Vanuatu Permanent Residency: The Only Guide You Need for 2024

Vanuatu has long been known as a paradise destination, celebrated for its stunning tropical landscapes and its welcoming environment. It has gained increasing attention for offering a highly favorable tax regime and attractive residency and citizenship by investment programs. Whether you're seeking a tax-free lifestyle, real estate investment, additional citizenship or passport, or a peaceful retreat, Vanuatu presents unique opportunities. 

In this guide, we'll explore everything you need to know about securing permanent residency in Vanuatu - from benefits and requirements to the application process and frequently asked questions.

5 Benefits of Vanuatu Permanent Residency

Vanuatu’s permanent residency program is a unique offering that combines speed, flexibility, and numerous long-term advantages. With financial perks, lifestyle benefits, and access to the stunning South Pacific, the program is perfect for those seeking a tax-free environment, global mobility, and a high-quality tropical lifestyle. Let’s dive into the top benefits of securing permanent residency in Vanuatu.

1. Tax-Free Living

Vanuatu is one of the world’s premier tax havens, offering a truly tax-free lifestyle. Residents enjoy no personal income, wealth, or inheritance taxes, allowing investors, retirees, and business owners to optimize their financial situations. This attractive fiscal environment makes Vanuatu an ideal choice for individuals who want to maximize their wealth without the burden of high taxation. Additionally, the absence of capital gains tax is a significant advantage for property investors.

2. Fast Processing

The residency process in Vanuatu is among the fastest in the world, with approvals possible in as little as 5 business days. This expedited pathway eliminates the lengthy waiting periods often associated with residency applications in other countries. It’s perfect for individuals who need a quick solution, whether for lifestyle reasons, tax planning, or international mobility.

3. Family Inclusion

Vanuatu's residency program extends beyond the individual, allowing applicants to include their spouses and dependent children under one permit. This makes the process of relocating or establishing a second residence much more convenient for families. The program offers a safe, tropical environment with quality education options and healthcare services, making it an appealing choice for families seeking a peaceful yet connected lifestyle.

4. Real Estate Opportunities

The country offers compelling real estate options, including long-term property leases of up to 75 years. These secure leases allow residents to invest in luxury resort-style properties or other prime real estate, benefiting from Vanuatu's growing appeal as a tropical living destination. With increasing demand for high-quality properties, investors can capitalize on rental opportunities or simply enjoy a dream residence in paradise.

5. Pathway to Citizenship

For those interested in obtaining a second passport, Vanuatu offers a pathway to citizenship through its Citizenship by Investment (CBI) program. Permanent residents can quickly transition to becoming full-fledged citizens, gaining access to a powerful second passport with global travel benefits. Vanuatu citizenship and passport provide the access to visa-free or visa-on-arrival travel to over 96 countries, including popular destinations like Hong Kong, Singapore, Russia, and the United Kingdom. This facilitates global mobility for business and leisure, making it convenient for frequent travelers and those who value a flexible lifestyle. While residency doesn’t automatically grant citizenship, it opens doors to effortless international travel.

With these benefits, Vanuatu offers not just a streamlined residency process but also a unique blend of financial and lifestyle advantages, making it an appealing choice for global citizens.

Vanuatu Residency vs. Permanent Residency: What is the difference?

In general, Vanuatu is well-known for its Citizenship by Investment program, which provides a relatively easy way to obtain a second passport, making it popular among investors and the international community. However, not many experts discuss Vanuatu’s residency options, which offer compelling pathways for those looking to live and establish tax residency in this tropical paradise.

It’s important to understand the difference between the Vanuatu Residency Visa and the Vanuatu Permanent Residency Visa. Each option comes with its own nuances and details, which we’ll discuss in depth later in the blog. 

But in a nutshell, the Residency Visa allows short-term stays of up to 12 months with annual renewals, while the Permanent Residency Visa provides long-term presence on the islands (1 year and more) and could include two categories for applicants.

Vanuatu Tax Residency Explained

A tax resident in Vanuatu is someone who establishes a primary connection to the country, typically through obtaining a permanent or temporary residency or citizenship. While there is no strict requirement to reside in the country all the time, to obtain the tax residency status you need to confirm that you spend at least 183 days a year in Vanuatu. It’s essential to avoid spending too much time in other jurisdictions to prevent being considered a tax resident elsewhere. 

This makes it particularly appealing for digital nomads, investors, and high-net-worth individuals looking to protect their wealth and optimize taxes.

Vanuatu stands out as one of the few countries offering a zero-tax environment on foreign income, making it a tax haven for individuals and businesses alike. As a tax resident of Vanuatu, you benefit from a range of financial perks, including:

• No personal income tax: Your worldwide income is not taxed.
• No corporate tax: Ideal for business owners looking to optimize their company’s profits.
• No capital gains tax: Investors can enjoy their returns without worrying about tax deductions.
• No inheritance tax: You can pass on your wealth to future generations without tax implications.
• No property tax: Your property is not taxable. 

However, in recent years, there has been some fiscal tightening in Vanuatu. The country's VAT (value-added tax), which is modeled after New Zealand's GST system, operates at rates of either 12.5% or 0%, with very few exemptions. In 2018, the VAT rate was increased to 15%. Additionally, a rent tax has been introduced, which applies to rental income and is 12.5%.

Under the newly implemented Tax Administration Act No. 37 of 2018, the Vanuatu Customs and Inland Revenue Department has introduced a system for issuing Personal and Corporate Tax Identification Numbers (TINs).

It also is important to know that for individuals and businesses operating bank accounts in jurisdictions that adhere to the Common Reporting Standard (CRS), the provision of a TIN is essential for facilitating the automatic exchange of information required by the CRS framework.

Vanuatu also offers a flexible and straightforward process for obtaining tax residency. By either obtaining a residency visa or investing in the country, you can qualify to live and work in a tax-free environment. This status allows you to conduct international business while retaining the financial benefits of residing in a zero-tax country. 

In addition, becoming a tax resident in Vanuatu can open up opportunities for further tax planning strategies, particularly for global investors seeking to optimize their wealth. The island's banking and financial infrastructure, combined with its residency and citizenship programs, make it a preferred destination for those seeking not only an appealing lifestyle but also robust tax advantages. You can find more information about tax and licensing on the official website.

Vanuatu Permanent Residency Requirements

If you have chosen to consider permanent residency in Vanuatu, obtaining it comes with a set of straightforward requirements, depending on the visa pathway you choose. Below is an overview of the general criteria you’ll need to meet:

Proof of Income 

Self-funded applicants must provide proof of a steady income of at least 250,000 Vatu per month (approximately USD 2,000). This ensures that you can comfortably support yourself during your stay in Vanuatu.

Proof of Investment

In the case of a leaseholder/real estate investor, a minimum investment of 10 million Vatu (around USD 85,000) in Vanuatu’s property market is required, allowing you to secure a long-term leasehold on the property.

Background Check

As part of the application process, a clean police record from your home country is mandatory. This ensures that applicants meet Vanuatu’s standard for character eligibility.

Health Check

A basic medical examination is required to ensure applicants are in good health and do not pose any health risks.

Duration of Residency

Vanuatu offers visa options that range from 1 to 10 years, depending on the chosen path. Applicants can enjoy the freedom of living in Vanuatu long-term without the need for frequent renewals.

Visa Fees

Fees vary depending on the duration of your residency. For a one-year residency, the fee is 57,600 Vatu (approximately USD 483.84), while a 10-year residency comes with a fee of 511,200 Vatu (around USD 4,294.08).

These requirements make Vanuatu’s permanent residency both accessible and appealing for individuals looking for a peaceful, tax-friendly environment in the heart of the Pacific. More updated information you can find on the official portal of Vanuatu.

Overview of Vanuatu Residency Visas

Vanuatu Residency Visas

The Vanuatu Residence Visa is an ideal option for retirees, investors, or anyone seeking a tropical lifestyle, offering multiple pathways tailored to various needs. Designed for those looking to reside in Vanuatu for a short stay up to 12 months, the visa provides six distinct options, each with specific eligibility criteria. Most visa categories allow for the inclusion of spouses and dependent children in the application, with the exception of the "Self-Funded Resident" category. This flexibility makes it a suitable choice for individuals and families alike. Please review the visa categories below:

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Vanuatu Permanent Residency Visas

For those looking to make Vanuatu their long-term home for more than 12 months, the Vanuatu Permanent Residency Visa offers the opportunity to settle permanently. Whether you have ties to the country or are an investor aiming to put down roots, this visa provides the stability and security of long-term residency. However, while it may seem straightforward at first, the permanent residency visa involves many complexities and nuances. For clients whose goal is to attain long-term residency, we recommend pursuing the Citizenship by Investment program, which is much more straightforward and allows you to obtain citizenship and a passport by donating to the government fund.

The Permanent Residency program has undergone numerous governmental reviews; however, clarity around the program remains insufficient.

Based on the official sources, there are two Vanuatu Permanent Residency Visa types: 

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Change of Status

One important note - unlike some other visas, the Vanuatu Permanent Residency Visa doesn’t allow for changes of status once you're in the country. That means you’ll need to make sure you're fully eligible for your chosen visa category before applying.

Fees and Validity

The fees for the Permanent Residency Visa may vary depending on the specific category and requirements. Applicants should refer to the official Vanuatu Immigration Services and Passports website or contact them directly to obtain accurate information regarding the applicable fees. In general you should be considering 300,000 Vatu (USD 2,500) per person.

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How to Get a Vanuatu Permanent Residency

Getting permanent residency in Vanuatu is a manageable process that offers several pathways depending on your circumstances, whether you’re an investor, a retiree, or someone with local connections. Here’s a detailed guide on the steps to follow:

Step 1: Pick Your Path

The first step is choosing the visa category that suits you best. We recommend to consider the following types of visas: 

• Self-Funded Resident Visa: Ideal for retirees or those with a stable monthly income. Applicants must show proof of income of 250,000 Vatu (USD 2,100) per month for single applicants or 500,000 Vatu (USD 4,200) per month, if including a spouse.
• Foreign Investor Visa: For individuals looking to invest significantly in Vanuatu. You’ll need a valid VIPA approval certificate and, in some cases, a business license.
• Leasehold Holder Visa: For those purchasing leasehold property in Vanuatu valued at 10 million Vatu (approximately USD 85,000).

Each category has its own requirements and advantages, so choose the one that aligns with your situation and goals.

Step 2: Meet the Eligibility Criteria

Make sure you satisfy the criteria for your chosen visa category:

• Income Requirements: Provide proof of steady income, such as bank statements or certified income documents.
• Investment: If applying under the investor or leasehold categories, ensure your investment meets the specified minimum amount.
• Background and Health Checks: A clean police clearance and a basic health check are typically required for all applicants.

Step 3: Prepare and Submit Your Application

Gather the necessary documentation:

• Personal Documents: Passport copies, photographs, and birth certificates.
• Proof of Income or Investment: Bank statements, real estate purchase agreements, or VIPA approval certificates.
• Police and Health Clearance: Obtain a police clearance from your home country and complete the required medical check.

Submit the application to the Vanuatu Immigration Service, either in person or via mail. Make sure all documents are accurate and complete to avoid delays.

Step 4: Pay the Fees

The fees vary based on the visa duration:

• 1-year visa: 57,600 Vatu (approximately USD 483).
• 3, 5, or 10-year visas: Higher fees apply, with a 10-year visa costing 511,200 Vatu (around USD 4,294). Pay the appropriate fees at the time of application.

Step 5: Wait for Approval

Once your application is submitted, the processing time is usually fast, often within a few weeks if all documentation is in order. After approval, you will receive your Permanent Residency card, allowing you to live in Vanuatu and enjoy its benefits.

Step 6: Enjoy Your New Life in Vanuatu

With your residency secured, you can now take advantage of everything Vanuatu has to offer - from a tax-free lifestyle to beautiful tropical living. You’ll also be able to include your family in your residency permit, providing a stable life in a peaceful setting.

Vanuatu Residence Permit: What Can You Do With It?

With a Vanuatu Residence Permit, you gain the freedom to live and work in the country for the duration of your residency. It allows you to include family members on your visa, such as your spouse and dependent children, providing a stable living situation. As a resident, you can invest in local real estate, start a business, or even retire in a peaceful tropical environment. The permit also gives you access to Vanuatu’s tax-friendly status, with no income, capital gains, or inheritance taxes.

Frequently Asked Questions about Vanuatu Residency Visas 

How Hard Is It to Get a Vanuatu Permanent Residency?

Obtaining a Vanuatu Permanent Residency is relatively straightforward if you meet the financial requirements and provide the correct documentation, such as proof of income or investment, police clearance, and health checks. The process is known for being efficient, with quick approvals compared to other countries.

How Much Does It Cost to Get a Vanuatu Permanent Residency?

The cost depends on the duration of the visa. Fees start at 57,600 Vatu (approximately USD 483) for a 1-year visa and go up to 511,200 Vatu (around USD 4,294) for a 10-year visa. Additional expenses may include document processing and administrative fees.

How Long Does It Take to Get a Vanuatu Permanent Residency?

Approval times are generally quick, with most applications processed within a few weeks, provided that all documentation is complete and accurate. Delays may occur if additional information is needed.

For How Long Is Vanuatu Permanent Residency Valid?

Permanent residency visas can be issued for 1, 3, 5, or 10 years, depending on the applicant's choice and eligibility. Renewal options are available, allowing for indefinite extensions.

What Is Vanuatu Residency by Investment?

Vanuatu offers a residency-by-investment pathway where individuals can obtain permanent residency through qualifying investments, such as purchasing real estate or investing in a local business. This option is popular with high-net-worth individuals seeking a tax-friendly jurisdiction.

What Is a Vanuatu Green Card?

The Vanuatu Green Card is another term used to refer to the permanent residency card issued to successful applicants. It grants long-term stay rights in Vanuatu, enabling holders to live, work, and invest in the country.

Does Vanuatu Allow Dual Citizenship?

Yes, Vanuatu permits dual citizenship. This means you can maintain your original nationality while getting a Vanuatu passport and enjoying the benefits of living in Vanuatu.

Can I Get Citizenship in Vanuatu After Permanent Residency?

While permanent residency doesn’t automatically lead to citizenship, Vanuatu does offer a Citizenship by Investment program that allows residents to obtain citizenship through additional investment. This route provides a pathway to securing a Vanuatu passport.