Today I want to talk to you on a different level, about CBI itself. We'll get to Vanautu further down. This will be longer than usual, and hopefully will make you think, so grab a cup of your favourite beverage and settle in…..
Thoughts on CBI
Many have seen Citizenship By Investment (CBI) as the preeminent global mobility prize; a way to own a document that gives its holder freedom of travel and establishes their position as a global citizen. An ultimate luxury and a great Plan B.
But CBI has gone beyond the stamp of global mobility to bring something more… financial freedom.
You may wonder how CBI undoes the bonds of rigid financial structures and gives the ability to maintain and grow wealth?
Financial freedom can come in many modes, but CBI offers the most thorough solution a global investor can imagine. The first chain CBI breaks investors from is that of endless taxation.
Many see their finances hemorrhage due to fierce tax regimes, and they are forced to surrender to a tax structure that demands a great deal, and in a lot of cases, offers them very little by recompense.
The current pandemic has keenly brought to the fore the frailties of the global economic system. Some have done well off the pandemic, but many others lost huge amounts.
As governments struggle to cope with the economic fallout of a global crisis, their first line of defence is to look at their own tax regime with a mind to raising their income to deal with the financial burden loaded upon them. Then they rally the masses to get behind them with the old war cry “tax the wealthy.”
CBI answers that by offering investors another route, one more benign that gives them more sway over what they have built up with sweat and tears.
CBI also grants the ability to start bank accounts in countries that have more friendly banking methods. For investors used to countries that have capital controls or complex banking laws, this could bring them more freedom in moving their funds around the world without the breath-holding sinking feeling in the pit of their stomach every time they initiate a large transfer.
Even conducting business becomes easier, as Vanuatu, which we will discuss in more detail below, promotes simpler business transactions than those you would find in many nations throughout the world.
Let’s take a look at how Vanuatu CBI can not only grant you the flexibility to travel, but do so for your financial resources as well.
The Vanuatu CBI or Citizenship By Investment programme is called “VDSP” standing for “Vanuatu Development Support Programme” or DSP for short. Even the name itself shows the understanding by Vanuatu of what it is supposed to accomplish, i.e. support to development of the country.
Despite its advantageous position as the ONLY CBI programme in the Pacific, Vanuatu has reasonable prices (get a passport starting at 140,000 USD), process applications promptly (as quickly as one month), and provides applicants and their extended family with solid passports.
What makes more people sit up and take notice however, is that Vanuatu is a tax haven. While that term may not be treated with fondness by government-controlled media (which is most of it), they are the last resort for investors to protect their wealth from the grasping ways of many governments with their pulverising tax setup.
There are plenty of tax havens – the United Arab Emerates and Ireland come to mind – but neither have CBI nor do they come near to the encouraging tax regime you find in Vanuatu.
Corporate income tax, personal income tax, global income tax, inheritance tax, capital gains tax, and wealth tax are not imposed in Vanuatu. You are truly able to enjoy the wealth you have worked
unceasingly to gather. No rapacious government fingers dipping
in your wallet every time something goes awry.
Vanuatu goes a step beyond, building upon it's CBI to create an economic scene that avoids the necessity for crippling taxes. With it's background as an ex-colony, Vanuatu draws on Britian's skill in setting up their system but counteracts lower resources by being delightfully innovative.
Vanuatu did not just take the expertise but adopted the UK’s common law, so investors can rest assured they are protected within a familiar and stable legal framework. You are dealing with a paid-up member of the British Commonwealth, so investors who obtain CBI are free to take advantage of any reciprocal arrangements with other members.
There is a solid standard for CIP applicants, as Vanuatu wants to bring in the finest the world can present. By selecting specific criteria and a strong due diligence procedure, they can make sure they bring the elite to their tropical shores. Vanuatu knows that attracting the best investors from around the world and granting them the financial freedom they need will no doubt create more reliable profit to the nation as a whole than just canabalising their own new citizens through extortionate taxes.
High net worth people have a pattern of making money wherever they are. Vanuatu wants them to continue doing so in a laid-back tropical environment, which should lead to more jobs and training for locals, attracting more creative businesses to their sandy shores, and general diversification of income for the country.
And so this is the truth about a tax haven; it's not a country that is not strict or regulated and which resorts to underhanded trickery to bring in the wealthy, but the exact opposite. Vanuatu has identified the true benefit of letting businesses and people prosper. They have the vision to see the actual benefits of a low tax regime.
The true exchange for Vanuatu is much more than just a passport for a wad of money. Investors receive much expanded global mobility and unfettered financial freedom. They also find the peace of mind in knowing that they can at any time move to a place “far from the madding crowd.” The drop-dead gorgeous beaches and super-friendly people don't hurt either! As Vanuatu's CBI programme grows, so does the economy. Thus the need for unending taxes disappears, which attracts more investors. It’s a “beneficial circle”.
Vanuatu does not have the means of the UK or USA. Yet, they compensate with their innovation and without financially decimating their population.
At 'Lance in Vanuatu' I are not a wealth or investment advisor. However I do understand that citizenship by investment is much more than the ability to move about the globe. It encompasses wealth freedom, safeguarding your assets, caring for your family's future, and satisfying peace of mind.
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Lance in (Paradise) Vanuatu:
World Leader In Vanuatu Opportunities Education.
"Plan B" expert (The right to live or escape to Paradise Vanuatu if needed)
An expat expert living in the south Pacific island paradise of Vanuatu is revealing little-known opportunities for you to secure your life with a backup plan that can include...
- Better work/life balance
- A simpler life
- Improved health
- More family and "me" time
- More time for others
- A slower pace of life