The state of Vanuatu is located on the New Hebrides archipelago, consisting of more than 80 islands in the Pacific Ocean that form the country.
Until 2017, the main sources of the islands’ budget were agriculture and tourism. In 2017, Vanuatu became the only state in Oceania to launch a citizenship by investment program. It became the largest source of funding and helped attract investors from all over the world to the little-known agricultural country.
We explain the advantages of a second passport from the Pacific state and the requirements an investor must meet.
How does the Vanuatu citizenship by investment program work?
The citizenship by investment program was launched with the goal of forming a state fund, created for the restoration of infrastructure after hurricanes and natural disasters.
Initially, investors had access to a single option – a non-refundable contribution to the state fund, or the DSP immigration scheme – the “Vanuatu Citizenship Support Program”. Over the course of a few years, the terms of the program changed, and applicants were offered additional investment options, but the first option is still one of the most popular among investors. Some of the options offered by the government remained in the format of unrealized projects: for example, the purchase of government bonds or the acquisition of real estate on the local market.
Vanuatu Citizenship Support Program (DSP)
The amount of the mandatory non-refundable contribution to the infrastructure recovery fund starts from $130,000 for the main applicant. Family members join the application for additional investments, but for each child, spouse, and parents, you will have to pay much less than for the main applicant.
$150,000 – for a family couple;
$165,000 – for a family couple with one child;
$180,000 – for a family couple with two children.
+ $15,000 – contribution for an additional family member.
Additionally, the investor will need to pay $5,500 for the due diligence check by the FIU.
Capital Investment Immigration Plan (CIIP) – Cacao Development Fund
A new option that is well-suited for families with children. It involves making a non-refundable contribution to a fund that stimulates cocoa production on the islands. The investment amount for the main applicant and a family of 2-4 people is the same and is $150,000. Additionally, the investor will need to pay $5,500 for the due diligence check.
There is no return on investment. The surcharge for the fifth or subsequent family members is $25,000. For additional participants (up to the fifth), no surcharge is required.
Coconut Oil Production Investment Fund (CIIP) – CNO Future Fund.
This option was launched relatively recently, in November 2023, and is aimed at supporting the sustainable development of the archipelago. Investments in the fund, which develops the production of coconut oil, will require investments from $157,000 for one person or a family of 4 people.
However, the investor will not only have to transfer money but also register a legal entity. This complicates the procedure and may require additional reporting to the tax authorities in the country of first citizenship. The fund provides for the possibility of partially returning the investment five years after the investor obtains citizenship, but cannot currently guarantee the percentage (or even the fact) of the return of funds.
How does the process of acquiring citizenship work?
The investor goes through all stages of the procedure accompanied by a trusted immigration agent – this is a mandatory requirement of the government. Professional legal support minimizes the risk of delays due to errors in document processing.
Remote verification procedures have been thoroughly worked out over the years of the program’s existence, allowing the applicant to receive approval within strictly specified timeframes.
For over 30 years, Astons has strived for professionalism and high-quality service. We guarantee that each of our clients receives an individual approach and full support from experts and lawyers.
11 reasons to choose the Vanuatu citizenship by investment program:
- High speed. The time between submitting documents and passport delivery is from 3 months. In comparison, it can take foreigners up to a year to obtain a second passport in Turkey.
- Remote processing. Checks do not require the applicant to travel to Vanuatu. The passport can be obtained without personal presence in the country.
- Free choice of residence. After obtaining citizenship, there are no requirements for the frequency of visiting the country and length of stay. Citizen status is maintained regardless of the investor’s family’s permanent residence and regularity of presence on the archipelago.
- Protection from loss of money. The investor transfers 75% of the contribution amount to the state fund only after receiving approval for the citizenship application. There is no need to disclose the source of funds. This gives the investor greater freedom. Profits from investments or cryptocurrency transactions can become legitimate income for participation in the program. However, cryptocurrency cannot be used to directly pay the contribution to the state or private fund.
- Possibility of retaining multiple citizenships.
- Expansion of the list of “golden visa” programs. Vanuatu citizens are eligible for a 5-year Greek residency permit by purchasing real estate.
- Equal rights with citizens by birth or naturalization. Until 2019, investors could not hold public office or be elected to government bodies. This ban has now been lifted. A passport obtained through investment is no different from documents issued by birth or naturalization. There are no markings on the pages or cover indicating the reasons for issuance.
- Expansion of the list of visa-free countries. With a Vanuatu passport, it is easier to obtain tourist visas to countries known for their strict entry requirements. The United States offers island residents 5-year tourist visas, and Australia offers one-year visas. More than 90 countries allow entry without a visa or allow staying without one. 93 countries, including Israel and Singapore, allow Vanuatu citizens to enter without visas.
- For a long time, the Vanuatu passport also granted visa-free entry to the EU and the United Kingdom. Its validity has now been suspended, but the island government is actively working on restoring it.
- Low tax burden. Individuals, regardless of their length of stay on the islands, do not pay taxes on income, owned real estate, inheritance, gifts, or luxury items. Mandatory fees include a percentage of income from renting out real estate, as well as duties when purchasing, selling, or executing lease agreements.
The tax burden on businesses is also minimal. For international companies first registered on the islands, there is a preferential tax regime. It provides for a fixed mandatory payment of $300 per year, regardless of income in the country and abroad.
Requirements for Applicants for the Vanuatu Program
- Age – from 18 to 65 years old.
- Good standing. Convictions for serious crimes, being wanted, or on a sanctions list in any country or by the UN are not permitted.
- Applicants must also show proof of funds or assets of at least $250,000.
These are the requirements for the main applicant. They can add the following to their application:
- Spouse, with whom they are in a registered marriage;
- Children from previous or current marriages – both their own and their spouse’s. Minor children or children up to 25 years old can be added to the application if they are not married and financially dependent on the investor, for example, if the investor pays for their university education;
- Parents, grandparents – from the age of 50, the investor must show that they are the main source of their financial support.
The amount of the contribution to the state fund depends on the number of adult and minor family members.
How to Become a Vanuatu Citizen in 2024: Main Stages
1. Consultation at Astons
Our specialists will review your family’s case and calculate the amount of the contribution, taking into account the number of applicants, and answer questions about cost formation, timeframes, and stages.
Next, a legal support contract is concluded, and a rapid internal document check is conducted to assess the risk of rejection.
All applicants who passed our internal due diligence later received approval.
2. Submitting the Application
Applicants receive approval in two stages. In the first stage, the investor undergoes a preliminary check from the Vanuatu Financial Intelligence Unit.
The applicant must pay a fee of $5,500 for a comprehensive due diligence check, regardless of the number of family members. The amount of additional fees and charges depends on the option chosen.
3. Preparation of the Main Document Package
If the government approves participation in the program, our specialists begin preparing the documents for the investor and accompanying applicants.
4. Money Transfer
For the documents to be accepted for further consideration, it is necessary to transfer 25% of the calculated contribution amount. The rest is transferred only after a positive response from the government. The investor will have 10 days for the final payment.
5. Oath of Allegiance
New citizens must take an oath of allegiance to the state. There is no need to travel to Vanuatu for this: the oath can be taken remotely.
6. Receiving the Passport
The completed documents will be sent to any location in the world. The passport needs to be renewed every 10 years, but repeated checks and contributions are not required for this. There is also no need to visit the archipelago to renew the documents.
If you are interested in the Vanuatu citizenship by investment program, contact the specialists at Astons. Our experts will provide detailed information about the stages of the process and answer all your questions.