Taxes

Taxes in Vanuatu

Vanuatu is one of the world's few genuine tax havens for individuals. The tax system is remarkably simple: there essentially isn't one for personal income.

What Vanuatu Does NOT Tax

This is real: If you earn $200,000 remotely from Vanuatu, you pay $0 to Vanuatu. If you sell investments for a $1 million gain, you pay $0 to Vanuatu. If you inherit $5 million, you pay $0 to Vanuatu.

What Vanuatu DOES Tax

Value Added Tax (VAT): 12.5%

• Applied to goods and services
• Similar to sales tax
• Included in most prices

Import Duties: Varies by product

• Can be high on certain goods
• Vehicles, alcohol, luxury items taxed heavily
• Contributes to high costs of imported goods

Business Fees:

• Business license fees
• Registration costs
• Generally modest

Tax Residency

Vanuatu does not have complex tax residency rules because there's nothing to tax. However:

Your home country may still tax you:

• US citizens: Taxed on worldwide income regardless of residence
• Some other countries: Have departure taxes or ongoing obligations
• 183-day rules: Many countries consider you tax resident if present 183+ days

Before moving to Vanuatu:

1. Consult a tax professional in your home country
2. Understand exit tax implications
3. Formally establish tax residency change if required
4. Keep documentation of your move

For Different Situations

Remote Workers:

• Zero tax on employment income from Vanuatu
• Check home country obligations
• US citizens must still file US taxes (FEIE may apply)

Retirees:

• Pension income: Zero Vanuatu tax
• Investment income: Zero Vanuatu tax
• Home country may still tax depending on rules

Investors:

• No capital gains tax on any investments
• No dividend tax
• Ideal for portfolio management

Business Owners:

• No corporate tax on local or offshore companies
• No dividend withholding
• Popular for international businesses

Comparison with Other Countries

The Catch

Vanuatu's low tax comes with trade-offs:

• Limited public services (healthcare, infrastructure)
• No social safety net
• Must provide for yourself (health insurance, retirement)
• Lower standard of government services

CBI and Taxes

Citizenship by investment does NOT automatically make you a tax resident. You must:

• Actually reside in Vanuatu
• Establish genuine connection
• Document your tax home

Simply holding a Vanuatu passport while living elsewhere does not give you Vanuatu tax status.

Record Keeping

Even with zero taxes, keep records:

• Bank statements
• Income documentation
• Proof of residence
• May need for home country tax authorities
• Useful for visa renewals and banking

Professional Advice

Strongly recommended:

• Consult tax professional before relocating
• Understand home country exit rules
• Get formal tax residency certificate if needed
• Plan cryptocurrency and investment reporting

The tax benefits are real, but the move must be done properly to access them.