Cost of Living in Vanuatu
Vanuatu offers a moderate cost of living that's significantly lower than Australia, New Zealand, or most Western countries. Combined with zero income tax, your money goes further here than almost anywhere else.
Monthly Budget Overview
| Expense | Port Vila | Luganville/Outer Islands |
|---|---|---|
| Rent (1BR apartment) | $800-1,200 | $500-800 |
| Rent (2BR house) | $1,000-1,700 | $700-1,200 |
| Utilities (electric, water) | $200-400 | $150-300 |
| Groceries | $400-600 | $300-500 |
| Dining out | $200-400 | $150-300 |
| Transportation | $100-200 | $50-150 |
| Internet (broadband) | $150-230 | Limited availability |
| Mobile phone (10GB) | $25 | $25 |
| Health insurance | $100-300 | $100-300 |
| Total (single) | $2,000-3,500 | $1,500-2,800 |
The Zero Tax Advantage
Vanuatu has no income tax, no capital gains tax, no inheritance tax, and no wealth tax. This is the country's biggest financial draw.
What this means in practice:
- Remote workers keep 100% of their salary
- Investment income is untaxed
- Business owners pay no corporate tax
- Retirees with pensions/investments pay nothing
Comparison for someone earning $100,000/year:
| Country | Approximate Tax | Net Income |
|---|---|---|
| Australia | ~$25,000 | $75,000 |
| USA | ~$22,000 | $78,000 |
| UK | ~$27,000 | $73,000 |
| Vanuatu | $0 | $100,000 |
What's Expensive
- Imported goods: Electronics, packaged foods, alcohol (everything shipped from Australia/NZ)
- Reliable internet: $150-230/month for broadband
- Healthcare: Limited locally; medical evacuation insurance costs $3,000-5,000/year
- Western-style housing: Modern apartments with AC cost premium
- Vehicles: High import duties
What's Affordable
- Local food: Fresh fish, tropical fruits, vegetables from markets
- Dining at local restaurants: $10-15 per meal
- Domestic help: House cleaners, gardeners very affordable
- Local transport: Buses around Port Vila
- Rent compared to Australia/Sydney: 60% cheaper
Tips for Managing Costs
- Shop at local markets - fresh produce is cheap and excellent
- Buy local, not imported - avoid Western supermarket items
- Consider outer islands - Luganville is 20-30% cheaper than Port Vila
- Medical evacuation insurance is non-negotiable - budget $3,000-5,000/year
- Generator or solar backup - power outages happen
Pro Tips
- •Zero income tax is the biggest savings - keep 100% of remote income
- •Local markets offer fresh food at fraction of supermarket prices
- •Medical evacuation insurance is essential - budget $3,000-5,000/year
- •Outer islands like Luganville are 20-30% cheaper than Port Vila
- •Internet is expensive ($150-230/month) - factor this into budget
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