Vanuatu
- Capital
Port Villa
- In total area
12.189 km²
- Population
319.137
- Density
20 inhabitants/km²
- Pro-capite GDP
$ 2.996,26
- Average net annual salary
$ 3.700,00
- Currency
Watt
17,8
Location
19,2
Freedom
13,1
Lifestyle
21,1
Taxation
20,4
Expat
19,4
Business
13
Family
13
Retirement
17,8
Future
Final Score: 154,8
GV Rank: 27th
| Location | Beauty | Safety | Pollution | Services | GV | Total |
|---|---|---|---|---|---|---|
|
|
4,8 |
3,5 |
2,1 |
3,6 |
3,8 |
17,8 |
| Freedom | Democracy | Economic | Speech | Justice | GV | Total |
|---|---|---|---|---|---|---|
|
|
4,1 |
3,9 |
4,3 |
3,6 |
3,3 |
19,2 |
| Lifestyle | Quality | Cost | Happiness | Education | GV | Total |
|---|---|---|---|---|---|---|
|
|
2,6 |
2 |
3,7 |
1,8 |
3 |
13,10 |
| Taxation | Rate | System | Black List | Agreement | GV | Total |
|---|---|---|---|---|---|---|
|
|
5 |
5 |
2,3 |
5 |
3,8 |
21,1 |
| Expat | Passport | Residence | Citizenship | Duties | GV | Total |
|---|---|---|---|---|---|---|
|
|
2,4 |
5 |
5 |
5 |
3 |
20,4 |
| Business | Economic | System | Service | Justice | GV | Total |
|---|---|---|---|---|---|---|
|
|
3,9 |
5 |
3,6 |
3,9 |
3 |
19,4 |
| Family | Education | Healthcare | Safety | Family | GV | Total |
|---|---|---|---|---|---|---|
|
|
1,8 |
2,4 |
3,5 |
2,8 |
2,5 |
13 |
| Retirement | Safety | Retirement | Healthcare | Quality | GV | Total |
|---|---|---|---|---|---|---|
|
|
3,5 |
2 |
2,4 |
2,6 |
2,5 |
13 |
| Future | Innovation | Peace | Enviroment | Economic | GV | Total |
|---|---|---|---|---|---|---|
|
|
2,5 |
4,8 |
4,1 |
3,9 |
2,5 |
17,8 |
Country overview
The Republic of Vanuatu is an extremely isolated island state located in the South Pacific Ocean, composed of an archipelago of islands of volcanic origin 1750 km east of Australia, 500 km north east of New Caledonia, west of Fiji and south of the Solomon Islands. Vanuatu is today a parliamentary republic. The official languages are Bislama (the typical Creole language of the country), English and French. About 80% of the population engages in subsistence or small-scale agriculture, particularly coconuts, but also other products intended for export. The main product is copra (which constitutes 35% of the small state's exports) followed by timber, cattle and cocoa. More recently, the export of kava root extracts has grown. In addition to this, to ensure economic revenue and diversify the government has maintained the status (already existing at the time of independence) of a tax haven and offshore financial centre. There are approximately 2000 registered institutions offering a wide range of offshore financial, legal or insurance services. This has led to various international pressures for its adaptation to global standards on fiscal and data reporting parameters, which are still not fully achieved. Therefore, due to the low taxation implemented and, in particular, the absence of restrictive rules and control measures on the financial transactions side, Vanuatu is still counted among the so-called "tax havens".
Location
Made up of numerous small mountainous islands of volcanic origin, Vanuatu is located at the New Hebrides Plate, an area under seismic attention, with a tropical and equatorial climate, and is recognized as a terrestrial ecoregion in itself, called "Forests rainwater systems of Vanuatu”. A place therefore certainly interesting both on a geological and tourist level. For the rest, public services are all in all modern, the level of pollution is very low and general safety is very good.
Freedom
Vanuatu is positioned at the top of the world rankings due to the country's strongly democratic imprint, to which is added protection of freedom of the press and thought, but also the indices of economic freedom and the justice system, although slightly lower, are still at a higher level than expected for an insular and isolated country like Vanuatu.
Lifestyle
Life in Vanuatu is negatively characterized by the decidedly high costs of goods and services, also due to the logistical difficulties associated with imports, therefore not fully corresponding to the quality offered thereof. However, the security is very good and the happiness index is very high.
Taxation
In Vanuatu there is essentially no taxation. If we exclude VAT at 12,5% and some taxes on the sale of properties or on their rentals, also equal to 12,5% (and a registration tax on the sale of real estate equal to 2%), the majority part of the income, both individual and corporate, is totally exempt from taxation. This makes the small oceanic island country very attractive for offshore companies, but also very attentive by global tax authorities, also due to the poor exchange of information. Furthermore, the almost total absence of taxation means that the country has never entered into any agreement on double taxation, as it is essentially not necessary. Under recent international pressure, Vanuatu joined the CRS in 2018, but even today the legislation on the collection and exchange of information is sparse and incomplete: in fact, companies, trusts and associations are not required to comply with any information or reporting obligations. register, and the island authorities themselves do not have the capacity and means to carry out checks. For these reasons, Vanuatu is still included both in the black list of non-cooperating countries and in that of presumption of residence.
Expat
There is a Permanent Residency program in Vanuatu that allows holders to reside indefinitely in the State in exchange for a real estate investment of at least $100.000 and demonstrating a monthly income of at least $2.500,00. Thanks to this program it is also possible to apply for citizenship after 10 years of permanent residence. It is also possible to obtain citizenship through one of the most famous CBI Programs in the world, as well as one of the cheapest. However, recent scandals over the sale of Vanuatu passports to individuals linked to international organized crime have strongly discredited the country's index passport, which is currently excluded from the Schengen area. However, it remains a valid low-cost alternative for entry into South-East Asia and Oceania. A new CBI program linked to a government bond was recently included.
Business
Business in Vanuatu can only be facilitated by the tax exemptions that make it a global offshore financial centre, with access to global markets through a strong network of international trade agreements. The Vanuatu government favors the inflow of foreign capital which guarantees rapid and sustainable growth development results aimed at making up for the internal shortage of resources.
Family
Vanuatu has a strong attraction for investors and entrepreneurs who intend to exploit the opportunities that the country offers in terms of business, rather than the interests and needs of families, who are not equally satisfied, in particular due to the suboptimal level of the health service and school system.
Retirement
A similar argument must be made for those who are looking for an ideal place to spend their old age and retire: the standards offered by the country are certainly not the best in the world and one must also take into account the geographical position which is not easily reachable, as well as to the high cost of living.
Future
The government's recognition of and trust in private enterprise as a driver of economic diversification and sustainable economic growth underpins most of the government's current policy initiatives. This is reflected in ongoing policy reforms and developments focusing on areas where maximum benefits are guaranteed. Although paid attention by the Western world both for tax and passport issues, Vanuatu remains a stable country on a geopolitical level, being in an area that is completely non-strategic for the interests of the great powers.
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