create exciting menus.
• Cruise tourism: The government has identified construction of a cruise terminal in the south of the island as a priority. This will lead to Saint Lucia becoming a home port for cruise lines given the international airport is a ten minute drive from the location for the new cruise terminal. Investment therefore will not only be welcomed in the construction of the terminal but in the provision of the ancillary services necessary for the operation of a home port.
• Yachting: Saint Lucia is home to the finish of the Atlantic Rally for Cruisers; an event which has been on Saint Lucia's calendar for over 30 years. Opportunities exist for providing services in bunkering, maintenance and repairs as well as entertainment.
• Day-boat Charters: Saint Lucia's location in the middle of the Eastern Caribbean chain of islands and its close proximity to its neighbours makes it possible for easy travel by sea to islands north and south of the country. Chartering a boat provides the opportunity to experience the varied cultures of the region within a relatively short space of time. There is increasing demand for day-boat charters and this sub-sector provides opportunities for investment. 
• Soft adventure: This includes horseback riding, zip-lining, scuba-diving and hiking through the rainforest. 

• Maintaining a sustainable marine environment: The clear clean waters along Saint Lucia's coasts and the abundant sandy beaches provide ample opportunity for using the sea as a source of relaxation and exploration. The government has therefore embarked on implementing environmentally sound policies with respect to garbage disposal, deforestation, use of plastics, chemicals and pesticides and building construction aimed to protecting the marine environment. This will safe guard recreational marine activities such as kite surfing and jet skiing and encourage marine adventure activities such as diving and snorkling. 
• Transportation: Ground transportation is provided mainly by a fleet of privately owned taxis. However travel by helicopter between the international airport in the south of the island and the main tourist centre in north has been growing in demand. Investment in that specific niche of the transportation sector is encouraged.

While knowledge of Saint Lucia within main source markets has grown over the years, marketing and branding remain key aspects of the future development of the product. Emphasis will therefore be placed on:

• Maintaining Saint Lucia's status as the number one honeymoon destination in the world.
• Positioning Saint Lucia as pursuing environmentally friendly and responsible tourism activities.
• Emphasizing the originality and authenticity of the products provided and hence deepening the linkages between tourism and the rest of the productive sectors of the economy.
  
• Demonstrating the capacity of Saint Lucia to keep introducing new tourism products.
• Using all available technology in reaching potential visitors in key source markets. 

Saint Lucia's manufacturing sector is diverse by regional standards. Manufacturing has maintained its share of GDP at about 5.5 percent over the last five years and continues to provide a major source of employment and foreign exchange. The sector which is comprised primarily of light manufacturing is made up of the following sub-sectors:

• Food and beverage
  
• Paper and paperboard
  
• Fabricated metals
• Electrical and electronic components
• Furniture
• Milling flour and animal feed

Food and beverage production dominates output and is the leading type of manufactured export. Investments in both alcoholic and non-alcoholic plant has increased production capacity. Meanwhile preferential trading arrangements within CARICOM for its less developed members have led to increased exports of non-alcoholic products. 

The alcoholic beverage sector is also very competitive. Manufacturers of both beer and rum have invested heavily in modernizing plant and equipment and have expanded the range of products. As a result, Saint Lucian rum and beer continue to win international awards and can be found on both in both regional and international markets.

The agro-processing sub-sector is also diverse by regional standards, with exports to the Caribbean, North America, Europe and Asia. While the competitiveness of the industry has made it possible to penetrate export markets, investment in market research, product development and innovation would be welcomed as this sector seeks to expand product range and market share in foreign markets.  

Expansion in the output of fabricated metals has increased in recent times due to growth in the domestic construction sector and in response to construction activity in neighbouring countries rebuilding following the passage of recent hurricanes. With anticipated growth in the construction industry both in Saint Lucia and the wider CARICOM in the short term, increased production capacity would be required. 

Incentives under the Fiscal Incentives Act of 1974 provide for the waiver of duties on raw materials, packaging, machinery, spare parts for machinery, equipment and specialized vehicles used in the manufacture of approved products. An approved enterprise may also benefit from the waiver of income taxes for up to 15 years. Special provision is also made under the VAT Act with respect to payment of VAT on inputs used by approved manufacturers and on capital goods imported and used by new companies in the construction of their plant.

Other regimes through which investors may also benefit include:

• Special Development Areas Act
• Income Tax Act
• Free Zones Act
• Agricultural and Fisheries Incentives Act

Opportunities therefore exists for investments in all the manufacturing sectors especially fish processing and value added agriculture to meet the anticipated increased demand from an expanded accommodation sector. 

The manufacturing sector is served by the St. Lucia Manufacturers Association (SMA), which provides advocacy on behalf of manufacturers. The SMA seeks technical assistance to build capacity at the enterprise level and recently completed a strategic plan with financial support from the European Union. Implementation of this plan should lead to increased competitvenss and productivity of the manufacturing sector. Opportunity therefore exists for partnering with local enterprises in expanding production as the strategic plan is implemented.

The agriculture sector, while contributing just under 2 percent of GDP over the last ten years remains an important part of the economy creating rural employment and contributing to exports. The sector is made up primarily of banana production, other crops such as roots and tubers, livestock (mainly pork and chicken) and fisheries. 

While exports of bananas is considerably below the performance of the 1990s, there are positive developments in the industry. Export to the UK market continues to increase and important new markets in the USA and Canada have emerged. Government continues to provide support on the production side through initiatives such as farm rehabilitation and expansion under the Banana Productivity Improvement Project. Opportunities therefore exist for providing distribution services especially in the emerging markets. 

The government encourages foreign investment in value added areas of the agriculture sector. Investment in research and development as well as in food and fish processing would be welcomed. Incentives are availabe under both the Fiscal Incentives Act and the Agriculture and Fisheries Incentives Act that encourage the investment in value added areas of agriculture.

In the area of business process outsourcing (BPO) Saint Lucia has seen the expansion of existing contact centres and the establishment of new centres over the last ten years. The changes in the sector have been the result of:

• a robust and reliable technology infrastructure;
• a reputable legal and regulatory framework;
• stable macroeconomic environment; and
• persistent and progressive business environment reforms since the early 1990s.

Saint Lucia has contact centres that focus on outsourcing with one specializing in artificial intelligence technology. Saint Lucia also has the capacity to support knowledge process outsourcing (KPO) businesses in a range of areas such as legal, financial technology (FinTech), architecture, web services, real estate and medical services. Its close proximity to the North American continent, similar time zones, young and educated population and fluency in English make it an ideal location for locating businesses engaged in BPO and KPO.

Performance of Saint Lucia's real estate sector is closely tied to visitor arrivals whereby visitors decide acquire property on the island. Given consistent growth in visitor arrivals, the sector has been experiencing steady growth in recent times. 

There is great interest in properties around the US$ 400,000 to 500,000 price range especially in the north of the island. In this regard it should be noted that the minimum required investment to benefit from the Citizenship by investment programme is US$ 300,000. 

The typical profile of property buyers is that of persons who are looking for a second home either to rent or to live in for a period during the year. Most buyers are from the UK, Canada or the USA and are increasingly persons in the 50 plus age range who have more leisure time.

It typically takes about six months to conclude purchase of a property. Foreign buyers must obtain an Alien's Landholding Licence.  

While there has traditionally been more interest in the north of the island, developments in the south, especially construction of a new international airport terminal, a new cruise port and the US$2.6 billion "Pearl of the Caribbean" project mean that there will be significant investment in the south of the island over the next ten years. 

There is a Realtor's Association in Saint Lucia. Legislation to govern the practice of realtors is at an advanced stage with a draft bill already completed. Provision of real estate services is not open (liberalized) in Saint Lucia's WTO's services commitments. 

The government is committed to generating 35 percent of its electricity from renewable sources by 2020. This is consistent with commitments made under the 2015 Paris Climate Change Agreement and other regional and international agreements. A National Energy Transition Strategy (NETS) has been completed which paves the road for a sustainable, reliable, cost-effective and equitable electricity sector using the island’s local resources.

With respect to solar power:

• A 3MW solar power plant started providing power to the island's power company in April 2018 thereby reducing the annual volume of fuel purchased by LUCELEC by about 300 thousand gallons.
• Two 25kW photovoltaic systems will be installed at the Sir Arthur Lewis Community College and the Gros-Islet Secondary School under a project funded by Taiwan (Province of China).
• A 50kW solar carport has been installed at the parking facility at the Department of Infrastructure, Ports and Energy building.
• A 200kW photovoltaic system is to be installed at the Owen King EU Hospital.

With respect to geothermal energy, as of December 2018 some US$ 22.54 million had been secured by the Government to cover the cost of the exploratory drilling program and completion of the technical, policy/regulatory and implementation preparation activities that will inform a final decision on further geothermal development activities.

As it relates to energy efficiency, the following has been embarked upon:

• Rewiring and introduction of LED lighting in the government's administrative building in Castries.
  
• Greening of three schools, which will promote best practices in green design architecture.
  
• Procurement by government of three electric vehicles as part of a pilot project. This will enable decisions on procurement of electric vehicles going forward. 
  

A National Energy Policy has been developed (see below) which outlines the national approach to all aspects of energy production, distribution and use. The National Energy Policy together with the National Energy Transition Strategy provide the framework for the sustainable development, production, distribution and use of energy and provides opportunity for private investment.

The government makes it possible for foreign nationals to become citizens of Saint Lucia through the Citizen by Investment Act No. 14 of 2015 and its accompanying regulations. Through this legal framework one may become a citizen through investment in any one of the following four options:

Investment in the Saint Lucia National Investment Fund: A minimum of US$ 100,000 is required where the applicant is applying alone.  If applying with a spouse it will cost US$ 165,000 and with two qualifying dependents the cost will be US$ 190,000. For any additional qualifying dependent, it will cost an additional US$ 25,000 per dependent

Investment in an approved real estate project: The minimum investment amount is US$ 300,000. There is non-refundable administrative fee of US$ 50,000 for the principal applicant applying alone. For each qualifying dependent 18 years and over, there is an administrative fee of US$3 5,000 and for each qualifying dependent below the age of 18 years, the administrative fee is US$ 25,000

Investment in an approved enterprise project: The minimum qualifying investment amount is US$ 3,500,000 with a lone investor. With the applicant applying as a joint venture, the minimum investment amount is US$ 6,000,000 (each applicant must invest a minimum of US$ 1,000,000). There is an administrative fee of US$ 50,000 for each investor. For a qualifying dependent 18 years and over, the administrative fee is US$ 35,000 and US$ 25,000 for a qualifying dependent below the age of 18 years

Investment in the purchase of Government Bonds: The minimum invest amount is US$ 500,000. There is also a non-refundable administrative fee of US$ 50,000

All applications are processed by the Citizen by Investment Unit which makes recommendations to the Board of the Citizenship by Investment Programme. All applications undergo a due diligence process by a team appointed by the Board for that purpose.