Vanuatu

Research notes

Vanuatu — family-office tax dossier

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

Summary

Vanuatu levies no income tax on individuals or companies, no capital gains tax, no withholding tax and no estate or death duties (Vanuatu Investment Promotion Authority). Revenue comes from 15% VAT, import duties, a 15% tax on rental income above VT 200,000 per six months and stamp duty of up to 1% on some property and share transfers. Vanuatu sells citizenship (from about USD 130,000, reported), but the EU suspended visa-free travel for Vanuatu passports over that programme.

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

No income tax, so no tax residence test. Note that holding Vanuatu citizenship or residence does not by itself end tax residence elsewhere.

• Citizenship by investment (Development Support Program and related options) (EU, US, OTHER): Reported government contribution about USD 130,000 for a single applicant plus about USD 25,000 for a spouse and further amounts per child, plus due diligence fees; no residence requirement (consultant guide, not verified against the Vanuatu Citizenship Commission). The EU partially suspended visa-free travel for Vanuatu passports issued since 25 May 2015 (Council decision March 2022), later reported as a full suspension; current status not verified. Citizenship alone gives no tax residence anywhere.
• Residence permit (EU, US, OTHER): Not researched.

Capital gains

Standard regime

No capital gains tax.

• Important exceptions, statute references and announced changes: Stamp duty of up to 1% (minimum VT 2,500) on some property transactions and share transfers. Corporate tax 'zero except on some real estate transactions' (VIPA).
• 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: VIPA: 'No capital gains tax' and 'No income or company tax: for residents'. All classes 0 (stamp duty is a transaction cost, not modelled).
• Trader recharacterisation: No income tax, so no recharacterisation risk.

Dividends

Standard regime

No income tax on dividends, domestic or foreign, and no dividend withholding tax.

• Tax year / confidence / verification: 2026 / medium / partially_verified (checked 2026-10-15)
• JSON numbers: headline 0% (0.0); domestic 0% (0.0); foreign gross 0% (0.0); foreign tax relief: not_applicable.
• How derived: No income tax for individuals (VIPA). Source-country withholding on US/EU dividends is a final cost (no treaties).
• Outbound withholding: None ('No withholding taxes', VIPA).
• Treaty network: No comprehensive tax treaties (general knowledge; not verified). US dividends bear 30% US WHT.

Inheritance and gifts to children

Standard regime

No estate or death duties (VIPA).

• 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 reported; stamp duty may apply to transfers of property or shares.

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 (land is held on long leases; rental income tax 15% above VT 200,000 per six months).

Special regimes

Citizenship by investment is described under Residence; it is not a tax regime (there is no income tax to escape).

Company taxation (kept separate from personal tax)

Headline rate in JSON: 0% (0.0). No company income tax, 'except on some real estate transactions' (VIPA). VAT 15%. Offshore/international company regime exists (not researched).

Cost of living notes

Not sourced.

Open questions

• Official Vanuatu Citizenship Commission pages could not be reached; programme amounts are from a consultant guide.
• Current EU visa-waiver status for Vanuatu passports and current EU non-cooperative-list status not verified.
• [standard/capital_gains] Primary legislation not checked (Vanuatu has no income tax act). The VIPA tax page is partly stale (it still gives VAT as 12.5%; the other VIPA page gives 15%).
• [standard/dividends] Vanuatu has been on the EU list of non-cooperative jurisdictions for tax purposes (reported in a search summary, not verified); this can trigger defensive measures in EU source states.
• [standard/inheritance] Whether stamp duty applies to transfers of land leases or shares on death or by gift not verified.

Sources

• Vanuatu's friendly tax regime: https://investvanuatu.vu/tax/
• No income and corporate tax (low-tax jurisdiction): https://investvanuatu.vu/untapped-potential/low-tax-jurisdiction/
• EU Council approves partial suspension of visa waiver agreement with Vanuatu (March 2022): https://investmentmigration.org/news/europe-eu-council-approves-partial-suspension-of-visa-waiver-agreement-with-vanuatu/
• Vanuatu citizenship by investment: complete guide 2026: https://globallawexperts.com/vanuatu-citizenship-by-investment-complete-guide-2026/

Change log

• 2026-10-15: initial research.