Vanuatu

Tax residency in Vanuatu is generally triggered by physical presence exceeding 183 days in a calendar year. Foreign income treatment: exempt. No statutory CFC rules apply, which can facilitate the use of foreign holding structures without automatic income attribution.

No income, corporate, or capital gains taxes. Citizenship by Investment (CBI) from USD 130,000 — one of cheapest globally. EU blacklisted due to CBI program concerns. Banking very difficult. FATF grey list.

The standard corporate income tax rate is 0%. Establishing a legal presence here involves a higher degree of administrative complexity, often requiring local legal assistance.

Account opening in Vanuatu can be challenging for foreign nationals or non-resident businesses, and enhanced due diligence is common practice. Internet infrastructure is developing. Speed and reliability can vary by location and should be assessed for business-critical operations.

Vanuatu is currently on the FATF grey list, indicating enhanced monitoring by the international AML/CFT body. This may affect banking relationships and counterparty due diligence requirements. EU tax blacklist status: black_list. Structures involving this jurisdiction may attract additional scrutiny or reporting obligations under EU member state rules.

Based on our scoring model, Vanuatu ranks highest for Freelancer and Digital Nomad. It offers a reasonable proposition for freelancer (score: 45/100). It offers a reasonable proposition for digital nomad (score: 42/100). It scores lower for freelancer and digital nomad and high net worth individual and founder / entrepreneur, who may find other jurisdictions more suitable for their specific requirements.