Vanuatu operates one of the world’s most sought-after citizenship-by-investment (CBI), commonly known as a “golden passport” scheme, allowing affluent foreigners to acquire its citizenship in exchange for financial contributions.
How the scheme works
According to investment migration firm Global Residence Index, Vanuatu offers one of the quickest and simplest CBI programmes globally. Applicants are required to submit minimal documentation, all of which can be provided digitally, and are not required to visit the country at any stage of the process.
The cost of obtaining Vanuatu citizenship ranges between $135,500 and $155,500 (around Tk 1.18 crore to Tk 1.35 crore), with provisions available for a family of four. Applications are typically processed within 30 to 60 days. A 2019 BBC report noted that passport sales contribute roughly 30 percent of the Pacific island nation’s total revenue.
Key benefits
Beyond its speed and simplicity, the programme offers several notable advantages.
As of 2025, holders of a Vanuatu passport enjoy visa-free or visa-on-arrival access to 113 countries. The Henley Passport Index ranks it 51st globally among 199 passports, placing it ahead of Saudi Arabia, China and Indonesia. India, by comparison, ranks 80th.
However, the passport lost visa-free access to the European Union after the European Council suspended the privilege in March 2022 over security concerns related to the scheme. The suspension was made permanent in February 2023.
Vanuatu is effectively a tax haven. It imposes no personal income tax, capital gains tax, inheritance tax or wealth tax. Although indirect taxes such as VAT and property transaction taxes exist, these are generally lower than in other South Pacific nations. Combined with relaxed reporting requirements, the country has become strategically attractive for tax planning.
With a per capita GDP of just $3,515.2 in 2023, according to World Bank data, offshore financial services remain a major source of income for the country, creating strong economic incentives to maintain its tax-friendly status.
Growing controversy
In recent years, Vanuatu’s citizenship scheme has come under scrutiny amid allegations of corruption and misuse by international criminal networks.
An investigation by The Guardian, which reviewed more than 2,000 golden passports issued in 2020, found recipients included a Syrian businessman under US sanctions, a suspected North Korean politician, an Italian businessman accused of extorting the Vatican, a former member of an Australian motorcycle gang, and South African brothers linked to an alleged $3.6 billion cryptocurrency fraud.
Experts have repeatedly warned that the programme is vulnerable to abuse, potentially offering a backdoor to the EU and the UK, while Vanuatu’s tax regime has raised concerns about money laundering risks.
Courtesy: UNB with inputs from the Indian Express
Bd-pratidin English/Lutful Hoque
