Yes. Foreigners are permitted to buy property.  Buying property enables you to apply for (tax) residency. 

No. All property is registered as leasehold titles.

No. There is no requirement for property owners or holders of Vanuatu residency permits to reside in Vanuatu.

• Sign an Agreement for Sale and Purchase

  • Pay the deposit (usually 10%) into a designated Trust Account
  • Complete any conditions
• Vendor applies for Lessor’s Consent to Transfer and once confirmed.

• Settlement and transfer of title ownership. Documents usually handed over to the purchaser include:

  • Three original copies of the Transfer of Lease deeds executed by Vendors, Copy of Registered Title, Settlement Statement, current Property Tax receipt, current Land Rent receipt, Tenancy Agreement (if applicable), Company Documentation (if applicable)

The Constitution states that the maximum term of a lease is 75 years. Many leases are 50 years from their creation or from Independence on 30 July 1980, but nearly all new leases are registered for 75 years, including strata title leaseholds.

When you buy an existing lease, you purchase the remaining lease term, not a new 50 or 75 year period.

In 2003 Parliament passed the Land Lease Amendment Act No. 24 of 2003 enabling any urban lessee to surrender their existing lease title and either extend a lease that is currently less than Seventy-five years up to 75 years or, where a lease is already for a period of 75 years, renew the lease for a total period of 75 years from the date of renewal, upon payment of the requisite premium and administrative fees.

Yes. Lessees may surrender their lease either to subdivide land, re-zone (i.e., residential to Commercial, agricultural to tourism, etc.) or to extend the term. 

‘Premium’ payments and revised annual lease rents are likely to apply, negotiated between Lessor and Lessee.

The Vanuatu Parliament passed the Strata Title Act in 2000 and recently approved the Strata Title regulations. This means it is now possible to title existing buildings and create strata titles for a new apartment and commercial buildings.

Yes. Mortgages are registered on the leasehold titles as they would be on freehold and leasehold titles in other countries.

Depending on any Agreement for Sale and Purchase conditions, a sale can take from 1month to 3 months to Settle.

Natural person.  Where the title is transferring to a natural person there is a 7% fee comprising 2% Stamp Duty and 5% Title Transfer Registration 

Company Shares. Where the buyer is purchasing an existing company is only a 4% Share Transfer Value fee. 

Legal costs are similar to Australia or New Zealand.

The law does not oblige purchasers to use a solicitor. Still, it is wise to seek legal advice and representation for those contemplating buying property or a business, especially if you are entering the Vanuatu market for the first time. 

As a general guide, VAT is required to be added to the sale price by the Vendor where they are VAT registered and the asset is subject to VAT.

VAT can be claimed by the Purchaser where the Purchaser is VAT registered.

Advise from the VAT Office, a solicitor or an accountant when dealing with VAT is recommended.

• Municipal Property Tax (in the Urban Zones) is paid every six months.
• Annual Lease (‘Ground’) Rent
• Insurance
• Rent Tax on Residential Rental property currently 12.5% of gross income or VAT where the landlord is VAT registered.

Sales are primarily via Private Treaty with offers invited or with an asking price.  Auctions and Tenders are rare.

To reclaim land on the waterfront boundary of any property, you require:

• Foreshore Development Act approval (Minister of Internal Affairs).
• Negotiator Certificate from the Minister of Lands.
• Lessor’s approval.
• Municipal Planning Permission in the urban areas or Provincial Government Planning permission in the rural areas.
• An environmental impact study.
• Department of Ports & Marine approval.

Yacht moorings are marked on a grid pattern within Port Vila Harbour. The Department of Ports & Marine should be consulted about any rules and fees for mooring anywhere else in the country.

Any land area with no registered title cannot be sold because there is no legal title to sell. 

Most land in Vanuatu is unregistered and the legal ‘customary’ owner(s) may not have been established in many areas. A leasehold title must be registered before a transfer (sale) occurs. An undisputed Lessor is necessary to create and register a lease. We strongly advise all potential investors not to enter into any agreement or pay any money to anyone in such circumstances without first seeking legal or professional advice.

Insurance is typically around 1% of the value of the property to be insured.

You will need an engineer’s cyclone certificate to obtain cyclone insurance. 

Contact the local brokers and insurance companies for further details.

There are no restrictions. If a vendor must be up to date with outgoings to the local authorities and lease rent to the Lessor in order to obtain the Lessor’s Consent to Transfer the title. 

Encumbrances such as a Mortgage are discharged at settlement, as typically happens in other countries.

The vendor has no costs except agents’ commission and legal fees if a solicitor is used. There are no fees or taxes on the sale unless the asset is subject to VAT.

Laws, Government regulations and fees may be subject to change from time to time. It is advisable to seek advice about the current situation from the Government departments concerned or from qualified private companies.