Pacific · Oceania

Vanuatu

43limited

Overall Score

Vanuatu is a Pacific jurisdiction. with a standard worldwide income tax regime applicable to tax residents. Corporate profits are taxed at 0%.

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Corporate Tax

Personal Income Tax

Capital Gains

VAT / GST

15%

Overview

Key Data

Taxation

Personal Income Tax (max)0%

Personal Income Tax (min)0%

Corporate Tax Rate0%

Capital Gains Tax0%

VAT / GST15%

Dividend Tax Rate0%

Withholding Tax0%

Territorial TaxationNo

Foreign Income Exempt—

Remittance-Based Tax—

CFC RulesNo

Tax Residency Days183 days/year

Tax Treaties—

Residency & Visa

Digital Nomad VisaNo

Golden VisaNo

Retirement VisaNo

Investment VisaYes

EU MemberNo

Schengen AreaNo

EU PassportNo

Min. Days Required / Year—

Min. Monthly Income—

Min. Investment (residency)—

Citizenship Path—

Setup Difficulty—

Business & Cost of Living

Cost of Living Index58/100

Avg. Monthly Cost—

Company Formation Time—

Formation Cost (est.)—

Annual Compliance Cost—

Free Zone AvailableNo

Banking Easedifficult

Internet Qualitylimited

Compliance & Reputation

FATF Statusgrey_list

EU Blacklist Statusblack_list

OECD Compliance—

CRS Participant—

FATCA Compliant—

BEPS Participant—

Treaty Network Quality—

Personal Tax Residency

Tax residency in Vanuatu is generally triggered by physical presence exceeding 183 days in a calendar year. Foreign income treatment: exempt. No statutory CFC rules apply, which can facilitate the use of foreign holding structures without automatic income attribution.

No income, corporate, or capital gains taxes. Citizenship by Investment (CBI) from USD 130,000 — one of cheapest globally. EU blacklisted due to CBI program concerns. Banking very difficult. FATF grey list.

Company Setup & Business Taxation

The standard corporate income tax rate is 0%. Establishing a legal presence here involves a higher degree of administrative complexity, often requiring local legal assistance.

Banking & Financial Access

Account opening in Vanuatu can be challenging for foreign nationals or non-resident businesses, and enhanced due diligence is common practice. Internet infrastructure is developing. Speed and reliability can vary by location and should be assessed for business-critical operations.

Compliance & International Reputation

Vanuatu is currently on the FATF grey list, indicating enhanced monitoring by the international AML/CFT body. This may affect banking relationships and counterparty due diligence requirements. EU tax blacklist status: black_list. Structures involving this jurisdiction may attract additional scrutiny or reporting obligations under EU member state rules.

Who This Jurisdiction Works Best For

Based on our scoring model, Vanuatu ranks highest for Freelancer and Digital Nomad. It offers a reasonable proposition for freelancer (score: 45/100). It offers a reasonable proposition for digital nomad (score: 42/100). It scores lower for freelancer and digital nomad and high net worth individual and founder / entrepreneur, who may find other jurisdictions more suitable for their specific requirements.

Legal Notice

The information on this page is for general informational purposes only and does not constitute legal, tax, or financial advice. Tax laws and residency rules change frequently and vary significantly by individual circumstances. Always consult a qualified professional licensed in the relevant jurisdictions before making any decisions.