Vanuatu Citizenship by Investment

Vanuatu citizenship by investment is one of the fastest naturalisation programmes in the world today, with processing times of just 30–60 days and a minimum contribution of $130,000 USD for an individual. However, the programme’s context changed significantly after the European Union formally revoked Schengen visa-free access for Vanuatu citizens in December 2024. This article analyses the current state of the programme, its costs, process and the risks investors need to consider before deciding.

Overview of the Vanuatu citizenship by investment programme

Vanuatu is a small island nation in the South Pacific and the only country in the Asia-Pacific region with an official citizenship by investment programme. The current programme, the Development Support Program (DSP), was established in 2017 to replace the former VERP programme.

The programme is administered by the Vanuatu Citizenship Commission (VCC) under the legal framework of the Citizenship Act (Cap 112). According to official information from theVanuatu Citizenship Office, all applications must be submitted through a Designated Agent — there is no direct submission channel.

Besides the DSP, Vanuatu has two other options: the CIIP (Capital Investment Immigration Plan) and the REO (Real Estate Option). However, the CIIP has been suspended since 17/03/2025 according to an official notice from the Citizenship Commission, so only the DSP and REO are currently active.

Investment options and costs in 2026

The DSP requires investors to make a non-refundable contribution to the Vanuatu government’s development support fund. The contribution level depends on the applicant’s family structure.

The basic DSP fee structure is as follows:

• Main applicant: $130,000 USD
• Main applicant with spouse: $150,000 USD
• Family of 4 (parents + 2 children): $180,000 USD
• Each additional dependant over 18: $25,000 USD per person
• Each dependant under 18: $15,000 USD per person

Besides the main contribution, applicants must pay other fees, including due diligence fees, processing fees, passport fees and the designated agent’s service fees. The actual total cost is usually about 10–15% higher than the minimum contribution.

The REO option allows applicants to buy real estate in approved projects for a minimum of $200,000 USD, combined with an additional contribution. However, the number of approved projects is currently very limited, and this option is used far less than the DSP.

Eligibility and applicant requirements

Applicants for Vanuatu citizenship by investment must meet the following basic conditions:

• Aged between 18 and 65
• No criminal record and not on Interpol’s wanted list
• No visa refusals from countries that have visa-waiver agreements with Vanuatu
• Proof of personal or joint net worth of at least $250,000 USD
• Lawful investment funds with a traceable source
• Passing the enhanced due diligence carried out by the designated agent

The programme does not require actual residence in Vanuatu before, during or after naturalisation. Applicants also do not need to attend an interview or know English or Bislama, and the entire process can be completed remotely. This is one of the programme’s most attractive features compared with traditional skilled or long-term residence programmes.

All dependants aged 16 and over must undergo independent security due diligence. Parents aged 65 or over who are fully financially dependent on the main applicant can also be included in the application.

The Vanuatu citizenship by investment process

The Vanuatu naturalisation process is considered one of the fastest in the world, with an average processing time of just 30–60 days from submission of a complete application.

The basic steps are:

1. Initial consultation and choice of a Designated Agent
2. Preparing the file and submitting it through the agent — direct submission to the VCC is not possible
3. Initial due diligence and waiting for the Approval in Principle letter, which takes about 2 weeks
4. After receiving the approval letter, paying the full investment contribution
5. Receiving the official citizenship approval letter within the following 2 weeks
6. Taking the oath and receiving the Vanuatu passport

An important note: do not pay the investment before receiving the Approval in Principle letter. This is a financial safeguard for applicants: if the application is rejected at the due diligence stage, the applicant loses only the due diligence fee rather than the whole contribution.

Impact of the EU decision to revoke Schengen visa-free access

This is the most important factor any investor interested in Vanuatu citizenship by investment needs to understand. On 12/12/2024, theCouncil of the European Unionformally and permanently ended Schengen visa-free access for Vanuatu citizens, after two years of a suspension measure.

The decision was issued as Regulation (EU) 2025/11, in force from 14/01/2025. The main reason given by the EU was that Vanuatu’s citizenship by investment programme posed security and migration risks to the bloc, especially the possibility of third-country nationals using it to bypass Schengen visa procedures.

Practical consequences for Vanuatu passport holders:

• A Schengen visa is required for every trip to the 27 EU countries
• Not eligible to use the ETIAS system once it comes into effect
• Loss of direct access to EU countries, which are important destinations for business travel

According to International Monetary Fund data cited in the EU’s report, revenue from the DSP programme fell by 27% after the visa-waiver suspension was applied in 2022.

Current benefits of the Vanuatu passport

Despite losing Schengen visa-free access, the Vanuatu passport still gives visa-free, visa-on-arrival or eVisa access to about 90–100 countries and territories. Notable remaining destinations include:

• United Kingdom: 6 months visa-free (still in place)
• Hong Kong: 90 days visa-free
• Singapore: 30 days visa-free
• Russia: visa-free
• Most Caribbean and Oceanian countries
• Some Southeast Asian and Middle Eastern countries

However, the strength of the Vanuatu passport has fallen significantly in international rankings since 2022. Investors need to weigh this if their main goal is to improve global mobility.

Comparison with alternative CBI programmes

As Vanuatu lost its Schengen advantage, many investors shifted to Caribbean programmes such asSaint Kitts and Nevis Citizenship by Investment, Dominica Citizenship by Investment, Grenada Citizenship by Investment, Saint Lucia Citizenship by InvestmentandAntigua and Barbuda Citizenship by Investment.

The Caribbean programmes still keep 90-day Schengen visa-free access, with minimum investments of about $200,000 USD — higher than Vanuatu, but in return offering a significantly stronger passport. Some investors also considerNauru Citizenship by Investmentas an alternative Pacific option, although that programme is still very new.

For more information on citizenship or residency by investment programmes, investors can consult theResidency and citizenship by investment map.

Tax advantages and other aspects of the Vanuatu passport

One aspect of Vanuatu that is still highly regarded is its favourable tax regime. The country has no:

• Personal income tax (on domestic or foreign income)
• Inheritance tax
• Wealth tax
• Capital gains tax
• Dividend tax

Vanuatu applies only indirect taxes such as 12.5% VAT and certain real estate transaction taxes. This tax structure can suit individuals who want to optimise their international tax planning, provided they comply with CRS rules and the tax reporting requirements of their country of residence.

In addition, Vanuatu allows unrestricted dual citizenship and does not require applicants to renounce their original nationality. This is convenient for Vietnamese citizens, who are not formally permitted dual citizenship but can in practice still keep their Vietnamese passport.

Risk assessment and recommendations

After the EU revoked visa-free access, the programme needs to be reassessed in the new context. It still suits certain groups, but it is no longer the optimal choice for every investor.

The programme is suitable when the investor:

• Needs a second passport quickly (in under 2 months) at low cost
• Prioritises a favourable tax structure over EU mobility
• Focuses on destinations in Asia, the UK, the Caribbean and Oceania
• Needs an urgent Plan B on a limited budget

The programme is not suitable when the investor:

• Needs to travel regularly to the Schengen Area
• Is looking for a passport with lasting strength and prestige
• Wants to actually live in the second country

In addition, be careful with agents not officially recognised by the Vanuatu Citizenship Commission. Official Vanuatu government websites always end in.gov.vu— any website claiming to be an official body without this domain ending is likely to be fake.

Summary

Vanuatu citizenship by investment in 2026 remains one of the fastest and most cost-accessible routes to naturalisation in the world, with investments from $130,000 USD and processing times of 30–60 days. However, the EU’s formal revocation of Schengen visa-free access from 2025 has significantly reduced the programme’s appeal to international investors.

The choice between Vanuatu and the Caribbean programmes should be based on your specific goal: global mobility, tax optimisation, an urgent Plan B or building a long-term structure. Each goal leads to a different choice, and Vanuatu still has its own place — just no longer the leading position it held before 2022.