Growth In Passport Sales Drives Vanuatu Into Record Budget Surplus

The rise in demand for Vanuatu passports has provided an unexpected budget surplus, which has allowed for the preparation of an anti-crisis package and funds for the recovery from the hurricane.

Almost all industries in Vanuatu's already volatile economy are affected by the pandemic and the April cyclone Harold (Category 5 hurricane). However, in the first 6 months of 2020, the island nation's budget surplus was $ 33.3 million.

Nearly all of the money came from the Citizenship Sale Program, which grew 32% year over year. At the end of June, the government received $ 62.2 million - almost 80% of the projected revenue for the year.

Vanuatu citizenship costs $ 130,000. About 80 thousand goes directly to the treasury, the rest remains with the agent, who must either be born in Vanuatu, or be a naturalized citizen. The agent pays 15% income tax.

Since the beginning of the year, at least 650 people have acquired citizenship through the program. Vanuatu passports are so in demand because they give the right to visa-free travel to the EU, Great Britain, Russia, Hong Kong and other states.