Could A Real Estate Investment Option Be on the Cards for the Vanuatu CBI Program? It Looks That Way!

Even amid the global COVID-19 pandemic, Vanuatu’s Citizenship by Investment (CBI) program has managed to thrive against all odds stacked against it. Earlier this year, it was reported that the South Pacific Island had set a new CBI-revenue record for 2020 in its 5th consecutive year of growth.

This would be an incredible achievement on any normal day, but more so given the current global climate, which has seen many immigration programs struggling to get by or shutting down completely as a result of the impact of the ongoing pandemic.

The CBI revenue grew by 25.8% for the period 2019 to 2020 – an even greater year-on-year expansion than the 20.3% growth seen in the previous period of 2018 to 2019 – resulting in a whopping total of USD 132.6 million, the Vanuatuan government’s largest single source of income for the year.

Keeping the momentum going

Naturally, this level of success is to be expected when your program approves more than 100 applications each month in 2020. And it does not seem like there are any plans to slow the momentum of the program down anytime soon. Chairman of the Vanuatu National Citizenship Commission, Ronald Warsal recently announced that the Commission will propose to add a new investment option to attract even more foreign investment in Vanuatu’s economy.

Previously, the Vanuatu CBI program only had one citizenship by investment route, and that was to make a minimal contribution of USD 135,000 to the Vanuatu Development Support Program (VDSP), of which the funds are used to support infrastructure and strengthen the economic development of Vanuatu.

The new bill, which has already been laid before Parliament, will amend Vanuatu’s citizenship law and allow foreign nationals to purchase or invest in real estate in the country in exchange for full citizenship.

What is the REO Program?

On 20 April 2021, the Vanuatuan Parliament reviewed the bill and approved the changes. The Real Estate Option Program (the REO Program) was passed and published in the Gazette – officially opening the door to citizenship by real estate investment in the country.

However, applicants to the program cannot invest in just any property. The policy was developed in a bid to attract both major and minor investors by designating important projects that meet stringent government-imposed conditions. Therefore, the investment must be made in Vanuatu Government Approved Projects (VGAP) to qualify.

A mutually beneficial agreement for all involved

As with the creation of all CBI programs, this option was put in place to further the economic growth of Vanuatu. The policy focuses on providing the necessary infrastructure to cater for the growth of the tourism industry, once it can recover from the impact of the pandemic. As such, major investors will only be allowed to sell constructed houses, apartments and condominiums, and will be prohibited from selling vacant land.

This way, Vanuatu benefits through the strengthening of its economy and furthering its infrastructure. But the South Pacific Island isn’t the only party that benefits from this program. Wealthy individuals will, of course, receive full citizenship and the accompanying passport in exchange for their investment.

Holding a Vanuatu passport comes with benefits and advantages, including unrestricted global mobility and favourable tax policies. In addition, investors can stand to benefit from rental income or high return on investments if holding shares in tourist accommodation.

It’s a win-win situation all around.

What are the REO Program requirements and regulations?

As of yet, the minimum investment requirements for citizenship via the REO Program have not been announced, but are due to be released soon.

What we do know so far is the following:

Investors can apply as a single applicant, or as a family that includes their spouse and 2 children who are financially dependent on the main applicant.
Additional fees will most likely be prescribed for any extra dependents added to the application, outside of those mentioned above.
The Commission must decide on whether or not to approve and grant citizenship within 3 months of receiving an application under the amended law.
The Vanuatuan government will conduct due diligence on foreign investors who apply under the REO program through the Financial Intelligence Unit (FIU).

Why invest in Vanuatu citizenship?

There are many reasons why more than a hundred people per month are applying for the Vanuatu CBI program during a global pandemic that has had a drastic impact on the global economy. Some of the biggest are:

Unrestricted travel: Vanuatu’s passport is currently ranked as the 40th most powerful passport in the world and provides visa-free or visa-on-arrival access to 132 countries and territories worldwide, including the Schengen Area, the United Kingdom, Hong Kong and Singapore.
Guaranteed by law: You can have full peace of mind when applying, as this program is based on the law and is guaranteed by the Vanuatuan government since 2017.
Efficient procedures: Vanuatu’s CBI program is renowned as one of the quickest paths to second citizenship in the world, with investors receiving their passport in as little as 2 to 4 months. This is due to the program being designed to be a smooth and straightforward process.
Favourable tax policies: Take advantage of Vanuatu’s incredible tax regime that places no taxes on worldwide income, capital gains, dividends, gifts, wealth and inheritance.
Ultimate insurance: Holding a second passport comes in handy during times of economic, social or political instability in your home country – or even a global pandemic. It’s the perfect Plan B to ensure safety and future prosperity for yourself and your loved ones.
Retire in paradise: Being a Vanuatuan citizen will save you a lot of time and hassle when trying to figure out where to spend your golden years. The beautiful scenery, clean beaches, year-round tropical weather, laid-back atmosphere and low cost of living is the perfect place to retire after years of hard work.
No residency requirements: Many immigration programs require applicants to physically reside in the host country. However, Vanuatu is not one of them. Applicants do not have to visit the island nation before, during or after applying.
Benefit from all citizenships: Vanuatu permits dual citizenship. This means that you are not required to renounce your current citizenship(s) and can benefit from all nationalities. Also, your home authorities will not be notified of your new citizenship and passport.

Book a free consultation

When seeking second citizenship in Vanuatu, be sure to render the services of an accredited and recognised advisor, like Savory & Partners.

When choosing us as your partner on this journey, you can be assured that you are in safe and capable hands. Savory & Partners is a long-standing and well-respected authorized agent that specializes in helping high-net-worth individuals secure citizenship and residency by investment for themselves and their dependents.

The Savory & Partners team is made up of a diverse group of industry experts who span over 15 nationalities, speak over 25 languages collectively, and come with decades of accumulated CBI and RBI industry experience. Our level of expertise and competence combined with our commitment to serving our clients with the highest level of professionalism and transparency has led us to aid over 1,100 families obtain a second passport with a 100% success rate. There is no one better positioned and more trustworthy than Savory & Partners when seeking the best results on your quest to secure a better future for yourself and your family.

If you would like to apply to the Vanuatu Citizenship by Investment program or would like to learn more, get in contact with us today for a free online consultation and one of our skilled agents will happily aid you in your enquiry.