Vanuatu is a small island nation in Oceania that is rarely heard of on the news program. Until 1980, it was a colony jointly owned by Great Britain and France. After becoming independent, the Republic of Vanuatu is still a remote corner of the world, where the economy is based on agriculture and the population does not stand out from its neighbors with its wealth or rich cultural life.
You probably wouldn’t have heard anything about Vanuatu until now, but in 2017, the jurisdiction launched its investment program, which is currently one of the fastest ways to get a second citizenship.
Foreign investors do not need to learn English, French or Bislama (the local dialect of Creole, which has become common on the inhabited islands of the archipelago) to obtain Vanuatu citizenship, they do not need to take tests on local history and they do not need to move to the other side of the globe. Although, unlike many Caribbean investment citizenship programs, you will still have to visit the Republic of Vanuatu once – when you need to submit biometric data.
To date, Vanuatu’s passport program is one of the easiest, fastest and most affordable ways to obtain a second citizenship for investment, even when compared to popular investment citizenship programs in the Caribbean.
7 benefits of Vanuatu investment citizenship
1. Affordable passport programme
As stated earlier, the first and foremost prerequisite for economic citizenship in Vanuatu is investment. You will not need to take language exams, prepare for local cultural tests or learn the national anthem.
What’s more, in terms of total costs for a second passport, it is one of the most affordable investment programs in the world.
The time it takes for a program participant to obtain Vanuatu citizenship for investment is between 2 and 4 months. This is a record, even when compared to Caribbean jurisdictions where a second passport can be obtained in six months.
2. High level of security
Investors often feel uneasy about spending a lot of money to obtain a passport for small, economically dependent jurisdictions on the other side of the planet. Especially if the investment must be made before an application for economic citizenship can be made.
Vanuatu’s immigration authorities first consider an investor’s candidacy and only then offer to invest in the economy. Of course, as in all other jurisdictions that run passport programs, there is a fee for a security check in Vanuatu. If you fail it, you will lose $5,500. To reduce the risks to zero, contact Imperial & Legal for advice.
3. Regular income from investments
An attractive aspect of Vanuatu’s investment program is the opportunity to earn a regular income from your investment. In this island nation it is possible to invest in CNO Fund, an organization whose name can be translated into Russian as “Coconut Oil Fund”. CNO Fund invests in agriculture, logistics, as well as copra processing and coconut oil production. Investments in the fund will bring a return of up to 5% per annum to the program participant.
4. Second citizenship for the whole family
One of the undeniable advantages of Vanuatu is the ability to issue a second passport not only for the investor, but also for their immediate family members, including:
- spouses;
- unmarried financially dependent children under the age of 25;
- parents of the principal applicant and his or her spouse who are 50 years of age or older.
5. The power of the passport
The strength of a jurisdiction’s passport is measured by the number of countries that are willing to let a citizen in without a visa, or with a visa on arrival, which is provided immediately at passport control, without tedious bureaucratic procedures.
Vanuatu citizenship allows for simplified or visa-free travel across the borders of 90 nations, including jurisdictions such as Singapore, Malaysia and Hong Kong.
Citizens of this small country can apply for tourist visas to the United States in categories that are usually unavailable to people in the former Soviet Union. The American visa B1/B2 is issued for 5 years and allows you to spend up to 180 days a year in the United States.
6. Convenient tax haven
Entrepreneurs take part in the Vanuatu passport program to benefit from the advantages of a classic offshore zone. International companies registered in this island state are exempt from paying corporate income tax, as well as capital gains, gift and inheritance taxes for the first 20 years of their existence.
7. A solid “plan B”
A holder of Vanuatu economic citizenship can take advantage of a second passport and wait it out in a quiet, peaceful country until it is safe at home.
Who can participate in Vanuatu’s passport program?
The jurisdiction’s authorities have minimal requirements for the principal applicant. You will be admitted to the Vanuatu passport program if:
- you are an adult over the age of 18;
- no criminal records;
- do not have a serious or dangerous infectious disease;
- are wealthy enough to show you have $250,000 in your deposit account;
- have the opportunity to invest your money in the islands’ economy, as well as pay for an immigration lawyer, security checks, bank fees and administrative fees.
2 active and 1 potential investment routes in Vanuatu
Currently there are 2 options available to wealthy foreigners to participate in Vanuatu’s investment program. And one more was announced by the government relatively recently, but investment mechanisms have not yet been worked out, so we will tell you about this route in a nutshell.
Free donation to the economic development fund
Advantages of this method:
- A relatively small investment amount, especially if the second passport is needed by a single investor. In this case, the investment itself will only amount to $130,000;
- An investment in an economic fund is well suited to those program participants who like simple, straightforward, “pay-it-forget-it” style solutions.
The disadvantages are obvious, too:
- You invest without the possibility of getting back at least some of your money after a while;
- Your investment will not generate regular income;
- Your costs increase significantly if the second citizenship is for a large family.
Investment in shares of the Coconut Oil Fund
Benefits of investing in CNO Fund:
- Your investment will generate returns that can be as high as 5% per annum;
- After 4 years, you will be able to return $50,000 – a substantial portion of the amount invested in the stock;
- The amount of additional costs to the investor not directly related to the investment is less than in the first route, when the money is invested in an economic development fund;
- Investing in shares of the Coconut Oil Fund is advantageous when Vanuatu citizenship is made for a friendly family of up to 4 people, as the principal amount invested in this case will remain virtually unchanged.
Disadvantages of this investment route:
- This is a more complex way of investing. The shares of the CNO Fund holding are purchased by the investor indirectly, through an international company registered in the islands. And although the cost of registering the company is already included in the standard fees, the costs of maintaining the business, such as the annual $300 registration renewal fee, must be taken into account;
- High threshold for participation in the investment program. Even one applicant will need at least $155,000 just to buy shares;
- If the second citizenship is granted to a family of more than 4 people, each additional dependent increases the amount to be spent on the purchase of shares by $25,000.
How much money will a participant in the Vanuatu Investment Citizenship Program need?
The exact amount depends on the investment route you choose, as well as the size of your family. So, to give you the best idea of the costs involved, Imperial & Legal have prepared some comparison tables for a single investor, a couple, a family with one and two children.
Cost of Vanuatu passport for a single investor
| Description | Investment route | |
| Gratuitous contribution to the economic development fund | Buying shares of Coconut Oil Fund* | |
| Principal investment | $130 000 | $155 000 |
| Due diligence associated fees | $12 275 | $8 000 |
| Total Expenses | $142 275 | $163 000 |
| Incl non-refundable | $142 275 | $113 000 |
Vanuatu passport cost for a married couple
| Expenditure | Investment route | |
| Gratuitous contribution to the economic development fund | Buying shares of Coconut Oil Fund* | |
| Principal investment | $150 000 | $155 000 |
| Due diligence associated fees | $13 275 | $8 000 |
| Total expenses | $163 275 | $163 000 |
| Incl non-refundable | $163 275 | $113 000 |
Vanuatu passport cost for a family of three and a family of four
| Description | Gratuitous contribution to the economic development fund | Purchase of shares of Coconut Oil Fund* | |
| Family of 3 | Family of 4** | Family up to 4 persons** | |
| Principal investment | $165 000 | $180 000 | $155 000 |
| Due diligence associated fees | $14 025 | $14 775 | $8 000 |
| Total expenses | $179 025 | $194 775 | $163 000 |
| Incl non-refundable | $179 025 | $194 775 | $113 000 |
Notes:
* – from 2024, investment in the assets of the Cocoa Sustainability Fund is also available in the Republic of Vanuatu.
** – for large families where investment citizenship is issued for 5 or more people, each additional dependent in the application increases the amount of the main investment:
- by $15,000 – if the funds are invested in the state’s economic development fund;
- at $25,000 – if the investor buys shares in the Coconut Oil Fund or shares in the Cocoa Sustainability Fund.
Vanuatu’s new investment route
In 2023, the government of this island nation announced a groundbreaking investment route involving the redemption of specially issued Vanuatu government bonds.
What is the peculiarity of this way of investing?
- The number of bonds is limited. According to some reports, there are no more than 500 of them.
- Bonds are denominated in Australian dollars. Accordingly, the minimum investment amount is calculated in the same currency.
- Additional investor costs are counted in local currency and Australian dollars.
- The government debentures that Vanuatu passport investors use to obtain a Vanuatu passport are interest free.
- Vanuatu’s bonds have different maturities.
| Minimum investment in government bonds | Maturity of Vanuatu bonds |
| 150,000 Australian dollars | 3 years |
| 170,000 Australian dollars | 2.5 years |
| 180,000 Australian dollars | 2 years |
All applications to participate in Vanuatu’s passport program through the purchase of government bonds will have to be submitted through an intermediary – the Principal Agent for the program. It is not without reason that we have emphasized that this option is not yet fully developed, as the government has not yet appointed anyone to the position of Principal Agent, nor has it even announced the requirements for the position.
Vanuatu Economic Citizenship – Step by Step
Preliminary consultation
If you are not a specialist in immigration law, you will need professional legal advice at every stage. Imperial & Legal’s advisers will carefully consider all of the client’s circumstances and wishes in order to find the best investment route.
As a rule, already at the first consultation, our staff offers the client an objective assessment of the likelihood of being rejected by the Vanuatu immigration authorities. Simply put, we conduct a preliminary security check that minimizes the risk of losing the fee for a similar check when applying for an investment program.
Collection of documents for security clearance
In addition to a passport, a police certificate of no criminal convictions and a bank statement, the list of required documents includes a brief characterization of the applicant.
Typically, the preparation of documents and gathering of necessary information is also taken care of by Imperial & Legal lawyers.
Due diligence
The applicant or his or her lawyer pays for the due diligence, which in Vanuatu costs $5,500. As in many other jurisdictions, communication with the Vanuatu authorities is done through the official agent of the investment program, the local lawyer.
Imperial & Legal only partners on the island with trusted and executive program agents, so your pre-screening will last no longer than a week.
Submission of documents for granting economic citizenship
Once you have passed the security check, you are highly likely to qualify for a Vanuatu passport for your investment.
Nevertheless, all formalities must be observed, so our lawyers fill out an application for participation in an investment program in one of the directions (not your choice), attach scans of documents and send it to the immigration authorities of this island country. As a rule, it takes about 2 weeks to make a final decision on your candidacy.
Another option of interaction with the authorities of this island country involves a personal trip of the program participant and his/her family to the Republic of Vanuatu, where they apply for citizenship with the help of our registration agent.
Trip to the islands
Unfortunately, Vanuatu is a rather small and modest jurisdiction that can’t open a visa centerin every country. And since a citizen’s passport is biometric, you (and your immediate family) will need to fly to the islands to be fingerprinted and photographed.
Investing
Once the Vanuatu Citizenship Commission has approved your application, you will need to make an investment via a pre-selected route. The applicant will have 90 days from the date of a favourable decision on their application to complete this task.
Obtaining citizenship
Once the Citizenship Commission is satisfied that you have invested in the economy through one of the available options, a certificate of naturalization is issued and the passport office is instructed to issue you a passport as a citizen of the Republic of Vanuatu, which is usually sent directly to the investor using one of the international delivery services.
Why you will benefit from working with Imperial & Legal
- Our company practices an individual approach to each client, considering all their interests as accurately as possible.
- Our attorneys have extensive experience successfully working with participants in passport programs around the world.
- In the Republic of Vanuatu, we only work with the most trusted program agents.
- With the help of Imperial & Legal’s lawyers, you will get your second passport as quickly as possible and without unplanned expenses.
- Our experts can also advise you on a wide range of issues that new holders of Vanuatu investment citizenship deal with, whether it is citizenship for a newborn, citizenship renewal, tax optimization, registration of an offshore company or obtaining a long-term visa in the US and Europe.
