Vanuatu citizenship is increasingly popular among Indians for its quick and inexpensive application process, allowing individuals to avoid cumbersome requirements typical of other nations. The program is especially favored by NRIs in the UAE and offers significant tax and financial privacy benefits.
Vanuatu has emerged as an appealing choice for individuals seeking alternative citizenship due to its expedited and economical processes. Competing with programs in Cyprus and Malta, Vanuatu offers a more affordable path, enabling individuals to gain citizenship without requiring physical presence in the country. For Indians, particularly those residing in the UAE, the journey to Vanuatu citizenship typically commences in Dubai, lasting over a year to establish Non-Resident Indian (NRI) status before applying.
The financial requirement for obtaining citizenship amounts to approximately ₹1 crore for individuals and ₹1.5 crore for couples with minor children. Upon payment, applicants are issued passports within a seven-week period, which are then couriered to designated addresses in Dubai. Recent estimates indicate that at least 30 Indians, including NRIs, have successfully obtained Vanuatu citizenship in the last 18 months.
Dr. Anup P. Shah, a partner at Pravin P Shah & Co., remarked on the program’s rising popularity, stating, “It’s currently the quickest ‘Citizenship by Investment’ programme… The Vanuatu passport grants visa-free access to over 55 countries and visa-on-arrival to 34 countries, though its visa waiver agreement with the EU was suspended in 2023.”
Many applicants perceive Vanuatu citizenship as an avenue to circumvent taxation and financial scrutiny, particularly due to stricter regulations imposed since 2021 on NRIs earning over ₹15 lakh from Indian sources. These regulations enable Indian authorities to tax global business income controlled from India regardless of residency status. An immigration consultant observed, “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?”
Moreover, Vanuatu citizenship provides enhanced confidentiality for financial assets. With recent data sharing agreements, Indian authorities can access information on offshore bank accounts. However, once an individual renounces their Indian citizenship, nations like Switzerland and Jersey cease to share such information with India, directing it instead to Vanuatu, which has no obligation to disclose it back.
Rajesh P. Shah of Jayantilal Thakkar & Company highlighted that many NRIs seek Vanuatu citizenship to evade potential legal issues in India, noting that the program’s benefits extend to family members as well. Furthermore, some use Vanuatu citizenship as a temporary measure before applying for citizenship from countries with more robust passports that permit dual citizenship.
Legal experts in Dubai are adept at handling Vanuatu applications, although Vanuatu’s background checks are perceived as less rigorous compared to those required by nations such as Grenada. Therefore, careful financial planning is crucial, necessitating the transfer of funds abroad while still an Indian resident. After acquiring Vanuatu citizenship, individuals typically renounce their Indian passports within three months.
Ultimately, Vanuatu’s citizenship program provides individuals not only with a second passport but also serves as a strategic means of achieving financial anonymity, tax advantages, and improved travel opportunities, making it a compelling option for Indians pursuing alternative citizenship.
In conclusion, Vanuatu citizenship presents a rapid and cost-effective route for individuals, particularly Indians, seeking alternative citizenship. The process is facilitated primarily through the UAE, and offers significant financial privacy and tax benefits. As the program becomes increasingly popular, its accessibility continues to be an attractive solution for those looking to enhance their global mobility and reduce financial scrutiny.
Original Source: m.economictimes.com
