Vanuatu Tax Rates
Vanuatu is one of the few countries in the world with no income tax, no corporate tax, no capital gains tax, and no wealth tax. The government generates revenue primarily through a Value Added Tax (VAT) at 15%, import duties, and various fees and charges. This tax-free status for income and corporate profits has positioned Vanuatu as an attractive destination for international business and offshore financial services. The Department of Customs and Inland Revenue administers the country's tax system.
Top Income Tax Rate
0%
Corporate Tax Rate
0%
VAT / Sales Tax
15%
Capital Gains Tax
0%
Detailed Tax Information
Income Tax Brackets
Vanuatu does not impose any personal income tax. There is no tax on salaries, wages, business income, or investment income for individuals. This applies to both residents and non-residents. Vanuatu is one of the few sovereign nations in the world with a zero income tax policy.
| Income Range | Tax Rate |
|---|---|
| VT 0+ | 0% |
Corporate Tax
Vanuatu does not impose corporate income tax. Companies registered in Vanuatu are not subject to tax on their profits, regardless of whether the income is sourced domestically or internationally. This zero-tax corporate environment has made Vanuatu a popular jurisdiction for international business companies (IBCs) and offshore structures. Companies are subject to annual registration fees and must comply with regulatory requirements.
Standard Rate
0%
Capital Gains Tax
Vanuatu does not impose any capital gains tax. Gains from the disposal of property, shares, or other capital assets are not subject to tax.
Rate
0%
VAT / Sales Tax
Vanuatu's Value Added Tax (VAT) is the principal source of government tax revenue, levied at a standard rate of 15% on most goods and services. Exports are zero-rated. Financial services and residential rental accommodation are exempt. The VAT system was introduced in 1998 and is modeled on the New Zealand GST framework. All businesses with annual turnover exceeding VUV 4 million must register for VAT.
Standard Rate
15%
Cryptocurrency Tax
Since Vanuatu has no income tax or capital gains tax, cryptocurrency transactions are not subject to tax. However, the Reserve Bank of Vanuatu has not established a formal regulatory framework for digital currencies. Goods and services purchased with cryptocurrency may still be subject to VAT.
Tax Treaties
Vanuatu does not have any double taxation agreements in force. Given the absence of income and corporate taxes, there is limited need for DTAs. However, Vanuatu has signed the OECD Multilateral Convention on Mutual Administrative Assistance in Tax Matters and participates in the Automatic Exchange of Information (AEOI) framework to comply with international transparency standards.
Treaty Network
0
Double taxation agreements
Key Details
Relocate to Vanuatu
See how much you could save by moving here from your current country.
+$20K
Tax in United States
$24K
24.4% effective
Tax in Vanuatu
$4K
4% effective
You Save
83.6%
less tax annually
US Citizens: Important Note
US citizens are taxed on worldwide income regardless of residence. You'll still need to file US taxes, though the Foreign Earned Income Exclusion and Foreign Tax Credit may reduce your liability.
