Vanuatu Citizenship Benefits
Vanuatu, a picturesque tropical island nation, offers not just a stunning landscape and rich cultural heritage but also significant benefits for investors seeking citizenship. With a high quality of life, a favorable business climate, and a peaceful, stable environment, Vanuatu provides a secure base for personal and business pursuits.
These factors, combined with its progressive citizenship by investment program, make it an attractive destination for savvy investors looking to expand their opportunities globally. This article explores the various benefits of Vanuatu citizenship and how to get it.
Key Takeaways
- The Vanuatu Passport offers various benefits, including dual citizenship, no residency requirements, access to 107 other countries, Commonwealth connectivity, and more.
- For investors, favorable tax and finance policies make doing business easier, and low costs make the potential for returns higher.
- There are three routes to Vanuatu citizenship by investment. Including investing in the Vanuatu Development Support Program, CNO Future Fund, and through an investment-government bond.
Four benefits of getting a Vanuatu passport
Vanuatu has been ranked one of the top 100 countries to live in, due to the many benefits it offers, including:
- Free living
Vanuatu allows for dual citizenship. This flexibility is crucial if you have business or personal interests in multiple countries, as it allows you to operate across different jurisdictions without having to give up your existing citizenship.
You are not required to live in Vanuatu to maintain your citizenship either, although you must visit the country to submit your biometric data.
- Global mobility
As a Vanuatu citizen, you can enjoy visa-free or visa-on-arrival access to over 107 countries and territories, including prominent destinations in Europe, Asia, and the Caribbean. Countries that offer this convenience include the United Kingdom, Singapore, Russia, and Hong Kong.
As a Commonwealth country, Vanuatu citizens have access to various Commonwealth benefits, including long-term visitor visas to Commonwealth countries such as Canada, Australia, and New Zealand. This provides an easier pathway for extended visits, whether for leisure, business, or academic purposes.
- Long-term security
Vanuatu is known for its political stability and peacefulness, providing a safe and secure environment for its citizens. Ranked as the second happiest place in the world by the Happy Planet Index, Vanuatu is a place where community well-being, a strong sense of social connection, and the natural environment contribute to an overall high quality of life.
A Vanuatu passport is also valid for ten years and can be easily renewed upon expiration.
- Tax-friendly
Vanuatu is a tax-friendly country, with no personal income tax, no capital gains tax, no inheritance tax, and no wealth tax. For example, the VAT rate in Vanuatu is 12,5%. These tax benefits are particularly attractive for both citizens and investors, providing financial freedom and the ability to grow wealth without significant tax burdens.
5 Benefits of getting citizenship in Vanuatu as an investor
Along with a favorable tax environment, the government of Vanuatu actively promotes economic development and foreign investment, creating a dynamic environment for business and financial growth.
- Ease of doing business
Vanuatu citizens can establish and expand cross-border banking and business entities. This supports entrepreneurs and investors in scaling their businesses internationally while leveraging the country’s favorable business environment and strategic location.
The country has been an international offshore finance center since 1972, providing a range of financial services, including offshore banking and company formation. The ease of setting up a business or opening a bank account is another benefit for Vanuatu citizens.
- No corporate tax
Investors can leverage Vanuatu’s favorable tax environment to establish international businesses (as long as it does not earn income from within the country). Companies can be exempt from corporate and other taxes for 20 years, and its shareholders can also enjoy tax-free profits, personal income, capital gains, inheritance, or donations.
- Transparency
Vanuatu’s Development Support Program (DSP) and Capital Investment Immigration Plan (CIIP) pricing structures are straightforward and transparent, ensuring investors know exactly what they are paying for. This eliminates hidden fees and unexpected costs.
- Low cost
There are three investment categories that lead to Vanuatu citizenship, starting at $130,000. These are significantly lower than other citizenship by investment program opportunities. This includes low-cost real estate options, from prime beachfront properties to entire islands for sale.
The country also provides advantageous deposit and lending rates because of low taxation, liberal exchange controls, and low reserve requirements for banks.
- Legacy planning
Vanuatu’s citizenship program includes the entire family, including your parents grandparents, and parents-in-law. Citizens and their children can also apply for Commonwealth scholarships to study in countries like the United Kingdom and Australia.
Investors who leverage these opportunities can see significant returns. Advising experts like Mirabello Consultancy can help you make your investments successful.
How to get citizenship by investment in Vanuatu
Vanuatu’s citizenship by investment program is one of the fastest in the world, with the process typically taking between one to four months. You don’t have to take language proficiency tests or history exams either.
It offers multiple avenues for investment, giving applicants the flexibility to choose the option that best suits their financial and personal goals.
- State fund
The most common route is making a non-refundable contribution of $130,000 or more to the Vanuatu Development Support Program (DSP). This contribution is directed toward supporting the country’s development, infrastructure, and recovery efforts, particularly in response to natural disasters like the Harold tropical cyclone. While the contribution does not generate any financial returns, it offers a straightforward and fast pathway to citizenship.
- CNO Future Fund
This option allows investors to support sustainability efforts through the CNO Future Fund, a holding company focused on promoting coconut oil production for use as a renewable energy source. Investors buy shares in the fund, which must be held for at least five years through a Vanuatu-registered international company.
The cost of incorporating the company is included in the investment option, and the estimated return on investment is up to 5% per year, potentially yielding $50,000 over five years.
- Government bond
Investors also have the opportunity to invest in government bonds issued by the Reserve Bank of Vanuatu. These bonds, denominated in Australian dollars, come with zero interest rates, but they provide a low-risk investment option.
The minimum investment amount varies depending on the bond’s maturity:
- AUD 180,000 (about $121,800) for bonds maturing in 24 months,
- AUD 170,000 (about $115,000) for bonds maturing in 30 months,
- AUD 150,000 (about $101,500) for bonds maturing in 36 months.
This option may appeal to investors seeking government-backed investments as part of their portfolio.
- Real Estate Option
You can purchase Vanuatu real estate in approved real estate projects for at least $200,000. These projects include Pacific Springs, Narpow Point Coral Bay, and FPF Rainbow City Project on Efate island, as well as Milai on Espiritu Santo island.
Mirabello Consultancy, which specialises in citizenship by investment solutions, can take you through the application process once you have picked an investment opportunity that best suits you.
Conclusion
Vanuatu citizenship offers a unique combination of personal freedom, global mobility, and financial advantages. Its tax-friendly policies, access to over 100 countries, and business opportunities make it an attractive option for both individuals and investors. With its fast and transparent Citizenship by Investment program, Vanuatu presents a compelling opportunity for those seeking to expand their horizons globally.
Mirabello Consultancy can guide you through the process to ensure a smooth and successful application, helping you unlock the many benefits of Vanuatu citizenship.
