In early 2022, a Vanuatu passport provided its citizens with visa-free access to more than 130 countries, including all Schengen Area states, the United Kingdom, and Ireland.

Currently, Vanuatu citizens are required to obtain a Schengen visa for travel to European Union countries, as well as a British national visa, as the possibility of visa-free travel to these destinations has been suspended.

In this article, we examine what happened, what the current situation is, and what advantages a Vanuatu passport still provides even in the absence of a visa-free regime with Schengen. We will also discuss how the country’s government is working to restore visa-free travel with EU countries and the United Kingdom.

Background On January 12, 2022, the European Commission published a press release proposing to partially suspend the visa-waiver agreement with the Republic of Vanuatu.

The Commission expressed concerns about the risks that Vanuatu’s citizenship by investment program poses to the security of the European Union.

In particular, doubts were raised about the short timeframes and high approval rates for applications, which in turn indicated a low level of reliability in the due diligence checks conducted. The Commission was also concerned that the program allowed the participation of foreigners listed in Interpol databases and citizens of countries that are usually excluded from the list of potential participants in similar programs.

Ultimately, in the Commission’s view, newly-minted holders of Vanuatu passports could, for a relatively small financial contribution, avoid the standard checks preceding the issuance of Schengen visas. In March, the visa-waiver agreement was partially suspended.

In early May 2022, the Commission again approached the Government of Vanuatu, stating that if the requirements were not met and appropriate changes were not made to the program’s conditions and the work of the relevant services, the restriction could be extended for another 18 months.

In July 2023, the United Kingdom joined the European Union’s decision and banned visa-free entry for citizens of Vanuatu and a number of other countries.

In November, stating in another press release about the lack of progress in rectifying the situation, the Council of the EU fully stopped the visa-waiver regime for all holders of Vanuatu passports.

Thus, this is no longer just about risks and the security of European Union countries: such actions can be seen as pressure on a country that has not met the EU’s requirements regarding changes to the conditions of its citizenship by investment program (CBI).

The next deadline is set for August 3, 2024. Vanuatu’s citizenship by investment program plays a very significant role in the state budget: in the first quarter of 2022 alone, it attracted more than $23 billion in foreign funds to the state budget, covering about 40% of government spending.

How is the Government of Vanuatu working to restore visa-free travel? Naturally, Vanuatu is interested in maintaining the popularity of the program and, as a result, in meeting the EU’s requirements. At present, the new government has come a long way towards resuming cooperation with the EU.

The staff of the Vanuatu Citizenship Commission has been completely renewed, the necessary checks have been completed at the Ministry of Finance, and even some amendments have been made to the Vanuatu Citizenship Act. An audit of the work of the services conducting due diligence checks on applicants has been carried out, and repeat checks have even affected already issued passports and approved applications.

The working schemes of licensed agents of the program have also been updated.

Next in line are issues related to deepening the due diligence procedure, minimum entry thresholds, and possible restrictions for citizens of some countries on sanctions lists.

Vanuatu Passport: Other Advantages Despite the temporary suspension of the visa-free regime with EU countries, a Vanuatu passport still offers an impressive list of advantages.

Firstly, as of today, Vanuatu’s citizenship by investment program is the fastest in the world: a passport can be obtained within 2-5 months from the date of application. Moreover, the entire procedure can be carried out remotely: there is no need to visit the islands in the Pacific Ocean to obtain a passport. Furthermore, Vanuatu does not require disclosing the source of funds for participation in the program.

Secondly, the cost of participating in the program is still one of the lowest in the world: under the main option, a single applicant needs to invest $130,000 (For a family of two, the amount is $150,000; for three people, $165,000; for four, $180,000). In comparison, similar programs in the Caribbean countries will raise the minimum entry threshold to $200,000 as of June 2024.

In March 2024, another citizenship option was implemented – investment in the cocoa production fund. According to the terms, an investor, their spouse, and one or two children can obtain passports for a total investment of $150,000, which will allow significant savings when adding family members to the application.

Thirdly, Vanuatu is still accepting applications from foreigners holding Russian and Belarusian passports. It should be noted that the Caribbean countries suspended the acceptance of new applications from Russian and Belarusian citizens in 2023, and St. Kitts and Nevis even froze applications that had already been submitted. Essentially, the citizenship programs of Vanuatu and Turkey are the only alternatives available to holders of Russian passports.

Fourthly, a Vanuatu passport allows travel to a large number of countries without obtaining visas – more than 90 countries. Moreover, obtaining a Schengen visa with a Vanuatu passport is much easier than with a Russian one: neutral citizenship does not raise suspicions and does not lead to rejections, as a Russian passport does, with which obtaining a visa to the EU is becoming increasingly difficult.

Finally, holders of a neutral passport have the opportunity to participate in European immigration programs closed to Russian and Belarusian citizens – for example, to obtain a “golden visa” in Greece. Participation in the Portugal residency program with an alternative passport is also a faster and lower-risk process than with only Russian citizenship. Thus, Vanuatu citizenship will be the first step towards obtaining EU residency status, which in turn, along with visa-free travel to Schengen, will open up a multitude of other advantages.

In the current realities, a passport of a neutral country is perceived not only as an opportunity for free travel. First and foremost, it is a guarantee of personal security and confidence in the future, a reliable backup option in case of new economic and political upheavals, and an effective step towards solving many other tasks.

Astons is the largest trusted agent for Vanuatu’s citizenship by investment program. Contact our experts for a free consultation!