What is the Vanuatu Citizenship Programme?
The Vanuatu Citizenship Programme provides a fast, straightforward way for foreign nationals to obtain Vanuatu citizenship through investment. It allows applicants to contribute to Vanuatu’s Development Support Program (DSP) and, in return, receive citizenship and a Vanuatu passport.
Main Provisions of the Programme
You must participate in the Development Support Programme (DSP) to apply for Vanuatu citizenship. Please see the minimum investment thresholds in the table below:
| 1 applicant, $ | 2 applicants, $ | 3 applicants, $ | 4 applicants, $ | Additional family member, $ |
| 130 000 | 150 000 | 160 000 | 180 000 | 15 000 |
There are no residency or stay requirements to keep citizenship.
History of the Programme and Its Development
The Development Support Program (DSP) launched the Vanuatu Citizenship Program in 2017 with the main objective of boosting the economy and foreign investment. As the only program of its kind in the South Pacific, it has garnered global interest due to its lack of residency, language, or education requirements, making it especially attractive for investors seeking a straightforward path to international mobility.
Features of the Programme for USA Citizens
Vanuatu is known for being a tax-friendly jurisdiction, offering U.S. citizens an opportunity to diversify their international status without disrupting their US citizenship. Furthermore, Vanuatu’s non-reporting policy means citizens are not required to report foreign accounts or income to Vanuatu’s tax authorities, complementing the US Foreign Account Tax Compliance Act (FATCA) requirements for Americans.
How does the Vanuatu Investment Citizenship Programme work?
The Vanuatu Investment Citizenship Program offers citizens of the United States of America a quick, residency-free way to obtain a second passport.
Requirements for US Applicants
To qualify, American applicants must follow the requirements below:
- Be over 18
- Have no criminal record
- Provide a legitimate source of funds no less than $ 250 000
The non-refundable investment must be paid in full once citizenship is approved.
Steps in the Citizenship Process
- Submission of documents and preliminary approval.
- Due diligence conducted by the Vanuatu government and its agents.
- 25% of the donation to be paid to the Vanuatu DSP designated agent’s account.
- Application to be submitted to the Government of Vanuatu and reviewed by the Citizenship Commission.
- Upon the application review, the government will forward a letter with the commission’s decision.
- The remaining 75% donation amount to be paid to the local government.
- An applicant has to attend an oath swearing ceremony conductedonline, where a passport is given.
Investment Options and Its Benefits
The Vanuatu Citizenship Program provides one investment option for US citizens, as mentioned earlier, which is a contribution to the Development Support Program (DSP). It goes forward economic development projects within Vanuatu, supporting local infrastructure and community initiatives. Unlike other programs that may require real estate investments or business involvement, Vanuatu’s initiative focuses solely on donations. As a result, applicants have fewer legal and logistical requirements.
Benefits of a Vanuatu Passport for Citizensof the United States
American citizens with a Vanuatu investment citizenship can take advantage of opening bank accounts and companies on an alternative passport.
Tax Advantages for U.S. Citizens
While US citizens are taxed on their global income, having Vanuatu citizenship may open avenues for tax planning within compliance of US tax laws. It can also reduce tax obligations for future generations, as Vanuatu does not impose income, inheritance taxes, capital gains or property taxes on assets within its jurisdiction.
Benefits and Privileges for Vanuatu Passport Holders
Holders of Vanuatu passports are granted the following privileges:
- Family sponsorship, including a spouse, children up to 28 years old, and parents over the age of 50
- Access to favorable local banking, tax policies, and quality of life benefits
- Retaining a first citizenship
Comparing the Cost of Vanuatu Citizenship for Americans
When compared to citizenship-by-investment (CBI) programmes in other regions, Vanuatu offers a more affordable route. For example, the Caribbean offers CBI programmes starting at around $ 150 000, while European options such as Portugal’s Golden Visa require investments of over $ 297 000 with a residency period.
Basic Programme Costs
As mentioned above, the starting cost for Vanuatu citizenship is $ 130 000. This sum includes government fees but excludes additional processing fees from authorized agents.
Additional Costs and Fees
A Vanuatu Financial Intelligence Unit due diligence check fee must be considered, which amounts to $5 000- $5 500 per family.
Cost of Vanuatu Citizenship Compared to Other Countries
| Country | Minimm investment requirement, $ | Processing time, months |
| Vanuatu | 130 000 | 2-4 |
| Dominica | 200 000 | 3-4 |
| Portugal Golden visa | 297 000 | 6-8 |
| Malta | 637 000 | 12-16 |
| St. Kitts & Nevis | 250 000 | 3-4 |
| Greece Golden visa | 265 000 | 2-3 |
| Turkey | 400 000 | 3-6 |
Vanuatu Second Citizenship: Is it Worth It?
Vanuatu second citizenship provides you with the opportunity to reside in a country with an excellent quality of life. In fact, Vanuatu ranks first on the 2024 Happy Planet Index (HPI) out of more than 150 countries, thanks to its cultural values, respect for the environment, and commitment to climate action.
What are the Benefits of a Second Passport?
A second passport offers many advantages, including greater travel freedom, privacy, and better tax planning opportunities. Vanuatu’s second citizenship is especially appealing to US citizens, as it allows for more global mobility without affecting their current citizenship status.
Tax Implications for US Citizens
Although citizens of the United States of America are taxed on worldwide income, having Vanuatu citizenship may allow them to reduce future tax liabilities, particularly inheritance taxes.
Is Vanuatu Right for American Investors?
Vanuatu’s citizenship program is ideal for investors from the US who need quick processing, tax benefits, and access to numerous visa-free destinations. The low investment cost, combined with no residency requirement, makes it attractive for those looking for flexibility without the burden of long-term commitments.
