What are the income tax rates in Vanuatu?

In Vanuatu, the personal income tax ranges from 0%. Corporations pay a 0% corporate tax rate. Capital gains are taxed at 0%. VAT is 12.5%.

Is Vanuatu crypto-friendly?

Vanuatu is considered a very crypto-friendly destination (crypto score 5/5). As a territorial tax country, crypto gains from foreign sources are generally tax-free. Many digital asset investors choose Vanuatu for its favorable tax environment.

How can you get residency in Vanuatu?

Vanuatu offers the following residency options: residency by investment (from USD 130,000).

What is the cost of living in Vanuatu?

The cost of living in Vanuatu is moderate (index 62) (reference: 100 = New York City). Safety index is 6.5/10. Average internet speed is 15 Mbps. Compared to Western Europe or the US, Vanuatu offers excellent value for expats.

Is Vanuatu a good destination for digital nomads?

Vanuatu does not have a specific digital nomad visa, though foreigners can explore residency options or tourist stays. Its territorial tax system is especially attractive for those working with foreign clients. Average internet speed is 15 Mbps — suitable for remote work.

What is healthcare like in Vanuatu?

Healthcare quality in Vanuatu is acceptable but limited (score 4.2/10). International private health insurance is recommended.

Is Vanuatu a good place for remote work?

Vanuatu presents some challenges for remote work. Advantages include: favorable tax system for remote income. Internet speed (15 Mbps) may be a limiting factor.

Vanuatu — Tax Guide, Residency & Cost of Living for Expats

Oceania · MelanesiaUpdated 2026

Tax Score

88/100Territorial

Tax Data

Income Tax0%

Corporate Tax0%

Capital Gains0%

VAT/GST12.5%

Wealth TaxNo

Inheritance TaxNo

Residency & Visas

Golden VisaUSD 130,000

Digital Nomad VisaNo

Min. Residency CostUSD 130,000

Cost of Living & Quality of Life

Cost of Living Index62

Safety6.5/10

Internet15 Mbps

Healthcare4.2/10

Tax Overview

Vanuatu combines a territorial system with low rates, creating a highly favorable tax environment where foreign income is exempt and local rates are minimal.

Personal Income Tax

Vanuatu applies a flat 0% personal income tax rate. This is considerably lower than most developed nations.

Corporate & Capital Gains

The corporate tax rate is 0%, highly competitive globally. There is no capital gains tax — ideal for investors.

Indirect Taxes & Wealth

VAT/GST is 12.5%, moderate by international standards. There is no wealth tax. There is no inheritance tax.

Crypto & Digital Assets

Vanuatu is one of the most favorable destinations for digital assets (score 5/5). Cryptocurrencies benefit from very advantageous tax treatment, and gains from foreign sources are generally exempt.

Compare with other countries

Residency Guide

Relocating to Vanuatu is relatively straightforward. The country offers several residency pathways for foreigners.

Visa Options

Golden Visa: Available with a minimum investment of USD 130,000.

Investment Requirements

The golden visa requires a minimum investment of USD 130,000. Residency by investment requires a minimum of USD 130,000.

Practical Considerations

As a non-LATAM destination, applicants should consider potential language barriers and cultural differences. Working with a local immigration attorney and verifying apostille/legalization requirements for documents is recommended.

Also consider: Cayman Islands, United Arab Emirates, Qatar

Lifestyle

Vanuatu has a high cost of living, comparable to major world capitals.

Cost of Living

With an index of 62, Vanuatu has moderate to high costs. It is more affordable than New York City (100) but is not a low-cost destination.

Safety & Infrastructure

A safety score of 6.5/10 indicates a generally safe environment, with normal precautions recommended. Internet speed of 15 Mbps — may be limiting for video calls and intensive remote work.

Healthcare

With a score of 4.2/10, the healthcare system has limitations. International private health insurance is highly recommended for expats.

Quality of Life

Vanuatu has a Human Development Index of 0.614 (classification: medium). It is important to consider differences in service quality depending on location.

Data: 2026 · Source: tax_foundation,pwc,manual

Pros & Cons

Pros

Territorial tax system — foreign income exempt
Very low top income tax rate (0%)
No capital gains tax
No wealth tax
No inheritance tax
Residency by investment (from USD 130,000)
Affordable cost of living (index 62)
Crypto-friendly environment (5/5)

Cons

Private health insurance recommended (4.2/10)
Slow internet (15 Mbps)

Frequently Asked Questions

Vanuatu operates under a territorial tax system: only taxes income generated within the country — foreign-sourced income is generally exempt. The top personal income tax rate is 0%.