Until recently, Vanuatu, a picturesque archipelagic nation in the South Pacific, was largely unknown to the Indian public in general. However, it has suddenly become a subject of curiosity among citizens, leading to widespread internet searches about its geography, culture, and governance. The reason behind this newfound interest is none other than former Indian Premier League (IPL) chief Lalit Modi, who has acquired Vanuatu’s citizenship.
Modi, who is wanted by Indian law agencies on allegations of financial embezzlement involving crores of rupees during his tenure as IPL’s top executive, has been living in exile in London since 2010. Recently, he filed an application with the Indian High Commission in London to formally surrender his Indian passport, a move confirmed by the Ministry of External Affairs (MEA).
This development has led to speculation about why Modi chose Vanuatu, a country that has rarely been in the Indian media spotlight. One of the key reasons appears to be Vanuatu’s attractive and controversial citizenship-by-investment (CBI) program, often referred to as the “golden passport” scheme, which allows wealthy individuals to obtain citizenship in exchange for a financial contribution to the nation.
Vanuatu’s CBI program is one of the most appealing in the world for high-net-worth individuals seeking a new passport. Zlata Erlach, the head of the Austrian office of Immigrant Invest, has outlined the many benefits of Vanuatu’s citizenship, making it an option for people looking for financial freedom and tax relief and also for those who ran out of countries leading to financial frauds:
1. Zero Personal Income Tax: Vanuatu does not impose any personal income tax on its citizens, meaning individuals can earn wealth locally or internationally without government taxation.
2. No Capital Gains Tax: Investors dealing in real estate, stocks, or other appreciating assets benefit from the absence of capital gains tax.
3. No Inheritance or Corporate Tax: A business registered in Vanuatu that generates income outside the country is exempt from corporate taxation.
4. Other Tax Exemptions: Vanuatu does not impose withholding tax, gift tax, or estate tax.
5. A Growing Crypto Hub: Vanuatu has been positioning itself as a center for cryptocurrency and blockchain innovation. Satoshi Island, a 32-million-square-foot area owned by Satoshi Island Holdings Limited, is being developed as a hub for cryptocurrency professionals and enthusiasts.
Given these alluring advantages, Vanuatu has become a favored destination for individuals seeking financial privacy and economic benefits. Modi’s decision to acquire Vanuatu’s citizenship aligns with these strategic advantages, as the country provides a safe haven for individuals facing legal troubles in their home nations.
While Modi’s move has brought attention to Vanuatu, it remains a relatively obscure country to most Indians. Here are some interesting facts about this South Pacific nation:
1. Currency and Economy
Vanuatu’s currency is the vatu (VUV), a term derived from indigenous languages where “vatu” means “stone.” At the current exchange rate, 1 Indian Rupee is equivalent to approximately 1.41 VUV.
The nation’s economy is primarily driven by agriculture, tourism, and offshore financial services. Additionally, Vanuatu’s location in the Pacific makes it a strategic hub for trade in the region.
2. Happiness Index and Quality of Life
Despite being a small island nation, Vanuatu has consistently ranked among the happiest countries in the world. According to the 2024 Happy Planet Index, Vanuatu was ranked as the happiest country out of 150 nations. It first earned this title in 2006, highlighting the island’s strong sense of community, environmental sustainability, and relaxed way of life.
The country’s name, Vanuatu, translates to “Our Land Forever” in many of the 139 indigenous languages spoken by the ni-Vanuatu people. This reflects the deep cultural and historical ties of the people to their land.
Vanuatu’s total population, as per its 2020 census, was 300,019. To put this in perspective, the population of Noida, a city in India, was 637,272 in 2011—more than double the population of Vanuatu.
Vanuatu has a rich and complex history, shaped by indigenous cultures and European exploration. The islands were first inhabited approximately 3,000 years ago by people belonging to the Lapita culture of northern Philippines. Over time, these communities evolved independently, separated by vast stretches of the Pacific Ocean.
The first European explorer to arrive at Vanuatu was Portuguese navigator Pedro Fernandes de Queirós in 1606. However, it was British explorer James Cook who extensively mapped the islands in 1764 and named them New Hebrides, a name that persisted until the country’s independence in 1980.
In 1906, France and Britain entered into an unusual agreement to jointly administer the New Hebrides as a condominium, meaning both countries exercised authority over the islands simultaneously. This colonial arrangement lasted until 1980, when Vanuatu gained independence and adopted its current name.
Lalit Modi’s acquisition of Vanuatu’s citizenship has inadvertently thrust this Pacific island nation into India’s national conversation. While the country’s scenic landscapes, vibrant culture, and economic policies have long attracted global investors, Modi’s move has drawn particular attention to its citizenship-by-investment program and tax-free status.
For a country with a population smaller than an Indian metro city, Vanuatu has successfully carved out a niche for itself as a financial haven and crypto-friendly nation. Whether this newfound attention will lead to increased Indian interest in Vanuatu—either for investment or tourism—remains to be seen.
