Islands, Tax and Sovereignty for Sale

How some small islands earn by selling sovereignty-based services like internet domains, ship registrations and fishing rights, and the trade-offs involved.

Small islands sometimes earn money from their sovereignty.

Internet domains

Tuvalu’s internet domain .tv is licensed to companies, earning a significant share of government revenue.

Ship registries

Flags of convenience: countries like the Marshall Islands register foreign ships for fees; the Marshall Islands has one of the world’s largest ship registries.
Critics say weak oversight can allow poor labour and safety standards.

Fishing access

Selling fishing rights in large exclusive economic zones.

Offshore finance

Low-tax regimes attract companies and wealth.

Citizenship sales

Some islands sell passports to investors.

Trade-offs

Revenue for small economies.
Risks: reputation, regulation pressure from bigger countries and loss of control.

Economic view

These are sovereignty rents: earnings from the legal status of being a nation.

The .tv domain

Every time a streaming site uses a .tv address, part of the fees helps fund Tuvalu's government.

Thinking small countries have nothing to sell

They earn from domains, ship registries and fishing rights.

Key takeaways

Tuvalu earns from its .tv domain.
The Marshall Islands runs a huge ship registry.
Fishing rights and citizenship sales bring revenue.
These sovereignty rents carry risks.