|

Vanuatu is entering an exciting new phase in its
development. Having gained independence in 1980, the
sleepy islands of Vanuatu have enjoyed limited economic
development and like most other island countries, the
period after Independence has been a relatively
difficult one. Also, Vanuatu is in the unique position
of having been a
Condominium under the British & French Governments.
During the period after Independence, Vanuatu’s
agricultural, tourism sectors and financial sectors grew
slowly but in the last 18 months to 2 years, many living
in this Country have noticed the beginnings of a major
economic upturn. Spearheaded by the Government’s
Comprehensive Reform Programme which involved a Reform
of the public sector, the introduction of a broad based
Valued Added Tax (VAT) and changes in infrastructure,
Vanuatu is now poised to grow significantly.
One has noticed an increase in economic activity and in
particular a significant increase in Property Investment
from overseas in recent months.
The Vanuatu Government has always been receptive to
overseas investment and with the introduction of the
Vanuatu Investment Promotion Authority (VIPA) several
years ago it has become much easier for foreign
investors to invest in this Country. VIPA has also
streamlined the process of Business Licences and
Residency and Work Permits for foreigners.
Many consider Vanuatu to be the ‘undiscovered jewel of
the Pacific’ with its cosmopolitan, English-French
background and believe it is shaping up to be a truly
wonderful place to live. Already this year we have
noticed a significant increase in tourism with the
introduction of a second aircraft by Air Vanuatu and
just recently the introduction of flights from Melbourne
and Brisbane by Pacific Blue. This resulting increase in
tourism will have an almost immediate impact on the
economy. It is expected that the future will hold major
growth in the tourism sector.

Persons interested in investing in land will notice they
can still purchase waterfront leasehold land, only
minutes from the Capital for much less than what they
would pay in countries like Australia. Building costs
are comparable to those in Developed Countries, so the
exercise of purchasing land and building your residence
can be very good value indeed.
Another development which is also making property and
interesting investment is the recent introduction by the
Vanuatu Government of Strata Title Legislation and its
associated regulations which will make the
commercialisation of property in Vanuatu much easier,
further making it attractive to foreign investors.The
Ni-Vanuatu population of Vanuatu are amongst the
friendliest in the Pacific. A good relationship has
always existed between Vanuatu’s Ni-Vanuatu and
expatriate populations. The Ni-Vanuatu population of
Vanuatu acknowledge that foreign investment is a most
important part of the Country’s continued development
and it is this attitude particularly which makes Vanuatu
an attractive place in which to invest.
In the next 10 years, Developed Countries in the Region
such as Australia and New Zealand are expected to have
large babyboomer populations retiring and this group are
just now discovering Vanuatu as a place to retire. It is
expected that retiring babyboomers will come to Vanuatu,
purchase land and build houses and further contribute to
the development of the economy through their significant
spending power. One interesting aspect of the Vanuatu
economy which is proving particularly attractive to
retirees is the fact that there is no Income Tax in the
Republic of Vanuatu. The Government have opted for
system of indirect taxation and the fact that there are
no Income Taxes, means that the accumulated wealth of
babyboomers is not subject to any form of Income Tax in
the Republic of Vanuatu.
Moores Rowland is a Member of Moores Rowland
International which is a world-wide Association of
Independent Accounting Practices and ranks eight (8th)
in size internationally. It has been represented in
Vanuatu for more than 28 years and with its associated
trust company, Guardian Trustees Limited and real estate
company, Transpacific Real Estate is able to offer the
foreign investor and potential retiree
a unique blend of advice and insight into investment in
Vanuatu.
Laurie HARRISON
Partner - Moores Rowland
|