Vanuatu citizenship by investment: a detailed guide

1. Quick processing time for citizenship applications. The processing time for applications ranges from 1 to 4 months.

2. Visa-free travel. The Vanuatu passport allows the holder to travel visa-free to 107 countries, including Hong Kong, Singapore, and Australia.

The Vanuatu passport also provides access to long-term B‑1/B‑2 Visitor Visas for the United States.

3. Attractive tax terms. Vanuatu has no taxes on worldwide income, dividends, wealth, or inheritance. Vanuatu citizenship also allows an investor to easily open accounts at European banks.

4. No residency requirements in Vanuatu. The applicant does not need to visit the island to obtain citizenship. Most Caribbean countries also do not have residency requirements for investors, apart from Antigua and Barbuda, where the applicant must spend at least 5 days over 5 years in the country.

5. Opportunity to return on investment. The CNO Future Fund investment option may offer an annual yield of 5%, making it possible to recoup $50,000 over 5 years.

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

Vanuatu accepts applications from investors over 18 with proof of funds of at least $250,000 or the equivalent in their bank accounts.

Applications aren’t accepted from individuals with a criminal record of serious crimes or those against whom a criminal case has been opened in any country. It also excludes those included on a national or international list of wanted persons.

Applicants must also provide a medical certificate. An application for citizenship may be rejected if the person is seriously ill.

The following family members can apply for citizenship together with the investor:

• a spouse;

• children of the applicant and their spouse or adopted children under 18;

• the investor’s unmarried children aged 18 to 25, provided they can prove they are financially dependent on the main applicant;

• parents over 50, provided they can prove they are financially dependent on the applicant.

Applicants obtain Vanuatu citizenship by contributing to the country’s development. The funds are allocated to support Vanuatu’s economy and combat natural disasters, such as the recovery efforts following Tropical Cyclone Harold.

The minimum contribution amount is $130,000 for a single investor, with the total price depending on the number of applicants. Besides, there is a Due Diligence fee and a banking fee for transferring the investment to Vanuatu.

The contribution is non-refundable and does not yield any income.

The investor purchases units in the CNO Future Fund holding company to support sustainability and enhance the production of coconut oil used as a clean, renewable energy source.

The investment must be retained for a minimum of 5 years through a Vanuatu-registered international company, with the incorporation cost included in the option fees. The total investment amount remains unchanged when adding up to four additional people to the application.

The projected return on investment is up to 5% annually, potentially returning $50,000 to the investor over 5 years.

The Reserve Bank of Vanuatu will issue 500 units of government bonds with zero interest rates, denominated in Australian dollars.

The minimum investment amount depends on the bond category:

• AUD 180,000+ — $122,000+ — for bonds maturing in 24 months;

• AUD 170,000+ — $115,000+ — for bonds maturing in 30 months;

• AUD 150,000+ — $101,500+ — for bonds maturing in 36 months.

Investors who choose this option will apply through the government-nominated Master Agent. No one has yet been appointed to this position.

In April 2019, the Vanuatu government issued an order to remove the designation of honorary citizenship from the naturalisation certificate.

The change was made because the distinction could be used to differentiate between those who became citizens by investment and natural-born citizens, as the honorary status does not allow holders to hold positions in government or participate in politics. This was the only feature distinguishing honorary citizenship in Vanuatu from ordinary citizenship of the country.

It remains unclear whether citizens by investment will be given the right to vote, as the Vanuatu government has yet to issue an official statement on this subject.

In the Caribbean, for example, citizens by investment are allowed to vote as long as they reside in the country. Whether the same practice will be introduced in Vanuatu remains to be seen.

Vanuatu has a 0% tax rate on income, wealth, inheritance, capital gains, corporations, export of capital, and profit on the stock exchange. Tax rates on the island are the same for residents and non-residents.

The state’s tax system was designed with foreign investors in mind, as 15% of Vanuatu’s GDP is generated by income earned by international companies. The government is committed to creating a favourable legal and business environment.

International Business Companies registered in Vanuatu are exempt from tax for 20 years. They only pay an annual fee of $300, which is due by June 30th.

Vanuatu charges a 0% corporate tax for investors who buy an established company on the island. The owners of companies must control the movement of capital, monitor foreign exchange transactions, and maintain company accounts.

However, there is no requirement to file reports with government agencies or to audit the company accounts.

Taxes on real estate transactions. The renter or buyer of a property must pay a stamp fee of 5% and a registration fee of 2% of the transaction amount.

The main tax rates in Vanuatu are the following:

• corporate tax — 0%;

• personal income tax — 0%;

• VAT — 15%;

• capital gains tax — 0%;

• withholding tax — 0%;

• foreign exchange control — none;

• government duty or stamp duty — $300—1,000.

Vanuatu restricts access to the financial information of companies registered in Vanuatu, as well as to business and personal information on the owners and beneficiaries. The information remains confidential under all circumstances, except when the company is involved in money laundering, fraud, or terrorism.

Countries with which Vanuatu has tax information exchange agreements include Australia, Denmark, the Faroe Islands, Finland, France, Greenland, Grenada, Iceland, Ireland, the Republic of Korea, New Zealand, Norway, San Marino, and Sweden.

Vanuatu is in the South Pacific archipelago, to the northeast of Australia. The country consists of 83 islands, 65 of which are inhabited. The length of the territory from north to south is 1,300 km.

The country gained independence in 1980, and its name was changed from New Hebrides to the Republic of Vanuatu.

Main facts about the country:

• capital and largest city — Port Vila;

• official languages — Bislama, French, English;

• population — 341,558;

• currency — Vanuatu Vatu, VUV;

• time zone VUT — UTC +11;

• traffic — on the right hand side of the road;

• telephone code — +678;

• close relations with Australia, Cook Islands, Marshall Islands, New Zealand, Niue, Papua New Guinea;

• difficult relations with Burma, Egypt, Iran, Libya, Somalia, Sudan, Syria.

Tourism accounts for 20% of Vanuatu’s GDP. In addition to tourism, the country is developing its agriculture and animal husbandry sectors.

For the past 10 years, Vanuatu has been ranked among the happiest places on the planet. There are no sources of pollution in the country, and therefore the water and air remain clean. Additionally, the crime rate in Vanuatu is low.

State structure. The Republic of Vanuatu is a parliamentary democracy with elections every four years. The Parliament of Vanuatu is unicameral and comprises 52 members. The leader of the main party in Parliament is selected as the prime minister and heads the Government.

The head of state, the president, is elected every five years by the Parliament and the presidents of the six provincial governments.

Languages. Vanuatu has three official languages: English, French, and Bislama — an English-based creole. The latter helps citizens who have studied English or French since childhood to communicate through a common language.

Bislama is spoken by 200,000 local citizens. The name of the local currency, vatu, means "stone" in Bislama.

Ethnicity of residents. The vast majority of the population, 98,5%, is made up of Melanesians, with Europeans, Asians, and Pacific Islanders making up the remaining 1,5%. Most of the locals live in the countryside.

95% of Vanuatu’s residents are Christians. The remaining 5% believe in the Cargo cult that originated on the islands during the Second World War.

Sport. Rugby and cricket are popular in Vanuatu.

Climate. Vanuatu has a tropical climate. For nine months a year, the weather is warm and humid, and for the other three to four months the weather is colder and drier. The average daily temperature is +20…32°C.

Volcanoes. There are nine active volcanoes in Vanuatu. The active volcano Yasur on Tanna Island is the most accessible for tourists. It is located 361 metres above sea level, and its crater is 400 metres in diameter. Yasur last erupted in 2008.

Ecology. Vanuatu is part of the Australian ecozone, which also includes New Caledonia, the Solomon Islands, Australia, New Guinea, and New Zealand.

Vanuatu does not have any large mammals, venomous snakes, or spiders. There are 19 species of reptiles, 11 species of bats, and 61 species of birds on the islands. The region is rich in marine life, with the coastal areas being home to 4,000 species of sea molluscs.

Vanuatu’s attractions. Vanuatu is home to the world’s only underwater post office, which is located near the capital. To send a letter, you need a special waterproof envelope.

The location of the SS President Coolidge, which sank in 1942 with over 5,000 troops onboard, is a favourite place for divers. Only two persons were killed in the accident, as the troops managed to swim ashore thanks to the captain, who attempted to run the ship aground and immediately ordered the troops to abandon ship. Divers today are drawn to the military trucks, jeeps, and cannons that sank with the ship.

The cost of living in Vanuatu is higher than the global average. For example, a family of two spends $887 per month on food and travel, excluding housing rent. The average monthly salary in Vanuatu is around $900.

The average prices on groceries in shops are the following:

• a bottle of water, 0.33 l — $1.8;

• milk, 1 l — $2.15;

• a loaf of fresh white bread, 0.5 kg — $2.50;

• white rice, 1 kg — $4;

• local cheese, 1 kg — $21;

• eggs, a pack of 12 — $5.60;

• chicken breast fillets boneless and skinless, 1kg — $19;

• tomatoes, 1 kg — $5;

• potatoes, 1 kg — $4.50;

• oranges, 1 kg — $6;

• bananas, 1 kg — $2;

• apples, 1 кg — $5;

• beef round, 1 kg — $19;

• a bottle of wine — $13;

• a packet of cigarettes — $9.20.

Prices in cafes and restaurants vary. A lunch for one person in an inexpensive restaurant costs about $12, while a three-course meal for two people in a mid-range restaurant costs $65. Lunch at McDonald’s or another fast food chain costs approximately $10 for one person.

Monthly rental costs in Vanuatu depend on the property size and location:

• a 1-bedroom flat in the centre — $1,700;

• a 1-bedroom flat outside the city centre — $1,300;

• a 3-bedroom flat in the city centre — $2,300;

• a 3-bedroom flat outside the city centre — $1,700.

Utilities cost $300—400 per month for a couple, depending on the size of the flat.

Other expenses. Two cinema tickets cost $30, two bus tickets cost $4, and a litre of petrol costs $1.90.

1. The Vanuatu Citizenship by Investment Programme is renowned for its rapid processing time of 1—4 months, with no requirement to visit the country.

2. There are three main pathways to obtain citizenship: a non-refundable contribution of $130,000, the CNO Future Fund for $157,000, and an investment in government bonds starting at AUD 150,000. Each option has specific benefits, with the CNO Future Fund offering potential financial returns and the bond option pending the appointment of a Master Agent.

3. The CBI programme is accessible to investors over 18 with proof of sufficient funds and excludes individuals with serious criminal records. Additional family members can be included in the application for an extra fee.

4. The step-by-step process for obtaining Vanuatu citizenship involves preliminary checks, document submission, and approval by the Citizenship Commission.

5. Vanuatu citizenship offers numerous advantages, including visa-free travel to 100+ countries, attractive tax benefits with no taxes on worldwide income, and no residency requirements.