This article covers the highlights of the Vanuatu taxation system. As one of the worlds last true tax havens, Vanuatu is rightfully considered to be the most attractive place in the world to do legitimate wealth preservation business.
It is a little known fact that when the Vanuatu passport is measured using business metrics, it ranks 7th in the world (Source: Global Passport Rank)
Vanuatu Taxation of individuals & legal entities
The friendly nature of the Vanuatu taxation system makes it the ‘go to’ destination for tax planning. The general taxation conditions as a whole are the same for residents and non-residents.
There are no taxes imposed on; income, wealth, inheritance, capital gains, or International Business Companies (IBCs) set up in the correct structure and manner. IBC’s are exempted from paying any taxes during their first twenty years of business.
International companies registered in Vanuatu pay only a nominal annual fee of approximately $300, payable by June 30th each year. There is a 0% (zero %) corporate tax rate.
Real Estate Transactions
Stamp duty and registration fees (5% and 2% of the volume of the transaction, respectively) must be paid in the case of real estate transactions.
Benefits Of The Vanuatu Taxation System
Money – Money can be held and stored in any currency the banks allow ($USD, Euro, GBP etc).
Accounting – The government does not require audited accounts. There is no official reporting structure required to be in place.
Privacy – There is no public access to the financials of any IBC company set up under the laws of Vanuatu. Information is 100% confidential, with the exception where there is strong evidence that a company is involved in illegal money laundering, fraud or terrorism activities.
Friendly Haven – Given that over 15% of Vanuatu’s GDP derives from IBC related activities the government of Vanuatu is interested in creating friendly legal and business environment specifically designed to meet the needs of such companies.
Benefits of Vanuatu citizenship
Notwithstanding the favorable tax planning side of Vanuatu, the passport itself offers a number of other benefits to its holder:
Visa – Free Travel – Citizens of Vanuatu can freely enter 140+ countries & territories worldwide, including; Schengen region of EU, UK, Switzerland, Hong Kong, Russia, Switzerland and many, many more
No residency requirements – There are no requirement to visit the jurisdiction of Vanuatu to maintain citizenship status. In fact, you never have to visit Vanuatu at all. The passport is applied for remotely.
Political & Social – The country is a member of the Commonwealth of Nations and remains stable. It is receiving a tremendous amount of inward investment from the worlds largest nations.
Want To Benefit From Vanuatu’s Taxation System?
Application Costs – A single applicant can obtain a Vanuatu passport & citizenship provided they donate USD$130,000 to the countries Development Support Fund. This fund invests into the countries infrastructure, including; Schools, hospitals/clinics and roads etc
Family Applications – All family members can apply under one application. In this instance there will be additional costs for processing, roughly speaking, an extra USD$20,000/individual. For an accurate quote, please contact us.
Speed of Processing – A Vanuatu passport can be attained within a period of 35-45 days from the day of application
Read our article on ‘Getting A Vanuatu Passport‘