For many people, the only time they have heard about the country of Vanuatu is when it was home to the ninth season of “Survivor”. However, this remarkable archipelago located 1000 miles off Australia’s north coast is a unique locale for obtaining a second citizenship.
Vanuatu is known for its citizenship program that offers investors and their families a pathway to a second passport, access to over 90 countries, and attractive tax benefits. With investments starting at $130,000, it’s not just a route to citizenship—it’s a step towards a financially savvy future.
Key Takeaways
- The Vanuatu Citizenship by Investment Program offers a quick route to citizenship with options like real estate investment or contributions to the Development Support Program, providing tax advantages and dual citizenship without the need for residing in the country.
- Financial contributions to the program are utilized for national development, with investment opportunities offering flexibility and potential returns.
- Vanuatu citizenship grants extensive benefits, such as visa-free access to over 90 countries, a tax-free regime on global income and inheritance, and the inclusion of family members.
Understanding Vanuatu’s Citizenship by Investment Program
The Vanuatu Citizenship by Investment Program, also known as the Development Support Programme (DSP), provides a fast and secure route for investors to acquire a second passport. This program offers a number of unique features:
- The only citizenship by investment initiative in the Asia-Pacific Hemisphere
- Swift processing times
- Inclusion in the Commonwealth
- Official language in Vanuatu is English
The Vanuatu Citizenship by Investment Program also presents a range of investment paths for potential citizens, each equipped with distinct benefits. The application process is strictly confidential, ensuring your privacy is maintained throughout. If you are of good character and have passed the due diligence formalities, your Vanuatu citizenship won’t take long.
The Allure of Vanuatu
Vanuatu is a beautiful country in the South Pacific Ocean that is more than just a tourist destination. Its natural beauty, rich cultural heritage, and relaxed pace of life make it a true paradise for its citizens. It has a warm tropical climate that’s constant throughout the year and a very laid-back lifestyle.
There are other advantages to Vanuatu citizenship that include access to Commonwealth Scholarships and the fact that it is a safe haven in times of economic instability or political unrest. The country’s emphasis on natural disaster preparedness means that you can rest assured knowing that the government has measures in place to protect its citizens.
Key Benefits for Investors
Vanuatu citizenship delivers numerous advantages including significant tax advantages. There is no personal income tax, inheritance tax, or corporate tax. The Vanuatu government allows dual citizenship. This means you can hold onto your original nationality while enjoying the benefits of being a Vanuatu citizen.
Additional financial advantages such as minimal taxes on imports, exports, and real estate can enhance your asset management opportunities.
Pathway to a Second Passport: The Investment Options
There are a number of investment opportunities available to you through the capital investment immigration plan. The program provides several options, each packed with unique benefits. Some of the investment options available include:
- Real estate investment
- Contribution to the Development Support Program
- Investment in a local business
- Investment in government bonds
These options provide flexibility and the potential for significant returns on investment.
More precisely, there are several options available for obtaining Vanuatu citizenship:
- Development Support Programme (DSP): Investors can contribute to a government fund for obtaining citizenship.
- Real Estate Option (REO): Introduced in 2021, this pathway allows citizenship through investment in real estate.
- Issuing Government Bonds Option (IGBO): Investors can contribute to citizenship through bond issuance.
Financial Commitment Breakdown
It is important to fully understand the financial commitment that is required to become a citizen. For a single applicant, a non-refundable donation of $130,000 is required under the Citizenship by Investment Program. If you want to include your family of up to four members, the investment threshold increases to $180,000, along with additional fees.
To ensure the financial credibility of its applicants, the Vanuatu government requires proof of a bank account balance of no less than $250,000. You are also required to demonstrate the capability to meet the investment contribution, providing assurance of your financial stability. Once these criteria are met, your application will be on its way.
Investment Allocation
The funds from investors in the Citizenship by Investment program are channeled into a government fund. This fund is responsible for national development and supports local initiatives, ensuring that your investment contributes to the betterment of Vanuatu.
The Vanuatu Development Support Program, which now facilitates citizenship by investment, was initiated after Tropical Cyclone Pam. It replaced the former Economic Citizenship Program, demonstrating the government’s commitment to directing funds toward the development and recovery of the nation. In other words, your donation is an investment in the country as well as your future.
The Application Journey: Steps to Obtain Vanuatu Citizenship
The journey to gain Vanuatu citizenship takes between 30 and 60 days, and a visit to the country is not even required.
The procedure for obtaining Vanuatu citizenship includes the following steps:
- Pre-approval from the Vanuatu Government
- Preparation of citizenship documentation
- Completion of due diligence checks
- Oath Swearing Ceremony
Once pre-approved, you will be assisted with the preparation of citizenship documentation, including your citizenship certificate. If all due diligence checks are passed, there is a 99% chance of passport issuance. The Oath Swearing Ceremony is the final process that symbolizes full citizenship.
Most of the application can be managed online, but paper versions of certain documents are required, and a physical oath ceremony is a necessary step to complete the citizenship process.
Preliminary Checks and Documentation
During the application process, Vanuatu’s Financial Intelligence Unit conducts thorough background checks on applicants. This includes international database checks, ensuring that applicants are of good character and have a clean criminal record.
Applicants are also required to demonstrate financial stability. This includes providing proof of a bank account balance of no less than $250,000 and assets worth at least $450,000. A clean criminal record and submission of a police clearance certificate are essential documents to gain the privilege of Vanuatu citizenship.
Submission and Due Diligence
After the initial checks, the process moves on to the submission and due diligence phase. This is performed by the Financial Intelligence Unit, which conducts thorough background checks on the applicants.
The costs associated with due diligence are incorporated into the overall investment required for the program. It is worth noting that in 2024, the due diligence process will be enhanced to include additional background checks.
Family Inclusion
As an investor, you have the opportunity to include your family members in your citizenship application. Family members that are included are:
- Your spouse
- Dependent children up to age 30
- Parents aged 50 or above
- Step-children
Siblings and in-laws are not eligible to be included in the application. For each dependent added to your application, there is an additional cost of $25,000.
Adding Dependents Post-Citizenship
The program allows for the addition of dependents to the primary investor’s citizenship after it has been obtained. For each additional dependent, a standard fee of $15,000 is required.
For families with more than four [people, an additional fee of $25,000 is applicable for each extra applicant when adding them under the Citizenship by Donation program.
Living the Vanuatu Lifestyle: Rights and Privileges of Citizens
Citizenship in Vanuatu grants a distinctive array of privileges. Beyond the scenic beauty and relaxed lifestyle, Vanuatu offers its citizens a wealth of opportunities and advantages. Ranked as the ‘Happiest Place in the World’ for over a decade, the Vanuatu lifestyle is recognized internationally as highly desirable.
Vanuatu citizens also enjoy the privilege of accessing offshore financial services and owning international business companies. This provides a vast array of opportunities for business growth and wealth generation.
Global Mobility
Global mobility is another major advantage of holding Vanuatu citizenship. As a citizen, you get visa-free or visa-on-arrival access to over 90 countries worldwide. This includes Commonwealth countries, too.
Vanuatu passport holders also enjoy the following privileges:
- Fast-track processing in Commonwealth countries
- Visa-free entry to the United Kingdom
- Eligibility for a five-year multiple-entry tourist visa to the USA, granting stays of up to 180 days per year
Economic Freedoms
Vanuatu’s tax system offers significant perks for its citizens, particularly in global wealth management and asset protection strategies such as:
- No taxes on global income
- No taxes on wealth
- No capital gains tax
- No taxes on inheritance
- No taxes on dividends
- No taxes on interest
- No taxes on stock
In order to realize these benefits, a citizen must become a tax resident, requiring them to reside in the country for a minimum of 183 days per year. Even with the adherence to the Common Reporting Standard (CRS), Vanuatu still offers tax residents a degree of financial privacy.
Investors can engage in numerous business opportunities bolstered by Vanuatu’s politically stable environment conducive to economic growth. For individuals with international businesses, holding a Vanuatu passport means benefiting from fast-track processing in Commonwealth countries and visa-free entry to the United Kingdom.
Corporations in Vanuatu are required to pay an annual fee of $300, which replaces corporate income tax, offering a clear financial incentive for business investments.
Vanuatu Recognizes Dual Citizenship: Retain Your Roots
For many people, the idea of giving up their home citizenship is something they don’t want to do. Vanuatu recognizes dual citizenship which is a unique aspect of Vanuatu’s Citizenship by Investment Program. This is a huge advantage for investors, as it allows them to maintain their original nationality while also enjoying the benefits of Vanuatu citizenship.
By allowing dual citizenship, the Vanuatu government recognizes the importance of personal identity and heritage, while also opening up a world of opportunities for investors.
Legal Framework
The legal framework supporting dual citizenship in Vanuatu is established by Regulation Order No. 215, effective from January 1, 2017. This law lays the groundwork for the Citizenship by Investment program, ensuring its legitimacy and adherence to international standards.
Through this legal framework, Vanuatu welcomes the concept of dual citizenship, making it an attractive destination for investors worldwide.
Financial Perspective: Taxation and Wealth Management
Vanuatu’s advantageous tax policies make it the ideal destination for effective asset management. International Business Companies (IBC) registered in Vanuatu can take advantage of a 20-year tax exemption. This makes the tax residency status in Vanuatu very beneficial for those who travel a lot.
Summary
Your journey to Vanuatu citizenship is a unique opportunity that offers immense benefits. From the relaxed lifestyle and beautiful landscapes of Vanuatu to the significant tax advantages and global mobility offered by its Citizenship by Investment Program, this is a citizenship worth pursuing.
By offering family inclusion as well as dual citizenship, Vanuatu has shown its inclusion and diversity are important to its overall way of life.
With Vanuatu Citizenship by Investment, you’re not just investing in a second passport — you’re investing in a lifestyle, a future, and a world of opportunities.
Frequently Asked Questions
What makes the Vanuatu Citizenship by Investment Program unique?
The Vanuatu Citizenship by Investment Program is the only program of its kind in the Asia-Pacific Hemisphere, boasting fast processing, confidentiality, and various investment options for potential citizens.
Who is eligible to be included in the Vanuatu citizenship application?
You can include your spouse, dependent children up to age 30, parents aged 50 or above, and step-children in your Vanuatu citizenship application. Siblings and in-laws cannot be included.
What is the financial commitment required for a single applicant and a family of four?
The financial commitment for a single applicant is a non-refundable donation of $130,000. For a family of four, it increases to $180,000, plus other fees. These amounts are required for the immigration process.
What are the tax advantages of Vanuatu citizenship?
Vanuatu citizenship offers significant tax advantages, such as no taxes on global income, wealth, capital gains, inheritance, dividends, interest, and stock.
What global mobility privileges do Vanuatu citizens enjoy?
Vanuatu citizens enjoy visa-free or visa-on-arrival access to over 90 countries worldwide, fast-track processing in Commonwealth countries, and visa-free entry to the United Kingdom.
