The Vanuatu citizenship by investment program have fallen steeply according to the data published by finance ministry and IMF. The steep decline attributed to losing visa free access to EU/UK and security concerns raised due to poor vetting with CIP program.
CIP Revenues
Citizenship program revenue is the biggest concern, with revenue down 24% on 2023 and 50% on the 2020 peak, as per data provided by Vanuatu finance ministry.
One-third of Vanuatu’s 2020 domestic revenue came from the citizenship scheme. Vanuatu has posted VUV a 3.8 billion vatu surplus (AUD 45 million) – around a 24 per cent increase from the same period in 2019. This has been largely driven by strong growth in its citizenship programmes (Vanuatu Development Support Program and
Vanuatu Contribution Program), which grew by more than 30 per cent for the comparable period in 2019 and now stands around VUV 7 billion (AUD 85 million).
According to IMF, Revenue from the Economic Citizenship Program (ECP) were projected to remain on a downward trend, according to the IMF report published in September 2024. The Economic Citizenship Program (ECP) continues to raise financial integrity concerns and scrutiny, while its revenue is trending down, rising fiscal strains. ECP projected revenue has fallen 60 percent below the authorities’ 2024 target, partly due to the reactivation of a cheaper citizenship-by-investment program.
Spending of CIP Revenues
Vanuatu has spent the citizenship revenues for these purposes
- Repayments of external and domestic loans.
- Emergency disaster from tropical cyclones
- Elections
- School grant subsidies and scholarships
- Infrastructure Development fund For roads and bridges
- Livestock restocking To boost the beef industry
- Hosting south pacific games etc.
EU/UK Visa Free Suspension
The EU will implement a full suspension of the visa waiver agreement (for all Vanuatu passports) starting February 2025. Governance issues identified by the EU include concerns about due diligence, no genuine link, low rejection rate, and speed
of approvals, granting citizenships to persons listed in Interpol databases, and lack of information exchange with applicants’ country of origin. Vanuatu listed in in EU blacklist of uncooperative tax jurisdiction.
The United Kingdom has also implemented full suspension of visa free travel to all vanuatu citizens since Aug 2023, citing security concerns with the CBI program.
Vanuatu has since Nov 2024, implemented mandatory personal trip to Vanuatu immigration office to collect passports as a new security measure.
Australia has said that the granting of citizenship is a sovereign matter for the Government of Vanuatu, when asked whether Australia is concerned about the integrity of Vanuatu’s Citizenship Scheme, or Vanuatu’s growing reliance on revenue from the sale of passports.
Decline in Vanuatu Passport Power
After losing major visa waivers, The passport power of Vanuatu have crumbled with only visa free access to only 92 countries in 2024, dropping to 54th place below according to Henley passport index.
