Acquiring Citizenship by Investment in Vanuatu with Cryptocurrency

Did you know that in Vanuatu it is possible to get a second passport legally, without complications, and paying in crypto? In today’s article we are going to explain how this works in detail.

This is one of the most attractive and practical options for Perpetual Travellers today: Vanuatu citizenship. We already wrote about it in 2018, but now the programme has become even more attractive and cheaper! With effective (undiscounted) fees as low as USD 105,000 for a family of 4, Vanuatu is crowned as the best option to keep you and yours safe from any unforeseen future!

At Denationalize.me we have been experts on the subject of second citizenships for more than a decade: we know the most interesting options and procedures for acquiring a second passport, and we have already helped clients of various nationalities to apply effectively.

Following the Flag theory, we look for the best strategies to ensure our clients’ individual protection and cover all their particular needs. The Vanuatu option is one of many fantastic strategies, although it certainly excels in terms of speed, ease, and cost. However, we advice you to choose your new nationality with great caution and only after careful research, since it depends very much on the individual’s personal interests and concerns.

Why Vanuatu

When one thinks of acquiring citizenship, the first thing that usually comes to mind are citizenship programmes in the Caribbean. After all, the concept of Citizenship by Investment originated there in the 1980s, when St. Kitts and Nevis introduced the first citizenship by investment programme to attract foreign investment and promote economic growth. Other Caribbean nationalities soon followed suit, such as Dominica, Grenada, Antigua and Barbuda, and Saint Lucia.

Since then, the concept has spread to countries in Europe and the Pacific. For example, Malta and Cyprus established citizenship by investment programmes to attract investors seeking access to the EU; while Portugal, Spain, and Greece began offering Golden Visa programmes, which grant residency rights on the basis of real estate investment or other economic contributions —although at the time of writing, the possibility of acquiring European Golden Visas hangs in the balance due to various regulatory changes and political pressure within the EU, which is why the Cypriot programme no longer exists.

On the other side of the world, Vanuatu offers a particularly attractive citizenship programme: the country is an idyllic Polynesian archipelago, located almost exactly in the middle point between Australia and New Zealand. The island state consists of 83 islands and is part of the Commonwealth of Nations. The country is tax-exempt and, unlike other States in the region, its administration is not dependent on larger nations such as New Zealand, France, or the United States. But most importantly, Vanuatu stands up to the EU rather than cowering and bowing to its wishes as Caribbean States do. Naturally, Vanuatu is on its blacklist, but it can afford to be and makes no effort to give up its sovereignty in order to please the EU.

Vanuatu has no income tax on personal income, no capital gains tax on the sale of assets, and no inheritance and gift tax. There is no corporate income tax on company profits, no withholding tax on dividends, no tax on interest or licence fees, and no wealth tax. The country’s VAT rate is 15%. Customs duties and taxes are levied on certain imports and exports, but there are no general export rates. There is a stamp duty on certain documents and transactions. This has always been the case since the country’s independence and is likely to remain so, as there is a consensus among virtually all political parties.

The country’s approximately 230,000 inhabitants speak mostly English and French, but also, to a lesser extent, a remarkable variety of more than 100 languages. In fact, the population is one of the happiest on the planet, or so several international rankings reflect. Even if you do not objectively think much of it, staying at the top of various rankings according to a wide range of criteria is something that says a lot about a country. Unlike the Caribbean, here one can enjoy the freedom the country offers without fear of crime. Not only is war geographically distant, but Vanuatu has no army and therefore no compulsory military service.

Vanuatu’s citizenship by investment programme has its roots in the 1980s, when the island state was looking for ways to diversify its economy. Formerly heavily dependent on agriculture, particularly the cultivation of copra (the dried pulp of the coconut, which has an oil content of up to 60%), Vanuatu eventually realised the need to develop new sources of income. The first citizenship-by-investment programme was launched in 1984, but initially it was not very successful and had to be modified several times.

In 2017, the programme underwent a major overhaul to relaunch it. This modernisation was part of a broader strategy to position Vanuatu as an attractive location for foreign investment and strengthen the country’s economic base. During the Coronavirus period, when tourism in Oceania virtually collapsed, the country generated almost half of its GDP from the sale of citizenships.

The process of obtaining a passport with Denationalize.me

Vanuatu’s citizenship programme is currently the fastest and easiest in the world.

To obtain a Vanuatu passport, one must have no serious criminal convictions and be able to make a one-off donation to the government. This differentiates Vanuatu’s from other citizenship-by-investment programmes, as Caribbean programmes mainly require either a donation or the purchase of property —as well as various government, legal, banking, processing, etc. fees that considerably increase the price of citizenship. In addition, the process in the Caribbean has become very expensive due to pressure from the EU. Vanuatu is not interested in minor criminal convictions or the applicant’s public image. Due to its absolute political neutrality, even public political dissidents need not fear any disadvantage when applying for Vanuatu residency: all applications are processed according to strictly formal criteria.

The process is done online (with a short visit to the country or to one of its consulates) and you only need digital copies of the required documents. You will need to provide a criminal record certificate from the country of origin, as well as from the country of primary residence or legal compliance, which must have been issued within 6 months. Documents can be issued anywhere in the world in English as certified copies. Unlike other programmes, bureaucracy in Vanuatu is minimal. Never send originals, as there is a risk of never getting them back, and never apostille or legalise them. The KYC procedure is completed in a few hours and, unlike with other programmes, you do not have to fear repeating the whole process just because you have signed in the wrong colour or with a pen that does not work for the officials on duty (100% true story).

Moreover, the process of obtaining citizenship in Vanuatu is strictly confidential, which protects the privacy of applicants and allows them to manage their investments and personal affairs with anonymity and discretion. Unlike other programmes, Vanuatu’s programme does not make naturalisations public.

The process can be completed remotely without the need to visit the country. No other programme can beat Vanuatu’s processing: you will receive your passport within 30-45 days after completing a two-step process. Citizenship is valid for life and, of course, can be inherited. Passports and certificates will be mailed directly to the address you choose to provide.

All nationality applications must be processed through a government-approved agent. Our local partner has been appointed Trade Commissioner by the Vanuatu Minister of Foreign Affairs and External Trade. The CIIP (Capital Investment Immigration Programme), for which the donation is earmarked, promotes the future progress of the cocoa economy in Vanuatu through the Cocoa Sustainable Investment Fund and is one of the world’s largest citizenship-by-investment programmes —your money will go towards the production of high-quality chocolate!

As for your investment, if you are a family of four, you must donate USD 150,000 (of which USD 50,000 is returned after four years) and pay a non-refundable due diligence fee and management fee of USD 5,500 (which applies to the family of four, not to each individual member). From the fourth member upwards, you will be charged USD 25,000 per additional dependant (spouse, children, parents, and parents-in-law). The amount can be fully paid in cryptocurrency. When calculating the corresponding amount in Bitcoin, the current exchange rate is used. The transfer is made to an escrow account created specifically for this purpose, which accepts both Bitcoin and USDC. This account converts the cryptocurrency into the corresponding fiat currency. Only a minimal KYC procedure is required to complete the process entirely in crypto.

Vanuatu is a very good option for those tired of lengthy compliance and KYC procedures: the country has minimal wealth regulations and, naturally, does not participate in the Automatic Information Exchange.

Payments for the Financial Intelligence Unit (FIU) and the main levy are sent to a government authorised account and then paid into the Vanuatu government bank account. The Vanuatu Citizenship Commission requires records of all transactions to ensure that the minimum sale price is met.

Initially, only the due diligence fee is payable to enable the Vanuatu Financial Intelligence Unit to give preliminary approval to clients’ applications. The main fee is only paid after receiving the “Approval in Principle” letter from the Vanuatu Government, which assures clients that their applications have been approved, subject to payment and oath. At the first stage, only the minimum documents are required, including the digitally scanned criminal record certificate:

• One-page application form
• Certified copy of passport
• Certified identity card or driving licence
• Notarised criminal record certificate from country of nationality AND country of residence
• Notarised birth certificate or equivalent documents
• Curriculum vitae in outline
• Notarised marriage certificate, if applicable

Approval takes place within 96 hours, and you can be 100% sure that you will be granted nationality if your application is approved. After approval, you will need to submit the following documents for the second phase of the process:

• 2 additional pages of the application form
• Medical examination (any doctor in the world can collect the minimum requirements).
• Notarised declaration of assets (self-declaration, no supporting documents required)
• Notarised bank statements for the past 6 months and bank reference
• Proof of residence (bank statements, etc. are also acceptable)
• 3 letters of recommendation (no specific professions required)
• Confirmation from employer or declaration proving self-employed status

While this may seem like a lot, we guarantee that it is child’s play compared to the requirements of other citizenship-by-investment programmes, where the documents alone are more than 100 pages long. Naturally, corresponding templates are issued for all documents, and they also allow notarisation through online notaries for all required documents.

There is a time limit for completing payment of the main fee: you must complete payment for as long as your FIU level 1 due diligence authorisation is valid —i.e. up to 3 months after it was issued. If you have not completed payment within 3 months, you will need to reapply for the FIU due diligence authorisation at an additional cost. Generally, you should be able to obtain all the documents for the second phase within a few days, as you should have most of them.

You can add a spouse at any time after you have been granted citizenship: you do not have to marry beforehand, and you can include future partners. Any children you had after nationality is granted are entitled to Vanuatu nationality, regardless of whether you are married or not. You will be charged a fee for the issuance of the birth certificate, citizenship certificate and passport.

With your Vanuatu passport, you can travel visa-free to over 100 countries, including Russia, Hong Kong, and Singapore. Extended multiple-entry visas are also available for Australia, New Zealand and, of course, the Schengen area. Vanuatu’s passport offers a 90-day visa waiver in Russia, something few countries can boast. Given that access to the Schengen area will be withdrawn from Caribbean countries from 2025 as part of ETIAS pre-authorisation (despite the submissive attitude these states have shown) Vanuatu’s passport has nothing to envy them in a direct comparison. However, the numerous other freedoms and advantages of this diverse island state go far beyond the freedom to travel with its passport. After all, for most people, it is no more than a second nationality in support of their current primary nationality.

The current status of the citizenship-by-investment programme and what distinguishes Vanuatu from other countries

As with many citizenship-by-investment programmes around the world, Vanuatu’s has also attracted criticism: many are concerned about due diligence and security —especially the potential for criminals to misuse these programmes to launder money and evade taxes. Due to erroneous and unproven accusations (prompted by ideological motives) Vanuatu once lost access to the Schengen area for refusing to dance to the EU’s tune.

Other nations are doing the same, so costs in Caribbean countries have risen sharply, additional fees have gone up considerably, and bureaucracy has become a nightmare —although it will do them no good to give in on all these points. From 30 June 2024, the price of passports in Dominica, St Kitts and Nevis, Grenada and Antigua and Barbuda will rise to at least USD 200,000. Vanuatu, by contrast, has reduced its prices by more than USD 100,000 compared to past prices and has established a sensible and lasting implementation with the Cocoa Sustainable Investment Fund, which it proudly promotes.

Vanuatu’s indisputable advantages are therefore as follows:

• Vanuatu offers the fastest citizenship programme in the world
• A comparatively small donation (USD 100,000) is required in exchange for the passport
• Part of the investment in the cocoa industry (USD 50,000) is recovered after four years
• The entire process is strictly confidential
• Payments can be made entirely in cryptocurrencies (not just fees, but all costs)
• The process is simple and transparent, with no hidden or additional fees (USD 5,500 for 4 people seems extremely affordable to us)
• Citizenship can be transferred to the spouse, children, parents, and parents-in-law
• All necessary documents can be submitted digitally with a simple notarial certification
• It is not necessary to visit Vanuatu in person (although you will have to report to one of its embassies)
• Vanuatu does not levy income tax, capital gains tax or inheritance tax (only VAT is levied)
• Vanuatu is a remote island nation with no citizens to harass and no political or economic conflicts
• Vanuatu is politically and economically stable, remains completely neutral, and is not involved in any international conflicts
• Vanuatu has no army, so there is no military draft to fear (and the crime rate in the country is very low)
• Vanuatu is ranked second in the Happy Planet Index
• The archipelago offers lush rainforest, great biodiversity, and a beautiful climate in the South Pacific. It is about 1,750 km east of Australia, 500 km northeast of New Caledonia, west of Fiji and south of the Solomon Islands. It takes 2 hours to reach Brisbane (Australia) and Auckland (New Zealand), and has daily flights.

Citizenship has always been a means to obtain security and privileges, and serves as a contract between the individual and the state. This concept dates back to ancient civilisations and has continued to evolve in modern societies.

Citizenship is increasingly becoming a luxury good (again) as the 21st century progresses: for small micro-states, the sale of citizenships can be an important source of revenue, without the burden of high taxes. Countries that seek to go further in stealing wealth from their citizens increasingly insist on taxation of global income to citizenship. For those citizens who refuse to pay or declare their income, they could end up having their passports restricted or revoked. Citizens of a small island state far from the world’s trouble spots need not fear these dangers.

At Denationalize.me we can make it easy for you to obtain citizenship in Vanuatu, and we will take care of all the necessary formalities for you. Our experienced team will guide you through the entire process, from the initial consultation to the issuance of your passport. We will ensure that you submit all the required documents correctly and on time, and we will handle all communications with the authorities. Contact us if you would like our help with the process. You are just one step away from your new free passport! Remember: for only USD 5,500, 4 people can benefit from its simple and fast citizenship process, or for USD 100,000 (of which you will get USD 50,000 back after 4 years) you can invest in delicious chocolate from the country and get a fantastic passport.