Relocation intelligence

🇻🇺 Moving to Vanuatu: tax, residency and cost of living

Vanuatu levies no income tax whatsoever: no tax on salary, dividends, interest, capital gains, wealth or inheritance, and there is no corporate income tax. The government is funded through a 12.5% VAT, import duties and citizenship-program fees. The only mandatory employee payroll deduction is the VNPF provident-fund contribution of 6% (from 2026).

Thinking of moving to Vanuatu? Here is the tax, residency, property and quality-of-life picture in plain numbers, with sources.

Key facts

Top income tax
0%
Corporate tax
0%
Capital gains
0%
Wealth tax
No
Inheritance tax
No
Cost of living index
78
Safety
7/10
Internet quality
5/10
Visa-free destinations
87
Foreigners can own property
Yes
Residency in
6 months
Citizenship in
5 years

Taxes

There is no income tax, corporate tax, capital gains tax, wealth tax or inheritance tax. VAT is 12.5%. Employees pay a 6% VNPF provident contribution (from 2026, previously 4%), with no cap.

Residency and visas

Residency is easy to obtain via a self-funded residency visa or investor permit, usually within a few months. Citizenship by investment is direct and requires no prior residence.

Property ownership

All land is customarily owned; foreigners acquire property via leasehold (up to 75 years) or strata title for apartments, not freehold land.

Cost of living and quality of life

Relaxed Pacific island life with a tropical climate, but limited healthcare, high import costs and a high natural-disaster risk.

Passport and mobility

The passport gives access to roughly 87 destinations (Henley 2026). Visa-free access to the Schengen area and the UK lapsed from December 2024.

Why people move to Vanuatu

  • Completely zero income tax

    No tax on salary, dividends, interest, capital gains, wealth or inheritance. Net pay equals gross and business profits are untaxed as well.

  • Fast second passport via investment

    Through the Development Support Program you obtain citizenship with a contribution from about USD 130,000, typically within a few months and without a residency requirement.

Honest trade-offs

  • De Europese Unie schorste in december 2024 de visumvrije toegang tot de Schengenzone voor Vanuatu wegens zorgen over onvoldoende zorgvuldigheid in het paspoortprogramma, waardoor houders nu vooraf een visum nodig hebben voor alle 27 EU landen.
  • Buitenlanders kunnen in Vanuatu geen grond in vol eigendom verwerven; alle grond is gewoonterechtelijk in bezit en wordt uitsluitend via erfpacht van maximaal 75 jaar verkregen.
  • Vanuatu behoort tot de landen met wereldwijd het hoogste risico op natuurrampen, met regelmatige tropische cyclonen, aardbevingen, tsunami's en actieve vulkanen.
  • De gezondheidszorg is beperkt en basaal; voor ernstige medische ingrepen moeten inwoners vaak uitwijken naar Australie of Nieuw-Zeeland.
  • Ondanks nul inkomstenbelasting kent Vanuatu een btw van 12,5% en hoge invoerkosten, waardoor de kosten van levensonderhoud gemiddeld boven het niveau van de Verenigde Staten liggen.

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Sources

Other destinations

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