Vanuatu Travel & Relocation Guide

Volcanoes, Blue Holes & the Happiest Country on Earth

Key facts

Frequently asked questions

Does Vanuatu really have no income tax?

Yes. Vanuatu imposes no personal or corporate income tax, no capital gains tax, and no inheritance or wealth tax. Government revenue comes mainly from VAT, import duties, and fees.

What is the VAT rate?

The standard VAT rate is 15%, applied to most goods and services. Businesses above the turnover threshold must register with the Department of Customs and Inland Revenue.

Do I need to file a personal tax return?

No. Because there is no personal income tax, there is no personal income-tax return in Vanuatu. Businesses, however, must file VAT returns and meet licence and VNPF obligations.

Will getting Vanuatu citizenship make me tax-free everywhere?

No. Your tax exposure depends on where you are tax-resident and your citizenship. US citizens in particular are taxed on worldwide income regardless of where they live. Seek cross-border advice.

Is there a payroll tax?

There is no income-based payroll tax, but employers and employees must contribute to the Vanuatu National Provident Fund (VNPF), a mandatory retirement-savings scheme totalling around 8% of wages.

Is healthcare free in Vanuatu?

Public facilities charge modest fees and are heavily subsidised, but the system is basic and there is no universal free scheme for foreign residents. Private insurance is strongly advised.

Where do people go for serious medical problems?

Complex or serious cases are usually evacuated to Australia, New Zealand, or New Caledonia. This is why medical-evacuation insurance is considered essential for relocating expats.

Are there malaria or dengue risks?

Yes. Both malaria and dengue occur in Vanuatu, particularly on the outer islands. Use mosquito protection and seek medical advice about anti-malarial precautions before travelling to rural areas.

Can I get my regular prescriptions filled locally?

Pharmacies in Port Vila carry common medicines, but specialist or brand-specific drugs may not be available. Bring a supply and a doctor's letter, and plan how to renew prescriptions.

Is Vanuatu expensive to live in?

Imported goods, fuel, and utilities are expensive because almost everything arrives by sea, but local produce and fish are cheap. The absence of income tax offsets living costs for many residents.

What language should I learn?

Bislama is the everyday lingua franca and a few phrases go a long way. English and French are also official and widely used in business and schools.

Do I need cash or will cards work?

Cards and ATMs work in Port Vila and Luganville, but on the outer islands cash in Vatu is essential. Always carry cash when leaving the main towns.

How serious is the cyclone risk?

It is significant. Major cyclones have caused widespread damage. From November to April you should have a preparedness plan, a rated shelter, and emergency supplies.

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