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Vanuatu
Oceania (incl. Pacific Islands)
Lucky Nomads World Index
6.25 / 10
Global rank
=140
Corporate tax
0%
Personal tax
0%
Lucky Nomads Proprietary Indices
22 scoring dimensions scored independently using a deterministic methodology built on primary sources and structured analytical inference.
- SafetyShield Index8.2 / 10
- Affordability Index6.0 / 10
- Entry Ease Index5.9 / 10
- Tax Freedom Index10.0 / 10
- WiFi Index5.3 / 10
- Admin Ease Index4.5 / 10
- Healthcare Index5.4 / 10
- City Comfort Index5.4 / 10
- WeatherComfort Index6.1 / 10
- Banking Index4.6 / 10
- GeoStability Index7.7 / 10
- Justice & Order Index6.5 / 10
- Quality of Life Index6.4 / 10
- Open Society Index6.4 / 10
- Flight Index2.5 / 10
- Environmental Quality Index7.9 / 10
- English Index6.4 / 10
- Wealth Protection Index8.1 / 10
- AI Access Index5.5 / 10
- Economic Openness Index5.9 / 10
- Market Depth Index3.2 / 10
- ClimateShield Index5.5 / 10
Country snapshot
- Capital
- Port Vila
- Population (approx.)
- 335,000
- Area (km²)
- 12,189 km²
- Currency code (ISO 4217)
- VUV
- Currency name
- Vanuatu vatu
- Main airport IATA code
- VLI
- Airport name
- Bauerfield International Airport
General facts
- Minimum monthly cost
- From $1,856/month
- Main languages
- Bislama, English, French
- Jurisdiction type
- Country
- Region
- Oceania (incl. Pacific Islands)
- Web TLD
- .vu
- Phone calling code
- +678
Web TLD and phone codes are general references and can differ for territories or special numbering plans.
Tax system
- Marginal CIT (corporate income tax)
- 0%Ultra lowNo corporate income tax
- Marginal PIT (personal income tax)
- 0%Ultra lowNo personal income tax
Corporate taxation basis: No corporate income tax. The country has no corporate-level income tax.
No corporate income tax exists on resident or non-resident companies, irrespective of income source. Vanuatu has no double tax treaty in force but participates in the OECD Convention on Mutual Administrative Assistance in Tax Matters and joined the Common Reporting Standard via the CRS Multilateral Competent Authority Agreement in 2018. Its 14 Tax Information Exchange Agreements cover exchange on request.
Vanuatu does not levy corporate income tax on company profits, whether locally or foreign sourced. Value Added Tax applies at 15%, with registration mandatory once taxable supplies exceed in any 12-month period. Companies carrying on profit-making activity hold an annual business licence, and stamp duty applies to property transactions. Companies under the International Companies Act benefit from a statutory 20-year tax exemption from incorporation.
Personal income tax basis. No personal income tax. The country has no national personal income tax.
No personal income tax applies to residents or non-residents on employment income, business income, dividends, interest or capital gains. With no income tax, individuals have no personal income-tax residency test and file no income-tax return with the Vanuatu Customs and Inland Revenue Department, other than a rent tax return where there is taxable rental income. The main income and employment levies on individuals are rent tax and Vanuatu National Provident Fund contributions.
Vanuatu does not operate a personal income tax system. Salaries, business income, dividends, interest and capital gains earned by resident or non-resident individuals are not taxed. Individuals pay a 12.5% rent tax on gross rental income above the first exempted per six-month period, and compulsory Vanuatu National Provident Fund contributions of 6% employee and 6% employer on local salaries since 1 January 2026.
Tax percentages here are editorial reference figures for comparison, not individualized tax advice.
Special tax regimes
For companies
International Company (IC) regime
AvailableStatutory full tax exemption for offshore-only companies incorporated under the International Companies Act, guaranteed for a minimum of 20 years…
You either qualify for Vanuatu's special tax regimes, or you don't. GeoCompass determines your eligibility, highlights the applicable conditions, and helps estimate your potential tax exposure.
Check my eligibilityVisa and mobility
Your access
Visa need and length of stay for Vanuatu. Saved on your device.
Overview
- Citizenship by investment
Available
Vanuatu Citizenship by Investment (DSP, CIIP, REO)
- Residence by investment
Available
- Remote work visa (digital nomad visa)
Available
Programmes
Vanuatu lists several residency and mobility routes across residence by investment, business founder routes, work (employer sponsored), retirement routes, family and dependant routes, and remote work visas. Lucky Nomads tracks these programmes as editorial reference points. Thresholds, documents, and personal eligibility are evaluated in GeoCompass against your exact profile.
13 programmes listed · 13 are marked available in our editorial review
Residence by investment
4 programmesCapital, property, fund, or declared investment routes that can lead to longer-term residence.
- Available
Direct Investor Visa
- Available
Land Owner Residence Visa (Leasehold Holder)
- Available
Permanent Investor Visa
- Available
Permanent Residence Visa Subclass 132-135 (Foreign Investor)
Business founder routes
3 programmesFounder, entrepreneur, or company-linked pathways for people building a business locally.
- Available
Business Investor Visa
- Available
Foreign Investor Residence Visa
- Available
Provisional Investor Visa
Work (employer sponsored)
1 programmeEmployer-linked permits and skilled employment passes for hired professionals.
- Available
Employee Residence Visa
Retirement routes
1 programmeRetirement-age or pension-linked residence options.
- Available
Self-Funded Resident Visa
Family and dependant routes
3 programmesSpouse, dependant, and family reunion style permits.
- Available
Child Residence Visa
- Available
Partner Residence Visa
- Available
Permanent Residence Visa Subclass 131 (Descent or Long Residency)
Remote work visas
1 programmeRemote work or digital nomad style permits.
- Available
Vanuatu Remote Worker Visa
Not all residency routes are accessible. Some require minimum income, investment thresholds, local substance, or strict eligibility conditions. GeoCompass evaluates which options you can actually secure in Vanuatu.
Evaluate my residency optionsVisa and programme labels reflect editorial research, not individualized legal advice. Thresholds, documents, and personal eligibility are evaluated in GeoCompass. Always confirm rules with official government sources before you plan a move.
Dimensions breakdown
Strongest dimensions
- Tax Freedom Index10.0 / 10Exceptional tax freedom
- SafetyShield Index8.2 / 10High personal and institutional safety
- Wealth Protection Index8.1 / 10Very strong wealth protection index
Weakest dimensions
- Flight Index2.5 / 10
- Market Depth Index3.2 / 10
FAQ
What entry rights and short-stay conditions apply to foreign nationals in Vanuatu?
Vanuatu operates one of the more open entry regimes in the Pacific. Nationals of more than 120 jurisdictions are exempt from the visitor visa requirement, including the United States, the United Kingdom, Canada, Australia, New Zealand, Japan, South Korea, the United Arab Emirates, and most European Union and Schengen states. Exempt travelers are granted a tourist visa on arrival, valid for up to 120 days with no possibility of extension, issued at the border with no pre-travel application and no fee. Entry is conditional on criteria checked at the border, namely a passport valid for at least six months, a return or onward ticket showing departure within 120 days, and evidence of funds of at least per month for the intended stay. Nationals of countries outside the exemption list must obtain authorization before traveling, through the official electronic visa portal at evisa.gov.vu. For ordinary short stays, two main categories are available. The visitor visa permits a stay of up to 30 days and carries an application charge of , with a funds requirement of at least per month. The tourist visa permits up to 120 days, carries an application charge of , and cannot be extended once granted. Both require a valid passport and a return or onward ticket, and the tourist visa does not allow a change of status once granted. These categories cover tourism, leisure, family and social visits, and the visitor visa also covers meetings and conferences. Holders may not engage in any commercial, employment, or business activity while physically present in Vanuatu. Anyone intending to work must obtain a separate work permit under the Labour Work Permits Act CAP 187 together with the applicable work-category visa. Travelers must exit before their permit expires.
Last reviewed:
What long-term residence options exist in Vanuatu for internationally mobile individuals?
Vanuatu structures long-term stay around the Residence Visa under the Immigration Act No. 17 of 2010, granted on six grounds and issued for terms of 1, 3, 5 or 10 years subject to renewal. The Foreign Investor ground requires an approval certificate as a foreign investor from the Vanuatu Investment Promotion Authority (VIPA) and, where applicable, a business licence, with adult application charges from 57,600 Vanuatu Vatu (VUV) for one year to for ten years. The Leasehold Holder ground requires a leasehold property valued at or more together with certified income. The Self-Funded Resident ground requires a bank-certified monthly income of for a single applicant or including a spouse. The Employee ground requires employment of at least 12 months plus a separate work permit under the Labour (Work Permits) Act [CAP 187]. The Partner ground covers the spouse or genuine de facto partner of a Vanuatu citizen or resident, and the Child ground covers dependent children under 18, or aged 18 to 20 if unmarried and dependent. Investor pathways form a distinct ladder. The Business Investor Visa is a 3-year multi-entry permit requiring a Foreign Investment Approval Certificate (FIAC) from VIPA, Vanuatu Financial Services Commission (VFSC) registration, a valid business licence, a local business bank account and a physically operational business. The Provisional Investor Visa runs for up to 12 months for applicants who evidence a genuine approach to VIPA for a FIAC and hold funds of at least , and it converts only to a Business Investor Visa. The Direct Investor Visa is multi-entry with a maximum validity of 8 years and requires assets held in country of more than alongside VFSC and foreign investment certificates and a business licence. The Permanent Investor Visa is open to holders of any class of investor visa after at least 10 years of continuous lawful residence, requires assets in country above , carries an application charge of , and is granted for an indefinite term. Separately, a Remote Worker Visa introduced after the pandemic lets remote professionals employed by foreign companies live in Vanuatu for up to 12 months, with income assessed case by case through bank certification rather than a fixed statutory threshold. Permanent residence is delivered through the Permanent Resident Visa, which has five categories in two parts. Subclass 131 is open to people of Ni-Vanuatu descent or to those who have resided in Vanuatu for the preceding 12 months. Subclass 132 to 135 targets serious investors under stringent requirements that the immigration authority assesses case by case rather than against a single published threshold. For internationally mobile individuals who want a passport rather than a residence permit, citizenship by investment under the Citizenship Act [CAP 112] is a separate and faster route that does not require residence, with the standard donation route starting at USD 130,000 for a single applicant and USD 180,000 for a married couple with two children.
Last reviewed:
How does taxation apply to residents and foreign-source income in Vanuatu?
Vanuatu levies no general income tax. There is no corporate income tax, no personal income tax, no capital gains tax, no inheritance tax, no wealth tax, and no withholding tax on dividends, interest or royalties paid by Vanuatu entities. Individuals have no income-tax residency test given the absence of personal income tax, and file no income return with the Vanuatu Customs and Inland Revenue Department, residency being relevant only for Common Reporting Standard self-certification. Government revenue is raised primarily through Value Added Tax at 15% on goods and services for businesses with annual turnover exceeding (registration mandatory under VAT Act CAP 247, rate raised from 12.5% to 15% in 2018), import duties, an annual Business Licence Fee, stamp duty of 2% on transfers of immovable property and 4% on transfers of shares in companies holding a leasehold interest in Vanuatu land (Stamp Duties Act CAP 68), and Vanuatu National Provident Fund contributions of 6% by employer and 6% by employee on local salaries since 1 January 2026. Companies registered under the International Companies Act CAP 222 benefit from a statutory tax exemption guaranteed for twenty years from registration under Section 118, covering income tax, capital gains, distributions, the Business Licence Fee, and stamp duty on transfers of its securities and on transactions relating to its business, on the strict condition under Section 10 that the company does not carry on business in Vanuatu and holds no interest in Vanuatu immovable property other than a lease of premises from which to conduct its business. Rental income falls under either rent tax or VAT. Long-term residential property rent is generally subject to rent tax, while commercial and short-term residential rent falls under VAT where the landlord is registered or required to register for VAT because taxable supplies exceed the threshold. Where commercial or short-term residential rental income is below that threshold and the landlord has not voluntarily registered for VAT, it is subject to rent tax instead under the Rent Tax Act CAP 196. Rent tax is charged at 12.5% on gross rental income across two six-month periods, with returns and payment due by 28 June and 28 December, individual landlords being exempt on the first per period and companies receiving no such exemption. Cryptocurrency transactions are not subject to direct tax in the absence of income or capital gains tax, but goods and services purchased with crypto remain subject to VAT. Vanuatu has not concluded any comprehensive double tax treaty in force, reflecting the limited need for treaty relief given the absence of source taxation, but participates in the OECD Multilateral Convention on Mutual Administrative Assistance in Tax Matters and in the Common Reporting Standard. The country has signed Tax Information Exchange Agreements with multiple OECD members including Australia, France, New Zealand, Denmark, Finland, and Iceland. Vanuatu was removed from the Financial Action Task Force (FATF) grey list in 2018 following Anti-Money Laundering (AML) reforms, with the Asia-Pacific Group on Money Laundering Round 5 Mutual Evaluation scheduled for November 2026.
Last reviewed:
Can foreign residents open bank accounts and deploy capital in Vanuatu without friction?
The Vanuatu banking sector is supervised by the Reserve Bank of Vanuatu (RBV) under the Financial Institutions Act (Cap. 254), while offshore, investment and trust activities fall under the Vanuatu Financial Services Commission (VFSC). The Reserve Bank recognises three subsidiaries of foreign banks operating domestically: ANZ Bank Vanuatu (subsidiary of the Australia and New Zealand Banking Group), Bred Bank Vanuatu (subsidiary of the French BRED Banque Populaire), and BSP Vanuatu (subsidiary of Bank South Pacific, headquartered in Papua New Guinea). The National Bank of Vanuatu (NBV) is a domestically owned commercial bank, with public shareholders including the government of Vanuatu, and the Vanuatu Rural Development Bank (VRDB), renamed from the Vanuatu Agriculture Development Bank in 2021, serves the rural and agricultural sector. Account opening generally requires in-person attendance at a branch, and reliable full remote onboarding is not offered across the main banks. Know Your Customer (KYC) documentation typically requires a passport, proof of address or residence, and evidence of source of funds, with some banks additionally requesting a banker's reference. Passports issued under the citizenship by investment (CBI) programme can attract additional compliance scrutiny, especially after the European Union (EU) revoked Vanuatu's visa-free access in December 2024 over security and screening concerns tied to that programme. Vanuatu is not currently listed by the Financial Action Task Force among jurisdictions under increased monitoring. Domestic banking is conducted in Vanuatu vatu (VUV), while US dollar, euro and Australian dollar accounts are available at several banks. Incoming international transfer commissions run around to and outgoing transfers from roughly upward, with correspondent and currency-swap charges applied on larger amounts. Vanuatu operates no foreign exchange controls and imposes no restriction on capital export, so funds move freely in major currencies. Foreign nationals acquire property through leasehold interests, with a maximum term of 75 years set by the Constitution, renewable subject to lessor consent rather than automatically, while customary land held by indigenous communities is non-transferable and covers the large majority of the land surface. On a purchase, the standard cost is a 2% stamp duty plus a 5% registration fee, whereas acquiring a property-holding company through a share transfer attracts a 4% stamp duty instead. Rental income is taxed separately at 12.5% and value-added tax of 15% applies to commercial property rather than to residential resale, which is exempt. On digital assets, Vanuatu enacted the Virtual Asset Service Providers (VASP) Act No. 3 of 2025, under which the VFSC licenses virtual asset service providers across five licence classes and no company may provide virtual asset services without a licence, although virtual assets are not legal tender. Vanuatu participates in the Common Reporting Standard (CRS) through the Automatic Exchange of Information (AEOI) framework, with financial account data exchanged annually with reportable jurisdictions.
Last reviewed:
Is Vanuatu a viable operational base for foreign professionals?
Vanuatu operational viability for foreign professionals reflects the constraints of a small island archipelago of 83 islands with a population of approximately 330,000, of which Port Vila on Efate concentrates the economic and administrative activity (49,034 inhabitants per the 2020 census). Fixed broadband is expensive and thinly penetrated, at roughly 1.2 fixed subscriptions per 100 inhabitants, so most residents rely on mobile data, for which the regulator reports aggregated predictive coverage of about 86 percent of the population, with real availability, reliability, and speed varying materially by operator, island, and terrain. English, French, and Bislama are co-official languages, with English the working language of business and widely used in government. Bauerfield International Airport (VLI) is served by nine carriers, Air Vanuatu, Fiji Airways, Virgin Australia, Qantas, Jetstar, Aircalin, Air Caledonie, Solomon Airlines, and Air Niugini, running roughly 8 to 11 flights per day in total across international and domestic routes, with international service concentrated on Brisbane, Sydney, Nadi, Noumea, Auckland, Christchurch, and Honiara. The longest nonstop routes run around four hours, to Sydney with Jetstar and to Christchurch, launched by Solomon Airlines in July 2026. Air Vanuatu entered voluntary liquidation on 9 May 2024, suspended all international flights, and by 2026 was operating domestic services only, with Qantas, Virgin Australia, and Jetstar covering the main Australia routes. Cost of living for a single foreign professional in Port Vila runs about USD 1,400 to USD 1,900 per month excluding rent. Housing is the binding constraint and costlier than the archipelago image suggests, with a one-bedroom apartment averaging around per month in the city center and around outside it on a thin sample, with a wide observed range from roughly to and basic local-standard units found well below those averages. A casual local meal runs about to and upscale dining to . Healthcare centers on two referral hospitals, Vila Central Hospital in Port Vila and Northern District Hospital in Luganville, backed by smaller provincial hospitals at Lenakel, Lolowai, Norsup, and Torba, with limited specialist capacity throughout. Serious or complex cases require aeromedical evacuation to Australia or New Zealand, so comprehensive insurance covering medical evacuation is essential. The Pacific Ring of Fire location exposes Vanuatu to frequent seismic and volcanic activity, and the cyclone season from November to April carries heavy documented impact. Tropical Cyclone Pam in 2015 displaced roughly 65,000 people and affected more than half the population, and Tropical Cyclone Harold in 2020, whose combined effect with the COVID-19 shock the official post-disaster assessment put at about 61 percent of 2020 gross domestic product, followed only five years later. Institutional risks include chronic political instability, with several changes of government inside a single year, and the fallout from the citizenship by investment (CBI) scheme. The European Union revoked Schengen visa-free access for Vanuatu passport holders on 12 December 2024 under Regulation (EU) 2018/1806, and the United Kingdom imposed a visa requirement on 19 July 2023, both citing abuse of the scheme. Vanuatu has also sat on the European Union list of high-risk third countries for anti-money laundering purposes since 2016 and remains on the current consolidated list, most recently amended by Delegated Regulations (EU) 2026/46 and (EU) 2026/83, which subjects Vanuatu-linked relationships and transactions to enhanced due diligence by European financial institutions, even though the Financial Action Task Force (FATF) removed Vanuatu from its own grey list in 2018.
Last reviewed:
Lucky Nomads editorial note
Vanuatu occupies the structural extreme of the offshore spectrum, and reading it correctly means rejecting the passport-collector framing agency marketing applies to it. Its pull is not residence, not lifestyle. Residence visas exist under the Immigration Act, but Vanuatu is rarely chosen as a primary place of residence. It is a pure instrument whose value rests on the simultaneous absence of general income, corporate, and capital gains taxes and of any double-tax treaty network. The Citizenship by Investment (CBI) route and the International Company (IC) vehicle are its two access points. The advisor error is treating the passport as a mobility asset rather than the low-cost defensive document with a shrinking acceptance perimeter it has become. The inflection that matters is not the loss of European mobility itself, now settled, but the government response, which decides whether the program survives. After the European Union withdrew Schengen visa-free access at the end of 2024 and the United Kingdom imposed a visa the year before, Vanuatu did not defend the old permissive model but restructured it. The 2025 Citizenship Amendment Act reinforced the statutory independence of the citizenship office while the government retained overall policy direction. The program has separately moved to in-person biometric enrolment, stricter mandatory agent registration, and roughly thirty revocations under the Napat administration. A buyer acquires a non-European mobility document under a regime tightening its own screening. The open question is the November 2026 regional anti-money-laundering evaluation, whose outcome shows whether this tightening arrests the acceptance erosion or whether banking and consular friction widens regardless of price. Against direct comparators, Vanuatu sits in a distinct category. The Bahamas at USD 1,000,000 minimum economic permanent residence and the Cayman Islands at USD 2.4 million in developed real estate target a higher net-worth bracket with stronger banking infrastructure. The United Arab Emirates offers zero personal income tax with deeper financial markets and a treaty network above 130 jurisdictions. Saint Kitts and Nevis CBI at USD 250,000 preserves Schengen access and visa-free UK entry under an electronic travel authorisation, both lost by Vanuatu, and Caribbean CBIs in Dominica, Grenada, and Saint Lucia still hold Schengen access for now. On price alone Vanuatu is no longer the floor. Nauru now runs an official CBI with a USD 115,000 standard contribution currently discounted to USD 90,000 for a single applicant until the end of 2026, undercutting the Vanuatu USD 130,000 donation, so Vanuatu is among the lowest-cost functioning programs rather than the cheapest. Vanuatu remains a low-cost, no-residence CBI but no longer holds a clear price edge, set against geographic isolation, banking friction post-EU revocation, and a passport whose mobility has fallen to the lower-mid tier of the rankings. The fiscal core is the most durable feature of the jurisdiction, the absence of general income tax, corporate income tax, and capital gains tax, unchanged for four decades across governments, so direct-tax reversal is not a realistic exposure. It is not literally tax-free, since a 15 percent Value Added Tax, import duties, stamp duty, a rent tax, and provident fund contributions apply, but the no-income-tax base is settled. Everything around that core is moving the wrong way. Passport acceptance has tightened, while AML scrutiny remains structurally elevated, and the European Union lists Vanuatu as a high-risk third country for anti-money-laundering purposes, so European obliged entities must apply enhanced due diligence to relationships and transactions involving Vanuatu. A client relying on the passport for neither mobility nor local banking is largely insulated, while one needing it to travel or bank locally is fully exposed to a reputational spiral price cannot fix. Climate and connectivity are structural constants that demand evacuation-grade insurance but bound rather than change the thesis. Vanuatu fits a deliberately narrow profile. It suits the client wanting a low-cost defensive passport for non-European mobility, an offshore vehicle for holding assets abroad, or pure neutrality on globally derived income that needs no treaty support. Below roughly half a million dollars of total commitment it is an entry-level CBI with no residence requirement. It is the wrong tool for anyone needing European banking, treaty-shielded flows, or genuine substance in a financial centre. Routing is precise. A client valuing retained Schengen access takes Saint Kitts and Nevis or Grenada. One wanting tax-neutral residence with treaty depth and real banking takes the United Arab Emirates. One at the ultra-high-net-worth end wanting institutional-grade banking on a no-tax base takes the Cayman Islands. Vanuatu wins only when the mandate is portability at the lowest cost and nothing more.
Last reviewed:
Published ranks by index
One row per leaderboard we publish (the composite index plus each proprietary dimension). A rank appears only when this country is currently in the published top 10 for that list. Open a row to see the full ranking. Hover an index name for the same short definition as elsewhere on the site.
This jurisdiction is not in the published top 10 on any of these lists right now.
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Founder, Lucky Nomads · Wealth manager
Researched from official sources, leading global indices and Lucky Nomads' own scoring.
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