Are you dreaming of owning a slice of paradise in Vanuatu? It’s an achievable goal — the process is more straightforward than most people expect, and there’s no ban on foreign buyers. But it works differently to Australia or New Zealand in a few important ways, and the buyers who get caught out are almost always the ones who assumed it worked the same.
This guide walks through what you’re actually buying, what it costs, how the process runs, and where the risks sit.
What you’re buying: leasehold, not freehold
This is the single most important thing to understand about buying property in Vanuatu.
All land in Vanuatu is customarily owned by ni-Vanuatu people. Non-citizens cannot hold freehold title. What you acquire instead is a registered leasehold interest — a lease over the land, recorded at the Vanuatu Lands Registry.
In practice, a registered lease behaves much like ownership. It is:
- Registered on a government title register
- Freely transferable — you can sell it
- Inheritable — it passes to your estate
- Mortgageable — it can be used as security
Leases are commonly granted for terms up to 75 years. The lessor is either the custom landowner or, in urban areas and many rural areas where custom ownership isn’t yet settled, the Minister of Lands.
The number that matters most is the unexpired term. A lease with 68 years to run and a lease with 22 years to run are very different assets, even if the houses on them look identical. Always ask for the lease commencement date and term before you make an offer, not after.
Do you need government approval to buy?
For a straightforward residential purchase, generally no. You do not need a Vanuatu Investment Promotion Authority (VIPA) investor’s certificate or a business licence simply to buy a home.
VIPA approval and a business licence come into play if you’re buying an existing business, or intend to operate a commercial activity from the property — a guesthouse, a rental business, a commercial premises.
What every transfer does require is lessor’s consent to transfer. Where the Minister of Lands is the lessor, that’s ministerial consent. Where a custom owner is the lessor, it’s their consent. This is a normal, expected step — but it’s also the step that most often determines how long a settlement takes.
The costs of buying property in Vanuatu
Budget beyond the purchase price. At the time of writing, the main transaction costs are:
- Stamp duty — 5% of the purchase price or declared value
- Registration fee — 2% of the purchase price or declared value
- Lessor’s consent fee — a modest fixed government fee
- Legal fees — for your conveyancing lawyer
- Survey costs — if boundaries need confirming or the lot needs subdividing
A practical rule of thumb is to allow around 8–10% on top of the purchase price for transaction costs. Where a property is held in a company and you buy the shares rather than the lease, the duty treatment differs — this can be cheaper, but it also means you inherit the company’s history and liabilities, so it needs proper legal review rather than a quick assumption that it’s the better deal.
Rates change. Confirm current figures with your lawyer before you rely on them for a budget.
Ongoing costs
Vanuatu has no annual property tax in the sense Australians or New Zealanders would recognise, and no capital gains tax when you sell. But there are ongoing obligations:
- Annual land rent payable to the lessor under the lease
- Municipal rates in urban areas such as Port Vila
- Utilities — electricity is relatively expensive, which is why solar is common
- Insurance — cyclone cover is essential and priced accordingly
- Maintenance — the tropical climate is hard on buildings; budget realistically
Outstanding land rent is one of the items checked at settlement, so unpaid arrears from a previous lessee will surface.
The buying process, step by step
1. Define your brief and your island
Efate and Port Vila offer schools, medical services and the deepest rental market. Espiritu Santo offers more land for the money and a quieter pace. Waterfront, elevated view sites and land near Havannah Harbour, Mele, Pango and Erakor each behave differently. Being clear about which trade-offs you’ll accept saves months.
2. Engage a Vanuatu conveyancing lawyer early
Not after you’ve found a property — before. A local lawyer will conduct the title search, confirm the lease term and conditions, check for encumbrances and caveats, verify land rent is current and advise on the ownership structure. This is the highest-value money you’ll spend in the whole process.
3. Inspect properly
Look at the structure first. Reinforced concrete or timber frame? Cyclone-rated roof fixings? How is the site drained? Where does the water come from — mains, tank, bore? Is there solar or generator backup? What condition is the septic system in? A building inspection by someone who understands tropical construction is worth arranging.
4. Sign the Sale and Purchase Agreement and pay a deposit
A deposit of around 10% is typical and should be held in your agent’s or solicitor’s trust account — never paid directly to a vendor. Any conditions you need (finance, building inspection, satisfactory title, subdivision approval) go into the contract at this point. They cannot be added later.
5. Satisfy conditions and obtain consent
You work through your contract conditions while the vendor applies for lessor’s consent to transfer, or arranges the share transfer if the property is company-held. This is usually the longest part of the timeline.
6. Pre-settlement inspection and final title search
Confirm the property is in the condition agreed and that nothing has been registered against the title since you signed.
7. Settlement
You pay the balance, receive the executed Transfer of Lease documents, and the transfer is lodged for registration. Once registered, you are the lessee of record.
Realistically, expect the whole process to take one to three months, with consent timing the main variable.
Financing your purchase
Local bank lending to non-residents exists but is limited, with conservative loan-to-value ratios and higher interest rates than you’d see in Australia or New Zealand. Many overseas buyers fund the purchase from equity at home or pay cash.
If you’re planning to borrow, sort your financing position before you start making offers — a finance condition on a Vanuatu contract carries more uncertainty than it does elsewhere.
Six due diligence checks worth insisting on
- Unexpired lease term — and whether renewal has ever been discussed with the lessor
- Lease conditions — some leases restrict use, subdivision or building
- Land rent status — confirm nothing is in arrears
- Boundaries and survey — confirm the fence line matches the title plan
- Encumbrances and caveats — mortgages, easements, disputes
- Custom ownership status — where the lessor is a custom owner, confirm the position is settled
None of these are exotic. They are simply the checks a Vanuatu lawyer runs as a matter of course — and the reason to have one engaged before you’re emotionally committed to a property.
Why people buy here anyway
Despite the leasehold structure, Vanuatu remains one of the more attractive property propositions in the Pacific: no income tax, no capital gains tax, no inheritance tax, political stability, residency pathways linked to property, a recovering tourism sector supporting rental demand, and entry prices well below comparable coastal property in Australia or New Zealand.
It’s a small market. That means fewer listings, less competition on the good ones, and a much higher return on knowing the area properly. For more on what daily life is actually like here, read our 10 facts about living in Vanuatu.
Frequently asked questions
Can foreigners buy property in Vanuatu?
Yes. Foreigners can acquire registered leasehold interests in land, commonly for terms up to 75 years. Freehold ownership is reserved for ni-Vanuatu citizens.
How long does it take to buy property in Vanuatu?
Typically one to three months from signed contract to settlement, depending largely on how quickly lessor’s consent is obtained.
Do I need to be in Vanuatu to buy?
Not necessarily — purchases can be completed with a local lawyer acting under a power of attorney. But inspecting in person before committing is strongly recommended.
Is there capital gains tax when I sell?
Vanuatu does not levy capital gains tax. Your home country may still tax the gain, so get advice on your own tax position.
Start with the right advice
Ray White Vanuatu works with buyers from first enquiry through to settlement, including introductions to local lawyers who handle these transactions every week. Browse our current listings or get in touch to talk through what you’re looking for and what it will realistically cost.
This article is general information, not legal or financial advice. Property law, duties and government fees in Vanuatu change from time to time. Engage a licensed Vanuatu lawyer before entering into any agreement.
