Fast, cheap, and tax-free: Why Indians like Lalit Modi are turning to Vanuatu for quick citizenship

Vanuatu Prime Minister Jotham Napat on Monday directed the Citizenship Commission to cancel the passport issued to former Indian Premier League (IPL) founder Lalit Modi. The move came after reports suggested that Modi had acquired Vanuatu citizenship to avoid extradition. Modi, who left India in 2010 and has been living in London, filed an application with the Indian High Commission on March 7 to surrender his Indian passport.

In an official statement, Napat said, "I have instructed the Citizenship Commission to cancel the Vanuatu passport issued to Lalit Modi following recent revelations in international media." He added that Interpol had twice rejected India’s requests for an alert notice against Modi due to a lack of judicial evidence. The Prime Minister reiterated that obtaining Vanuatu citizenship was a privilege, not a right, and should not be used to evade legal proceedings.

The appeal of Vanuatu citizenship

Vanuatu has become an attractive option for individuals seeking alternative citizenship due to its quick and cost-effective process. The country competes with Cyprus and Malta, which offer similar investment-based citizenship programs but at higher costs and longer processing times. Unlike many other countries, Vanuatu allows individuals to become citizens without requiring them to visit.


For Indians considering a change in citizenship, the process often begins in the UAE. Many spend at least a year in Dubai to qualify as non-resident Indians (NRIs) before applying for Vanuatu citizenship. The cost is around ₹1 crore for an individual or ₹1.5 crore for a couple with minor children. Once payment is made, the passports are issued within seven weeks and delivered via courier to a Dubai address.

According to industry estimates, at least 30 Indians, including NRIs, have obtained Vanuatu citizenship in the past 18 months. Dr. Anup P. Shah, Partner at chartered accountants Pravin P Shah & Co., told ET, "It’s currently the quickest ‘Citizenship by Investment’ programme. It has become popular among UAE residents, including Indians and Russians. The Vanuatu passport offers visa-free access to over 55 countries and visa-on-arrival entry in 34 countries. However, its visa waiver agreement with the EU was suspended in 2023."

Tax benefits and financial secrecy

Many applicants view Vanuatu as a solution to avoid taxation and financial scrutiny. Since 2021, India has tightened tax regulations for NRIs earning over ₹15 lakh from Indian sources while residing in tax-free countries like the UAE. This regulation allows Indian authorities to tax global business income if the business is controlled from India. "You may be a resident of Dubai running your business there, but how do you challenge the tax department if they claim your business is managed from India due to your family’s presence?" said an immigration consultant.

Vanuatu’s citizenship also offers confidentiality for financial holdings. Indian authorities receive data on offshore bank accounts and investments linked to Indian passport holders. However, once an individual surrenders their Indian passport, countries like Switzerland and Jersey, which hold such financial details, no longer share them with India. Instead, they send the information to Vanuatu, which has no legal obligation to pass it on to Indian authorities.

"Many NRIs have opted for Vanuatu citizenship in the last two years to avoid possible litigation in India. It is especially favored by Indians in Dubai and other countries, as the program extends to all family members," said Rajesh P. Shah, Partner at Jayantilal Thakkar & Company, a firm specializing in tax and foreign exchange regulations.

Stepping stone to stronger passports

Some applicants use Vanuatu citizenship as a temporary solution before securing citizenship from countries with more powerful passports, such as Malta, Grenada, or Cyprus, which allow dual citizenship. "There are dedicated law firms in Dubai handling Vanuatu applications. While its background checks may not be as stringent as those of Grenada, which collaborates with US authorities for due diligence, Vanuatu is an affordable and fast option for those seeking quick solutions," said a person familiar with the process.

Careful financial planning precedes any citizenship application. Individuals transfer funds abroad while still Indian residents, followed by NRIs remitting $1 million annually from asset sales in India. Once sufficient funds are moved, the application process begins. New citizens typically surrender their Indian passport within three months of acquiring Vanuatu citizenship.

For many, Vanuatu’s program offers not just a second passport but a means to secure financial privacy, tax benefits, and ease of travel—factors that continue to attract Indians exploring alternative citizenship.