Recently, Vanuatu has been in the news due to the cancellation of fugitive Lalit Modi’s passport by the country’s Prime Minister, Jotham Napat. Modi had obtained his Vanuatu passport through the country’s Golden Passport Scheme, which has been previously used by many fugitives.
Here’s a closer look at Vanuatu’s Golden Passport Scheme and its benefits:
The Golden Passport Programme permits people to obtain Vanuatu citizenship through an investment, either by depositing money into a government account or investing in the economy of the country.
In contrast to golden visas that provide residence by investment (RBI), Golden Passports do not come with a mandatory stay in the nation. This is what makes the programme more appealing, as people are able to become citizens without ever having to set foot in Vanuatu.
For those curious regarding the mobility score of the passport, it is in 53rd position out of 199 on the Henley Passport Index, scoring 91. The score indicates that citizens of Vanuatu could visit 27 countries of the European Union visa-free. The European Commission, though, abolished this exemption in December 2024 due to “security and mitigation risks.” The Golden Passport Scheme was the major source of revenue for the government of Vanuatu in 2020.
Advantages of the Golden Passport
Having a Vanuatu passport has several advantages. Vanuatu nationals are eligible to apply for long-stay visitor visas to Canada, Australia, and New Zealand. They can also obtain a five-year B1/B2 tourist visa, enabling them to visit for business, medical purposes, or short-term studies.
As an additional factor, Vanuatu’s tax advantages draw in foreign investors. Businessmen may set up a Vanuatu International Business Company (IBC), which enjoys tax-free income, personal income, capital gains, inheritance, and donation. Secondly, Vanuatu grants a tax residency advantage of 20 years to anyone who establishes a financial presence within the nation.
Vanuatu’s Golden Passport program offers an easy and lucrative route to financial advantage and citizenship, although of late it has become embroiled in scandal through its employment by fugitives.
