Vanuatu’s breathtaking natural beauty and serene environment, stable property market producing excellent return of income, attracts foreigners buying properties in Vanuatu. Vanuatu has no income, corporate, or capital gains taxes makes it even more desirable to invest in real estate. There are no restrictions for foreigners buying real estate.
Vanuatu property prices still remains the lowest in the world. Property prices have been steadily increasing over the years, especially due to increase in tourism, especially tourist arrivals combined with influx of chinese, australians and other expats.
Vanuatu launched citizenship by property program in 2021. You can invest for a limited share in a hotel or resort starting from $200,000 in Vanuatu. You can also buy a full deed title but costs could exceed $200K or more.
It is important to remember that lands in Vanuatu are not freehold. Properties can be leased for up to 50 years for residential lots and 75 years for commercial ones.
Residential property prices are around US$800 – US$970 per sq. m. (VUV 92,250 to VUV 111,850).
A 100 sq. m. property could be bought for VUV 11.2 million (US$97,000), according to Global property guide. To build your house, you should appraise around $850 – $1250 per sq.m
Property Taxes
- 2% Stamp Duty
- 5% Title Transfer Registration
- If the buyer is purchasing an existing company, the Stamp Duty is 4% on the Share Transfer Value, and because the shares in the lessee company are transferred, not the title itself, there is no 2% Stamp Duty fee.
- Legals costs are usually between 0.5% ‐ 1.% of the purchase price.
- VAT (currently 15%) is not payable by the purchaser on residential property. VAT is payable by a builder or property developers. VAT is payable by the purchaser on the sale of commercial property.
- Insurance will cost about 0.5% to 0.7% (cyclone, earthquake, volcano eruptions etc)
Property transfers take 2-3 months.
Port Vila, coastal and harbour locations are good areas to buy a residential property. Efate is Vanuatu’s main island, politically, economically, industrially and in terms of population and tourism.
These are best areas to invest in property
- Residential – Port Vila, Tassiriki, Elluk, the Harbourfront, First Lagoon, Second Lagoon, Bellevue, Malapoa and the oceanfront subdivisions near town such as Dream
- Commercial – Main street and central harbour
- Agricultural land – Efate and Santo islands
Before investing in Vanuatu real estate, conducting thorough due diligence must be done working with a reputable real estate agent or lawyer. Investors should consider factors such as infrastructure, natural disasters, and local regulations before making a decision.