A huge number of wealthy citizens from the countries of the former CIS have recently received second citizenship, providing themselves and their loved ones with significant additional benefits. The most important privileges include visa-free travel around the world, high standard of living, access to quality medicine, expansion of business opportunities, tax preferences.
The list of countries issuing passports in exchange for investment in their economies is updated annually. This is the fastest and easiest way to gain second citizenship.
Investment programs of various countries differ in cost and list of opportunities provided. In the competition for customers, the authorities put forward, at first glance, very attractive proposals, in fact, they do not always correspond to reality.
On the example of the Pacific island state of Vanuatu, one can find many negative points that advertising articles are silent about. By acquiring Vanuatu citizenship for investment, the applicant should pay attention to the natural disasters inherent in this region, and the economy suffering from them. Another questionable point is the purchase of citizenship for cryptocurrency, which today is a risky deal. And finally, Vanuatu’s passport has a low rating, and not all countries recognize it.
In this article, we will provide confirmation of their arguments.
Vanuatu consists of a ridge of 80 islands, stretching in the South Pacific. From November to April in these latitudes, there are frequent rains and raging cyclones, many of which are destructive.
So, in March 2015, the archipelago visited the cyclone Pam of monstrous power: the wind speed reached 270 km / h, the phenomenon was accompanied by endless rain showers.
Elemental destroyed more than 90% of the buildings, eight-meter waves completely covered the small islands.
The media reported 40 dead, suggesting that in fact there were significantly more victims. Early evacuation saved many residents from inevitable death. The country was declared the 5th highest level of danger. The disaster has gone down in history as one of the most devastating in the Pacific.
The capital of Port Vila has suffered greatly – the streets were littered with roofs torn from the houses, trees twisted from the roots, fallen electricity pillars. Some villages were completely destroyed by the hurricane. People left homeless, fled to the temporary stay.
President Baldwin Lonsdale called on the world community to provide humanitarian assistance to the population. Huge amounts of money were spent on restoring the infrastructure. The main sponsors were Australia, which allocated $ 5 million, New Zealand, Caledonia.
This hurricane was the most powerful in the history of a small state, but who knows how nature will behave in the future. Isn’t it a reason to think about how wise to get citizenship of Vanuatu?
And in September 2017, one of the most dangerous volcanoes on the planet with the Manara crater woke up on Oba Island. The population – 11 thousand people were evacuated, the main threat is volcanic ash, destroying crops and making drinking water unfit for consumption.
In April 2018, Aoba activity intensified, residents of nearby islands were again evacuated from the danger zone.
The economic situation of Vanuatu leaves much to be desired. 80% of the population work in agriculture for growing and processing coconuts, coffee, chocolate tree, and other fruit crops and vegetables. Frequent natural disasters cause enormous damage to the crop. A serious obstacle is also the considerable remoteness of the islands and not too well-developed transport equipment.
Among other industries include logging, fish, canned meat production, exclusively for their own needs – the textile industry. In recent years, the share of the tourism sector in the economy has increased significantly. The government has focused on the construction of resorts, improving air and cruise traffic. Most of the entrepreneurs who have received citizenship of Vanuatu are occupied on the islands by the tourism business and services, which account for as much as 63% of GDP.
Considerable interest was aroused by the information on whether to buy citizenship for the Bitcoins of Vanuatu. The owners of digital capital have attracted the possibility of investing virtual money in the investment program. However, in November 2017, Samuel Garai, Acting Secretary of State for Citizenship, officially announced the only form of payment – in US $.
04/27/2018 information came from VIC Managing Director James Harris, who reported that Vanuatu began selling citizenship for bitcoins and even notified about the successful completion of certain transactions for cryptocurrency. In order to keep up with competitors, the authorities of Antigua and Barbuda declared that they were also going to legalize payment transactions in digital currency for their passports.
No matter how the events unfold, the Russian owners of virtual capital are still limited by a strict framework – the issue of using digital money is not regulated by federal law. And illegal operations with foreign currency threaten its owners with a fine of up to 100%, and sometimes confiscation of the entire asset.
Negative attitude to virtual money and in many other major powers, for example in the USA. Americans explain this circumstance by the fact that bitcoins are often used in criminal schemes for money laundering.
The main disadvantages of crypto investments are Unpredictability of the course, which depends on demand, advertising, and other unstable factors;
Lack of market knowledge and risk assessment. Inexperienced beginners find it difficult to grasp the situation; solid experience is needed here;
There are no banks for cryptocurrency, therefore no one except the owners is responsible for its safety;
Risks are greatly increased due to unviable startups. That is, citizenship for Bitcoins is not only a dubious but also a difficult operation.
On top of that, the Government of Vanuatu called fake information from the questionable Thai migration agency, which announced the possibility of acquiring a
Vancoat passport for bitcoins. The unreliable notification was picked up by other unreliable agents. It seems that unscrupulous intermediaries, who have undertaken to unwind the program of the island Republic, are chasing a sensation, not caring about the true interests of the country. Should I trust my data so one-day? Investment projects should be promoted by official accredited representatives.
According to the authorities of the island Republic, at present, there are neither legal nor technical capabilities in the country to apply for Vanuatu citizenship for cryptocurrency. Holders of virtual money must first translate it into US dollars and only then invest the currency in the economy of the Pacific state.
The Pacific Republic has just started issuing its passports to wealthy investors. Its remoteness from the majority of world powers, perhaps, is an attractive circumstance for someone. The government promises its new citizens a lot of advantages:Fast clearance – up to 1.5 months, and reliability check in just 1 week;The possibility of visa-free visits to more than 113 countries, including the EU countries, the UK, Singapore and the simplified opening of a visa to America and Canada; Favorable preferences – no taxes on wealth, dividends, inheritance, foreign income; No restrictions on the duration of stay;Confidentiality.
For established businessmen, the issue of a second citizenship is a status symbol. In the ranking of the other 12 countries offering their passports in exchange for investment in the economy, Vanuatu is at the bottom of the list. By the way, it is headed by Australia, the cost of its citizenship is from $ 23 million. The low price of a Vanuatu passport is only $ 178,000 for a single applicant, in principle, a rather attractive prospect. But the states of the Caribbean offer citizenship even for less money – $ 100,000 + costs of registration, and the investment is returnable. The remaining benefits are comparable, and even more visa-free countries in the Caribbean list – from 150. Moreover, the proximity of America is a matter of priority for most entrepreneurs.
Short terms of verification of reliability are a dubious plus for investors, because of the more carefully this process, the higher the guarantee of capital preservation. Even applicants who have not passed Due diligence in the Caribbean can get citizenship of Vanuatu, this fact should alert applicants.
Purchase of a passport for cryptocurrency, with deep study, the process is very doubtful. In fact, the development of a bill allowing such an operation is at the stage of formation. Most likely, according to J. Bond, the head of the Information Center, Bitcoin transactions will be conducted through the crypto-exchange of Australia. Predict the future value of a passport so far no one is taken, as the Bitcoin rate is unstable.
Another important detail is that descendants of the Vanuatian investor have the right to citizenship only by naturalization, that is, after 10 years. Here are contradictory facts proving the dubious advantages of second citizenship for crypto investments:
The change of tax residency, which presupposes the preservation of digital accounts, presupposes living in a second country for at least 183 days, which is far from always possible for entrepreneurs who have a business outside its borders.
The confidentiality of operations with cryptocurrency has no basis since an automated international system for the exchange of tax information currently operates. Thus, the Federal Tax Service of Russia, joining the system, will receive information about all its citizens who have conducted a financial transaction through foreign banks. This applies to most of the world’s leading leaders.
All owners of virtual capital are in the risk zone, in whose countries this money has not received legal status. Consequently, their owners can lose significant amounts. Meanwhile, Russia is expected to increase the number of crypto investors by the end of 2018 to 3 million people.
Second passports are a common phenomenon among millionaires, most of them coming to the search for a spare state with increased thoroughness. We, in turn, caution applicants against a rash choice and do not recommend obtaining citizenship of Vanuatu. And we emphasize that the migration companies that offer to issue this status can hardly be called reliable.