Nauru — Taxes

A passport, not a tax base Nobody relocates to Nauru, and the programme is not a tax play — it is a second passport that funds the island’s climate resilience. Holding it does not make you tax-resident in Nauru, and it does not remove obligations to a country that taxes on citizenship, such as the United States.

What Nauru itself taxes Nauru levies tax essentially on Nauru-source income — an employment and services tax on local earnings and a tax on local business profits. For someone who lives elsewhere and simply holds the passport, none of this applies.

What is not taxed There is no capital gains tax, no wealth tax and no inheritance tax.

The honest verdict Judge Nauru on the only things it really delivers: a modest cost and a limited passport. Its visa-free reach is small and excludes Europe, the UK and the US, and the scheme is very new. If a Pacific citizenship is what you are weighing, compare it directly with Vanuatu — which is faster but has itself lost European access — set both against the Caribbean options on our comparator, and see how each figure is checked in our methodology.