Fast, Cheap, and Tax-Free: Why Indians Are Choosing Vanuatu?

Well-off Indian people from the modern world are turning to Vanuatu in the South Pacific for fast and money-saving second citizenship options. Lalit Modi and other top-notch individuals now use Vanuatu's Citizenship by Investment program because it grants citizenship quickly at a low cost while offering tax exemptions. Recent incidents with Modi's Vanuatu passport have created concerns about the security problems this pathway brings. This article examines why more Indians want Vanuatu citizenship, explains the citizenship path they must take, and shows why they do so and what difficulties they face during this process.

Why Vanuatu? The Key Attractions

Vanuatu's CBI program works smoothly because it has a few steps that get results faster than other similar programs. Due to its advantages, this citizenship program attracts many Indian citizens.

1. Fast Processing: Vanuatu currently leads the world in fast citizenship delivery to foreign investors. The new citizens will get their passports within seven to eight weeks of accepting their application.

2. Affordable Costs: The investment requirements for Vanuatu's citizenship by investment program are better than what people need to pay in Malta or Cyprus. One individual can become a citizen of Vanuatu through a payment of around $125,000 while a family of four needs to pay around $185,000.

3. No Residency Requirement: The Vanuatu program offers citizenship without requiring applicants to live anywhere within the country or visit the nation before approval.

4. Tax-Free Benefits: The nation of Vanuatu offers complete freedom from income tax as well as tax benefits on investments and estate property. Since this plan is especially helpful for wealthy individuals, it stands out as a suitable option for them.

5. Visa-Free Travel: You can easily enter more than 90 nations with your Vanuatu passport, and you can travel to the UK and Hong Kong without obtaining a travel visa first. Due to new EU travel rules, it ceased giving visa-free entry to European nations in 2023.

The Process: How Indians Secure Vanuatu Citizenship

The process of getting Vanuatu citizenship runs smoothly yet many need to start from outside India since their country blocks dual citizenship.

Step 1: NRI Status

Wealthy Indians create their NRI status in the UAE before starting their applications for foreign citizenship.

Step 2: Application Through Agents

Candidates submit their applications to agents who work from Dubai or international financial centers. These professionals assist applicants with all necessary procedures while making sure they match Vanuatu standards.

Step 3: Payment and Approval

To get citizenship, applicants must provide financial support to the Development Support Program of Vanuatu's government. After passing all needed checks, Vanuatu sends the finished passports by mail through a delivery service.

Why did Lalit Modi Opt for Vanuatu Citizenship?

The legal issues Lalit Modi faced in India drove him to become the highest-profile Indian to get Vanuatu citizenship. The desire of Modi and other people to obtain Vanuatu citizenship stems from these main reasons.

1. Financial Privacy:

Vanuatu lacks formal arrangements that require the country to provide India with financial data under CRS.

2. Legal Shielding:

Having a second citizenship offers you legal safeguards from extradition or prosecution in your chosen countries.

The scenario with Modi shows how this process carries multiple risks. International authorities took away his Vanuatu passport due to his reported misuse and public investigation of his activities.

Risks and Challenges of Vanuatu Citizenship

Living in Vanuatu brings important advantages but also creates serious disadvantages.

1. Passport Revocation: Under certain circumstances, including improper application background checks or international pressure, the authorities can take away a passport even from people like Lalit Modi.

2. Reputational Risks: The public may view travellers from tax haven nations suspiciously when passing through border controls or financial institutions.

3. EU Visa Suspension: In 2023, the European Union took away visa-free travel rights for Vanuatu passport holders because of weak checks during their Citizenship by Investment program.

4. Increased Scrutiny: The OECD and other international entities are now working to remove tax haven programs that protect financial secrets.

5. Limited Global Mobility: A Vanuatu passport provides acceptable travel benefits but is weaker than those offered by Malta or Cyprus passports.

Is It Worth It? Expert Opinions

Roy Shah from Jayantilal Thakkar & Co. clarifies that NRIs pick Vanuatu citizenship first as a short-term route to their future migration path. He shows that cheap and fast application processes are what Indian HNWIs seek most when investing.

Partner Anup P Shah of Pravin P Shah & Co tells us that Vanuatu's high-speed citizenship program makes clients consider its pros and cons based on reputation and geopolitical threats.

Conclusion

Wealthy Indians moving to Vanuatu use their Citizenship by Investment program because it provides them with a fast and cost-effective path to obtaining tax-exempt second passports. Recent events, particularly Lalit Modi's passport cancellation, demonstrate the problems that can arise through this approach. Those looking at this program as their first step toward permanent migration should evaluate its professional and legal consequences above other advantages. Foreign authorities will keep closely watching CBI programs, so new applicants need to follow proper document assessments.