Business & Tax Environment
Advantages of Investing In Vanuatu
Vanuatu continues to experience economic growth and offers some clear advantages to investors.
- No income taxes
- No capital gains tax
- No withholding tax
- No tax treaties
- Low labour costs
- A pro-FDI (foreign direct investment) government
- Excellent communications and banking facilities
- Pacific paradise just 2.5 hours from Australia
Interesting links
About Business in Vanuatu
Vanuatu’s financial centre has been in operation for over 30 years, much longer than many of its competitors. Its infrastructure of lawyers, accountants, trust companies and banks is well established and this enables it to offer investors a reliable and high quality service “on the spot”.
Vanuatu has first class international communication facilities, with its own earth satellite station and twenty four hour telephone, internet, and facsimile transmission facilities. The electricity supply is reliable and uses state-of-the-art technology.
The country has a unique multi-cultural environment. This is inherited from Condominium times before its independence in 1980 when it was governed both by the French and the British. There are three official languages, English, French and Bislama.
There are vast expanses of undeveloped land. Almost half of the land in Vanuatu has excellent agricultural potential, and yet only a small percentage of this is actually utilised.
There is a ready supply of unskilled labour in Vanuatu and a growing supply of skilled labour. The cost of labour is still relatively cheap.
There is no doubt that Vanuatu has a number of potential advantages as an investment location. The democratically elected government is strongly committed to the promotion of new investment and will assist significant investment or investments in new industrial or agricultural pursuits as far as possible.
Banks
There are 4 major banks in Port Vila that provide a wide range of quality banking products and services to businesses and individuals throughout Vanuatu.
They are ANZ, Westpac, BRED and NBV.
All the banks offer Loans to purchase property both residential and commercial. The Interest rates and amount of equity required may vary from each bank and depending on the specific circumstances of the investor. Privacy of information is assured when banking in Vanuatu however investors can authorise the bank to access information from the Australian or New Zealand counterparts.
Company structures
Vanuatu’s business legislation is similar to that which prevails in Australia, New Zealand, USA and UK. Local business can operate through the following legal entities: Sole Trader, Partnership, Trust, Company.
VIPA Approval
To invest in Vanuatu requires firstly that VIPA (Vanuatu Investment Promotion Authority) approval be obtained. VIPA is equivalent to Australia's FIRB and authorises all new investment into Vanuatu. Once VIPA approval is granted, business license, residency permit and work permit approvals become largely automatic. The VIPA application process itself requires completion and lodgement of the prescribed application form.
Vanuatu is the “Untouched Paradise” and the “Happiest Place on Earth” as voted for by UK based think-tank (2006 study), the New Economics Foundation.
