Vanuatu Investment Income Guide: Dividends 0%, Interest 0%, Royalties 0% 2026
Vanuatu imposes zero tax on all forms of investment income. Dividends, interest, royalties, and all other investment returns are taxed at 0% for both residents and non-residents. There are no withholding taxes on any investment payments. Here is how investment income taxation works in 2026.
Investment income in Vanuatu is completely tax-free. There is no personal income tax on investment returns, no corporate tax on investment income earned by companies, and no withholding tax on cross-border investment payments. This applies to all types of investment income: dividends from Vanuatu companies, interest from bank deposits and loans, royalties from intellectual property licensing, rental income from property, and capital gains from any investment. The VRC has no role in taxing investment income. Capital gains guide →
Real-world example: An individual receives VUV 1,000,000 in dividends from a Vanuatu company. Tax: VUV 0. A foreign investor receives VUV 500,000 in interest on a loan to a Vanuatu company. Tax: VUV 0. A technology company licenses its software to a Vanuatu business and receives VUV 2,000,000 in royalties. Tax: VUV 0. By comparison, in Fiji dividends face 15-20% WHT, in Australia dividends are taxed at marginal rates up to 45% (with franking credits), and in New Zealand dividends are taxed at up to 39%. Cross-border tax guide →
Tax Treatment of Investment Income
- Dividends: 0% tax — no withholding tax on domestic or cross-border dividend payments
- Interest: 0% tax — bank interest, loan interest, bond interest all tax-free
- Royalties: 0% tax — licensing fees, patent royalties, copyright income all tax-free
- Rental income: 0% tax — residential and commercial rental income is tax-free
- Capital gains: 0% tax — no CGT on any investment asset
- Pension income: 0% tax — state and private pension income is tax-free
Vanuatu is one of the very few jurisdictions that taxes none of these categories. Even jurisdictions with no income tax (like UAE, Qatar) typically impose some form of corporate or indirect tax. Vanuatu's 0% on all investment income is truly exceptional.
Withholding Tax on Cross-Border Payments
- Dividends to non-residents: 0% WHT — no tax on outbound dividend payments
- Interest to non-residents: 0% WHT — no tax on outbound interest payments
- Royalties to non-residents: 0% WHT — no tax on outbound royalty payments
- Management fees: 0% WHT — no tax on management or technical service fees
- Branch remittances: 0% — no branch profits tax or remittance tax
The absence of withholding tax means that cross-border investment structures can be highly tax-efficient. Holding companies, intellectual property vehicles, and financing entities based in Vanuatu can receive and distribute income without any Vanuatu tax leakage.
Tax Treatment by Recipient Type
- Resident individuals: 0% on all investment income from any source
- Resident companies: 0% CIT on investment income
- Non-resident individuals: 0% on all Vanuatu-source investment income
- Non-resident companies: 0% on all Vanuatu-source investment income
- Foreign pension funds: 0% on Vanuatu-source investment income
Comparison with Regional Peers
- Vanuatu: Dividends 0%, Interest 0%, Royalties 0%
- Fiji: Dividends 15-20%, Interest 10%, Royalties 15%
- Papua New Guinea: Dividends 17%, Interest 15%, Royalties 10%
- Solomon Islands: Dividends 20%, Interest 20%, Royalties 20%
- New Zealand: Dividends 33% (or 30% for companies), Interest 33%, Royalties 15%
- Australia: Dividends 30%, Interest 10%, Royalties 30% (standard treaty rates)
Do I need to declare investment income in Vanuatu?
No. There is no requirement to declare or report investment income to the VRC or any Vanuatu authority. Since there is no tax on investment income, there are no reporting obligations. However, your home country may require you to report worldwide investment income.
Is there any tax-exempt threshold or allowance?
No threshold or allowance is needed since the tax rate is 0% on all investment income from the first vatu. There is no minimum amount, no exempt limit, and no reporting threshold for investment income in Vanuatu.