Nauru Launches Citizenship By Investment Program

Would you want a passport from the world’s smallest island nation? Nauru, an English-speaking country in the heart of the Pacific, is the world’s third-smallest country by area and the least visited. Its population is just over 12,000 people, and it is so small that you can drive across its perimeter in about 30 minutes! Its tiny landmass, little to do and see, and remote location explain why the country doesn’t get many tourists. 

Nauru has released a Citizenship-By-Investment (CBI) program, the Nauru Economic and Climate Resilience Citizenship Program (NECRCP). You’ll understand the reason for that name shortly.

In this article, you’ll learn a little about Nauru’s history, how it became one of the world’s wealthiest countries, and the requirements needed to obtain a Nauruan passport. 

Nauru’s story: a boom from phosphate wealth followed by economic hardship, costly imports, and the world’s highest obesity rate due to processed food reliance

NAURU: DUTCH DISEASE AND RAPID DECLINE

As you likely won’t know much about this island nation, let’s briefly discuss its recent history. You’ll be shocked by how relevant this country was to the global economy. 

Nauru, an island more than 2,500 miles from Sydney, gained independence in 1968 after years of German, Australian, New Zealander, and British rule. A few years later, it devoted itself to mining and selling phosphate, a natural resource used in fertilizers. This key ingredient helped the economy boom so intensely that, at some point, Nauru had one of the highest per capita incomes in the world. However, once the phosphate reserves ran out, the country faced a harsh reality: inhabitable land and poor economic diversification. 

Nauru is a prime example of ‘Dutch disease,’ also known as the resource curse. The overreliance on phosphate and failed overseas banking, hospitality, and even a musical theatre project created an even more significant economic decline. Nowadays, most products are imported primarily from Australia, increasing living costs. To make matters worse, due to the overconsumption of processed foods, Nauru has the world’s highest per capita obesity rate. 

Nauru offers citizenship and climate doom marketing in one package—perfect for those who love buying into fairy tales

NAURU ECONOMIC AND CLIMATE RESILIENCE CITIZENSHIP PROGRAM (NECRCP)

Following the example of other countries such as Vanuatu and St. Kitts and Nevis, Nauru decided to launch its own CBI, the Nauru Economic and Climate Resilience Citizenship Program (NECRCP). Let’s go through the requirements needed to obtain this passport:

PROGRAM OVERVIEW 

The NECRCP offers qualifying applicants a streamlined pathway to Nauruan citizenship by investment. As Edward Clack, Nauru’s CBI CEO, stated, the Department of Climate Change and National Resilience must approve the investments. Options include: 

• Energy: Since the country relies on oil imports, thus increasing energy costs, the government wants to invest in solar farms and make 48% of its energy renewable. 

• Water: The government aims to provide reliable, safe drinking water through appropriate sanitation and distribution systems.

• Higher Ground Initiative: The government wants to move houses to higher elevations while increasing food production and land rehabilitation due to rising sea levels. 

I want to make it absolutely clear that I don’t believe any of this climate change hysteria. The sea levels rise at minuscule amounts, and it’s not as if Nauru will be underwater tomorrow. Chances are they approved this CBI to increase foreign direct investment while capitalizing on climate change narratives.

While these projects aim to rebuild Nauru and promote self-sufficiency in food, energy, and water, we still don’t know whether the money will be used for these purposes. Other citizenship-by-investment programs offer tangible assets like real estate, but Nauru offers its passport in exchange for donations, leaving investors with no return on investment.

REQUIREMENTS

To qualify for the NECRCP, applicants must meet specific criteria, including:

• Being at least 18 years old

• Maintaining a clean personal background with no criminal record

• Providing proof of a legitimate source of funds

• Completing a mandatory interview

• Taking an oath of allegiance to Nauru

INVESTMENT AND FEES

The NECRCP requires a financial contribution to Nauru’s Treasury Fund, with the investment levels varying based on the applicant’s family size:

• Single Applicant: $105,000 USD

• Family of two to four members: $110,000 USD

• Family of five or more: $115,000 USD

• Extra siblings or their spouses: $15,000 USD 

Additional costs include:

• Application fees: $25,000–30,000 USD

• Due diligence fees: $10,000 USD per principal applicant and $7,500 USD per additional family member aged 16 or older

• Passport fee: $500 USD per passport

PROGRAM MANAGEMENT

Applications for the NECRCP must be submitted via agents authorized by the Nauruan government. The government may cancel citizenship if it was obtained through fraud, bribery, or misrepresentation. Other situations that could result in the cancellation of citizenship include sexual offences, terrorism, or money laundering. 

BENEFITS OF NAURU’S PASSPORT

Upon approval, applicants would obtain a passport that truthfully leaves much to be desired. It includes visa-free access to under 90 countries, which is weaker than other passports such as those of Caribbean nations. However, Nauru’s passport grants visa-free access to destinations like Russia, the UK, and even the UAE. 

With limited benefits and uncertain use of funds, Nauru’s CBI pales compared to stronger programs. Research your options before committing

CONCLUSION: IS NAURU’S CBI WORTH IT?

Whether Nauru’s CBI is worthwhile depends on your goals and priorities. CBIs from other countries offer stronger passports and a better location. 

Nauru offers the opportunity to rebuild the country, but investors will receive little in return. You can only hope that the government will use the money for its intended purposes, and we know that governments only sometimes work that way.  

When looking at a Plan-B citizenship, it’s always important to do your due diligence and make sure to find one that matches your goals. To help you build your offshore strategy, you can start by subscribing to our newsletter and get our free special report, ‘Plan-B Residencies & Instant Citizenships.’