Last Updated on January 29, 2024 by Asfa Rasheed
Citizenship by investment (CBI) is a legal mechanism that allows foreign nationals to obtain citizenship in a country in exchange for significant contributions to its economy, society, or culture. CBI programs are becoming increasingly popular among investors who seek to expand their global access, diversify portfolios, and enjoy a better quality of life. However, not all CBI programs are created equal, and some offer more advantages than others.
One of the most attractive and innovative CBI programs on the planet is the Vanuatu Government Bond Option (IGBO), which was launched in 2023. The IGBO is a unique investment option that involves investing in Vanuatu government bonds denominated in Australian dollars (AUD). The IGBO grants investors Vanuatu citizenship and a second passport, along with a host of other benefits.
But what makes the IGBO stand out from other CBI programs? Below, you will find some of the advantages of investing in Vanuatu Government Bond over any other citizenship by investment programs.
The IGBO is a refundable investment, unlike most CBI programs that require a non-refundable donation to a government fund. This means that investors can get their money back after the bond matures, minus the fees and charges. The IGBO offers 3 bond categories, with different investment amounts and maturity periods:
- AUD 180,000 (approximately USD 121,800) – for bonds maturing in 24 months
- AUD 170,000 (approximately USD 115,000) – for bonds maturing in 30 months
- AUD 150,000 (approximately USD 99,281) – for bonds maturing in 36 months.
The IGBO is denominated in AUD, which is a stable and strong currency that is widely used in the region. This way, investors can avoid the risk of currency depreciation or inflation that may affect other currencies. The AUD also provides a currency hedge against potential fluctuations in USD, EUR, or GBP, which are the main currencies used in other CBI programs.
The Reserve Bank of Vanuatu, which is the central bank of the country and a reputable institution, is in charge of the IGBO issue. Aware of it, investors can trust the security and legitimacy of the bond and the program. The Reserve Bank of Vanuatu guarantees the repayment of the bond principal at maturity, regardless of the economic or political situation in the country. The bond units are also limited to 500 and are sold on a first-come, first-served basis, ensuring exclusivity and transparency.
Being a low-risk investment, the IGBO does not depend on the performance of the market or the economy. Hence, investors will enjoy a steady and predictable return on their investment, regardless of external factors. The IGBO is also a non-interest-bearing bond, and investors do not have to pay any taxes on the bond income in Vanuatu or their country of origin.
This investment does not involve any complex or lengthy procedures or requirements. This way, investors can save time and hassle and focus on the benefits of their citizenship. The application process for the IGBO is similar to the other investment options for Vanuatu’s CBI program, which are the Development Support Program (DSP) and the Vanuatu Contribution Program (VCP). The DSP and the VCP require a minimum donation of USD 130,000 and USD 150,000 USD respectively, to a government fund that supports the development of Vanuatu. Look what steps the application process for the IGBO currently involves:
- Contact a licensed agent who will guide you through the process and provide you with the necessary forms and documents.
- Fill out the application form and submit it along with the required documents and fees to the licensed agent.
- The licensed agent will review your application and submit it to the Financial Intelligence Unit (FIU) for due diligence.
- The FIU will conduct a background check on you and your family members and issue a clearance report.
- The clearance report will be submitted to the Citizenship Commission for approval.
- The Citizenship Commission will issue a letter of approval and request the payment of the bond investment and the remaining fees.
- You will make the payment of the bond investment and the remaining fees to the Master Agent.
- The Master Agent will issue a bond certificate and transfer the bond units to your name.
- The bond certificate will be submitted to the Citizenship Commission for the issuance of the citizenship certificate and the passport.
- You will receive your citizenship certificate and your passport.
Depending on the availability of the bond units and the speed of the due diligence, the whole process may take as little as 60 days. In Vanuatu, you are free to receive your citizenship certificate and passport either in person or through a courier service.
The IGBO is a great option for investors who want to obtain Vanuatu citizenship by investment as fast and simple as possible, while also benefiting from a stable and secure investment opportunity. The IGBO offers them a currency hedge against potential fluctuations in the AUD and a low investment threshold compared to other CBI programs. The IGBO also grants investors access to all the benefits of Vanuatu citizenship, including visa-free travel, tax-free status, and high-potential investment opportunities worldwide.
If you are interested in applying for the IGBO or any other investment option for Vanuatu’s CBI program, don’t hesitate to reach out to International Wealth for more information and assistance. We have extensive experience and expertise in helping investors obtain second citizenship in Vanuatu and will guide you all the way. For more information about Vanuatu CBI options and other countries’ CIPs and immigration opportunities, please, follow the link. Supported by our experts, you can be sure that you will meet all the requirements and receive your citizenship and passport in the shortest time possible!
