If you’ve never heard of Vanuatu before, then you should because there are several people who are now proud citizens of this island nation in the South Pacific. Without ever visiting the island, they have acquired Vanuatuan passports through a quick and cost-effective process. This option has become increasingly popular among Indians looking to change their citizenship.
For many Indians, the journey to Vanuatu citizenship begins in Dubai. Typically, they spend a year in the UAE to become non-resident Indians (NRIs). Once they achieve NRI status, they hire a lawyer in Dubai to handle their Vanuatuan citizenship application.
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The process is quick and much cheaper than other options like Cyprus or Malta. The total cost is around Rs 1 crore for an individual or Rs 1.5 crore for a couple with minor children.
Why Vanuatu?
Vanuatu’s citizenship-by-investment program is currently the fastest in the world. Over the past 18 months, at least 30 Indians, including NRIs, have reportedly become citizens of Vanuatu. This program has gained popularity among UAE residents, including Indians and Russians, due to its speed and affordability.
A Vanuatu passport offers visa-free access to over 55 countries and visa-on-arrival in 34 countries. Although its visa waiver program with the EU was suspended in 2023, the passport still provides significant travel benefits.
Avoiding Financial Scrutiny
Many people opt for Vanuatu citizenship to avoid financial scrutiny from Indian authorities. The speedy application process is appealing to those who want to escape potential taxes on their global business income or to hide undisclosed offshore wealth.
Since the 2021-22 assessment year, NRIs with earnings over Rs 15 lakh from India may face taxes on their global income if their businesses are controlled from India. Vanuatu citizenship may help them avoid these taxes.
Also Read: RBI’s New Rule: Indian Residents Can Open Foreign Currency Accounts under LRS at Gift City!
Another advantage is the protection of global assets from Indian authorities. Currently, the Indian Income Tax department receives information on offshore accounts and investments held by Indian passport holders.
However, once a person becomes a Vanuatuan citizen, countries like Switzerland or Jersey will no longer share this information with India. Instead, they will report it to Vanuatu, which has no obligation to pass it on to India.
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