Understanding Vanuatu Taxes: A Guide for Caribbean Investments

Are you tired of the high taxes in your home country? Have you ever dreamed of living on a tropical island, sipping cocktails on the beach and paying little to no taxes? Well, my friend, Vanuatu may be just the place for you!

As a seasoned expat and tax consultant, I can attest to the many benefits of living in Vanuatu when it comes to taxes. The country offers a unique opportunity to legally reduce or even eliminate your tax burden, thanks to its attractive tax regime.

But don’t take my word for it. I personally know several expats who have made the move to Vanuatu and have been enjoying the benefits of low taxes ever since. One friend, who used to reside in a high-tax country in Europe, now pays a fraction of what he used to in Vanuatu. Another acquaintance, a business owner, was able to set up shop in Vanuatu and enjoy a corporate tax rate of just 0%.

But it’s not just the low taxes that make Vanuatu an attractive destination for expats. The country also boasts stunning natural beauty, a laid-back lifestyle, and a welcoming community of locals and expats alike. Plus, with its stable political system and strong economy, Vanuatu offers a safe and secure environment for expats to invest and thrive.

So, if you’re looking for a tropical paradise with low taxes and endless opportunities, Vanuatu may just be the place for you. Stay tuned for more insider tips and insights on taxes and expat life in Vanuatu!

Why is Vanuatu a tax haven?

If you’re considering a move to a new country, Vanuatu might just be the perfect place for you. This beautiful South Pacific island nation is not only known for its stunning natural beauty, but it’s also a popular destination for those seeking to take advantage of its tax haven status.

What is a tax haven?

A tax haven is a country or jurisdiction that offers individuals and businesses the opportunity to minimize their tax liability by taking advantage of certain tax laws and regulations. Tax havens typically have low or zero tax rates, strict banking secrecy laws, and limited transparency requirements.

Why is Vanuatu a tax haven?

Vanuatu is considered a tax haven because it offers a number of tax incentives and advantages to individuals and businesses who choose to establish residency or incorporate in the country. Some of the key reasons why Vanuatu is a popular tax haven destination include:

  • No income tax: Vanuatu has no personal income tax, which means that residents and non-residents alike are not required to pay taxes on their personal income.
  • No capital gains tax: Vanuatu also does not have a capital gains tax, which means that individuals and businesses can invest in stocks, real estate, and other assets without having to worry about paying taxes on the gains.
  • No inheritance tax: Vanuatu does not have an inheritance tax, which means that individuals can pass on their assets to their heirs without having to pay taxes on them.
  • No wealth tax: Vanuatu also does not have a wealth tax, which means that individuals and businesses are not required to pay taxes on their assets, such as property, investments, and other valuable items.
  • Low corporate tax rates: Vanuatu has a low corporate tax rate of just 0-3%, which makes it an attractive destination for businesses looking to establish a presence in the country.

How to take advantage of Vanuatu’s tax haven status

If you’re considering a move to Vanuatu or want to take advantage of its tax haven status, there are a few things you should know. First, you’ll need to establish residency in the country, which requires a minimum investment of $80,000 USD. Once you’ve established residency, you can take advantage of the tax benefits mentioned above.

It’s also important to note that while Vanuatu is a tax haven, it’s not a free-for-all. The country has strict banking secrecy laws and requires individuals and businesses to comply with international tax reporting requirements. If you’re considering taking advantage of Vanuatu’s tax haven status, it’s important to consult with a tax professional and ensure that you’re following all applicable laws and regulations.

Does Vanuatu tax foreign income?

Vanuatu is a tropical paradise in the South Pacific that has been attracting expats and investors for decades. One of the many reasons why Vanuatu is so attractive to foreigners is its favorable tax laws.

What are the tax laws in Vanuatu?

Vanuatu has a territorial tax system, which means that it only taxes income that is earned within the country. This means that if you earn income from outside of Vanuatu, you will not be subject to any income tax.

Additionally, Vanuatu does not have any capital gains tax, inheritance tax, or wealth tax. This makes it a popular destination for high net worth individuals who are looking to protect their assets.

How can you benefit from Vanuatu’s tax laws?

If you are a foreigner who is considering a move to Vanuatu, you can benefit from the country’s favorable tax laws by setting up a local company. By doing so, you can take advantage of Vanuatu’s low corporate tax rate of just 0%.

Setting up a local company in Vanuatu is relatively easy and can be done within a matter of days. Once you have established your company, you can start earning income from outside of Vanuatu without having to worry about paying any taxes.

What about residency in Vanuatu?

If you are a foreigner who is looking to become a resident of Vanuatu, you can do so by applying for a Vanuatu passport through the country’s Citizenship by Investment Program. This program allows foreigners to obtain citizenship in Vanuatu by making an investment in the country’s economy.

Once you have obtained citizenship in Vanuatu, you will be able to take advantage of the country’s favorable tax laws, including the fact that it does not tax foreign income. Additionally, as a Vanuatu citizen, you will be able to travel freely to many countries around the world without the need for a visa.

In conclusion

If you are considering a move to Vanuatu or are already an expat in the country, you can benefit from its favorable tax laws. Vanuatu does not tax foreign income, which means that you can earn money from outside of the country without having to worry about paying any taxes. Additionally, by setting up a local company, you can take advantage of Vanuatu’s low corporate tax rate. And if you become a citizen of Vanuatu, you will be able to enjoy all of the benefits of living in this tropical paradise, including its favorable tax laws.

What are the tax rules in Vanuatu?

Vanuatu is known for its stunning natural beauty, friendly locals, and laid-back lifestyle, but what about its tax rules? As an expat or potential investor, it’s important to understand the tax laws in any country before making a move or investing your hard-earned money. In this guide, we’ll take a closer look at the tax rules in Vanuatu and what you need to know before you go.

Personal Income Tax

If you’re a resident of Vanuatu, you’ll be pleased to know that there is no personal income tax. That’s right, you read that correctly – no income tax! This makes Vanuatu a popular destination for retirees, digital nomads, and anyone looking to keep more money in their pocket.

Business Income Tax

While personal income tax is non-existent in Vanuatu, business income tax does exist. The current rate is 0-24% depending on the type of business and the amount of income earned. It’s important to note that Vanuatu operates on a territorial taxation system, meaning that only income generated within Vanuatu is subject to taxation. This can be a huge advantage for businesses operating in Vanuatu.

Goods and Services Tax (GST)

Vanuatu introduced a Goods and Services Tax (GST) in 2010. The current rate is 12.5%, and it is applied to most goods and services in Vanuatu. However, there are some exemptions, including basic food items, medical supplies, and education services.

Property Tax

Property tax in Vanuatu is relatively low compared to other countries. The current rate is 0.1% of the assessed value of the property. This applies to both residential and commercial properties.

Investment Incentives

Vanuatu offers a range of investment incentives to encourage foreign investment in the country. These include tax holidays, duty exemptions, and accelerated depreciation. These incentives can vary depending on the type of investment and the location within Vanuatu.

What country has the lowest tax system?

Are you tired of paying high taxes every year? Do you dream of a place where your hard-earned money is not taken away from you in the form of taxes? Well, you are not alone. Many people around the world are looking for a country with a low taxation system to live, work or invest in. And one country that ticks all the boxes is Vanuatu.

Vanuatu Taxes

Vanuatu, a small island nation located in the South Pacific, is known for its pristine beaches, crystal-clear waters and friendly locals. But what many people don’t know is that Vanuatu has one of the lowest taxation systems in the world.

The country operates a territorial tax system, which means that only income earned within Vanuatu is taxed. This means that if you earn income from a source outside of Vanuatu, you will not be taxed on that income. Additionally, there are no capital gains, inheritance or gift taxes in Vanuatu.

Personal Income Tax

For individuals, the personal income tax rates in Vanuatu are also low. The tax rates range from 0% to 35%, depending on your income bracket:

  • 0% tax on income up to VT180,000 (approximately USD 1,600)
  • 7.5% tax on income between VT180,001 and VT360,000
  • 15% tax on income between VT360,001 and VT1,080,000
  • 20% tax on income between VT1,080,001 and VT1,800,000
  • 25% tax on income between VT1,800,001 and VT2,700,000
  • 30% tax on income between VT2,700,001 and VT3,600,000
  • 35% tax on income over VT3,600,000

It is worth noting that there are also tax exemptions available for expats who meet certain criteria, such as those working in designated industries or those who have been granted a Vanuatu residency status.

Business Taxes

For businesses, the tax system in Vanuatu is also favorable. The corporate tax rate is a flat 0%, which means that businesses operating in Vanuatu are not subject to any corporate income tax. There are also no withholding taxes on dividends, interests or royalties.

In addition, Vanuatu has a range of tax incentives for businesses, including exemptions on import duties, VAT, and other taxes for approved projects.


I’ve written extensively about Caribbean Investments. Explore more articles about it: