Invest in Vanuatu
Due to its white sandy beaches, active volcanoes, unblemished lagoons and pristine rainforests, Vanuatu is home to various indigenous cultures and today boasts one of the most culturally diverse nations found anywhere.
Combine that with no foreign exchange control, no income tax, and an independent judiciary, Vanuatu has grown into the prime location for investments.
The current social and political problems happening in Fiji, Solomon Islands and Papua New Guinea are sending investors to a highly viable alternative — Vanuatu.
Benefits of Investment In Vanuatu
Vanuatu presents a range of investment opportunities in productive sectors which have untapped potential.
Boasting a beneficial tax regime further enhanced by unique features when compared to other financial centers, Vanuatu boasts no income tax. There are also no estate taxes, withholding tax or capital gains tax. Cash can be transferred easily into any prima currency and has a robust infrastructure of trust companies, accountants, attorneys, and banks. Vanuatu can provide the chance for investors to receive top quality and reliable services immediately.
Vanuatu’s democratically elected government is dedicated to promoting investment. The recently passed Strata Titled Act makes it easy for investors to invest in the nation and see a positive return. By streamlining customs and immigration procedures, all formalities are painless. Besides being pro-foreign investment, the government ensures low labor costs.
Timber products, forestry, manufacturing, fishing, agriculture, and tourism are prime investment opportunities which have the full-throated support of the government. The nation is recognized as an attractive destination for global travelers and is a primary vacation destination for anyone looking for rest.
Timber and Forestry
Combined, this category contributed over 6% to the overall GDP growth. New policies emphasize exploiting the nation’s forest plantations, and trends in export value declined from 273 million (VATU) to 26 million between 2007 and 2010.
Developing sustainable forestry sectors depend on drawing investors to develop larger commercial timber plats.
The government has been proactive in value-added approaches to the country’s manufacturing industry. The immediate future holds large potential in manufacturing and processing for export. As Vanuatu continues to develop a national policy, economic growth will be enhanced through productivity, capacity use and trade capacity best practices.
This industry continues to be the foreign exchange earner for the nation as it maintains steady growth. With inadequate room inventory, there are excellent investment opportunities in the tourist industry.
As tourism is the economic engine, it deserves a longer discussion.
Despite global insecurity in finances, Vanuatu’s economic growth has been steady for the past ten-years. Tourism investors should know that tourism in the island nation is expected to continue growing over the next decade by 3% annually.
Five-star hotels and resorts throughout the world make Vanuatu a popular destination for investment by potential investors seeking an authentic Pacific attraction while maintaining service at high levels and a business environment which generously provides tax and financial concessions.
More Great Benefits From Vanuatu Investment
- Investors do not need to be a resident or have employment to buy income-generating residential or commercial property.
- Unlike competitors in the South Pacific tourist sector, investors do not experience colonialist or ethnic problems.
- The crime rate is low, and terrorism is unheard of.
- Indigenous residents are glad to work with real estate buyers as the investors only lease land. The natives benefit from a sustained and generated income.
Most people, and businesses, investing with Vanuatu seek a natural, friendly and relaxed environment with minimal hassles.
How To Get Started
First, approval from the Vanuatu Investment Promotion Authority, (VIPA) must be received. The VIPA authorizes new investments, and when approved, residency permits, business licenses, and work permits are simple to obtain.
VIPA is tasked with ensuring investors are aware of, and operate within, the nation’s rules and government commercial practice. Any investor determined to be operating a business without meeting the regulatory criteria is considered in “offense” and faces penalty charges as spelled out in the VIPA Act (15 of 1989)
When completing the VIPA application, some information will be needed. Including:
- Copies of the passports for all Vanuatu investment purchasers,
- Details and evidence regarding the financial level of the investment,
- A chart of the company structure,
- Copies of certificates of police clearance,
- Bank reference,
- Projections of cash flow for the next three years,
- Full employment details for anywhere work permits are required,
- How many work permits will be needed,
- An environmental impact assessment, if necessary,
- How many residency permits will be sufficient, and
- Disclosure of any bankruptcies, liquidations, and convictions.
VIPA also makes the investment process streamline by eliminating usual approval meetings, and the approval process happens immediately once completed applications are submitted. Certificates must be renewed each year.
VIPA staff helps investors identify the operating standards relevant to their business and Bukh Global can handle everything in a quick, professional manner.
Foreign Direct Investment (FDI)
FDI flowing into Vanuatu is primarily linked to New Zealand and Australia. The factors encouraging foreign investments include a sophisticated tax system, lack of exchange controls and an especially proactive FDI board for promotion. Possible hindrances to investment include the vulnerability to natural disasters, infrastructure weakness and geographical isolation. Property rights, until recently, have been protected poorly. In the past, investment was discouraged by inadequate physical and legal infrastructure and business was further limited by rigid labor regulations.
Ranking 83rd on the World Bank’s 2017 ‘Doing Business’ report, Vanuatu gained five places compared to 2016. Much of the FDI is attracted through food and wood processing industries, and the government is moving forward with plans to upgrade main airports. The World Bank is financing the airport improvement project.
It may be summer now but seasons change and the ice, snow and cold will be hammering you before long. In Vanuatu it’s always summer and Bukh Global has the key to paradise. Contact Unified Services today to learn how you can avoid another winter.