Its proximity to Australia and close historic ties has made Vanuatu a popular vacation rental, offshoring and second citizenship destination for affluent Australians. In recent years Vanuatu has become popular with Chinese investors.
Some brief history: In 1942 with Japanese forces advancing across the Pacific, thousands of U.S. and Australian troops fortified this island chain, constructing air strips that are still in use. After 74 years of joint Franco-British colonial administration, in 1980 Vanuatu gained its independence. As in New Caledonia, many Melanesians living in Vanuatu speak French. Vanuatu citizens enjoyed visa-free travel to the United Kingdom until 2023 and obtaining UK or French/Schengen zone visas is typically a straightforward procedure for most Vanuatu citizens by investment.
With no physical presence requirement and a government donation starting from $130,000 for individuals, Vanuatu’s CBI program offers one of the most accessible and fastest-to-obtain passports by investment in the world. A Vanuatu passport can be obtained anywhere between 2 to 4 months. Visa-free entry to 93 countries including Singapore, Hong Kong and Russia has made the Vanuatu passport highly sought by applicants from Mideast, African and BRICS+ countries. Visa-requiring nations may be accessed for naturalized Vanuatu citizens by completing Electronic Travel Authorization (ETA) forms.
In addition to the lower price point than Caribbean passport through investment programs, Vanuatu is attractive as an offshore banking destination. Vanuatu offers tremendous tax benefits as well as South Pacific region proximity to the world’s premier offshore trust formation destination of the Cook Islands (see also ESW’s Cook Islands Trust offer). Even with tax information exchange agreements in place for Australia and New Zealand, Vanuatu has long been considered an offshore tax haven. There is limited reporting to foreign tax authorities and no taxes on personal or corporate income, withholdings, capital gains, gifts or inheritance. Vanuatu funds its police and other basic government services with a VAT of 12.5% but this is included in the price of imported goods and hotel stays. Due to its highly favorable tax code and low cost of corporate registry, Vanuatu is a popular flag of registry for cruise ships, ocean shippers and yachtsmen.
Many Bitcoin entrepreneurs and DeFi/Fintech founders form offshore companies here. Registering a Vanuatu corporation starts from a moderate annual fee of just $300. With a simplified Vanuatu corporation, there only need be one corporate officer on the paperwork. There are no requirements for multiple executive officers, nor for holding annual corporate meetings. When it comes to setting up vacation rentals and other tourism businesses, Vanuatu does not offer freehold ownership of real estate to naturalized citizens. However, residential leases can be purchased for up to 50 years and commercial lots are leased up to 75 years. Some of the most attractive areas for real estate investment include Bellevue, Elluk, the Harbourfront, First Lagoon, Second Lagoon, Malapoa, Port Vila and Tassiriki.
ESW is pleased to offer Vanuatu citizenship by investment through our legal back office in Europe, starting from $130,000 government fee for an individual investor and $150,000 for a married couple. For larger families of four or more people seeking to obtain this passport, investing in the Vanuatu Capital Investment Immigration Plan (CIIP) is highly recommended. This is a government-owned investment fund into sustainable energy as well as commodity exports such as Cocoa, Coconuts/Coconut Oil and Coffee.
If you believe a Vanuatu passport may be a good fit for you and your family, contact us today!
