Vanuatu

Last update: 2026-06-12
VU VUVVt 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.
Personal income
NONE
Corporate
NONE
Capital gains
NONE
VAT (standard)
NONE
i 4.7 DIVIDEND PIPELINE
i 3.7 HOLDING
i 2.9 VERY LOW TAX
i 2 CRYPTO HAVEN
i 2 PRIVACY GRADE
i 0.9 EASY CITIZENSHIP
VERYLOW TAX 2.9/10 HOLDING 3.7/10 DIVIDENDPIPELINE 4.7/10 CRYPTOHAVEN 2/10 PRIVACYGRADE 2/10 EASYCITIZENSHIP 0.9/10
01/08

Will Vanuatu tax what you earn?

income tax tax residency territorial system

NO. Vanuatu doesn't tax personal income, and doesn't reach for you when you settle. No withholding, no return, no centre-of-vital-interests test waiting to trip. Salary is a non-event here, both in the rate and in the paperwork.

Personal income taxi
NONE
no personal income tax framework
Income simulatori
N/A
no income tax framework — nothing to simulate
Tax residence testi
N/A
no formal tax residency test · matters mainly for citizenship / immigration tracks
02/08

Will Vanuatu tax what you own?

capital gains wealth tax inheritance dividends interest

NO. Vanuatu doesn't tax what you hold. No capital gains, no annual wealth assessment, no inheritance regime. The value sitting in your portfolio compounds untouched, and leaves it the same way it arrived.

Capital gainsi
NONE
no capital gains regime
Dividend taxi
NONE
no dividend tax
Interest incomei
NONE
no interest income tax
Wealth taxi
NONE
no annual wealth tax · no real-estate wealth tax · no net-worth assessment
Crypto · tax regimei
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-cryptoi
NEUTRAL
a swap is not a taxable realisation event
FATF travel rulei
NOT SIGNED
no information-sharing obligation on VASP transfers
Inheritance systemi
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.
03/08

Is it easy to run a company in Vanuatu?

corporate tax criminal liability public registry VAT IP box

YES. Vanuatu has no corporate income tax and no criminal liability for misuse of corporate assets: fiscally and legally weightless. The catch: corporate registries are public, so your name as shareholder shows up in a search portal. The state doesn't tax you and doesn't prosecute you; it just exposes you.

Corporate taxi
NONE
no corporate income tax framework
IP Box · Patent Boxi
NONE
no IP regime · IP income taxed under standard corporate rules
Misuse of corporate assetsi
NO CRIMINAL LIABILITY
Civil Matter / Breach of Fiduciary Duty (Companies Act No. 25 of 2012)
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 privacyi
PUBLIC
Vanuatu Financial Services Commission (VFSC)
Directors privacyi
PUBLIC
Vanuatu Financial Services Commission (VFSC)
Incorporation costi
Private Limited Company
Private Limited Company
VFSC Company Registration Fee USD 252
VIPA Foreign Investment Approval Certificate USD 1,007
Initial Business License Fee (Non-Citizen Principal) USD 923
Professional Incorporation & Legal Service Fees USD 1,259
Total USD 3,442
VAT standard ratei
NONE
no general VAT · no consumption tax framework
04/08

Is Vanuatu good for your holding company?

treaty network participation exemption withholding

NO. Vanuatu doesn't carry a treaty network, which makes it unsuitable as a holding jurisdiction. Any dividend flowing in or out faces full statutory withholding, and no domestic participation exemption can compensate for missing relief on the source side.

Territorial systemi
Individuals
TERRITORIAL
Corporates
TERRITORIAL
Individuals: territorial — foreign-source income generally untaxed. Corporates: territorial principle — foreign-source profits generally exempt.
Participation exemptioni
100%
no minimum threshold · no holding period
CFC rulesi
NONE
no controlled foreign corporation regime · foreign-source corporate income out of scope
WHT · dividendsi
no withholding on outbound dividends
WHT · interest
no withholding on outbound interest
WHT · royalties
no withholding on outbound royalties
Tax-haven WHT
no punitive rate on record
Treaties signedi
0
active
Treaties pending
in negotiation
Tax treaty networki
origin · VU 0% > 0% no treaty
Inspect a country
Hover any country on the map to read its withholding-tax treaty with VU.
Country Status Dividends Interest Royalties
// no treaties match
05/08

What does it cost to come and go from Vanuatu?

exit tax territorial system dual citizenship

LITTLE. Coming and going from Vanuatu is cheap. The country runs a territorial system (foreign income stays foreign), and there's no exit tax on departure. You leave with what you came in with, plus whatever you earned abroad while you were here.

Exit taxi
NONE
no triggers active · residence change tax-free · no deemed-disposal mechanism
Dual citizenship
FORBIDDEN
naturalisation requires renouncing existing citizenship
Citizenship paths
Residence
Marriage
Birth
Descent
Investment
06/08

Will Vanuatu protect your privacy?

info exchange corporate registries

PARTLY. Vanuatu has signed most of the standard exchange frameworks and operates a public corporate registry. Financial accounts are reported to your home tax authority, and your shareholdings are visible to anyone. Privacy is shallow on both axes.

Multilateral reporting frameworks 2/10 active · 2 pending
CRS
2018
CARF
FATCA
MLI
BEPS
MAAC
2018
GLOBAL FORUM
EOIR
CRYPTO-CARF
CRYPTO TRAVEL RULE
07/08

Is Vanuatu itself a liability?

blacklists FATF standing

YES. Vanuatu sits on multiple major blacklists. Counterparties routinely apply anti-abuse rules, higher withholding, or refuse the transaction entirely. The jurisdiction itself is the risk, regardless of the substance of what you're doing inside it.

Blacklist exposure Listed by 5 authorities
FATF
grey / black list
EU
non-cooperative list
FRANCE
ETNC list
SPAIN
tax-haven list
PORTUGAL
favourable regimes
BRAZIL
low-tax list
08/08

Will you feel free in Vanuatu?

press freedom crypto CBDC EU

Not enough data to assess civil liberties and financial freedom in Vanuatu.

Press freedom · RSF indexi
Central bank digital currencyi
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
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.
NOTABLY MORE FAVORABLE Same family of strategies, higher total score.
NOTABLY LESS FAVORABLE Same family of strategies, lower total score.