The Blue Estate project promises the rich people a paradise life in a tax-free utopia on a stateless artificial private island in the Caribbean sea. The Blue Estate Group (TBEG) has launched the public sale of properties on the floating luxury real estate development. The man-made island is to be constructed from ultra high performance concrete modules, measuring over 1500m by 1000m in total. The Blue Estate artificial floating island is planned to be home for more than 15,000 permanent residents, numerous businesses, a state-of-the-art health clinic and an international school.
The Blue Estate island is by its developers described as „the new, exclusive and elegant lifestyle community, set amidst one of the world’s most beautiful natural surroundings“.
Developer is promising „an amazing collection of dream homes, floating on the year-round warm Caribbean Sea“. Artificial island is to be located „only a short trip from the dazzling metropolis Miami, and the endless beaches of the Bahamian Islands“.
Residents and visitors will have access to a wide range of amenities and leisure activities, while enjoying unprecedented levels of privacy and security, stated TBEG organisation.
The future life on the Blue Estate Island is self-promoted as very luxurious.
„The Blue Estate’s high service approach will bring hotel style 5-star service to the every day life of its residents. From a huge variety of restaurants and bars to countless sports activities and spa treatments, there will always be something new to explore.“
„The Blue Estate International School will offer contemporary education from toddlers age to diploma graduates, while the state-of-the-art clinic will take care of all health needs. Numerous playgrounds, green spaces and the spectacular ‘Garden Deck’ are making the Blue Estate a marvelous and incredible family friendly place to raise your kids,“ the development organization promises.
An expansive range of properties are available for purchase, starting with budget friendly ‘Ring Levels’ studio apartments ($ 19,800 USD) up to the spectacular ‘Signature Estates’ mega mansions ($ 1.15 B USD), the Blue Estate is catering to a wide audience of different tastes and budgets.
All the Blue Estate’s energy is planned to be exclusively generated from renewable sources allowing for a negative CO2 balance. The Blue Estate will also serve as a technology hub for scientific ocean research programs, to help understand and protect them better.
The Blue Estate’s mission statement is: „Freedom, Equality & Prosperity“. The Blue Estate is promising to „foster a business friendly environment with zero taxes, minimal regulations and reporting obligations, taking full advantage of its offshore location“.
All businesses have to comply with the Blue Estates Community Guidelines and Rules, which will enable secure and fair conditions for every participant, say the organizers of the project.
The expansive size of the Blue Estate is to allow for a great inertia, making the island „incredible stable“.
„Unlike ships that get tossed around by ocean waves, on the Blue Estate nobody will be able to detect even the tiniest movement, far surpassing the stability of the largest cruise ships. The unique construction of the Blue Estate will protect all residents from any unfavorable conditions,“ stated TBEG organization.
With more than 50 m in height, the outside walls will dwarf even the biggest ocean waves.
„Automated hurricane shutters can be extended, to additionally shield-off the community in case of high winds. Despite being engineered to withstand even the worst conditions, the Blue Estate can be moved out of the way, in case of any incoming storms. These high-tech features makes living on the Blue Estate in fact far more secure than in a permanent place on land,“ emphasized the development organization, backed by Blue Asset Management Holding registered in the Seychelles.
WITH EMILIA STARK, PRESS & MARKETING MANAGER, THE BLUE ESTATE GROUP (February 2021)
FREE REPORTER: What will be the real benefits of THE BLUE ESTATE project (TBE) for its inhabitants?
EMILIA STARK: The Blue Estate will be located in a climate zone with all year round warm temperatures and more than 340 sunny days/year. There are no complicated immigration procedures and requirements like in many other countries, we’re welcoming residents from all over the world regardless of their nationality. There is no personal income tax and no taxes are levied upon businesses.
We offer affordable and state-of-the-art health care and insurance for every resident. The Blue Estate International School will offer contemporary education up to High School level. We offer a family friendly, safe and service oriented environment.
Are the „properties“ in the TBE project designated as permanent housing? Will the homeowners in TBE be able to live in this seaside town permanently?
Yes, absolutely. All the properties are designed and will be constructed to serve as permanent residencies. But not only the private residences are important in this regard, there will be all amenities of the day to day life available too. Supermarkets, gyms, restaurants, cinemas, …
And will they be able to renounce their citizenship in their original homelands?
The Blue Estate will not be a country of itself, therefore we can’t issue internationally recognized passports or citizenships to our residents. It would not make sense for anyone to renounce their citizenship. Nevertheless it will be a valid place of residence and we can issue a proof of residency for tax matters to every resident as needed.
What will be the economic benefits for apartment or house owners in TBE?
Despite the amazing weather, there is no tax. All residents are free to keep 100% of their income. Residents are free to buy, own and rent-out as many properties as they desire. Incorporating a business is very easy, and can be arranged within a few days and there is no tax levied on business revenues and minimal reporting obligations. There are only very few places that offer this advantageous conditions with such low entry barriers.
In what way is it more advantageous for the future apartment owner in your project to be a resident of TBE than to be a resident of another standard, reliable and safe (and above all real existing) state such as Monaco, Panama, Cayman Islands, etc.?
At this stage the most advantageous opportunity is the very low price/sqft(sqm) at which the properties are being sold, in comparison to other places / cities. (prices will increase in two steps until the construction starts in Q2 2022). It is difficult (in Monaco impossible) to find comparable real estate offers like we have on the Blue Estate. We expect prices of real estate to be multiple times higher than now, in a very short period of time. (there will already be an increase of +21% until April 2022). Nevertheless the Blue Estate will offer excellent and far above-average amenities, that cheaper off-grid ’tax-heavens’ don’t.
What will be the relationship of TBE with the governments of neighboring states?
We will not interfere with local laws and rules of neighboring countries, we’re looking forward to beneficial cooperations and technology transfer for everyone. We will devote large efforts to oceanographic research, and hope to gather helpful information that we could share with countries around us, to help them develop sustainable solutions and protect the environment better.
Will TBE be located outside the territorial waters of other states? At what distance?
Yes, we will be located outside the territorial waters of any country / state. There is no fixed distance as the Blue Estate is not moored in one specific location, and might be moved from time to time, if the need arises e.g. to avoid bad weather or storms.
Will TBE be an independent state? What laws will apply in its territory and who will set / approve these rules (regulatory mechanisms / legislation)?
The Blue Estate will not be a classic ‘state or country‘, but a community with as few regulations as possible. Our community is based on the common values that derive from the most basic human rights. The Blue Estate emphasizes ‘Freedom, Equality and Prosperity’ as the main principles. The Blue Estate Group will manage and maintain the Blue Estate, there will be trained security staff 24/7 available if the need for conflict intervention or emergency assistance should be required. The safety of our residents will be our top priority.
How do you get the assurance that your floating tax haven, the city of TBE (if it can really be built and settled) will not be taken over by some state/government and that the state do not enforce its laws and therefore high taxes on TBE?
The Blue Estate will be classified, registered and flagged according to the international maritime laws and practice. We will comply with all regulations for environmental protection and safety at sea. The Blue Estate is therefore protected under the United Nations Convention on the Laws of the High Seas. ’Taking-over’ the Blue Estate would therefor be considered as a violation of UN Conventions.
How do you want to convince potential buyers of apartments / houses on TBE that the project will actually be implemented?
There have been multiple projects of floating projects been build and launched successfully (e.g. Tokyo floating Airport, Monaco floating breakwater/cruise ship terminal, offshore oil rigs…). Living on the high seas is actually happening all around the world already (Cruise ships, oil rigs, …) The Blue Estate is just the first to offer a comprehensive package of amenities and housing in this context, enabling permanent residency without the need to sacrifice on essential needs. The technology and resources are readily available and our engineers have been working since our first funding in 2016 on every aspect of the development.
What is the guarantee that the project developer will return me the money I have invested (in the order of millions of dollars) into the apartment in the city of TBE if the project is not implemented and the sea city of TBE (whose construction seems to be more utopian than building a city on the planet of Mars) is not created?
From an engineering standpoint we fail to see the ‘utopian’ part of the Blue Estate development. As outlined in another response, the technology is readily available. In fact, comparing a large scale offshore engineering project to a Mars settlement seams a bit ‘outlandish’.
Buyers don’t pay upfront, the Blue Estate Group does not take any deposits or downpayment until the construction starts (Q2 2022) despite a small document fee of 0.5% of the total sales price, for our legal department to prepare the paperwork. (with costs far less than contract fees in most countries). The downpayment / installments will be payed into dedicated escrow accounts on a milestone based schedule / payment plan, verified by third party surveyors, and are therefore protected. This is common practice with new real estate developments, despite that similar developments are charging between 10-50% downpayment directly upon closing / booking + huge notary and legal fees.
Is your company not afraid of official sanctions for organizing massive tax evasion and damaging the economic interests of the state?
The Blue Estate is not engaged in ‚organizing massive tax evasion’. We adhere to all relevant laws regarding taxes and money laundering and will comply within the requirements. We’d strongly advise to get proper knowledge of international tax and labour laws, before jumping into wild conclusions here.
Some media present your project as a standard „developer“ project. However, the essence of TBE is political. It is an obvious attempt to create autonomous territory independent of the jurisdiction of states and governments. This is a positive and justifiable act, but it is not consistent with governments‘ approach to such secessionist activities. Do you envisage possible restrictive government interventions?
No, we’re by no means part of a (any) political or ideological movement. As already stated in an answer before, the Blue Estate is NOT an autonomous state, vessel or entity of any kind. In the same manner as regular cruise ships (that also have a special rule set) we will follow and adhere to the international maritime laws and conventions. Therefore, there will be no risk of an ‘intervention’ by governments or states.
The formulation of your question strongly implies, that you would like to see the Blue Estate development as a distinct act of political or social secession, which is clearly not the case. The Blue Estate is a floating real estate development (full stop!)
In addition to the TBE project itself: why should a part of the world’s population, by simply moving to an artificial floating island near the coastal waters of one state or another, gain the right to more favorable economic legislation, such as zero taxes? How will those citizens who do not have the opportunity to escape from the repressive power of states and governments come to this?
The Blue Estate is not involved in the formulation and constitution of any tax laws, we simply adhere to the existing laws and rules as every other entity. We will welcome everyone regardless of age, gender, race or nationality. We feel sorry for people that have to live under repressive regimes and do not get equally treated, but it is not in our power to change that. There is no ‘escapism’ or ‘evasion’ implied by playing by the existing rules, of course there will be people that have less barriers for moving to the Blue Estate, but this can’t be blamed on them.
As an example: Most cruise ship crews also have to pay 0 tax on they income, as they are technically not working in a specific country. On the other side hotel staff on land might pay a very high tax. Why? Because national and international laws allowing for it. One again, the Blue Estate does not make the rules, we only play by them.
How will life be organized in the seaside town of TBE? Who and from what financial sources will provide services on the island when there are zero taxes?
There are far more and better sources than imposing taxes on residents. There are numerous examples on land already. We can’t disclose the Blue Estates business model publicly.
Who will manage (ie, administer) the sea city of TBE? Will there be elections here?
he Blue Estate Group (Blue Asset Management Holding Ltd.) will coordinate and provide all essential services, utilities and works that are needed to safely maintain the community and provide the residents with the amenities outlined by our website. Despite that, we welcome every individual or company to open its business on the Blue Estate and provide its products or services to the community. There will be no ‘parties’ or ‘representatives’ to be voted in or out. In its essence, the Blue Estate will be more comparable to a company than to a country.
Tthe Blue Estate promises to guarantee its citizens:
- The right to work
- The right to an adequate standard of living
- The right to physical and mental health
- The right to social security
- The right to a healthy environment
- The right to education
But, the right to work (ie work duty …) was also ensured by communist totalitarian governments in the countries of the former Soviet bloc. Are you not afraid that because of the right to work, someone can create a connection with the communist totalitarian system?
These are basic human rights that we included in our community guidelines. We think there is a very crucial difference between: ’the right too… and ’the duty to…’. Wouldn’t you agree? As mentioned before the Blue Estate does not imply any political statement or movement of any kind, we embrace and emphasize individual freedom and equality.
How do you want to guarantee the right to health to sick people, for example? Only demonstrably healthy people who are unlikely to be more seriously ill will be able to buy apartments in the TBE project…?
The ‘Right to health‘ implies that residents of the Blue Estate will be provided with affordable Health Care and health insurance. Should a resident out of an emergency not be able to afford an urgent treatment, it will be provided regardless of his/her inability to immediately pay for it.