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Vanuatu Rental Income Guide: 0% Tax on Rental Income 2026

Vanuatu imposes zero tax on rental income from property. Landlords — whether residents or non-residents, individuals or companies — pay 0% tax on all rental income. There are no reporting requirements, no deductions to track, and no rental income tax return. Here is how rental income taxation works in 2026.

Rental income taxation in Vanuatu is as simple as it gets: there is none. Since Vanuatu has no personal income tax and no corporate income tax, rental income from residential or commercial property is entirely tax-free. This applies to all types of rentals: long-term residential leases, commercial property rentals, short-term holiday rentals (Airbnb-style), and vacation property rentals. The VRC has no involvement in rental income taxation. Property tax and stamp duty →

Real-world example: A landlord owns two apartments in Port Vila generating annual rental income of VUV 2,400,000. Tax: VUV 0. A foreign investor owns a beachfront resort villa rented to tourists at VUV 500,000 per week, generating VUV 8,000,000 annually. Tax: VUV 0. A company owns a commercial building with VUV 15,000,000 in annual rental income. Tax: VUV 0. By contrast, in Australia, rental income is added to other income and taxed at marginal rates up to 45%. In New Zealand, rental income is taxed at up to 39% with interest limitation rules. In Fiji, rental income is taxed at progressive rates up to 20%. Investment income guide →

Rental Income Taxation

  • Residential rentals: 0% tax — long-term residential rental income is completely tax-free
  • Commercial rentals: 0% tax — office, retail, and industrial rental income is tax-free
  • Short-term/Airbnb: 0% tax — holiday rental and tourism accommodation income is tax-free
  • Corporate landlords: 0% CIT on rental income earned through a company
  • Non-resident landlords: 0% tax — non-residents earning rental income from Vanuatu property pay no tax

The complete absence of tax on rental income is exceptional. Vanuatu is one of the few jurisdictions globally where rental income is genuinely tax-free for all types of landlords.

No Deductions or Reporting Needed

  • No deductions: Since there is no tax, there is no need to track expenses, maintenance costs, mortgage interest, or depreciation for tax purposes
  • No filing: There is no rental income tax return or any filing requirement for rental income
  • No withholding: Tenants do not need to withhold any tax on rental payments
  • No VAGST: Residential rental accommodation is exempt from VAGST (12.5%). Commercial rental may be subject to VAGST if the landlord is VAGST-registered

While there are no tax compliance requirements, it is good practice to maintain rental agreements and income records for your own financial management and for compliance with your home country's tax laws.

Registration and Compliance

  • Business license: Landlords renting multiple properties may need a business license, especially for short-term/tourism rentals
  • Tourism registration: Short-term rental properties catering to tourists may need to register with the Vanuatu Tourism Office
  • VAGST: Short-term accommodation may be subject to VAGST at 12.5% if annual turnover exceeds VUV 3,000,000. The landlord would charge VAGST and remit to VRC
  • Tenant agreements: Written rental agreements are recommended and should comply with Vanuatu landlord-tenant law

While the tax position is straightforward, landlords should ensure they comply with registration, licensing, and VAGST requirements where applicable.

Do I need to register as a business to rent property?

For a single residential rental property, you typically do not need a business license. For multiple properties or short-term holiday rentals (especially tourism accommodation), you should register with the VFSC for a business license and check VAGST registration requirements.

Is there any withholding tax on rental payments?

No. There is no withholding tax on rental payments in Vanuatu. Tenants do not need to deduct or remit any tax on rent paid to landlords. The full rental amount is paid to the landlord free of any tax deduction.

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