The Vanuatu passport program is by far the most expedient and economical citizenship by investment option in the Eastern Hemisphere. These are tremendous advantages, especially for those who wish to maintain ties in the Asia Pacific Region. However, these Vanuatu passport benefits also include additional distinct advantages which the competing Caribbean and European programs do not offer.
Indeed, global access and mobility are expected for those who purchase a second passport. This freedom of movement applies not only to the passport holders but also their assets. Furthermore, today’s solution is not necessarily going to be effective against tomorrow’s problem. Therefore, your choice for a second passport should include a complete tool kit, not just a one time cure.
Choosing Your Second Passport
Wise investors will choose their second passport while looking to the future. Considerations must include the possibility of living in the country, starting a business, tax considerations, diverse business opportunity, international banking and a healthy natural environment.
Here is a list of the most compelling Vanuatu passport benefits. These time tested benefits give you the global access and security that you need for today, plus the flexibility that you need for tomorrow.
Vanuatu Citizens Pay No Income Tax
Vanuatu is the only country in the world that does not have any personal income tax, corporate income tax, inheritance tax, investment tax or capital gains tax. This applies to businesses, citizens, residents and non-residents alike. Additionally, no income tax is not just a marketing advantage for the Vanuatu passport program, the fact of the matter is that Vanuatu has never had any form of income tax!
Competing citizenship investment programs in the Caribbean do not have tax on international income. However, if you reside in the country you do indeed pay income tax, as high as 28% and more (see Grenada). This applies to both businesses and individuals.
Furthermore, European countries such as Greece are now demanding tax from resident investors on international income! Investors should expect more European countries to follow suit.
However, this is simply not going to happen in Vanuatu. Vanuatu passport benefits include no income tax, plain and simple with no hidden caveats. Indeed, Vanuatu’s politicians have debated for many years about implementing an income tax. But the fact of the matter is that it has gained no political traction.
To be clear, Vanuatu does charge VAT and customs tax to keep the lights on at the government offices. However, with the government’s surplus revenues coming from the increasingly successful Vanuatu passport program, the chance of ever implementing an income tax is more remote than ever before.
Vanuatu Passport Visa Free Travel
In 2020, the Vanuatu passport ranking was 40th on the Henley & Partners Global Passport Index. The high ranking is based on visa free travel for Vanuatu citizens (including eVisa and visa on arrival) permitted in 130 countries. Vanuatu passport benefits include visa free access to all of the EU, Schengen area, Hong Kong, Singapore, Russia and India.
Furthermore, the Vanuatu passport has strong visa free access to all of SE Asia and East Africa. Also, Vanuatu citizens are eligible for an extended travel visa in Australia (up to 12 months).
Relatively speaking, Vanuatu is a small country. However, citizens of Vanuatu are welcomed worldwide into countries which are much more restrictive towards the citizens of more powerful countries such as China, Russia and India. Indeed, Vanuatu passport benefits include some of the best visa free travel options worldwide.
Vanuatu’s Unique Flora and Fauna
Vanuatu is a archipelago consisting of 83 islands of volcanic origin. The volcanic geology created many hidden caves and empty lava tubes both on land and underwater.
Additionally, the natural landscape of Vanuatu includes a phenomenon called blue holes which are natural fresh water springs that flow through underground passageways from high mountains to form hidden crystal clear blue swimming holes around the islands.
Enjoy scuba diving and snorkeling over colorful coral reefs in crystal clear water. Or walk through the powdery sand on the secluded Champagne beach on the island of Espiritu Santo or spend the day deep sea fishing.
Vanuatu offers investors the unique opportunity to purchase private islands, invest in agricultural land and also buy into the local tourism industry.
Furthermore, Vanuatu has nine active volcanoes, some of which are accessible to visitors. For example, two live volcanoes – Mt Marum and Mt Benbow – on the Island of Ambrym attract trekkers from around the world to view the lava lakes inside their volcanic craters. Additionally, Ambrym is known as the “black island” for the extensive ash plains covering its interior.
Vanuatu Business Advantages
Since 1972, Vanuatu has offered an established offshore banking system including the presence of international banks and easy account opening procedures. Additionally, Vanuatu offers unique financial solutions to investors such as the Vanuatu Security Dealers and Forex License.
The Vanuatu legal system is based on English Common Law and the country has a stable political and economic environment. Also, Vanuatu is in compliance with international regulations and maintains their status on the OECD “white list”.
Vanuatu has no corporate income tax. However, business advantages also include no withholding taxes, no currency exchange controls, no tax treaties, no audit requirements or annual filing requirements.
The formation of onshore and offshore businesses is complimented by excellent communication systems and experienced local service providers. Company formation is a simple straight forward process. There is no requirement for company secretary or holding company meetings and the company financial documents can be kept anywhere in the world.
Indeed, Vanuatu has the world’s most stringent secrecy laws for company executives and shareholders. As a result, their identities are kept strictly confidential.
Vanuatu Passport Cost and Fast Approval
The Vanuatu passport offers a world class streamlined approval process. For example, the Vanuatu passport application is only three pages long for a single applicant. This compares to the 10-15 page application which is required the Caribbean programs. No doubt, eliminating redundancies saves investors valuable time and improves transparency.
However, Vanuatu citizenship by investment also provides a fast and easy two step approval process. Second to none, investors can complete the approval and receive their passports in less than 60 days.
In contrast, the Caribbean programs take a minimum of 4-5 months to process. Additionally, where available, accelerated approval in the Caribbean costs an additional US$25,000 for the main applicant plus US$20,000 for each dependent.
This expense is on top of the investment amount plus additional government fees. Nonetheless, Caribbean applicants should still expect to wait 60 days for their passports, even after paying thousands of dollars for accelerated approval.
Furthermore, the Caribbean due diligence fee is a minimum US$7,500 for main applicants plus all dependents over 16 years pay US$4,000 each for due diligence.
Vanuatu only requires the investment amount plus a single payment for due diligence which only applies to the main applicant, all other expenses and fees are included. This creates a huge cost advantage for Vanuatu citizenship applicants.
|Applicant Categories||Vanuatu Passport Cost (All Inclusive)|
|Married with One Child (under 18 years of age)||$165,000|
|Married with Two Children (under 18 years of age)||$180,000|
|FIU Due Diligence Fee (main applicant only)||$8,000|
*Note: Family members on the application can include the spouse, children below 18, dependent children to age 25 and dependent parents.