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 |
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.