Vanuatu’s citizenship‑by‑investment (CBI) programmes generated VT 11.4 billion (US $95.5 million) in the first six months of 2026, accounting for roughly 39 % of the VT 29 billion the government collected (excluding donor funds). The surge made CBI the single largest revenue source, out‑earning value‑added tax and all other tax lines.
Revenue performance
- Half‑year collections: 55 % of the revised 2026 target of VT 53.9 billion (US $451 million) and 8.9 % above the budget forecast. Total revenue was up 5.7 % compared with the same period in 2025.
- Share of government income:
- First nine months 2024 – 21.8 % of revenue
- First nine months 2025 – 30.4 % of revenue
- First six months 2026 – close to 39 % of revenue
- Historical context: VT 11.73 billion was collected over nine months in 2025. Doubling the 2026 half‑year figure gives an annualised VT 22.8 billion (≈US $191 million), surpassing the previous record set in 2020 (US $132.6 million, when CBI supplied 42 % of total income).
- Budget assumptions: The 2026 budget projected VT 15 billion from CBI for the full year; by June the programme had already reached 76 % of that target.
Fiscal balance
- Net operating surplus: VT 9.3 billion (US $77.9 million) for the six‑month period, achieved without any new bond issuance.
- Debt service: Treasury bill repayments of VT 933.1 million and external‑debt repayments of VT 916.6 million.
- Expenditures: VT 20.1 billion, 14.5 % below the ministry’s January‑June forecast.
International mobility and demand
- Visa‑free access lost:
- EU Schengen visa‑free status removed in December 2024.
- United Kingdom imposed a visa requirement in July 2023.
- The June 2026 “Nakamal Agreement” with Australia provided an undefined mobility commitment rather than a full waiver.
- Program pricing and speed: Minimum contribution remains US $130,000 for a single applicant. Vanuatu operates three CBI programmes that can process applications within weeks, a key selling point for clients seeking a rapid “Plan B” passport.
- Market perception: Industry observers note that demand has shifted rather than vanished despite the loss of EU visa‑free travel, contrasting with Caribbean states that face EU pressure to phase out their programmes by June 2028.
Governance concerns
- The IMF’s 2025 Article IV report warned that the sharp rise in CBI receipts might reflect changes in invoicing through the government’s financial‑management system, and called for verification of actual cash receipts.
- Executive Directors identified the CBI scheme as a domestic vulnerability, urging stronger governance and transparency.
- In February 2026 the Council of Ministers directed agencies to implement recommendations from the Commission of Inquiry into the Citizenship Commission; opposition parties have demanded full publication of the report.
Data inconsistencies
- Local media initially reported the MoFEM figures in millions rather than billions, mis‑stating CBI revenue as VT 11.4 million and total revenue as VT 29 million.
- The Department of Finance and Treasury lists recurrent revenue at VT 27.03 billion for the first half of 2025, confirming the billion‑scale magnitude.
- Discrepancies remain: revenue minus expenses yields a surplus of VT 8.9 billion, yet the reported surplus is VT 9.3 billion; component totals also exceed the stated overall figure, suggesting the European Development Fund line may have been excluded from the “excluding donor funds” calculation.
- The MoFEM has not released the underlying monthly data; its public fiscal indicators still show June 2025 as the latest reporting period.
Source article: www.imidaily.com
