Vanuatu residence or citizenship: which residence permits exist and what to choose

Vanuatu residence or citizenship: in brief

In brief: residence gives the right to live in Vanuatu, but you keep your existing passport. The status is granted for 1 to 10 years and renewed as long as the grounds remain: family, work, income or investment. Citizenship works differently: it is permanent, gives a Vanuatu passport and is obtained without relocating.

Among our clients the picture is simple. Almost everyone who asks about Vanuatu needs the passport, while residence is needed by those who plan to live on the islands. These are retirees who want to winter by the ocean, entrepreneurs with a business in the country and families where someone already works in Vanuatu. For everyone else, residence adds extra steps: an account at a local bank, renewing the status and 12 months of living in the country before permanent residence. It does not give visa-free travel or rights in Europe.

Below, in order: grounds for residence, permanent residence, cost and documents, differences from citizenship, residence while living elsewhere, life on the islands, taxes and Europe. If after reading you are still unsure which status you need, a consultation settles it faster: we ask about your plans and tell you what fits.

Which residence permits Vanuatu issues

In brief: the Vanuatu Immigration Service issues residence visas on several grounds. In practice there are four: you are the spouse or child of a citizen or resident, you work in Vanuatu, you live on your own income or you invest in the country’s economy.

Each ground describes your life on the islands, not an investment amount. So the first question we ask a client is: what will you do in Vanuatu and what will you live on.

Partner and child

If your spouse or partner is already a citizen or resident of Vanuatu, you receive residence on family grounds, and de facto relationships count too. The law separately protects the family if a citizen spouse has died: the right to the status is kept when the couple has children with Vanuatu citizenship or the relationship lasted at least five years. Dependent children of a citizen or resident receive residence as family members.

Worker

This ground is for those who have found work on the islands. First you need an employer: a company in Vanuatu obtains a work permit for you from the Department of Labour and confirms that the business needs the position and the contract terms meet local rules. Only then is the residence visa applied for. The status is tied to the employment contract, and the grounds are reviewed again when you change jobs.

Self-funded

Retirees ask about this type of residence most often. The condition is clear: income of at least 250,000 vatu a month certified by a bank operating in Vanuatu, or 500,000 vatu a month if a spouse or partner is included in the application. Income may come from abroad, but a local bank certifies it, so a Vanuatu account is opened in advance. Employment is not allowed on this ground. Those who received retiree residence before 7 February 2011 keep the earlier, lower thresholds.

Foreign investor

If you open a business or invest in Vanuatu, the ground is a foreign investment approval certificate from the Vanuatu Investment Promotion Authority (VIPA) and a business licence where required. The residence term is usually tied to the certificate term. Buyers of property on long-term lease can also obtain residence through VIPA approval; how this market works is covered in the article on property in Vanuatu.

If after this section it is clear that you have grounds, the next step is simple: we check the documents and advise on the term to apply for.

Vanuatu permanent residence: who is eligible

In brief: the permanent residence visa is issued under two sets of rules. The first, subclass 131, is for people with ni-Vanuatu parents and those who have lived in Vanuatu for the last 12 months. The second, subclasses 132-135, is for investors who invest in the country’s economy.

To answer a common question about how long you need to live there: permanent residence generally requires the last 12 months living in Vanuatu. Permanent residence removes the need to renew the visa regularly and confirm the grounds. The application includes identity documents, police clearances for periods lived abroad and details of residence in the country. The terms of the investor subclasses and investment amounts are set by the Immigration Service and checked on the filing date.

Permanent residence is easy to confuse with citizenship, but they are different statuses. With permanent residence you still travel on your own passport and do not get the visa-free countries of the Vanuatu passport. Citizenship by naturalisation requires many years of living in the country; see the article on naturalisation in Vanuatu. Citizenship by investment, by contrast, is obtained without residence.

Permanent residence in practice

Permanent residence makes sense when you already live in Vanuatu and do not want to confirm your grounds every time. The application checks where you have been: if since receiving your current visa you have spent 90 days or more in total outside Vanuatu, police clearances from those countries are attached. So we advise collecting tickets, entry stamps and addresses for this period in advance.

What Vanuatu residence costs

In brief: the government fee for a residence visa for an adult ranges from 57,600 vatu for 1 year to 511,200 vatu for 10 years, and 2,880 vatu for children under 18. Documents, translations, a medical certificate and costs related to the grounds are added to the fee.

The fee itself is small; most of the money goes elsewhere. Self-funded residence needs a Vanuatu bank account and certified income from 250,000 vatu a month. An investor puts the main sum into the business or property and into obtaining the VIPA certificate. For a worker, the costs are usually borne by the employer who arranges the work permit.

If you are relocating, budget for life on the islands too: rent, health insurance with evacuation and school for the children. These costs are covered in the article on living in and relocating to Vanuatu.

For comparison: Vanuatu citizenship by investment costs a $130,000 contribution for a single applicant under DSP, and in the CIIP fund a family of up to four pays $157,000 and receives $50,000 back after 5 years. On top of the contribution the only government charge is the FIU fee: $5,000 under DSP and $8,000 under the fund per application. The amount for your family is shown by the Vanuatu citizenship quote.

How to apply for Vanuatu residence

In brief: choose the grounds, prepare supporting documents, apply to the Vanuatu Immigration Service and pay the fee for the chosen term. For an adult the fee ranges from 57,600 vatu for 1 year to 511,200 vatu for 10 years.

The procedure is the same for all grounds; only the documents proving your grounds differ.

Documents

• a valid passport and photos;
• police clearance from the countries where you have lived;
• a medical certificate;
• marriage and children’s birth certificates if they are included in the application;
• proof of grounds: an employment contract, bank-certified income or a VIPA certificate;
• proof of accommodation in Vanuatu.

Documents in other languages are translated and certified. A spouse and dependent children can usually be included in a residence application, but some categories have their own rules, so we check the composition of the application before filing.

Term and renewal

A residence visa is issued for 1 to 10 years. A longer term costs more, but you do not have to renew the status every year. Residence is renewed before the current visa expires, each time confirming that the grounds still apply: marriage, work, income or investment. For children under 18 the fee is much lower than for adults.

How residence differs from Vanuatu citizenship

In brief: residence gives the right to live in the country and rests on the grounds. Citizenship gives a passport, permanent status and visa-free entry to 46 countries plus another 42 with a visa on arrival. Residence is obtained for life on the islands, citizenship for travel, accounts and family.

The main difference is that residence does not change your passport. A Vanuatu resident travels the world on their own country’s document, with all its visa restrictions. A Vanuatu citizen receives a second 10-year passport that is renewed from abroad, and the status needs no confirmation. The document itself is covered in the article the Vanuatu passport.

Vanuatu residence if you keep living elsewhere

In brief: Vanuatu residence is only worth it if you genuinely move to the islands. For visits no residence is needed, and some home countries require notification of a foreign residence permit.

For someone who keeps living in their home country, Vanuatu residence gives almost nothing. The passport stays the same, it gains none of Vanuatu’s visa-free countries and Schengen still requires a visa. Tax residence stays with the country where you spend most of the year. A trip to the islands does not need residence either: entry conditions are covered in the article on a visa for Vanuatu. Some countries also require their citizens to report a foreign residence permit: Russia, for example, within 60 days, as for a second citizenship.

Residence makes sense when you actually move. For example, on retirement with income of 250,000 vatu a month certified by a bank in Vanuatu (from 500,000 vatu for a couple). The status then lets you live on the islands for years, and after 12 months of residence you can apply for permanent residence. Citizenship by naturalisation would take many more years in the country. So for those who need the passport itself, it is faster to obtain it through the programme in 2-3 months and decide where to live with it in hand.

If you are moving, documents are prepared as follows: a police clearance certificate from your home country, marriage and children’s birth certificates and proof of income or employment. Documents are translated into English and certified. Income from your home country works for self-funded residence, but a bank in Vanuatu must certify it, so the account is opened before filing. The notification procedure for Russian citizens is covered in the article on dual citizenship of Russia and Vanuatu.

When you need residence and when a passport

In brief: residence is chosen by those who move to the islands, work or run a business in Vanuatu. The passport is chosen by those who need travel, accounts, a backup document and a first step to residence in Europe.

To save guesswork, here are the signs we use ourselves to tell these requests apart at the first consultation.

Vanuatu residence fits if

• you are moving to Port Vila or another island and will live there most of the year;
• you have a job or business in Vanuatu;
• you are the spouse or child of a citizen or resident;
• you are retired and ready to certify your income through a bank in Vanuatu.

Citizenship fits if

• you need a second passport for travel, especially to Asia and Oceania (where the Vanuatu passport gets you in);
• a neutral document for accounts and business abroad matters;
• you need the status for the whole family at once, including parents over 50;
• you plan Greek or Hungarian residence, for which the Vanuatu passport is the first step;
• you do not plan to move to the islands.

Three typical scenarios

A retired couple wants to spend winters in the warmth. They do not need to live in Vanuatu year-round; they need long stays in Asian and Oceanian countries. In such cases we usually advise the passport rather than residence, as in the case of a couple over 60 who spend the winter in Asia. Families who spend long periods in Asia solve it the same way: the case of a family in Thailand without visa runs.

A family moves to the islands to work and raise children. If one parent has a job in Vanuatu, the family receives residence on worker grounds, and the children are registered as family members. If there is no job on the islands but there is income from abroad, self-funded residence fits.

An entrepreneur opens a business in Port Vila. They need a VIPA certificate and investor residence. If travel matters too, the Vanuatu passport is obtained in parallel so as not to depend on renewing the status.

Sometimes both are needed: freedom to travel and life on the islands for part of the year. A Vanuatu citizen needs no residence visa, so such families more often choose citizenship. Life in the country is covered in the article on moving to Vanuatu, and the tasks the passport is taken for in who the Vanuatu passport suits.

Life with residence: work, business, housing and healthcare

In brief: a resident lives in Vanuatu under the rules of their category. Work is allowed only with a work permit, business with a licence and VIPA approval, and foreigners take housing on long-term leases of up to 75 years.

Work and business

If you move on self-funded residence, you cannot take employment in Vanuatu. A worker works for the employer the permit was obtained for. Your own business needs a VIPA certificate and a licence, and some activities are restricted for foreign investors. We handle company registration and account opening as part of the service business in Vanuatu.

Housing

Land in Vanuatu belongs to communities, so foreigners take long-term leases, with a maximum term of 75 years under the Constitution. We advise starting by renting in Port Vila and choosing a property to buy once there. The deal is prepared with a lawyer, checking the term and conditions of the land lease.

Healthcare and schools

Medical care on the islands is limited: serious cases are transferred to Australia or New Zealand. So residents take out insurance with medical evacuation, and for retirees we put it first in the budget. Port Vila has international schools. Families with children are best advised to settle these questions before moving.

Taxes: what residence changes and what the passport changes

In brief: Vanuatu has no personal income tax, capital gains tax or inheritance tax. But tax obligations depend on tax residence, not on a residence permit or passport: it is determined by physical presence and the centre of vital interests.

This is where people most often go wrong. Residence alone does not make you a Vanuatu tax resident, and neither does the passport. For zero rates to apply, you need to actually live in the country and leave the tax residence of your previous country. Someone who remains tax resident in their home country pays tax there and follows its rules on foreign accounts and controlled companies. More in the articles on Vanuatu tax residence and taxes in Vanuatu.

If you need residence in Europe

In brief: Vanuatu residence gives no rights in Europe. To live in Europe, Vanuatu citizens obtain the Greek Golden Visa or Hungary’s national programmes, and for our clients this is a common scenario: first the Vanuatu passport, then European residence.

Often a question about Vanuatu residence is really about Europe. Residence on the islands will not get you there, but the combination of a Vanuatu passport and Greek residence works: the passport takes 2-3 months, then you apply for the Golden Visa as a Vanuatu citizen. Greek residence gives the right to live in the country and travel across Schengen, and after years of residence opens the way to long-term EU status. Hungary offers Vanuatu citizens national residence programmes, which we match to the family’s goal and budget.

How this looks in practice is shown by the case of a couple who obtained Greek residence through a Vanuatu passport, and the procedure is described on the service page Greek residence for Vanuatu citizens. We compared the two approaches in the article citizenship by investment or a golden visa.

The terms of Vanuatu citizenship, the two programmes and the cost are covered in the overview of Vanuatu citizenship by investment, and how we work with clients on the page Vanuatu citizenship with BRIDGES. We help you relocate quickly, reliably and lawfully.

Where people go wrong choosing between residence and citizenship

Finally, the mistakes we see most often. Almost all of them come from one thing: expecting residence to do what it does not.

1. Seeking residence for the passport. A residence permit does not give a Vanuatu passport or its visa-free destinations.
2. Believing residence exempts you from tax. Tax depends on tax residence and actual living arrangements.
3. Applying for self-funded residence without a Vanuatu bank account. Income must be certified by a bank operating in the country.
4. Forgetting renewal. Residence is renewed before it expires, confirming that the grounds still apply.
5. Expecting Vanuatu residence to open Europe. Europe requires a European residence permit, such as the Greek Golden Visa.