A passport alone does not change your taxes: tax follows tax residency, not citizenship. Vanuatu has no tax on income, capital gains or inheritance, but that only helps you if your tax connection is really with Vanuatu. If you live in Russia or another country, that country's rules still apply.
Citizenship and tax residency are different things
Citizenship answers the question of whose passport you hold. Tax residency answers where and under which rules you pay tax. These are two independent statuses, and a new passport does not automatically change the second one.
The most common mistake is to assume that income becomes untaxed after the oath because Vanuatu has no such tax. Your obligation is actually set by the country where you are tax resident. Each country sets its own criteria, so they need to be checked against your own circumstances.
The program does not require you to live in Vanuatu or even fly there. That is convenient for getting the passport. It also leads to a clear conclusion: if you keep living where you live now, your tax picture usually stays as it was.
Which taxes Vanuatu has
The domestic picture is short. There is no tax on income, on capital gains or on inheritance. There is an indirect tax: 15% VAT on ordinary purchases and services in the country.
| Tax in Vanuatu | Applies? |
|---|---|
| Income tax | No |
| Capital gains tax | No |
| Inheritance tax | No |
| VAT | Yes, 15% |
What this means in practice
Take three typical situations. The passport is the same in each one, but the tax outcome depends on where you live and where your income arises, not on the document.
If you are a Russian citizen, keep two different obligations in mind. The first relates to citizenship: you must notify the Ministry of Internal Affairs (MVD) within 60 calendar days. The second relates to tax and depends on your tax status.
The MVD notice is not a tax document. It does not change your tax status, and a new passport does not cancel your tax obligations in Russia. It is best to deal with the two topics separately so that one does not stand in for the other.
| Situation | What determines your tax |
|---|---|
| You live in Russia and obtained a Vanuatu passport | Russian rules for your status |
| You live in a third country | The rules of the country where you are tax resident |
| You hold a Greek residence permit | Tax residency is checked separately; neither the permit nor the passport settles it |
A tax number, a company and banks
Once you have the passport you can obtain an ID, certificates, an apostille, a driving licence and a tax number, and register a company in Vanuatu. These services give you documents, but they do not solve the tax question by themselves.
A tax number shows you are registered in the Vanuatu tax system. That is not the same as moving your tax residency. A Vanuatu company likewise does not remove the tax of the country where you live and manage it, if that country's rules say otherwise. Before building a structure around it, show it to a tax adviser in your country of residence.
Accounts and taxes are often discussed together, but the bank itself decides on a client. A Vanuatu passport gives no automatic right to an account. Each bank applies its own rules, and nobody can promise the outcome in advance.
Banks operating in the country include National Bank of Vanuatu, ANZ, BRED and Bank South Pacific. If you need an account for a specific purpose, define that purpose first and then discuss the requirements with the bank.
A European purchase: a separate tax date
If you want the passport as a route to a Greek residence permit through buying a home, another tax comes in: the property transfer tax. It is 3% today. The government has announced 15% for non-EU buyers from 1 July 2027, but no law has been passed yet.
The sensible plan is to close the deal before that date. Booking and a deposit come first, while the deal and the filing are made on the Vanuatu passport. The program usually takes 2 months, 3 at most, so start with some margin.
Common misconceptions about tax and the passport
Most unpleasant surprises come from mixing up different ideas. Compare the familiar claims with how things really work. If even one line touches your plan, discuss it with a tax adviser before applying, not after you have the passport.
| What people often think | How it really works |
|---|---|
| A Vanuatu passport cancels taxes | A passport alone does not change your taxes |
| No tax in Vanuatu means no tax anywhere | Tax follows tax residency |
| New citizenship requires relocating | You do not need to fly to or live in Vanuatu |
| A Vanuatu tax number settles everything | It is a document, not a change of residency |
| The MVD notice is a tax step | It is a separate requirement tied to citizenship |
What in the program cost is not a tax
The sums you pay under the program belong to the program itself, not to Vanuatu's tax system. The contribution starts at $130 000, the fund is $157 000 for a family of 1 to 4, and the due diligence fee is $5 000 or $8 000 per application. Our work is included in the program cost.
Invoiced separately are translation and certification, Vanuatu citizen documents, biometrics and the passport, and bank charges. There are no other payments. No annual charge for remaining a citizen appears on this list either, and an expired passport does not cancel citizenship.
How to approach the question without mistakes
Separate the goal from the document. If you want freedom of travel, a backup passport or a route to a European residence permit, citizenship addresses exactly those goals. If your main goal is tax, start by reviewing your residency in your country of residence.
- establish where you are tax resident now and what would change if you moved
- check your tax obligations in each country where you have income or assets
- do not treat a Vanuatu passport or company as a tax solution without review by an adviser
- if you need a program cost calculation, request the free preliminary check: 1-2 working days, before any contract
Common questions
Will I stop paying tax in Russia once I get the passport?
The passport alone does not change your taxes. Tax follows tax residency, so the answer depends on your status.
Which taxes does Vanuatu have?
There is no tax on income, capital gains or inheritance. There is 15% VAT.
Do I have to live in Vanuatu to become a citizen?
No. You do not need to fly to or live in Vanuatu to obtain citizenship. But citizenship alone does not move your tax residency there.
Will a bank open an account for a Vanuatu citizen?
The bank decides. The passport gives no automatic right to an account.