Travel Guide

A complete guide to the real estate market in Vanuatu

As the sunlight passes through the palm trees, imagine the shimmering turquoise colored seawater and the chirping of tropical birds. This is from Vanuatu for you. Vanuatu is a small island country in Oceania surrounded by the South Pacific Ocean. Over the years, it has attracted a large number of people from all over the world. If you want to settle or invest in this country, the good news is that the Vanuatu market is booming, and investing in real estate is an extremely feasible way for savvy investors to achieve their goals. In this guide, we cover everything you need to know when purchasing a property in Vanuatu.

Why consider entering the real estate market in Vanuatu?

Purchasing real estate on Vanuatu Island is an excellent choice for foreigners who want to have a vacation home or a second home to meet their living needs. Similarly, foreign investors would be pleased to hear that Vanuatu's real estate market is stable, with a large number of affordable property types available.

In Vanuatu, investment returns have a very realistic possibility:

One of the few countries in the world where seaside properties are cheaper than one bedroom properties in cities or suburbs

● Property and land scope suitable for all budgets and tastes

● No property tax

● Warm climate

● Unpolluted beaches and lagoons

● Friendly local residents

Fly 2-4 hours to Brisbane, Sydney, Auckland, Melbourne, New Caledonia, and Fiji

Purchasing property in Vanuatu can enjoy:

A series of cost-effective real estate options

Affordable and equally stunning seaside section

● Coastal properties with comfortable modern living facilities and stunning sea views

Can foreigners purchase property in Vanuatu?

You can have it! There are no restrictions on foreigners purchasing real estate, whether it is commercial or residential. In fact, the post pandemic market is thriving, demonstrating a positive correlation between foreign real estate investment and the economy. For urban procurement, non citizens may be required to provide financial and professional certification from local companies, but that's all. Secondly, property owners or legal residents are not required to reside in Vanuatu. So it is entirely possible to purchase property without necessarily living on the island.

Can foreigners live in Vanuatu?

Of course you can. This is partly due to Vanuatu's citizen investment project, which donated $130000 (non refundable) to the Vanuatu Development Fund, allowing you to obtain a Vanuatu passport within two months.

Real estate investment

Investing in real estate in Vanuatu is a reliable way to diversify investment portfolios, protect assets, and even earn additional income. There are various types of properties to choose from, including seaside land and bungalows, seaside villas, apartments, as well as purchasing land and even private islands. In fact, land prices have been rising for many years, making real estate investment on land highly attractive.

Most investors purchase properties on the island and then sublet or rent them out to vacationers. It is actually feasible to earn rental income from rented properties, as Vanuatu's tourism industry is thriving and attracting a large number of tourists to come here. In addition, capital appreciation can be achieved, especially if you invest in high-quality seaside properties. If you prefer long-term tenants with contracts ranging from 1 to 3 years, you can expect a good family home to have rental income ranging from $1200 to $2000 for 3 to 4 bedrooms.

Overall, the Vanuatu government highly encourages and recommends real estate investment, and has passed several pieces of legislation to protect foreign investors, including the Class Ownership Law. This makes it easier for people to invest, almost ensuring a good rate of return.

Real estate investment requirements

As a foreigner investing in real estate, you must understand the following factors:

Vanuatu does not have fully owned land. All investments and private land in Vanuatu (except for traditional and public land) are leasing in nature. The lease term is usually 50-75 years

Ownership is always guaranteed, and investors are protected by the Vanuatu Land Lease Law

You don't need to become a resident to purchase property

You don't need any type of license

You must comply with the same laws and regulations as any local real estate buyer

Applicable rental registration interest rate

Real estate investment income in Vanuatu

With carefully selected assets, foreign investors can benefit from predictable cash flows, excellent returns, tax advantages, and diversification - and it is also possible to accumulate wealth through real estate.

In Vanuatu, the value of real estate often increases over time. If you make the right real estate investment, it is possible to make a profit at the time of sale.

Investing in real estate in Vanuatu and enjoying the following benefits:

There is no income tax, capital gains tax, or inheritance tax. There is no wealth, gifts, or other personal income tax either

Investing in vacation homes has enormous potential for returns

Stable real estate market

Where to buy property in Vanuatu?

For residential properties, the best places are real estate sales in the capital city of Vanuatu, Port Vila, along with waterfront, first and second lagoons, Bellevue, Malaboa, and branches near the city's waterfront, such as Dream Bay, Angel Bay, Paradise Bay, etc. Of course, for Chinese people, Leng Cui Wan is more suitable.

If you want to invest in commercial real estate, CBD, main street, and central seaside are all good choices. If you are considering purchasing land, then consider the main islands of Effat and Santo.

Vanuatu Seaside Property:

There are seaside villas and resorts with swimming pools, private beaches, waterfront areas, and commercial properties. The choice lies with you! There are a large number of seaside properties for sale, and compared to countries such as Australia and New Zealand, the selling price is only a small fraction.

Overall, you can find a large number of seaside properties in prime locations that meet all your needs in terms of scale and budget.

Overview of the Real Estate Market

Although the real estate market has experienced similar price and activity cycles in other places, overall, the real estate market here has remained stable with only slight fluctuations. The implementation of the Class Ownership Law by the government in 2005 further consolidated Vanuatu's reputation as a paradise for real estate investment. Supported by the country's efficient tourism industry, Vanuatu remains an ideal country for real estate investment.

Local banks even offer mortgage loans to approved applicants, providing 70% to 80% of land and land and housing loans based on the buyer's credit history. Vanuatu also has many local property management companies, providing buyers with unique opportunities to manage vacation market properties.
What are real estate prices like?

In Vanuatu, you will find a series of property price points to adapt to each budget. From three to four bedroom family villas worth hundreds of thousands of dollars to luxurious modern villas worth millions of dollars, there is nothing forbidden on this island. You can even find 1 to 2 acres of seaside villas priced at $100000 to $200000, while modern apartments in Vila Harbour are priced at $400000.

A step-by-step guide for purchasing real estate in Vanuatu

Buying property abroad may seem like a complex process, but buying property in Vanuatu is actually quite simple.

The steps are as follows:

1. Find a suitable property with or without the help of local real estate experts

2. After agreeing on the lease price, sign a purchase and sale agreement and pay a deposit (usually 10% of the purchase price)

3. The seller applies for the lessor's consent to transfer or arrange for the transfer of shares

4. Stamp duty and registration fee shall be paid by the local land record department. If you hire a lawyer, please pay the fees

5. If necessary, the buyer will conduct a pre settlement inspection of the property or search for ownership rights

The real estate sales have ended. The buyer shall submit all necessary documents, including three original lease agreement transfer agreements signed by the seller, one copy of registered property rights, settlement statements, etc

Generally speaking, it takes about 155 days to complete a transaction and complete a property transfer.

transaction cost

Always try to consider 10% of the purchase price to pay for the purchase cost. The stamp duty is 2% of the property price, and the remaining 5% is owed to the Ministry of Land and Natural Resources. If you purchase property in the name of the company, different rules apply.

For transaction costs, consider an additional 2.5% factor to cover any miscellaneous expenses such as borrowing costs and unexpected expenses. If you decide to earn rental income from your property, you must charge a 15% sales tax to your tenants and pay it to the government. If you want them to manage the rent on your behalf, you also need to pay a fee of approximately 7% to 10% to your property manager.

If you own a property in the city, the municipal garbage collection fee will cost you around $200 per year.

Property tax: Vanuatu does not have property tax, only rental income tax, usually around 15%.

Seeking professional help for your house search: You don't have to search for a house alone. We suggest that you seek real estate services and talk to qualified and experienced real estate agents who will understand local laws and requirements and be able to provide you with the best choices, whether it is commercial or residential properties.

Common questions about real estate

Why consider entering the Vanuatu real estate market?

There are many benefits to investing in real estate in Vanuatu, including having a heavenly home, no property or income tax, and a stable real estate market with the opportunity to earn returns from your investments. You can also find real estate services to manage rental properties and earn rental income. The rental income tax in Vanuatu is 15%.

How is the real estate market in Vanuatu?

The real estate market is stable with slight fluctuations. There are many types of properties for sale, with prices only a fraction of those in countries such as Australia or New Zealand. We suggest that you contact a real estate agency as they understand the best local property types, making it easier for you to buy your dream Vanuatu house in the South Pacific.

What is the process of purchasing property in Vanuatu?

The process is as follows: 1. You must find suitable property; 2. Seek help from a real estate lawyer; 3. Agree on the lease price; 4. Sign a purchase and sale agreement; 5. Pay relevant fees; 6. Submit documents; 7. To inspect and register property.

How much does the Vanuatu seaside property cost?

It can be imagined that housing prices depend on the house itself. A well built and stylish three bedroom seaside residence is worth $500000, while a two bedroom seaside residence is worth $220000. However, a luxurious four bedroom mountaintop villa in the center of Port Villa costs $630000.

Can foreigners purchase property in Vanuatu?

Yes, Vanuatu has no restrictions on foreign ownership. Please note that you may be required to provide "financial proof" and "professional proof" of your country of origin.