Vanuatu (and more precisely Port Vila on Efate) is the premiere Pacific financial centre for the administration and management of offshore companies, trusts, banks, insurance companies and shipping registration.
There are no personal or corporate income taxes, no estate or gift duties, no exchange controls, and secure privacy provisions. Vanuatu has not signed any international tax treaties further ensuring confidentiality with regards to business.
Port Vila is blessed with resident Accounting and Legal firms providing a high degree of local service. There are a number of international banks such as Westpac and the ANZ operating in Vanuatu, ensuring the ability to transfer funds easily and securely as well as arranging loans and providing general banking services. Vanuatu’s most recognized Real Estate firm, First National, can ensure you are well advised of the services available.
Coastal property, including elevated locations with magnificent views over the islands, are still heavily undervalued in Vanuatu – especial when compared to relative situations in both Australia and New Zealand. The market in Vanuatu is only just starting to wake up to international interest with a number of “executive style” properties now being marketed and sold across the island. Rest assured there is some seriously good value to be had here for both now and the future.
The key things to remember when purchasing land in Vanuatu, is that unlike some other countries there is stamp duty or land tax (7%), chargeable on property purchases. Most properties on the Islands will be advertised in AUD or Vatu include the VAT but not the stamp duty.
There have been a number of recent sub-divisions created specifically with the international purchaser in mind – these include power and utilities to the site and typically common ground areas and roading. Of course views – and often beach/water access are mandatory! You will be pleased to know that site sizes are very generous and range from 1200 to 8000 square meters with 1500+ sites being commonplace. Local architectural and construction services are available ensuring you can build the property of your dreams for between $900 and $1500 AUD per square meter. Labour in Vanuatu is cost effective, the main costs in building being materials, fittings and chattels which attract import duties.
Of course other property options in Vanuatu include already established (and often furnished) house/land packages – with nothing for you to do other than light the BBQ and open a refreshing drink and stare at the ocean – through to resort/business opportunities that can provide a very healthy tax free income. Rental yields are very good for established properties due to the significant (and often changing) international community and the visiting family holiday makers. Luckily as labour rates remain low, issues of maintaining your house and grounds is of little concern – in fact this is one of the little secret delights in living in the islands!
Lastly, flights to Port Vila are frequent and cheap (11 flights a week arrive and depart from Australia and New Zealand), food is fresh and plentiful and the locals have big wide smiles. What are you waiting for?
