The Republic of Vanuatu is a former English-French protectorate, made up by an archipelago of 83 islands of volcanic origin surrounded by coral reefs, covering more than 12,000 sq. km of the South Pacific Ocean. Located 1750 km from Australia, 500 km northeast of New Caledonia, west of Fiji and south of the Solomon Islands, near New Guinea. The islands are inhabited by 267,000 inhabitants. Its capital, most populated city and economic and commercial center is Port Vila, located in Efate Island (the third largest of the archipelago), which has the most important port and airport of the country. Its official languages are Bislama, French and English. Its official currency is the Vanuatu Vatu (VUV).
The country is one of the most underdeveloped in the region, with a per capita income that barely reaches USD 3,000 annually and a very unequal distribution of wealth, with much of the population devoted to subsistence agriculture.
It has a fragile economy, with inherent economic difficulties, is remote and isolated, facing heavy transport costs, is prone to natural disasters and is heavily dependent on foreign investment, tourism and commodities price fluctuations.
Tourism is its largest sector, accounting for half of GDP. Agriculture and fisheries are the second largest, about a quarter of its economy. Its main exports are copra, coconut oil, kava, beef, timber, cocoa and coffee, and destined to Australia, New Zealand and Japan.
The Government plays an important role in the country’s economy. There are more than a dozen state-owned enterprises in such important economic areas as airports, banking, agriculture and broadcasting.
Vanuatu is a pure tax haven, there are no income, dividend, capital gains, withholding and estate taxes and no capital controls. In addition its incorporated international companies benefit from total confidentiality and easy accounting. Vanuatu has been an offshore financial center for more than 40 years. The sector contributes almost one tenth of GDP. With well-developed banking and financial infrastructure, international financial institutions, professional lawyers, accountants and financial advisors, including multinational firms.
Vanuatu has also a citizenship by investment program, where through a donation, a foreigner can become a Vanuatu citizen, obtain a second passport of a pure tax haven and travel visa-free to Russia and Schengen area.
Flag Theory is a strategic internationalization process allocating parts of your personal finances or business in strategic jurisdictions, to increase your privacy, freedom and wealth. Below, you can find further information on why and how to get Vanuatu’s citizenship by investment, why and how to set up an offshore company and offshore bank account, incorporate a bank, investment opportunities and residency visas in this South Pacific country.
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