The Law of Vanuatu CBI in Real Estate Finally Ratified
Vanuatu is a country composed of a double chain of 13 principal and many smaller islands in the south-western Pacific Ocean. The islands are originally volcanic and coral and lie about the west of Fiji and the east of Australia. Vanuatu has many mountains and plateaus but is more famous for its coastal terraces and coral reefs. This attractive Pacific jurisdiction has improved the position of the South Pacific jurisdiction in the global market of investment immigration by launching Vanuatu citizenship by investment programs and recently the government has passed a law to allow foreign investors to make investments in real estate in return for Vanuatu citizenship. The details about the kind of real estate and the minimum amount of investment are yet to be announced.
Vanuatu Citizenship by Investment in Real Estate Ratification
Before, it was only possible to earn Vanuatu citizenship by donating to the country’s development funds. After more than four years since the launch of the Development Support Program (DSP), the Vanuatu Investment Migration Bureau announced the introduction of a CBI Real Estate Option (REO) to Parliament at the beginning of April 2021, and at the next Parliament session the long-waited legislation was finally approved.
Ronald Worsal, the chairman of the Citizenship Commission, announced this. He made the following statement on the matter: “One crucial aspect of our efforts to develop the Program is with the explicit aim of generating greater benefits for our wider economy, by developing opportunities for attracting investment into Vanuatu that will result in creating jobs and tangible improvements for all in our community.”
In 2020, revenue from the citizenship program helped compensate losses in the tourism industry, on which about 50% of the state’s GDP depends. The new option will further increase investor demand for participation in the program.
More details about the kind of real estate investors will be allowed to buy and the minimum amount of investment is yet to be announced. Vanuatu government mentions that designing the conditions was based on the experience of other countries with the citizenship program by investment.
If the real estate option under the Vanuatu program is similar to the Caribbean programs, investors will be able to purchase shares, apartments, or villas in hotels. The minimum investment amount might be about $200,000.
Why Vanuatu Citizenship Program Is So Popular?
When it comes to choosing citizenship by investment programs, investors often select wonder between the Caribbean countries and Vanuatu because these countries offer the most reasonable prices, and being the citizen of any of these countries you have the advantage of visiting Schengen states, Great Britain, and so many more countries without a visa, however, Vanuatu citizenship by investment is the fastest of all programs.
In fact, there are two reasons for the popularity of the program: the speed of processing and the opportunities offered by the Vanuatu passport. The time to process and receive a Vanuatu citizenship application starts from 1 month; making the program the fastest in the world. For Caribbean countries, it takes an average of 2 to 6 months to obtain a second passport and the cost of participating in the Vanuatu citizenship program is very much comparable to the Caribbean.
In addition, the local authorities have long ago got rid of unnecessary bureaucracy and thus enabled applicants to apply for citizenship without visiting the host country. The high-speed processing applications and a modest minimum investment starting from USD 130,000 make this Vanuatu offer one of the most attractive on the market.
Citizens of Vanuatu travel visa-free to more than 140 countries. In the Schengen area, it is allowed to stay without a visa for up to 90 days every six months. Vanuatu is also a member of the British Commonwealth, so citizens may easily travel to the UK for 180 days a year.
The Vanuatu passport also helps optimizing taxation. There are no taxes on income, wealth, inheritance, capital gains, or exports. International companies registered in Vanuatu are exempt from taxes for 20 years. Instead, they pay only have to pay an annual fee of $300.
It explains why Vanuatu’s citizenship program has remained in demand despite the world economic crisis and the pandemic.
Vanuatu Citizenship by Investment Expected to Grow More Attractive in 2021
Although the possibility of obtaining a second passport and citizenship by investment in real estate in Vanuatu has become available in 2021, as local legislators permitted relevant amendments to the law. But even without this new financial incentive, Vanuatu economic citizenship enjoys considerably high popularity and reception.
According to the statistics, investors added USD132.6 million to the country’s budget, despite the lockdown, in 2020, which is twice the amount forecasted by the government. What could have been a very challenging year from an economic point of view, turned into a manageable one. Vanuatu’s borders have remained closed since April 2020 bringing down the tourism rates to almost zero, meaning income from this source became almost non-existent. However, the financial contributions through the Vanuatu Citizenship by Investment Program helped keep the country prosperous during 2020.
To support the national budget, local authorities even simplified the process of granting Vanuatu citizenship for investment, in particular by offering candidates the opportunity to take the oath of allegiance to the new homeland via videoconference. Previously, a personal meeting with Vanuatian officials outside the new homeland or a personal visit to the country was required.
For more detailed information on the requirements for obtaining Vanuatu Citizenship by Investment, please contact one of our advisers in the UAE, Denmark, or Canada, we will accompany you and your family until you obtain Vanuatu Citizenship.
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