Top-8 Myths About Citizenship by Investment: Debunking Misconceptions

“This is too expensive,” “It’s impossible to get without residency,” “The passport will be annulled in a year” — you have surely heard these claims. But how true are they? There are many myths surrounding citizenship-by-investment programs that prevent investors from making an informed and beneficial decision. In practice, however, many fears are the result of ignorance or outdated information.

Updated: 05.06.2025
Dr. Anatoliy Yarovyi Author
Dr. Anatoliy Yarovyi

In fact, obtaining a second passport legally, quickly, and without complex requirements is quite a realistic task. For example, Vanuatu citizenship can be obtained in just 1–3 months, without the need to relocate, take exams, or undergo interviews. The program has been operating for more than ten years, fully approved by parliament, and is actively used by businessmen.

In our blog, we analyze 8 of the most popular myths, explain where the truth is and where manipulation lies, and show how the procedure works in practice. If you are seriously considering a second passport, do not let myths interfere with your strategic choice. Contact our lawyers to get honest answers to your questions and choose the optimal path to citizenship.

Myth №1. Citizenship by Investment (CBI) is illegal, unethical, or constitutes “buying a passport” bypassing the law

CBI programs are officially approved government initiatives outlined in national legislation. In Vanuatu, the program operates based on a state legislative framework approved by the country’s parliament under the Citizenship Act. Its implementation is monitored by the Department of Immigration and the Citizenship Commission. This is not circumventing the law but a form of legal mechanism that stimulates the economy by attracting direct foreign investments.

The goal of such programs is to attract capital, develop infrastructure, healthcare, education, and other key sectors. Through revenues from CBI, the country can reduce the tax burden on citizens, modernize public administration, and maintain financial stability—especially for small island states.

What is especially important is that CBI is not an automatic passport issuance mechanism. Contrary to popular misconceptions, all applicants undergo strict Due Diligence reliability checks. In Vanuatu, the procedure is carried out in several stages, including checks through national security services as well as international sanctions and criminal databases. Candidates with criminal records, financial fraud, ties to terrorism, or violations of sanctions legislation receive an automatic rejection. This ensures transparency, legitimacy, and compliance with international AML/CFT standards.

Myth №2. To obtain a second citizenship through investment, it is mandatory to renounce your first citizenship.

The majority of countries offering citizenship by investment programs recognize dual citizenship, meaning they do not require renouncing the first citizenship when obtaining the second. The Vanuatu citizenship program is a clear example. The legislation of this country explicitly allows dual citizenship, and when applying for participation in the program, no one requires the annulment of the citizenship of the country of origin.

The concept of dual citizenship means that a person is simultaneously a citizen of two (or more) states, while retaining legal rights and obligations in each of these countries. This practice is common in many jurisdictions: for example, the United Kingdom, France, Canada, Australia, Italy, as well as most countries in the Caribbean region allow dual citizenship.

It is important to understand that the final decision on the permissibility of dual citizenship depends not on the country issuing the second citizenship, but on the legislation of your home country. Therefore, before applying for participation in the CBI program, it is always worth consulting with a lawyer to take into account possible legal consequences specifically for you.

Myth №3. After obtaining citizenship by investment, it will be necessary to permanently reside in the new country

The overwhelming majority of citizenship by investment programs, including Vanuatu, do not require physical residence in the territory of the state—neither before submitting documents nor after obtaining the passport. The investor can continue to live, work, and conduct business wherever it is convenient while enjoying all the rights of a citizen of the country that issued the second passport.

The Vanuatu citizenship program is one of the most striking examples. It does not require participants to reside in the country, make mandatory visits, or report their place of residence. This makes it especially attractive for entrepreneurs, freelancers, investors, and owners of international companies who value freedom of movement and the absence of strict residency obligations.

Investors can optimize their tax residency, avoid dependence on a single country, use a second passport for more convenient and safe travel, access to banking services, as well as for the protection of assets and family interests.

Myth №4. Citizenship by investment is available only to multimillionaires / ultra-wealthy people and costs an exorbitant amount of money

The stereotype that citizenship by investment is exclusively the prerogative of billionaires and people with unlimited financial resources remains widespread. In the imagination of many, such a program is associated with luxury, golden passports, and exorbitant sums. However, in reality, there are programs with varying financial thresholds, and citizenship by investment has become accessible to a much broader range of affluent, but not necessarily ultra-wealthy investors.

Of course, this is not a budget-friendly solution. You are not just purchasing a document but acquiring the full legal status of a citizen of another country with the rights, benefits, and protection that only a state can provide. However, the amount of investment is far from always measured in millions of dollars. For example, the Vanuatu citizenship program is one of the most affordable in terms of cost and one of the fastest in processing time among all active CBI programs in the world. The minimum contribution to Vanuatu’s state fund is:

Additional fees for Due Diligence checks and administrative expenses are charged separately.

It is important to understand that participation in the program is not only the acquisition of second citizenship but also an investment in your future, security, freedom of movement, and strategic planning. And if you compare the costs of CBI with other international migration tools (long-term residence permit programs, relocation expenses, visa processing, tax implications), investment citizenship may prove to be the most efficient and transparent solution.

Myth №5. The process of obtaining citizenship by investment is extremely complicated, lengthy, confusing, and associated with high risks

Potential applicants are intimidated by the prospect of numerous documents, bureaucracy, inspections, and uncertainty. However, in reality, especially with professional legal support, the CBI process will be quick, clear, and fully manageable.

The key factor is working through accredited agents and experienced lawyers who take responsibility for the correct preparation of the dossier, communication with government authorities, and client support at every stage. With the support of a legal team, the process becomes structured, errors in documents are eliminated, delays are minimized, and you always understand at what stage your application is.

Myth №6. Passports obtained through CBI are “second-rate,” less prestigious, or do not provide real advantages

Citizenship obtained through investments is full-fledged and legally valid. It grants the holder all the same rights as any other citizen of the country.

It is important to emphasize: the passport issued under the CBI program does not have a mark indicating that it was obtained through investments. This means that it cannot be distinguished from the passport of a citizen born in the country. All international agreements, norms, and privileges apply to such citizens in full.

Myth №7. The main or sole purpose of obtaining CBI is tax evasion

Indeed, tax optimization often features among the advantages of citizenship by investment. For example, Vanuatu offers an extremely attractive regime: there are no taxes on income earned abroad, no capital gains tax, no taxes on dividends, inheritance, or property. However, for most applicants, this is just one of the factors and not the sole purpose.

It is important to emphasize: CBI programs are official government initiatives that undergo audits, international monitoring, and strict due diligence procedures. Participation in them does not exempt the investor from fulfilling tax obligations in the country of tax residency.

Myth №8. It is necessary to know the language, culture, or history of the country to obtain citizenship through investment

Most CBI programs do not require passing exams on language, history, or culture of the country. Citizenship is granted based on approved investments and passing comprehensive Due Diligence checks.

Unlike regular naturalization programs, where candidates are required to live in the country for several years, adapt to life, learn the language, and prove integration into society, CBI programs operate on a completely different principle. They are aimed at attracting foreign investments into the country’s economy and are based on a clear legal procedure. In the case of Vanuatu, obtaining citizenship takes an average of 1 to 3 months and does not require a personal visit to the country.

Conclusion

Citizenship by investment programs are often surrounded by myths, and Vanuatu is no exception. Some believe that obtaining a second passport is only possible for millions of dollars, others fear complex procedures and do not trust the legitimacy of such programs. In reality, Vanuatu citizenship is an official government initiative enshrined in the country’s legislation and operates in accordance with international standards.

Citizenship by investment is not a loophole but a well-thought-out strategic tool for those striving for mobility, financial security, asset protection, and a Plan “B” in an unstable world. The Vanuatu program confirms this: minimal requirements, high processing speed, and real benefits for the investor and the entire family.

We urge you to critically evaluate rumors and consult only accredited lawyers and official sources when it comes to such an important decision.

Find out the truth about Vanuatu citizenship and dispel your doubts!

Vanuatu offers one of the fastest and most affordable paths to citizenship: the processing time is from 1 to 3 months, and the minimum contribution to the state fund starts at $130,000. The program does not require exams, residency in the country, or renunciation of current citizenship. You will receive a full-fledged second passport, granting visa-free access to more than 100 countries, including the United Kingdom, Singapore, and Schengen Area states.

If you want to learn more, contact our lawyers. We will help you dispel all doubts, assess the situation, go through the process of obtaining Vanuatu citizenship quickly, safely, and with full legal support.

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