16.00° S · 167.60° E
Vanuatu Tax Guide
OceaniaLast verified June 2026Exempt system
- Top income tax
- 0%
- Capital gains
- 0%
- Corporate
- 0%
- VAT / GST
- 15%
- Residency test
- 183 days
No personal income tax
In short
- Vanuatu offers zero income tax and a relaxed South Pacific island life, and is mainly used as a citizenship or paper-residency option.
- No newcomer tax regime: the standard rates above apply to new residents.
- Watch out: Healthcare is very limited (serious cases are evacuated to Australia or New Zealand), cyclones and earthquakes are frequent, and isolation is extreme.
Verified June 2026 · 3 sources
Recent changes
No changes logged since the last full verification.
Full change logBest for
- Zero personal tax
0% on personal income — among the simplest tax outcomes globally.
- Zero capital gains
No CGT on investment, property, or crypto disposals (subject to "investor" classification).
- Foreign income exempt
Exempt system — overseas income generally outside the local tax net.
- Corporate-friendly
0% corporate tax — competitive for founders and holding structures.
- No wealth tax
No annual tax on net worth or assets.
Personal Income Tax
Residency, rates, foreign income, capital gains, wealth and inheritance, special regimes+
Personal Income Tax
Residency, rates, foreign income, capital gains, wealth and inheritance, special regimesTax Residency
Income Tax Rates
Foreign Income Treatment
Investment Income
No capital gains tax
Wealth & Inheritance
Practical Notes
Citizenship by investment program available. 15% VAT. Remote island location.
Business & Corporate Tax
Corporate rate, withholding, VAT, substance, Pillar Two and treaties+
Business & Corporate Tax
Corporate rate, withholding, VAT, substance, Pillar Two and treatiesCorporate Income Tax
Withholding Taxes
VAT / GST
Compliance & Substance
Notable Regimes
- Zero tax regime
- Citizenship by investment
OECD Pillar Two (15% global minimum tax)
No Pillar Two legislation enacted.
See full implementation trackerTax Treaty Network
No bilateral income-tax treaties. Vanuatu CBI program and 0% income tax mean limited demand for treaty network.
See full treaty matrixBeyond tax
Living in Vanuatu
Vanuatu offers zero income tax and a relaxed South Pacific island life, and is mainly used as a citizenship or paper-residency option.
- Expat hub
- Port Vila
- Monthly budget
- ~$2,800
- Climate
- Tropical, 24°C
- Time zone
- UTC+11
- Tax100
- Cost of living$$$
- Safety62
- Healthcare35
- English80
- Internet30 Mbps
- Warm climate95
- Residency access55
- Scores 0-100, higher is better. Editorial composite ratings; see method.
Ways to get residency
- Residency by investmentApproved business or property investment, administered through the Vanuatu Investment Promotion Authority
- Citizenship by investmentGovernment contribution (roughly US$130,000+ for a single applicant); residence not required
Watch out: Healthcare is very limited (serious cases are evacuated to Australia or New Zealand), cyclones and earthquakes are frequent, and isolation is extreme.
See how Vanuatu ranks for remote workers, retirees and familiesData Sources
Last verified: June 2026. Always check official sources before making a decision.
FAQ
What is the personal income tax rate in Vanuatu?
+
Vanuatu has a top personal income tax rate of 0%. The tax structure is: No personal income tax. See the detailed breakdown above and verify with official sources.
Do I need to pay tax on foreign income in Vanuatu?
+
Vanuatu uses a exempt system for foreign income. No personal income tax
What are the residency requirements for Vanuatu?
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Tax residency in Vanuatu generally requires 183 days of physical presence. 183 days required for tax residency; residency programs available. Always verify current rules with official sources.
Is there a wealth tax in Vanuatu?
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No, Vanuatu does not have a wealth tax. No wealth tax
What is the corporate tax rate in Vanuatu?
+
The corporate tax rate in Vanuatu is 0%. No corporate income tax
US citizen moving to Vanuatu? Read this first.
Vanuatu has 0% personal income tax, so the US-citizen math is dominated by FEIE plus self-employment tax.
- •FEIE (Form 2555) shields ~$130k of earned income in 2026. Income above that has no Foreign Tax Credit to offset US tax (no foreign tax was paid), so it's taxed at regular US rates.
- •Self-employment tax (15.3%) is owed in full — Vanuatu has no totalization agreement with the US, so there is no SE-tax exemption.
- •Investment income (dividends, capital gains, interest) is taxed at standard US rates. No FTC because no Vanuatu tax was paid.
- •Vanuatu residency requires 183 days. State residency severance from a sticky state (CA, NY, VA, NM, SC) before international move is the highest-stakes practical step.
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