Be Careful Which Second Citizenship You Seek.
The European Union is clear about countries that sell citizenship: It doesn’t like the practice. Not one bit.
That’s why the European Commission announced on May 31 that the South Pacific nation of Vanuatu will permanently lose its visa-free travel privileges to the EU.
Those privileges have been on temporary suspension since May 2022, but only for people who got passports after 2015. The latest change affects all ni-Vanuatu passport holders, including the native born.
The EU’s dislike of the passport industry reflects both philosophical and actual concerns…
Countries that sell citizenships and the agencies who represent them are motivated by profit. The more applicants they turn away, the less profit they make. That incentive structure opens it up to abuse by unsavory characters that the EU doesn’t want within its borders.
This isn’t just a theoretical problem. European journalists have uncovered true stories of wanted criminals, spies, and suspected terrorists buying second passports and using them to get into the European Union. Some countries allow applicants to change their names when they get their passport, making this sort of subterfuge inevitable.
Earlier this year, the EU issued a stern warning to the Caribbean citizenship-by-investment countries that they would lose access to the EU if they didn’t change their ways. That prompted four out of the five players to change their programs at once, doubling the price of a passport and adding new restrictions and due diligence procedures. The one holdout, Saint Lucia, announced on Monday that it was doing the same.
But Vanuatu—another island nation desperate for citizenship money—hasn’t met the EU’s demand for reforms. So Europe is closing the door on the country.
The country’s passport can be had for $130,000. Numerous people listed in Interpol’s wanted databases have been granted citizenship, including the notorious Gupta brothers, who stole billions of dollars from the South African government before fleeing the country.
Passport processing timelines are too short to allow proper due diligence, and the government rarely investigates applicants’ backgrounds properly. Applicants can get a passport without even physically setting foot in the country.
To make matters worse, agencies promoting the Vanuatu program made visa-free access to the EU the prime selling point. That’s a big no-no from the Europeans’ perspective.
Sadly, this will affect thousands of individuals who have legitimate reasons to seek a second citizenship and passport. The biggest market for second citizenships is China, where many in the middle class fear a future under the authoritarian Xi Jinping. A passport from a place like Vanuatu allowed them to enjoy freedoms not available at home. Thanks to abuses of the program, however, some of those freedoms have just been cut off.
I haven’t hidden my concerns about citizenship-by-investment programs in my Global Citizen service. Vanuatu’s fate is one reason.
But much more important is the fact that there are other ways to gain citizenship legally, more cheaply—and at far less risk.
Meet me for a consultation—and I’ll be happy to discuss them with you.
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