Golden Passport

Why in News?

• Recently, the Vanuatu government cancelled the passport issued to former Indian Premier League (IPL) chief Lalit Modi and argued that avoiding extradition is not a valid reason for citizenship of the island nation.
  • It is worth noting that Lalit Modi had acquired Vanuatu citizenship under its Golden Passport/Fast-Track Investment Programme.

What is Vanuatu's Golden Passport

• The Citizenship by Investment (CBI) programme in Vanuatu allows wealthy individuals to purchase their own passports.
  • It is commonly known as the 'Golden Passport'.
• According to investment migration firm Global Residence Index, Vanuatu's Citizenship by Investment programme is the fastest and simplest citizenship programme.
  • It requires very few documents. Also, all documents can be provided digitally.
• Cost: Vanuatu citizenship costs $135,500 to $155,500 (Rs 1.18 crore to Rs 1.35 crore), which also includes the option to buy citizenship for a family of four.
  • According to a BBC report, passport sales account for about 30% of the country's revenue.

Benefits

• According to the Henley Passport Index 2025, Vanuatu's passport ranks 53rd, providing visa-free access to 113 countries.
  • While its performance in this index is better than China (59) and India (80).
• As a tax haven, Vanuatu has no personal income tax, capital gains tax, inheritance tax, making it attractive to high-net-worth individuals.

About Vanuatu

• Geographical location: Vanuatu is an archipelago nation of about 80 islands, located in the South Pacific Ocean between Fiji and Australia.
  • It originated by volcanic process. It is located east of Australia and New Guinea, northeast of New Caledonia, southeast of Solomon Islands and west of Fiji.
• Capital: Port Vila (located on Efate Island)
• Area: 12,189 square kilometers
• Population: 300,019 (as per 2020 census)
• Language: Bislama is the national language while French and English are the official languages.

Other facts

• Vanuatu is one of the most vulnerable countries in the world in terms of climate change and natural disasters.
  • It frequently experiences cyclones, earthquakes and tsunamis.
  • It is famous for its active volcanoes, coral reefs and pristine beaches.
• Vanuatu was a European colony that gained independence in the year 1980.

Did You Know?

• Citizenship by investment or economic citizenship allows individuals to acquire citizenship of a country by making significant financial contributions to that country's economy.
• Countries around the world grant citizenship to foreigners to attract investment and encourage economic growth.
  • These countries include Malta, Turkey, Montenegro, Antigua, Barbuda, Dominica and Egypt, etc.