How to Get Citizenship by Real Estate Investment in Vanuatu?
Imagine shimmering turquoise-blue waters, the chatter of tropical birds, and sunbeams piercing through palm shadows on a tropical beach. Such a scene is commonplace for a small island nation in the southern part of the Pacific Ocean called the Republic of Vanuatu.
This jurisdiction attracts numerous expatriates from various corners of the globe, offering unique migration and other benefits. For instance, within just a couple of months, a foreign national can obtain a second passport by participating in citizenship by investment program in Vanuatu for a contribution of $145,000. The necessary procedures are carried out remotely.
How much does citizenship by real estate investment in Vanuatu cost through the REO (Real Estate Option) Program? Which projects are eligible for investment? How fast is the process of obtaining a second passport? Answers to these questions were provided to us by experts at International Wealth, recognized leaders in the field of investment migration.
Legal framework for obtaining a Vanuatu passport through real estate investment
The Vanuatu Citizenship Commission has officially introduced the Real Estate Option Program (REO), allowing foreigners to invest in Vanuatu’s real estate in exchange for citizenship and a second passport. This new pattern complements the two existing passport-by-investment programs (the non-refundable donation to the National Development Fund):
- Vanuatu Contribution Program (VCP) – designed for applicants from mainland China
- Vanuatu Development Support Program (VDSP) – available to applicants from all countries and regions.
The new Real Estate Option Program is enacted in accordance with Section 13F of the Citizenship Act [CAP. 112] and Resolution No. 93 of 2021.
According to these regulatory acts, the applicant will need to acquire real estate in Vanuatu within an approved government development project (Vanuatu Government Approved Project; VGA Projects) and pay the corresponding prescribed fees.
Minimum investments for Vanuatu real estate citizenship
The minimum purchase price will be $200,000 plus VAT. Acquiring real estate can be done either in fractional ownership (in the form of shares in a development project) or as a whole (with the owner receiving standard property documents).
The statutory fees required to be paid by the applicant under the REO program cover the applicant, their spouse, and two children. If an additional child or dependent relative is included in the application, additional fees apply.
At the time of submitting an application for Vanuatu real estate citizenship, the applicant will need to deposit at least 10% of the total amount. Candidates will also need to provide certificates of no criminal record from their home country and previous residency jurisdictions, pay $5,100 for due diligence checks, and cover banking fees. The remaining 90% of the investment is made after the investor’s candidacy is approved within a two-month period.
The relevant authority, represented by the Financial Supervisory Service, will conduct a due diligence check on the applicant before approving or declining the application. The information is then passed to the Citizenship Commission, which is obligated to make a final decision on the application within three months of receiving it.
Approved real estate in Vanuatu under the REO Program
The following real estate development projects in Vanuatu have already received approval under the REO program:
1. Pacific Springs Complex located in Rentabao on Efate Island.
2. Narpow Point Coral Bay Complex located in the Narpow Point area on Efate Island.
3. FPF Rainbow City Project located in the Narpow Point area on Efate Island.
4. Milai Complex located on Espiritu Santo Island.
Currently, only information about the FPF Rainbow City Project and Milai projects is available from open sources.
FPF Rainbow City Project – this project is being carried out by FPF Company Ltd. According to an official press release, Rainbow City is an ambitious project aimed at creating a modern city with the necessary infrastructure for living and recreation.
The project is noted to have a significant positive impact on the Vanuatu economy, boosting activity in various sectors, providing numerous new jobs, and offering business opportunities in the local market. The target audience includes affluent buyers from Australia, New Zealand, and China.
Milai Complex – the project is being implemented by the limited liability company Milai Vanuatu Limited, specializing in the cultivation and production of 100% natural beef, based in Espiritu Santo. Founded in 2005, the company has managed to export its products to high-margin markets, including Japan and Australia.
The company also owns a significant number of horses and is involved in equestrian sports (Belmol Horse Paradise). The 24-kilometer routes on Espiritu Santo, passing by beaches, beautiful lagoons, swamps, and extensive forest management on the farm, are highly popular among island visitors.
Real estate market overview of Vanuatu
The cost of real estate in Vanuatu is relatively low. The average price of housing in the country is around $800 to $970 per square meter. The value of local real estate has steadily increased over the years due to tourism development and the influx of affluent Chinese, Australians, and New Zealanders.
Acquiring full ownership of Vanuatu land is not possible. Residential land parcels can be leased for up to fifty years, while commercial land parcels can be leased for a maximum of seventy-five years. There are no restrictions on foreigners purchasing property in Vanuatu. The transfer of ownership documents to a new owner typically takes 2-3 months.
Property taxes currently applied in Vanuatu include:
- A stamp duty of 2%.
- A 5% transfer fee upon re-registering ownership documents in the event of transferring assets to a new owner.
- When acquiring an existing company that leases land or owns property in Vanuatu, a stamp duty of 4% is applied to the value of share transfer.
- Legal service fees usually range from 0.5% to 1% of the purchase price.
- Value Added Tax (VAT) of 15% is not paid by buyers of residential real estate in Vanuatu. The VAT in this case is covered by the developer. VAT is paid by the buyer when concluding the sale of commercial property in Vanuatu.
- An insurance policy costs around 0.5% to 0.7% of the asset’s assessed value, covering risks like cyclones, earthquakes, volcanic eruptions, and more.