Vanuatu Tax Regulations

Do you want to start a business in Vanuatu and make the most of all the tax benefits? Are you looking for the optimal solution for tax planning? Not sure what tax obligations apply to your business? Our company offers comprehensive legal support on issues related to Vanuatu’s tax system, helping you build an effective operational strategy. We will assist you in registering a business, opening a bank account, developing a tax optimization strategy, and ensuring full compliance with international standards.

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Vanuatu Tax Advantages and Rates

Vanuatu has long established itself as a jurisdiction offering favorable tax conditions for international entrepreneurs and individuals. The state strives to attract foreign investors, so the tax legislation here is characterized by transparency and affordable rates. Moreover, equal conditions are provided for both residents and non-residents.

For individuals, Vanuatu tax haven offers exceptional advantages. Salaries, dividends, interest, and other types of income are not taxed. There is no capital gains tax on the sale of shares or real estate. Any dividend payments, as well as inheritance or gift transfers, are not subject to taxation. The country has a single key VAT rate on goods and services of 12.5%.

The authorities of Vanuatu are interested in attracting foreign investors and strive to create a comfortable environment for doing business. Therefore, companies registered here can count on numerous benefits. For the first 20 years from the date of legal entity registration, corporate tax is not charged at all. This is extremely advantageous for companies looking to significantly reduce their tax burden and reinvest profits. Instead of corporate tax, companies pay an annual fee of 300 euros. The amount does not change depending on the company’s profit and does not affect the duration of the preferential period. Vanuatu’s legislation is lenient regarding bureaucratic procedures, allowing companies to maintain minimal reporting.

One of the key advantages of Vanuatu is the absence of significant differences between residents and non-residents in terms of taxation. Benefits are available to all categories of investors and business owners, regardless of their citizenship and place of permanent residence. Such an open policy increases trust in the jurisdiction, stimulating the inflow of international investments and allowing businesses to focus on the global market without unnecessary legal barriers.

Vanuatu Property Taxation

In Vanuatu, there is no classic property tax, which is annually collected in many countries. Owners do not need to pay a fixed percentage of the cadastral or market value of the property.

An additional advantage is the absence of capital gains tax when selling real estate. The difference between the purchase price and the sale price in Vanuatu is not taxed, which makes this jurisdiction especially attractive for investors.

Although there is no direct property tax, Stamp Duty is charged during real estate transactions. Its amount may depend on several factors, including the value of the property and the specifics of the transaction. On average, the rate ranges from 2% to 5% of the declared property value.

The stamp duty is calculated based on the contractual value of the property or the appraised value (if an independent appraisal is required). It is paid as a one-time fee upon the registration of the transaction. Sometimes the rate may differ for residential properties, commercial real estate, and land plots—it is recommended to verify the exact amount of the duty before signing the contract.

In most cases, purchasing already built real estate does not involve additional duties apart from the stamp duty. However, if you import materials for construction or renovation, purchase furniture and equipment abroad, customs duty may be charged upon entry to Vanuatu, ranging from 0% to 20% depending on the type of goods. Additionally, the Vanuatu tax VAT of 12.5% applies to purchases of goods and services within the country.

In Vanuatu, there is no personal income tax for individuals or corporate tax for companies; however, the issue of rent should be considered separately, as it may fall under the requirements for registration as a VAT payer if rental income reaches the established threshold (equivalent to approximately 4–5 million vatu per year, the exact threshold should be clarified at the time of signing the contract).

Rental income of citizens or non-residents receiving payments for leasing properties is not subject to income tax. However, if the rental amount exceeds the turnover threshold for VAT payment, the landlord will be required to register as a VAT payer and report regularly to the tax authorities.

Income Taxes in Vanuatu

In Vanuatu, there is no classic Personal Income Tax. Both local residents and foreigners living in the country are not required to pay tax on salaries, dividends, interest, or other types of personal income. There is also no Capital Gains Tax — the difference between the purchase and sale price of assets is not taxed.

The 0% rate applies to all categories of individuals, regardless of citizenship and residency status. This simplifies the financial planning process and makes Vanuatu an especially attractive place for relocation and business registration for entrepreneurs, freelancers, and top managers.

Our legal company specializes in assisting clients in jurisdictions with a favorable tax climate. We offer personalized tax consultations in Vanuatu for residents and non-residents, company registration, and assistance in preparing all necessary documents, as well as tax burden optimization in compliance with international norms and compliance standards.

Corporate Tax Rates 

Corporate Tax is a tax that is levied on the profits of a legal entity (corporation, company, organization). In most countries around the world, it is calculated as a percentage of the net profit that a company earns at the end of the financial year. In some states, there are progressive rates (depending on the amount of profit). In others, there are fixed rates, the same for all companies.

In Vanuatu, there is a special regime under which most companies do not pay the standard corporate tax. Instead, a small fixed fee is established, which significantly simplifies business operations and provides tangible advantages compared to traditional offshore zones.

The official corporate Vanuatu tax rate is 0%. This means that no corporate income tax is levied. Instead, there is a fixed annual fee, which usually amounts to about 300 euros (the exact amount may depend on the specific type of company and local licensing requirements).

The government of Vanuatu is interested in attracting foreign investments, developing international services, and increasing employment levels. Therefore, the jurisdiction creates the most favorable conditions for business registration and operation, stimulating the inflow of capital from around the world.

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Schedule with a Lawyer for Vanuatu Investment Citizenship

The process of obtaining Vanuatu citizenship requires adherence to strict legal procedures, applicant verification, and thorough document preparation. We provide professional support at all stages, minimizing potential risks.

We guarantee a comprehensive legal assessment and detailed analysis of compliance: evaluation of your situation and explanation of all program conditions, risk analysis and possible alternatives, preparation of a personalized strategy for obtaining citizenship.

Our specialists will take care of collecting and preparing the complete set of documents, translation, legalization and notarization, preparation of financial statements, and confirmation of income sources.

We provide assistance in the safe execution of investment payments, organizing an oath of allegiance for obtaining citizenship, and acquiring passports and citizenship certificates.

Do you want to get a Vanuatu passport quickly, legally, and without complications? Contact us right now for an initial consultation and qualified legal assistance. Our lawyers will provide full support throughout the process and guarantee the safety of your investments. Submit an application, and we will help you obtain Vanuatu citizenship in the shortest possible time!

FAQ

What taxes are paid in Vanuatu?

Vanuatu offers one of the most favorable tax systems in the world. The country has no income tax, corporate tax, capital gains tax, or dividend tax. However, there are some mandatory fees and indirect vanuatu taxes. VAT is 12.5% and applies to most goods and services. Import duties depend on the category of goods. There are also licensing fees for certain areas of business activity.

What is the corporate tax rate in Vanuatu?

There is no corporate tax in Vanuatu. This makes the country attractive for international business, as companies can operate without a tax burden on profits. However, it is important to consider international Economic Substance requirements and transparency laws, especially if the company operates outside of Vanuatu.

Can a foreigner open a bank account in Vanuatu?

Yes, foreigners can open a bank account in Vanuatu for both personal and corporate purposes. However, the process requires meeting several requirements: providing proof of identity and address, passing compliance checks under international KYC/AML standards, and in the case of a corporate account – submitting company documents, including incorporation documents and proof of ownership structure.

Is Vanuatu a tax-free country?

Vanuatu does not tax the income of individuals and legal entities, but there are indirect taxes, as well as fees for licenses and business registration. Additionally, companies registered in Vanuatu must comply with tax transparency standards (FATF, OECD, CRS). If a company operates outside the jurisdiction, it may fall under the tax residency requirements of other countries.

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