Vanuatu’s citizenship program attracts Indian nationals for its quick and affordable process, allowing applicants to gain citizenship without visiting the country. With a cost of around ₹1 crore, it provides significant advantages, such as visa-free travel to numerous countries, financial confidentiality, and a potential solution to tax scrutiny faced by NRIs. Recent trends show increasing interest among Indians, highlighting Vanuatu as a strategic option for obtaining alternative citizenship.
The Vanuatu citizenship program has emerged as an appealing choice for those seeking alternative citizenship options. It is characterized by a quick and economical process, outperforming competitors such as Cyprus and Malta, which require higher investments and longer processing durations. Notably, Vanuatu allows individuals to gain citizenship without necessitating a physical presence in the country.
For Indian nationals, the process typically initiates in the United Arab Emirates (UAE), where they can establish residency as non-resident Indians (NRIs). The total cost for obtaining Vanuatu citizenship is approximately ₹1 crore for individuals and ₹1.5 crore for couples with minor children. Following the submission of payment, passports are typically dispatched within seven weeks to designated addresses in Dubai.
Recent industry estimates indicate that around 30 Indians, including NRIs, have successfully acquired Vanuatu citizenship in the last year and a half. Dr. Anup P. Shah, a partner at Pravin P Shah & Co., noted, “It’s currently the quickest ‘Citizenship by Investment’ programme. It has become popular among UAE residents, including Indians and Russians.”. The Vanuatu passport provides visa-free access to over 55 countries, alongside visa-on-arrival privileges in 34 nations, although its visa waiver agreement with the European Union was suspended in 2023.
Vanuatu citizenship is increasingly viewed as a strategic measure to evade taxation and financial surveillance. India’s recent tax legislation has intensified scrutiny on NRIs earning over ₹15 lakh from domestic sources while residing in tax-exempt regions like the UAE. An immigration consultant remarked, “You may be a resident of Dubai running your business there, but how do you challenge the tax department if they claim your business is managed from India due to your family’s presence?”.
Additionally, the citizenship offers a layer of confidentiality for financial holdings. Upon renouncing their Indian passport, individuals may circumvent information exchanges between jurisdictions like Switzerland and Jersey concerning Indian passport holders. Vanuatu, lacking legal obligations for these disclosures, does not share this information with India.
Rajesh P. Shah, a partner at Jayantilal Thakkar & Company, provided insight on recent trends, stating, “Many NRIs have opted for Vanuatu citizenship in the last two years to avoid possible litigation in India. It is especially favored by Indians in Dubai and other countries, as the program extends to all family members.”
Some individuals view Vanuatu citizenship as a preliminary step toward acquiring citizenship from nations with more robust passports, such as Malta, Grenada, or Cyprus, which accept dual citizenship. An insider remarked, “While its background checks may not be as stringent as those of Grenada, which collaborates with US authorities for due diligence, Vanuatu is an affordable and fast option for those seeking quick solutions.”
Prospective applicants are advised to engage in meticulous financial planning before submitting their citizenship applications. This often includes transferring funds abroad as Indian residents and later remitting up to $1 million annually from asset disposals in India. Applicants receive their Vanuatu citizenship and are typically expected to relinquish their Indian passports within three months thereafter.
The Vanuatu citizenship program not only provides a second passport for global mobility but also serves as a strategic means for financial confidentiality and tax advantages, drawing interest from Indians exploring alternative citizenship pathways.
In summary, Vanuatu’s citizenship program is increasingly favored by Indian nationals, particularly NRIs in the UAE, due to its affordability, speed, and the financial privacy it offers. Applicants often use the program to secure immediate citizenship while planning for future acquisition of more powerful passports. As tax scrutiny intensifies in India, Vanuatu emerges as an appealing solution, promoting financial confidentiality and potential tax benefits.
Original Source: m.economictimes.com
