Vanuatu citizenship for bitcoin: how to get a second passport as a crypto investor

Vanuatu doesn’t allow obtaining citizenship by investing cryptocurrency directly, meaning no one can get a Vanuatu passport by investing bitcoins.

Since 2017, several news reports have stated that Vanuatu has started accepting crypto in its citizenship by investment program. While the news keeps spreading from time to time, it has never been true.

The statement on the Vanuatu government website clearly says that the country doesn’t recognise and will not accept any payments made by the cryptocurrency as an investment for citizenship. The only accepted currency, in this case, is the US dollar.

That being said, crypto entrepreneurs can still benefit from the citizenship by investment program of Vanuatu.

The Financial Dealers Licencing (Amendment) Act No. 9 of 2021 describes the term “digital assets” as “an immaterial asset in digital form stored on a distributed ledger technology (such as blockchain) and representing a set of rights and values”. It also mentions that digital assets are to be managed by licensed managers.

The country allows digital asset distribution, resale, and custody. This means that investors for citizenship can use digital assets to prove the legality of income and money for the investment. Note that the legitimacy of cryptocurrencies’ origin still has to be confirmed.

But for the investment itself, one can use only fiat money — the cryptocurrency has to be sold for US dollars.

As said above, one cannot obtain a Vanuatu passport by investing bitcoins, other cryptocurrencies, or any digital asset directly. To be able to invest in citizenship, first, you need to cash out your coins. Here are a couple of tips to help you through this process.

Investing cryptocurrency in second citizenship: myths and facts

Make sure to exchange cryptocurrency in a regulated marketplace. This will make it easier to prove the legality of the source of funds. For instance, one can use US or Swiss stock exchanges, as well as those of Vanuatu. Not that you might need to have a bank account in the country of exchange to be able to cash out your money.

Consider moving your digital assets to an agent licensed by the Government of Vanuatu. This will cut the list of documents you need to prepare for the citizenship application.

Pay all taxes on time. When exchanging your crypto, make sure to pay all taxes on the transaction fully and on time. The tax rate depends on the laws of the country you run the trade in.

Apply for citizenship by investment program. The process will take at least one month.

Digital assets can be used as proof of legal income for Vanuatu citizenship by investment program. However, this doesn’t mean that one doesn’t need to prove the legality of the origin of the funds.

Vanuatu allows the circulation of cryptocurrencies, including for the citizenship program

To pass the Due Diligence, the investor has to provide documents stating the source of money the crypto was bought for, as well as the recipient of the crypto during the final exchange. That being said, here are a couple of tips to help you prove the legality of your crypto.

✔️ Contact a lawyer who specialises in crypto transactions. If you’re unsure you can prove your transactions’ legality, contacting a special cryptocurrency and blockchain lawyer might help.

✔️ Start a business using the money from a cryptocurrency exchange. This is a longer path for those who are not confident in their former crypto deals. Starting a business and bringing it to the point where it brings enough income to participate in the Vanuatu citizenship by investment program will take a bitcoin owner at least a couple of years.

On the other hand, this will provide the investor with a transparent and valid income source that a Vanuatu migration officer will likely accept.

✔️ Make sure you haven’t made any illegal transactions. Coins stolen from trading floors, received from an illegal deal or traded on a non-regulated market won’t be valid to prove your income.

Learn the benefits, conditions and specifics of the Vanuatu investment program

While there’s no such thing as a “Vanuatu crypto passport”, this Pacific country still offers quite some benefits to investors holding bitcoins and other electronic currencies.

Travel opportunities. The Vanuatu passport allows visa-free entry to 95 countries, including Hong Kong, Singapore, the UK, Ireland and Peru. Aside from that, citizens of Vanuatu can get a 5-year US visa that allows multiple entries.

Rights and obligations of Vanuatu passport holders

No requirements to reside in Vanuatu. Unlike many other ways to obtain second citizenship or residence, there’s no need to reside in the country for any time. The investor will obtain and keep their status even if they don’t spend a single day in Vanuatu.

Heavenly place as a safe haven. Naturally, citizens of Vanuatu can visit the country or move here any time and stay here for as long as they wish.

Vanuatu is a beautiful country of 13 principles and dozens of smaller islands in the South Pacific Ocean. It boasts pristine nature, beautiful mountains, palm-fringed beaches and mysterious blue holes — deep underwater caves.

No requirements to learn the language of the country. Vanuatu citizenship by investment program doesn’t require participants to learn any languages. Neither does it oblige investors to pass an exam on culture or government structure, which is the case when obtaining citizenship by naturalisation after joining the investment program in many other countries.

Vanuatu has three official languages — English, French, and Bislama, an English-based creole language. Knowing English or French will be enough to travel or live in Vanuatu comfortably.

Tax benefits. Vanuatu doesn’t tax its residents’ income, wealth, capital gains, dividends and interest. This means that once an investor becomes a tax resident of Vanuatu, they will pay 0% taxes, including those for crypto exchanges.

Everything you need to know about taxes in Vanuatu

To become a tax resident of Vanuatu, one must spend at least 183 days a year within the country.

Business opportunities. Tax benefits are also applicable to business owners in Vanuatu. Companies registered in Vanuatu and International Business Companies are exempt from tax for 20 years — their yearly payment to the Vanuatu budget has to be only $300.

Fast passport obtainment. Vanuatu citizenship by investment program offers the fastest way to obtain a second citizenship. It is your way to go if you want a secure passport ASAP. It usually takes around 1—3 months to become a Vanuatu citizen, while the process will take around half a year in Caribbean countries and at least 3—4 months in European countries.

The investor’s close family members are also eligible for citizenship under the same investment. Here’s the list of relatives who can also become citizens of Vanuatu:

• the investor’s spouse of the opposite sex;

• children under 25 years old who are dependent on the investor;

• parents over 65 years old.

The price of the investment changes depending on the number of people applying for citizenship. A married couple will have to contribute $150,000. For each child or parent, an extra $15,000 will be added to the total investment price.

The citizen status can be passed through to descendants. Future children and grandchildren of the investor can also become citizens of Vanuatu if they want to — without making any investments.