CBI Spotlight: Vanuatu
A group of islands in the South Pacific that offers a Second Citizenship option.
Note: For information purposes only. Not intended as personalized advice of any sort. Please consult a qualified professional.
For a broad overview of Citizenship by Investment, see our previous post.
"Having a second passport is… the ultimate insurance policy… [ensuring] that, no matter what, you always have a place to go - to live,work, do business, retire, and in some cases, even seek refuge. That way, when things go bad, you can take yourself and your family out of harm’s way… [and] the more options you have for you and your family, the more freedom you will experience." -Simon Black, Founder of Sovereign Man
"Certain governments are willing to grant you citizenship and a passport in as little as three months in exchange for a sizable investment or donation in their country." -Andrew Henderson, Founder of Nomad Capitalist
Our Citizenship by Investment Spotlight focuses this time on a nation you may not have known existed, let alone where it is: Vanuatu.
"Although it’s a relatively short flight away from Brisbane, Sydney, and Auckland, it’s extremely far from the rest of the world," says Nomad Capitalist's Jovana Vojinovic. Yet Vanuatu "is consistently rated as the “Happiest Country on Earth” – probably having to do with its off-the-radar location that lets you escape all the world’s troubles, as well as its pristine nature."
Vijinovic lists off all the things Vanuatu has going for it:
"Vanuatu’s population of approximately 300,000 live in a country with extremely clean air, water, and food – those will be some of the hottest commodities of the future.
"Vanuatu has a very young workforce; the median age is just 21.5 – lots of potential there.
"It’s also part of the Commonwealth, which means Vanuatu’s citizens get extra rights in the UK due to historical ties. It’s official language is English, French, and Bislama, but the really interesting fact is that Vanuatu has the highest density of languages per capita in the world – over 100 native languages and dialects are spoken across Vanuatu’s islands.
"Vanuatu’s climate is tropical and, for three quarters of the year, the weather is hot and humid.
"The paradisaical setting also means tropical storms are frequent, and it’s volcanic origin means the archipelago also suffers from earthquakes. However, the islands are well-prepared for these acts of nature."
In an effort to diversify away from over-reliance on agriculture, tourism, offshore financial services, and beef exports, Vanuatu started offering Citizenship by Investment.
Actually, it has five CBI programs. The two most prominent ones are:
The Vanuatu Contribution program (VCP) – Designed for mainland Chinese, and run by a single agent out of Hong Kong
The Vanuatu Development Support Program (VDSP) – Launched in January 2017 to grow Vanuatu’s economy and support infrastructure and development.
Cryptocurrency investors and HODLers will be pleased to learn it is possible to pay for the citizenship program with Bitcoin, if the security of your personal and financial information is top of mind. To be clear, according to Vojinovic, "the government itself won’t take Bitcoin from you, but multiple authorized agents will. The money then has to be remitted to the government in US dollars."
The tax regime in Vanuatu is a Digital Nomad’s dream, according to the folks at Far Horizon Capital:
"The income of Vanuatu citizens or residents is free of any kind of local taxes, whether the income is remitted or not. Vanuatu is a low tax and offshore jurisdiction free from personal income tax, capital gains tax, inheritance tax and wealth tax...
"Value-added tax (VAT) in Vanuatu is 12.5%.
"Regarding corporate taxation, companies incorporated in Vanuatu are free from income taxes, dividend distribution taxes, capital gains taxes and withholding taxes."
The corporate climate has positives beyond taxes. Vanuatu corporations "incorporated under the International Companies Act may have restrictions to do business with residents, but may benefit from confidentiality, no filling requirements and may be guaranteed for a full tax exemption for 20 years."
Property rights are not as strong, however, as "lands in Vanuatu are not freehold. Properties can be leased for up to 50 years for residential lots and 75 for commercial ones. Land lease is subject to a 2% registration fee and 5% stamp duty on the unimproved capital value."
Whether or not Citizenship by Investment is right for you and your family is something you will have to discuss with said family, as well as consult with appropriate legal, financial, and tax experts.
If it does appear right for your life and your situation, you’ll be looking at making a non-refundable, lump sum donation to the Vanuatu Development Support Program (VDSP):
USD $130,000 for single applicants
USD $150,000 for married couples
USD $180,000 for a family of four
USD $25,000 per additional applicant
Application fees are USD $5,000, and USD $400 for passport application, citizenship commission, and certificate fees.
"The process is extremely speedy," says Jovana Vojinovic at Nomad Capitalist, "probably the fastest in the entire CBI industry. It will take you just eight weeks to obtain a passport, provided all the processes are running smoothly."
To ensure that smooth, speedy process, Vojinovic writes that "you’ll need to prove is that you have funds no less than USD $250,000 available in banking assets and at least USD $500,000 in net assets."
You'll also need to have no criminal record; be of good character in your community, society, or country; not have lived in Iran, Iraq, Syria, North Korea, or Yemen for the past five years; and not be on any sanctions lists in the world.
If you can check off all those boxes, then here’s what the process looks like:
Obtain Pre-Approval - Submit your documents, a background check, and pay the USD $5,000 application fee. "You’ll have to wait around a week to get it processed," writes Vojinovic, but "if approved, there is a 99% chance you will get your passport."
Apply, Then Wait - Submit the remaining documents and full payment. Vojinovic writes that "if all of your paperwork is in order, it will take anywhere between 30-60 days for the government to make a decision on your application. The committee meets twice a month, so it also depends on your timing as to how long you’ll have to wait for your citizenship approval."
Take The Oath, and Receive Your Passport - You can either travel to Vanuatu to take the Oath of Citizenship in front of the Commissioner, or pay to have two government officials come to you and take the Oath in front of them. You will then receive a Naturalization Certificate you can use to apply for and obtain a Vanuatu Passport.
At Escape From The West, we believe that obtaining a second citizenship and passport is an important part of any Escape Plan. Once you have that, along with a residence outside the West, you can be in a position to seriously consider renouncing your U.S. or other Western Citizenship, and enjoy true freedom and prosperity.
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