Is There Any Comeback For Vanuatu Golden Passport Program

IS THERE ANY COMEBACK FOR VANUATU GOLDEN PASSPORT PROGRAM

Is There Any Comeback For Vanuatu
Golden Passport Program

Vanuatu Citizenship by Investment program is one that that awards qualifying investors a Vanuatu passports in exchange for an investment in the country’s economic Development. Launched in 2017, this is the only citizenship by investment program of its kind in the South Pacific. Also referred to as the Vanuatu Citizenship Development Support Program (DSP), it’s one of the fastest and most clear cut and easy-peasy ways to acquire a second passport.

While Vanuatu’s citizenship program isn’t the least expensive option, it certainly is one of the easiest ways to get citizenship and a second passport with relatively few investor requirements. Owning a Vanuatu Passport is particularly rewarding for private individuals looking for some peace and quiet investorfriendly environment, diversification of your investment outside of your home country and an entirely new and affordable jurisdiction in the South Pacific to retire.

To qualify for Vanuatu citizenship, you must be over the age of 18, have a clean criminal record, and have excellent health. You must also be able to provide proof of assets totalling more than $250,000, and be able to make a minimum government-approved contribution of US$135,000.

Status Of The Program

However, the Vanuatu Golden Visa Passport Program on November 8, 2022 got a major spoke removed from its wheels. The European Council on that day decided to fully suspend Visa Waiver Agreement with Vanuatu due to the risks posed by its investor citizenship schemes, also known as the golden passport schemes.

A partial suspension of the agreement had already been adopted on 3 March 2022. Following the partial suspension, the Commission started a dialogue with Vanuatu on 12 May to address the EU’s concerns. However, since then but for recent action Vanuatu has failed to engage the EU in any serious and material way on the circumstances that led to the temporary suspension which still exist.

Based on careful monitoring and assessment of Vanuatu’s investor citizenship schemes, the EU concluded that the conduct of the program lacked certain serious safeguards and deficiencies which could pose a risk to the EU, notably due to:

the extremely low rejection rate, which raises doubts as to the reliability of the security and due diligence screening
the absence of physical presence or residence requirements, short processing periods and a lack of information exchange with applicants’ countries of origin or residence
the granting of citizenship to applicants listed in Interpol databases
the nationalities of origin of successful applicants, which include several countries whose nationals require a visa to enter the EU

The EU decision was published in the Official Journal and it took effect from February 4, 2023. The situation between the EU and Vanuatu over the lapses in their program is not new.

Vanuatu & Eu Clash

In 2015, the EU granted Vanuatu citizens visa-free access to the Schengen Area. Two years later, the small Oceania island-nation introduced its golden passport scheme which the EU eventually deemed as a gateway for illicit activities and individuals. It appears that one of the major reasons which propelled Vanuatu’s ambitions to secure Visa-Free Status to the Schengen Area was to bolster its already planned Citizenship by Investment Program. The EU lamented the fact and voiced serious concerns over Vanuatu’s low rejection rate and the granting of its passport to individuals listed in Interpol databases, among other concerns.

The situation led to escalating tensions between both sides, leading the EU to issue several warnings to the Vanuatu Government to scale down its program and apply tighter due-diligence investigation and checks particularly following the Russian invasion of Ukraine. A partial suspension of the visa-waiver agreement was ordered by the EU in May of 2022, and Vanuatu’s failure to take prompt action led the union in November 2022 to go ahead with a full suspension of the visa-waiver agreement.

With months-long negotiations, the EU finally agreed to reinstate the visa-waiver agreement in February 2023, giving the island’s officials 18 months to reform its program, from which Vanuatu makes 30% of its annual revenue. The decision was made after Vanuatu’s president led a delegation to Brussels to assure EU officials over his nation’s commitment to address the union’s concerns and revamp the program.

Vanuatu Needs The Eu

However, with the major economic boosts that the Vanuatu economy gets from the Golden Passports Program it could not sit idly by and allow its economy to go to ruin. The Government had to do something. Hence, the reason for the Vanuatu high government level official visit to Vanuatu.

Vanuatu has engaged the EU in meaningful dialogue to regain its visa free status to the EU, one of the major hallmarks of its program. The process to revamp Vanuatu Citizenship by Investment is in progress. Announcing the reform process is ongoing, Vanuatu Government says that its officials will engage in regular virtual meetings with the EU to ensure the reforms clearly address one of the EU’s major concerns – border protection.

So far, the requirements of the EU commission are :

Vanuatu And Potential Investors

Russians can still apply to participate in Vanuatu Golden Passport Program as it is yet to categorically ban Russian Investors. This is one of the options open to Russian Investors today. Montenegro, which also enjoys visa-free travel to the EU, is another optionremaining available to Russian Investors. With the undergoing reform process with Vanuatu, the participation of Russian Investors in Vanuatu Golden Passport Program is expected to be part of the reforms overseen by the EU. No official decision on this has been announced.

One of the benefits of having a Vanuatu Passport is also Visa-Free travel to the UK, which is a very popular and celebrated destination for Russian oligarchs. Following the war, the UK halted Russians’ access to its Tier I Investment Visa before scrapping it altogether shortly thereafter. It’s a matter of time to see whether Vanuatu will be back, hands-in-glove, with the EU over its Visa-Free status for visiting Vanuatu Passport holders. For constant update on the Vanuatu Golden Passport Program and for the processing of your application for