Tuesday, April 23, 2024

Citizenship for sale in the Pacific Islands during 1990’s

Citizenship is an emerging industry concentrated in small islands. Citizenship for sale revenues reached an estimated US$2 billion in 2016 and expected to reach $5 billion in 2020.

Pacific Island tax havens have apparently collected revenues over $150m from mostly ethnic Chinese purchasers through passport sales in Tonga, Samoa, the Marshall Islands, Vanuatu and Nauru in the 1990’s.  These five pacific islands sold 13,950 passports raising a investment of $153,450,000.

Pacific Island countries, currently have no legal official passport sale schemes, but  passport sales did continue before 2000’s. Wealthy purchasers, mostly ethnic Chinese, consider the price (up to $50,000 per head of a household) reasonable.

These passports for sale is known as ‘Passports for convenience (POC)’ which carried several benefits including tax benefits,  overcoming visa restrictions, alternative second passport, and avoiding military service.

Country Passports sold Gross Revenues GDP % Years
Tonga 8450 92.95 6.5% 1982-1996
Samoa 2200 24.20 2% 1991-1997
Marshall Islands 2000 22.00 11% 1995-1996
Nauru 1000 11.00 8% 1998-2002
Vanuatu 300 3.30 1.5% 1996-1997
Sources: International Monetary Fund, Vanuatu, 2013-2015; van Fossen, 2007.
Country Visa free countries in 2018 Passport rank Total visa free access
Tonga UK, Ireland, EU schengen states, China 41 124
Samoa Canada, UK, Ireland, EU schengen, Russia 37 129
Marshall Islands United States, Canada, EU schengen, UK. Visa required for Canada 41 124
Nauru UK, Ireland, Russia. Visa required for EU schengen area, Canada. 57 86
Vanuatu UK, Ireland, Russia, EU schengen area. Visa required for US/Canada 37 129

As of 2018, Marshall Island passport is one of the most valuable passports from pacific islands as it it has visa free access to US/Canada/UK/EU.

It is more likely, a new citizenship by investment program may originate in the future from these pacific islands. Already Samoa and Vanuatu have active CIPs running.

Prabhu Balakrishnan
Prabhu Balakrishnan
Founder of Citizenship by Investment Journal. Chief Editor with over 15 years experience in PR and News publishing. He Loves writing about citizenship, residency and wealth migration. CIP Journal is a Leading publication founded in 2017 bringing latest news from CBI/RBI market.

Related Articles

Stay Connected

279FansLike
3,983FollowersFollow
732FollowersFollow
- Advertisement -spot_img

Latest Articles