Land in Vanuatu is freehold. Leases up to 50 years (residential) and 75-year (commercial) are readily available. Vanuatu doesn’t place restrictions on foreign ownership.
Leasehold and freehold are the two most frequent types of property ownership in the world. A freehold property is where you own the house and the ground beneath the house.
A leasehold property
When suitable property is found and a lease price confirmed, an “Agreement for Sale and Purchase” application is initialed by the lessee. A “Consent to Transfer” application is forwarded to the government as the deposit is paid.
Both stamp and registration duties are settled with the local Land Records Department which is the last step before settling the solicitor’s fee. From the initial submission of the Agreement for Sale and Purchase to the finalization, expect a time frame of 155 days.
The transaction costs include all costs of buying (and re-selling) property such as attorney fees, notary fees, registration fees, and taxes. Other fees such as agent fees may apply.
Stamp duty is a two-percent flat rate of the lease value.
This is a flat rate of five-percent of the lease value.
Buying Real Estate in Vanuatu
Commercial or property investors find Vanuatu laws and regulations encouraging. With no restriction on the investment, you are free to decide.
A 2005 report by the World Bank encouraged the Vanuatu government to develop a plan encouraging investors world wide to invest through titled land ownership. The government decided to favor developers who would focus on tourism and agriculture — the largest sectors of GDP.
In 2017, Vanuatu’s government brought new procedures to investors seeking to obtain citizenship and a Vanuatu passport. The most successful has been the real estate option.
Property values have been increasing over the years, and the market’s buoyancy continues because:
- Chinese moving investments offshore, and
- Australians and New Zealanders are fleeing their over-regulated nations, and
- Investors genuinely feel the government will continue to be aggressive in attracting foreign investment.
Yields Are Moderate To High
A $200,000 sq. Meter property rents between $1500 and $2000/monthly with luxury waterfront running higher. Larger yields come from properties in demand as international corporations acquire them for staff. The Strata Title Act provides for more selections in property design and has also opened the door for sizable, global projects.
Rental income tax in Vanuatu is 12.5% while rental income from leasing property is also taxed at 12.5%
Tenant Protection Laws
There are no landlord/tenant laws in Vanuatu. Landlord/tenant relations are dictated solely by the contact and agreed upon by both parties.
Step by Step
- Sign Agreement for sale and Purchase.
- Pay the deposit (usually 10%).
- When consent to transfer approved, sign the Transfer of Lease.
- Settle transaction.
- Pay Stamp Duty on the transfer (2%).
- Register the Transfer at the Lands Records Department and pay 5% Registration Fee to Government
- 1.1% Solicitor’s Costs (Negotiable)
The mad rush of making a living is wearing you down. There’s not enough time in the day to accomplish everything. Take a break, change your life and move to the South Pacific. Life on Vanuatu is as gentle as the palm trees swaying in the breeze. Vanuatu Unified Services can work with you to make it happen.