Starting a business in
🇻🇺Vanuatu
Checked November 4, 2026 · How we score
Corporate tax
0%
Top income tax
0%
Setup from
$1,500
all-in, first year
Time to form
7 days
can be done remotely
Taxes in Vanuatu
| Corporate income tax | 0% No corporate income tax, no capital gains tax, no dividend, interest or royalty withholding tax and no inheritance tax. Revenue comes from VAT, import duties and licence fees. Vanuatu has been subject to economic substance rules for relevant activities since 2019. |
|---|---|
| Personal income tax (top) | 0% No personal income tax, no capital gains tax and no wealth or inheritance tax. Employers pay Vanuatu National Provident Fund contributions (about 8% employer and 4% employee) for local employees. |
| Tax system | No personal income tax |
| Capital gains tax | 0%No capital gains tax. |
| Dividend withholding (non-residents) | 0% |
| VAT / GST | 15% |
| Social security | VAT was 12.5% historically; recent budgets reportedly raised it to 15%, so verify the current rate with the Vanuatu Customs and Inland Revenue department. Import duties and a business licence fee apply. |
| EU tax blacklist | Listed as non-cooperative |
Forming a company in Vanuatu
| Usual entity | International Company (IC) or local Ltd |
|---|---|
| Minimum capital | None |
| Setup cost (all-in) | $1,500–$3,500 |
| Annual running cost | $1,000–$2,500 |
| Time to incorporate | 7 days |
| Form remotely as a foreigner | Yes |
| Local director required | No |
| Local address required | Yes |
| Owners on public register | No |
| Statutory audit for small companies | No |
| Business banking for non-residents | Very hard |
Residency and visas
Vanuatu's Development Support Programme gives citizenship for a contribution of about $130,000 for a single applicant (higher for families; sources quote roughly $150,000 with a spouse), with no residency requirement. The EU suspended Schengen visa-free travel for Vanuatu passports issued after 25 May 2015, so the passport is less useful for Europe. There is no digital nomad visa.
| Digital nomad visa | No |
|---|---|
| Golden visa | No |
| Citizenship by investment | From $130k |
| Ease of residency for founders | 4/5 (1 = easiest) |
Special tax regimes
Development Support Programme (citizenship by investment)
Fast citizenship route requiring a non-refundable contribution of about $130,000 for a single applicant, with processing in about 1-3 months and no need to visit.
International Company (IC)
Offshore company with no tax on foreign income, no public ownership register and no local director required, subject to economic substance and AML rules.
EU visa waiver suspension
The EU has suspended visa-free access to the Schengen area for Vanuatu citizens who obtained passports since 2015, partly because of concerns about the citizenship programme.
Pros and cons
Why founders pick Vanuatu
- No income, corporate, capital gains or inheritance tax
- Fast citizenship by investment with no residence requirement
- Remote incorporation and no public ownership register
- Low government fees
Watch out for
- On the EU list of non-cooperative jurisdictions (blacklist)
- Schengen visa waiver suspended for Vanuatu passports issued since 2015
- Banks and payment processors usually refuse Vanuatu entities
- Reputational and compliance risk and sanctions on the citizenship programme
Best for: Asset-protection and holding structures with low reporting risk tolerance · Individuals seeking a second passport who understand the Schengen limitation · Traders who can bank elsewhere
Vanuatu: common questions
Does Vanuatu have income tax?
No. Vanuatu has no personal income tax, corporate income tax, capital gains tax, withholding tax or inheritance tax. The government raises revenue mainly from VAT and import duties.
How much does Vanuatu citizenship cost?
Vanuatu's Development Support Programme currently requires a contribution of about $130,000 for a single applicant, with higher amounts for families (roughly $150,000 with a spouse). Check the Vanuatu Citizenship Office for current fees and due diligence costs.
Is Vanuatu on the EU tax blacklist?
Yes. Vanuatu is listed among the 11 jurisdictions on Annex I of the EU list of non-cooperative jurisdictions as of the October 2025 update. The list is reviewed twice a year, so check the Council of the EU website for the latest.
Is the Vanuatu passport visa-free for Europe?
No. The EU suspended its visa waiver for Vanuatu citizens holding ordinary passports issued since 25 May 2015, so most holders of the investor passport need a Schengen visa. Other visa-free destinations remain.
Can I open a bank account for a Vanuatu company?
It is very difficult. Mainstream banks and payment processors generally avoid Vanuatu companies because of its blacklist status and offshore profile, so owners typically need accounts elsewhere or specialised fintech providers.
Sources
- Vanuatu Customs and Inland Revenue
- Vanuatu Financial Services Commission
- Council of the EU - EU list of non-cooperative jurisdictions
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Not tax or legal advice. Rates and rules change; we check official sources and update every page, but verify with a licensed adviser in the country before acting. Spotted something out of date? Use the correction form below.