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It is rare to find the combination of a
fiscal and tropical paradise which exists in
Vanuatu.
Encompassing over 80 islands Vanuatu is situated
close to both Australia and New Zealand. Anyone
who has travelled to Vanuatu will admit that it
would be hard to find a more beautiful place. It
is truly a touch of paradise, with stunning
tropical rainforests, jungle waterfalls, hot
springs, incredible coral reefs and crystal
clear waters teeming with exotic marine life.
The pace of life is not raced or hurried and the
warmth and friendliness of the ni- Vanuatu
constantly help to lift the spirits.
The country boasts an advantageous tax regime
which is enhanced by several unique features
when compared to other finance centres:
There is no income tax in Vanuatu, no
withholding tax, no capital gains tax, no death
duties and no exchange controls. Money is easily
transferred in all major currencies. Vanuatu
financial centre has been in operation for
almost 40 years, much longer than many of its
competitors. Its infrastructure of lawyers,
accountants, trust companies and banks is well
established and this enables it to offer
investors a reliable and high quality service
“on the spot”. The country has a unique
multi-cultural environment. This is inherited
from Condominium times before its independence
in 1980 when it was governed both by the French
and the British. There are three official
languages, English, French and Bislama.
There is no doubt that Vanuatu has a number of
potential advantages as an investment location.
The democratically elected government is
strongly committed to the promotion of new
investment and will assist significant
investment or investments in new industrial or
agricultural pursuits as far as possible.
The government is particularly interested in
encouraging investment in tourism, agriculture,
fishing, forestry and timber products. However,
there are restrictions to ensure that natural
resources are not over-exploited. The thrust of
government thinking is to encourage labour
intensive industries, using local products that
will lead to import substitution.
Tourism is one of the major growth industries of
Vanuatu. The country is now well established as
an attractive tourist destination and
significant potential exists for rapid growth.
Vanuatu is well placed in the South Pacific
region as a holiday destination for tourists
looking for a more relaxed but comfortable
holiday environment. The Pacific region in
particular is attracting an increasing share of
the world’s expanding tourist market.
Significant funds have been committed and the
promotion and development of tourism continues
to be actively encouraged.
Increased flights by airline companies and the
recent introduction of flights from Virgin
Pacific Blue and Air New Zealand have created a
demand that is testing both the capacity of
existing hotels and the current infrastructure
of the industry. The country really needs
investment not just in upgrading existing hotels
but also in new hotels and its tourism
infrastructure.
Manufactured goods exported from Vanuatu
generally enjoy concessions from the Vanuatu
Government. On another, equally pleasant note,
the various accountants and lawyers in this tax
environment can usually find ways and means of
cutting down on the taxes you may have to pay
overseas (that is if, for some reason that
escapes us, you still wish to live in a country
burdened by tax).So, if you have a spare moment
while in Vanuatu, don’t hesitate to call in to
see one of the expert consultants who will look
into possibilities with you. You have nothing to
lose and everything to gain.
Lindsay
Barrett, August 2009
Lindsay Barrett is the managing
Partner of Barrett & Partners
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