# Vanuatu

 Country code: VU · Currency: VUV · Language: Bislama

**Pros**
- Absence of personal income, corporate, capital gains, or inheritance taxes for residents and businesses.
- Fast-track citizenship by investment program providing increased global mobility and alternative residency options.
- Minimal government interference in private enterprise and simplified registration for international business companies.

**Cons**
- Inadequate infrastructure with frequent power outages and limited high-speed internet outside the capital.
- Significant vulnerability to devastating natural disasters like cyclones, impacting long-term physical asset security.
- Persistent concerns regarding government transparency and occasional political instability affecting legal predictability.

Long story short: Here, you'll never get fleeced by the taxman: zero income tax, zero corporate tax, zero capital gains tax.

The flip side: you'll struggle to open a business account since local banks have gotten skittish, and the administration runs on Melanesian time. A quiet backhander sometimes unlocks things faster than a complete file.

Beyond that: you'll feel safe in the nice neighborhoods, the food mixes fresh fish with French-style bakeries, the volcanic scenery is worth the trip, but cyclones hit hard every season.

## Will your income be taxed?

Long story short: NO.
**Vanuatu** doesn't tax personal income, and nobody comes sniffing around when you settle in. No withholding, no tax return, no centre-of-vital-interests trap waiting to snap shut.

Earn what you want: the taxman here simply doesn't know your name.

**01.1 Income tax**

| Metric | Value | Detail |
| --- | --- | --- |
| Personal income tax | NONE | no personal income tax framework |

**01.2 Tax residence test**

| Metric | Value | Detail |
| --- | --- | --- |
| 183-day rule | does not exist here |  |
| Economic interest | does not exist here |  |
| Family centre | does not exist here |  |
| Habitual abode | does not exist here |  |
| Extended-stay test | does not exist here |  |

## Will your wealth be taxed?

Long story short: NO.
**Vanuatu** keeps its hands off what you hold. *No capital gains tax*, no annual wealth grab, no inheritance regime.

Your portfolio compounds in peace and leaves the way it came in; nobody's standing at the door with their palm out.

**02.1 Investment income**

| Metric | Value | Detail |
| --- | --- | --- |
| Capital gains | NONE | no capital gains regime |
| Dividend tax | NONE | no dividend tax |
| Interest income | NONE | no interest income tax |

**02.2 Wealth & estate**

| Metric | Value | Detail |
| --- | --- | --- |
| Wealth tax | NONE | no annual wealth tax · no real-estate wealth tax · no net-worth assessment |
| Inheritance system | NONE | no estate tax · no heir-based duties · no succession tax framework. Wealth transfers across heir-classes are not taxed in this jurisdiction. Only standard probate / registration fees may apply. |

**02.3 Crypto**

| Metric | Value | Detail |
| --- | --- | --- |
| Crypto · tax regime | ZERO TAX | Rate: 0% · Vanuatu is a tax-free jurisdiction that does not levy personal income tax, capital gains tax, or wealth tax. While the Financial Dealers Licensing (Amendment) Act 2021 and the Virtual Asset Service Provider (VASP) Act 2025 provide a regulatory framework for digital asset businesses, individual residents are not subject to taxation on cryptocurrency gains, including trading, mining, or crypto-to-crypto exchanges. |
| Crypto-to-crypto | NEUTRAL | a swap is not a taxable realisation event |
| FATF travel rule | NOT SIGNED | no information-sharing obligation on VASP transfers |

## Easy to run a company there?

Long story short: YES.
**Vanuatu** runs *no corporate income tax* and *no criminal liability* for misuse of corporate assets: fiscally and legally featherweight.

The catch: registries are *public*, so your name as shareholder is one search away for any curious stranger. They won't tax you, they won't prosecute you. They'll just put you in the shop window.

**03.1 Rates**

| Metric | Value | Detail |
| --- | --- | --- |
| Corporate tax | NONE | no corporate income tax framework |
| VAT standard rate | NONE | no general VAT · no consumption tax framework |

**03.2 Regime & registry**

| Metric | Value | Detail |
| --- | --- | --- |
| IP Box · Patent Box | NONE | no IP regime · IP income taxed under standard corporate rules |
| Misuse of corporate assets | NO CRIMINAL | no criminal liability · Vanuatu follows a common law approach to corporate personality. Under the Companies Act No. 25 of 2012 and the Penal Code [CAP 135], a sole director/shareholder's use of company assets while the company is solvent is generally not a criminal offense because the company's 'consent' is effectively provided by the sole owner. Such acts are treated as a breach of fiduciary duties (Section 64) or an unauthorized distribution, resulting in civil liability or tax penalties. Criminal charges like 'Fraudulent Trading' (Section 173) or 'Theft' (Section 122 Penal Code) typically require an intent to defraud creditors or a lack of owner consent, neither of which applies in this solvent sole-owner scenario. |
| Shareholders privacy | PUBLIC | Vanuatu Financial Services Commission (VFSC) |
| Directors privacy | PUBLIC | Vanuatu Financial Services Commission (VFSC) |

**03.3 Incorporation cost**

_In this country, the most standard company form is called Private Limited Company. The costs below are for incorporating a company in its simplest form, for reference only._

| Metric | Value | Detail |
| --- | --- | --- |
| VFSC Company Registration Fee | USD 254 |  |
| VIPA Foreign Investment Approval Certificate | USD 1,017 |  |
| Initial Business License Fee (Non-Citizen Principal) | USD 932 |  |
| Professional Incorporation & Legal Service Fees | USD 1,272 |  |
| Total | USD 3,476 |  |

## A good fit for a holding?

Long story short: NO.
**Vanuatu** has no treaty network at all, which buries the holding question, full stop.

Every dividend in or out eats the statutory withholding at full rate, and no domestic regime can patch a hole that sits on the source side. Don't park a holding here.

**04.1 Substance & exemptions**

| Metric | Value | Detail |
| --- | --- | --- |
| Territorial · individuals | TERRITORIAL | territorial — foreign-source income generally untaxed |
| Territorial · corporates | TERRITORIAL | territorial principle — foreign-source profits generally exempt |
| Participation exemption | 100% | no minimum threshold · no holding period |
| CFC rules | NONE | no controlled foreign corporation regime · foreign-source corporate income out of scope |

**04.2 Withholding tax · non-resident**

| Metric | Value | Detail |
| --- | --- | --- |
| WHT · dividends | NONE | no withholding on outbound dividends |
| WHT · interest | NONE | no withholding on outbound interest |
| WHT · royalties | NONE | no withholding on outbound royalties |
| Tax-haven WHT | NONE | no punitive rate on record |

**04.3 Treaty network**

| Metric | Value | Detail |
| --- | --- | --- |
| Treaties signed | 0 | active |
| Treaties pending | — | in negotiation |

## Easy to come and go?

Long story short: LITTLE.
Coming and going from **Vanuatu** costs you nothing worth mentioning. *Territorial* regime (foreign income stays foreign), *no exit tax* at the door.

You show up with your stuff, you leave with your stuff, plus whatever you earned abroad in between. Borders the way they should all work.

**05.1 Exit & dual nationality**

| Metric | Value | Detail |
| --- | --- | --- |
| Exit tax | NONE | no triggers active · residence change tax-free · no deemed-disposal mechanism |
| Dual citizenship | FORBIDDEN | naturalisation requires renouncing existing citizenship |

**05.2 Citizenship paths**

| Metric | Value | Detail |
| --- | --- | --- |
| Residence | 10 years | available path to naturalisation |
| Marriage | 2 years | available path to naturalisation |
| Birth | — | not available |
| Descent | — | not available |
| Investment | available | available path to naturalisation |

## Is your money watched?

Long story short: PARTLY.
**Vanuatu** has signed *most* of the standard exchange frameworks *and* runs a public corporate registry. Your accounts get reported to your home tax office, and your shareholdings sit in the shop window.

Watched on both axes: not wall-to-wall, but don't come here for discretion.

**Multilateral reporting frameworks — 2/9 active · 2 pending**

| Item | Status | Detail |
| --- | --- | --- |
| CRS | Signed | 2018 |
| CARF | None | — |
| FATCA | None | — |
| MLI | None | — |
| BEPS | None | — |
| MAAC | In force | 2018 |
| GLOBAL FORUM | Signed | — |
| EOIR | In force | — |
| CRYPTO TRAVEL RULE | None | — |

## Is it blacklisted?

Long story short: YES.
**Vanuatu** stacks the *EU non-cooperative list* on top of national blacklists. Counterparties routinely fire anti-abuse rules, jack up withholding, or refuse the deal entirely, and the EU layer makes the friction automatic across the whole bloc.

The jurisdiction itself is the risk; the substance of what you do there is a footnote.

**Blacklist exposure — Listed by 5 authorities**

| Item | Status | Detail |
| --- | --- | --- |
| EMBARGO | Clear | un / us / eu sanctions |
| FATF | Clear | grey / black list |
| EU | Listed | non-cooperative list |
| FRANCE | Listed | ETNC list |
| SPAIN | Listed | tax-haven list |
| PORTUGAL | Listed | favourable regimes |
| BRAZIL | Listed | low-tax list |

## Do you feel free there?

Long story short:
Not enough data to tell how free you'd actually feel in **Vanuatu**.

**08.1 Press freedom**

| Metric | Value | Detail |
| --- | --- | --- |
| Press freedom · RSF index | — |  |

Central bank digital currency

    Program Status Cross-border Sources     Vanuatu CBDC

The purpose of this groundbreaking study is to chart a path for the Pacific Island countries into the age of digital finance. It will systematically investigate financial infrastructures in four countries: Fiji, Solomon Islands, Tonga, and Vanuatu. In addition to assessing current procedures for wholesale settlements (i.e., between financial institutions) and cash-based and cashless retail settlements (e.g., between end users), SORAMITSU will evaluate the potential risks and benefits of introducing central bank digital currencies (CBDCs) and other novel digital assets.

Reserve Bank of Vanuatu

   RESEARCH   —   [announce →](https://soramitsu.co.jp/digital-currency-oceania/ "Announcement")

 programs 1

## Connected to the world?

Long story short: POORLY CONNECTED.
The two rails that matter are both dead in **Vanuatu**. *Stripe* won't onboard you, so card payments mean a foreign structure or a local processor with its own rules. *Amazon* doesn't deliver either.

Some secondary services run (**4/11**), but for an online business this is swimming against the current.

**Accept payments — 2/6 available**

| Item | Status | Detail |
| --- | --- | --- |
| Stripe | Not available | card payments |
| PayPal | Available | wallet payments |
| Adyen | Not available | enterprise psp |
| Mollie | Not available | eu payments |
| GoCardless | Not available | direct debit |
| Paddle | Available | merchant of record |

**Bank and move money — 1/3 available**

| Item | Status | Detail |
| --- | --- | --- |
| Wise | Available | multi-currency |
| Revolut | Not available | personal banking |
| Revolut Business | Not available | business banking |

**Buy and sell on Amazon — 1/2 available**

| Item | Status | Detail |
| --- | --- | --- |
| Amazon | Not available | consumer delivery |
| Amazon Seller | Available | marketplace selling |

  SEE ALSO## Other jurisdictions worth comparing

Picked by similarity of strategic profile to Vanuatu. No editorial ranking — neighbours in the same scoring space.

  PROFILE-ADJACENT Same shape, comparable overall friction.

 [   Turks & Caicos Islands TC  → ](https://stateless.sx/en/country/tc) [   Seychelles SC  → ](https://stateless.sx/en/country/sc) [   Nauru NR  → ](https://stateless.sx/en/country/nr)

  NOTABLY MORE FAVORABLE Same family of strategies, higher total score.

 [   Wallis & Futuna WF  → ](https://stateless.sx/en/country/wf) [   St. Barthélemy BL  → ](https://stateless.sx/en/country/bl) [   Oman OM  → ](https://stateless.sx/en/country/om)

  NOTABLY LESS FAVORABLE Same family of strategies, lower total score.

 [   San Marino SM  → ](https://stateless.sx/en/country/sm) [   Congo - Kinshasa CD  → ](https://stateless.sx/en/country/cd) [   Curaçao CW  → ](https://stateless.sx/en/country/cw)