Tuvalu

Research notes

Tuvalu — family-office tax dossier

Last reviewed: 2026-10-15 Tax year: 2026 Reviewer: research agent (Claude), unreviewed by a tax adviser

Summary

Tuvalu's Income Tax Act (Cap. 26.16, 2022 revision) taxes individuals at 0/15/30% (30% above AUD 14,000). Proceeds of capital assets (assets not acquired mainly for resale) are not gross income, so a long-term investor's gains are untaxed. Dividends from Tuvalu companies are exempt. Section 7 as revised taxes residents only on Tuvalu-source income, which would leave foreign dividends untaxed, but other provisions assume foreign dividends are taxed: the foreign rate is left unknown. No inheritance, gift or wealth tax was found.

US citizens: US citizens remain subject to US federal income, estate and gift tax on worldwide income and assets wherever they live; the app adds the federal layer. Where local tax on portfolio income is nil there is nothing to credit against US tax.

Residence and eligibility

Income Tax Act s. 2: an individual is resident if the permanent place of abode is in Tuvalu or if personally present in Tuvalu for more than 183 days (in the year, as summarised; full text of the day-count rule not re-read).

• Residence permit (EU, US, OTHER): Not researched.

Capital gains

Standard regime

No capital gains tax. Gross income includes proceeds of disposal of revenue assets and business profits or gains (s. 9), but a 'capital asset' is one not acquired with the principal purpose of disposal, and its proceeds are not gross income (except depreciation recapture on business assets, Schedule 2 para 5).

• Tax year / confidence / verification: 2026 / medium / partially_verified (checked 2026-10-15)
• JSON numbers: headline 0% (0.0); listed domestic 0% (0.0); listed foreign 0% (0.0); private business sale 0% (0.0); local real estate 0% (0.0); foreign real estate 0% (0.0).
• How derived: Income Tax Act Cap. 26.16 s. 2 ('capital asset', 'revenue asset') and s. 9: only revenue-asset proceeds and business gains are gross income. A long-term portfolio is capital assets = 0.
• Trader recharacterisation: Assets acquired with the principal purpose of disposal are revenue assets: their proceeds are gross income taxed at up to 30%. Frequent trading risks this treatment.
• Foreign assets: See dividends on the source rule in s. 7.

Dividends

Standard regime

Dividends from resident companies are exempt for residents (Schedule 1 Part 3 para 1). For foreign dividends the Act is internally inconsistent: s. 7(1) as revised says a resident includes gross income 'only if it is derived from a source within' Tuvalu, and s. 8(2) says dividends of non-resident companies never have a Tuvalu source, which would exempt them; but s. 27(4) and Schedule 1 Part 3 paras 3-4 exempt foreign dividends only to the extent overseas tax covers the Tuvalu rate, which presupposes they are taxable at up to 30%.

• Exemptions and thresholds: Schedule 6: individuals 0% to AUD 10,000; 15% to 14,000; 30% above 14,000.
• Tax year / confidence / verification: 2026 / low / partially_verified (checked 2026-10-15)
• JSON numbers: headline 30% (0.3); domestic 0% (0.0); foreign gross null (unknown); foreign tax relief: credit.
• How derived: Domestic: Schedule 1 Part 3 para 1 = 0. Foreign: null because s. 7(1) (territorial) conflicts with s. 27(4)/Schedule 1 Part 3 paras 3-4 (taxable with a credit-type exemption at the 30% rate). Headline 0.30 = top individual rate that would apply if taxable.
• Outbound withholding: 15% non-resident withholding on dividends (Schedule 5), reducible by treaty.
• Treaty network: No comprehensive treaties found (not verified).

Inheritance and gifts to children

Standard regime

No inheritance, estate or gift tax: the official index of Tuvalu legislation lists no estate, succession or gift duty act (only a Wills Act and Native Estates regulations). Estate distributions already taxed in the hands of the executor are exempt for beneficiaries (Schedule 1 Part 1 para 10).

• Tax year / confidence / verification: 2026 / medium / partially_verified (checked 2026-10-15)
• JSON numbers: basis none; children fully_exempt; exemption 0; brackets []; other transfer costs 0.0.
• Gift tax: No gift tax found.

Wealth tax

Standard regime

No net wealth tax and no recurring levy on financial assets.

• Tax year / confidence / verification: 2026 / medium / partially_verified (checked 2026-10-15)
• JSON: type none.
• Property tax (not a wealth tax): Not researched.

Special regimes

None found for wealthy new residents.

Company taxation (kept separate from personal tax)

Headline rate in JSON: 30% (0.3). Resident companies 30% (Schedule 6 (i)); Schedule 6 (j) also lists a 40% rate for a category of company (text garbled in extraction; likely non-resident). National Bank and approved funds have own rates.

Cost of living notes

Not sourced.

Open questions

• Foreign dividend treatment unresolved (null).
• [standard/dividends] Resolve whether residents' foreign dividends are taxable: check the amending act that produced the current s. 7 wording, or ask the Tuvalu Revenue office.
• [standard/inheritance] Land in Tuvalu is largely customary; foreign ownership rules not researched.

Sources

• Income Tax Act Cap. 26.16 (2022 Revised Edition): https://tuvalu-legislation.tv/cms/images/LEGISLATION/PRINCIPAL/1992/1992-0005/1992-0005_2.pdf
• Index of all legislation (no estate or gift duty act listed): https://tuvalu-legislation.tv/cms/component/legislation/?view=index_all&Itemid=683

Change log

• 2026-10-15: initial research.