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Living in Vanuatu: the ultimate expat guide

Everything you need to know for a successful life in Vanuatu.

Prepared byJulien Faliu, on 28 October 2025

Vanuatu is an archipelago of over 80 islands in the South Pacific, located approximately 1,750 km east of Australia. This independent nation of 335,169 people has become increasingly popular with international expats seeking zero-tax living combined with exceptional natural beauty. The capital Port Vila, home to roughly 45,000 residents on Efate Island, serves as the country's economic and administrative hub. Three official languages coexist—Bislama, English, and French—reflecting the nation's Anglo-French colonial heritage, alongside over 120 indigenous Melanesian languages. The national currency is the vatu (VUV), trading at approximately VUV 122 to USD 1.

5 Key Reasons to Relocate to Vanuatu

  1. Zero taxation: No income tax, capital gains tax, inheritance tax, or wealth tax—one of the world's most favorable tax environments for individuals and businesses.
  2. Exceptional quality of life: Consistently ranked among the world's happiest nations, with year-round tropical climate and pristine natural environment.
  3. Political stability: Democratic parliamentary republic with stable institutions and peaceful governance since independence in 1980.
  4. Accessible residency programs: Multiple pathways including investor schemes, retiree options, and economic citizenship with fast processing times.
  5. Growing economy: Expanding tourism sector, robust agricultural exports, and established offshore financial services industry.

Vanuatu at a Glance

Essential statistics for understanding the country:


Metric

Figure

Total population

335,169 (2025)

Expat population

~4% (13,400 people)

Capital city

Port Vila (45,000 residents)

Tourism contribution to GDP

~20%

Agriculture contribution to GDP

20-27%

Unemployment rate

~5% (2023)

Average salary

VUV 67,000/month (~USD 550)

Exchange rate

USD 1 ≈ VUV 122 (Oct 2025)

Sources: Worldometers, Trading Economics, Wikipedia

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Visa Requirements and Residency Pathways

Vanuatu offers several routes for temporary stays and permanent settlement, managed by the Department of Immigration. Recent changes suspended visa-free entry for EU nationals due to citizenship-by-investment program concerns, though other visa-exempt countries remain unaffected. The system features straightforward procedures for those seeking long-term residence, with options ranging from investor schemes to retirement programs.

Visitor Entry and Tourist Stays

Until late 2024, nationals from the EU, US, UK, Australia, New Zealand, and numerous other countries enjoyed visa-free entry for up to 120 days. However, EU citizens now require visas following the temporary suspension. Check the Department of Immigration website for current requirements specific to your nationality. Entry requires a passport valid for at least 6 months, return ticket, and proof of sufficient funds.

If not visa-exempt, you'll need a Visitor Visa valid for 30 days, extendable to 120 days total. Cost is VUV 7,420 (~USD 62). Applications must be submitted from outside Vanuatu and require completed forms, minimum monthly funds of VUV 40,000, and return tickets. A Transit Visa costs VUV 1,855 (~USD 16) for 24-hour airport stays.

Permanent Residence Categories

The Subclass 131 Permanent Residency costs VUV 300,000 (~USD 2,500) per person and primarily serves those with ni-Vanuatu parents or 12 months continuous residence. Duration options range from 1 year (VUV 57,600) to 10 years (VUV 511,200, ~USD 4,294).

The Foreign Investor category requires VIPA (Vanuatu Investment Promotion Authority) approval and minimum investment of USD 50,000 in an approved project. This one-year renewable permit also needs a business license where applicable. Processing takes just 5 business days with complete documentation. Required documents include VIPA certificate, passport, police clearance, medical examination, photos, local bank guarantee letter for return tickets, and statutory declaration listing any convictions from the past 10 years.

Self-funded Residents (retirees) must demonstrate certified monthly income of VUV 250,000 (~USD 2,100) for singles or VUV 500,000 for couples, with minimum age 55. Income must transfer monthly to a Vanuatu bank account, and applicants need proof of retired status from their home country.

Other categories include Leasehold Holders (property lease valued minimum VUV 10 million/~USD 84,000), spouses/partners of ni-Vanuatu citizens or residents, and employees with 12+ month contracts holding valid work permits.

Economic Citizenship Program

The Development Support Program (DSP) offers citizenship through non-refundable contributions: USD 130,000 for single applicants up to USD 180,000 for families of four. An alternative route provides permanent residency with USD 350,000 in verified assets. Processing ranks among the world's fastest, with PR Green Cards obtainable within days. The citizenship provided access to 95+ countries visa-free, though EU access is currently suspended. Naturalization becomes available after 10 years of continuous permanent residence.

Work Permits

Foreign employees need Work Permits from the Department of Immigration. Employers typically must demonstrate no qualified ni-Vanuatu citizens are available for the position. Permits link to specific employers and require renewal when changing jobs. The employment system includes the Vanuatu National Provident Fund (VNPF), mandatory for formal employees with 4% contributions each from employer and employee.

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Employment and Business Opportunities

Vanuatu's job market reflects its small economy and predominantly informal structure. Official unemployment sits around 5% (2023), but roughly 80% of workers operate in the informal sector, mainly subsistence agriculture. Formal employment reaches only 31%, with youth unemployment at 26%. Average monthly salary stands at VUV 67,000 (~USD 550), well below international standards. Foreign workers typically find opportunities in specific sectors requiring specialized skills.

Key Employment Sectors

Tourism drives the economy at roughly 20% of GDP. Post-COVID recovery continues with 256,000 annual arrivals reaching 65% of pre-pandemic levels. Opportunities exist in hotel management, diving operations, eco-tourism ventures, and specialized tourism services. Bilingual capabilities (English/French) provide significant advantages.

Agriculture employs 65-80% of the population and generates 20-27% of GDP. Copra (dried coconut) represents over 35% of exports, followed by timber, beef, cocoa, and kava. Opportunities arise in agribusiness management, sustainable agriculture projects, and export operations. Offshore financial services host approximately 2,000 registered institutions providing banking, investment, legal, accounting, and insurance services. This sector attracts professionals in international finance, regulatory compliance, and legal advisory roles.

Construction grows through public infrastructure investments in airports and roads, creating demand for engineering and project management expertise. Telecommunications advances rapidly with improved mobile coverage and Starlink introduction, opening IT and telecommunications opportunities.

Starting a Business

Vanuatu encourages foreign investment with relatively simple business registration through the Vanuatu Financial Services Commission (VFSC). The Business Company structure (similar to an LLC) requires only USD 100 minimum capital. Registration costs approximately USD 400, with USD 300 annual renewal fees.

A business licence from your municipality costs VUV 5,000-50,000 (~USD 41-410) depending on activity type. Sensitive sectors require VIPA approval, including real estate, tourism, import-export, and financial services. Foreign investors typically need minimum USD 50,000 investment in approved projects for residency permits.

Major advantage: zero corporate tax and zero dividend tax. Only VAT (Value Added Tax) applies at 15% on goods and services, with 0% rates on essential items. Administrative procedures move relatively quickly, though some steps may require multiple follow-ups with authorities.

Salary Expectations

Qualified expats typically earn between USD 2,000-5,000 monthly depending on sector and expertise—higher than local averages but below Western standards. Employment contracts must be written, specifying compensation, leave, and termination conditions. Employees receive 12 days annual paid leave plus public holidays. Standard work weeks run 40-44 hours.

Key sectors and their characteristics:


Sector

GDP Share

Expat Opportunities

Tourism

~20%

Hotel management, diving, eco-tourism operations

Agriculture

20-27%

Agribusiness, export management (copra, kava, cocoa)

Financial Services

Variable

Offshore finance, compliance, legal and accounting advisory

Construction

Growing

Engineering, infrastructure project management

Telecommunications

Growing

IT, telecommunications infrastructure

Sources: Wikipedia, Asian Development Bank, Trading Economics

Tax Environment: Zero Direct Taxation

Vanuatu operates one of the world's most favorable tax systems, often described as a legal tax haven. The country levies no direct taxes whatsoever: no income tax, no corporate tax, no capital gains tax, no inheritance tax, and no wealth tax. This ultra-liberal tax policy attracts international investors and affluent retirees. Government revenue derives primarily from indirect taxes and customs duties. This exceptional situation largely explains the archipelago's growing appeal among expats from high-tax countries.

Zero Direct Taxation

No income tax applies to salaries, rental income, dividends, or other earnings—whether sourced locally or internationally. Companies face no corporate tax, making Vanuatu highly attractive for business establishment. Capital gains on asset sales remain untaxed. No inheritance or gift taxes exist, simplifying wealth transfer.

This zero-tax regime applies equally to residents and non-residents, covering both local and foreign-sourced income. However, you must verify tax implications in your home country. Most nations tax their citizens or residents on worldwide income. The US, for example, taxes citizens on global income regardless of residence. Without double taxation treaties with most countries, careful tax planning is essential before relocating.

VAT: Primary Revenue Source

The government derives most revenue from Value Added Tax (VAT) at a standard 15% rate on most goods and services. Essential items benefit from zero-rating: basic unprocessed foods, prescription medicines, education services, and certain healthcare. Exports are also zero-rated to promote international trade.

Businesses with annual turnover exceeding VUV 4 million (~USD 33,600) must register with the Customs and Inland Revenue Department and collect VAT. Returns are typically monthly or quarterly based on business volume. For consumers, VAT is simply included in displayed prices but significantly impacts living costs, particularly on imported goods.

Customs Duties and Specific Taxes

Vanuatu applies customs duties on imported goods, typically ranging 0-25% depending on product type. Essential goods and industrial equipment often receive reduced rates, while luxury items face higher duties. Regional trade agreements may reduce or eliminate duties on goods from Pacific countries.

Several specific taxes exist: motor vehicle tax, property tax on commercial and residential properties (generally modest), registration fees for certain legal acts, and annual business licenses varying by activity. These remain relatively low compared to Western standards.

VNPF Social Contributions

The Vanuatu National Provident Fund (VNPF) operates on a capitalization principle, similar to a mandatory pension fund. Both employers and employees contribute 4% of gross salary, totaling 8%. Contributions fund retirement, disability, and death benefits. Self-employed workers may contribute voluntarily.

The VNPF differs fundamentally from Western social security systems. It doesn't cover routine healthcare, unemployment, or family allowances. Each contributor maintains an individual account accumulating contributions and interest. Funds can be withdrawn upon permanent departure, retirement (age 55), or specific situations (disability, first home purchase). Expats should therefore secure comprehensive international health insurance.

Implications for Expats

The tax advantage is undeniable, but several points warrant attention. First, your home country tax status: many countries tax residents on worldwide income, requiring over 183 days abroad annually to lose tax residency. Without double taxation treaties, conflicts can theoretically arise, though rare with properly documented residence changes.

Second, home-country income may remain taxable depending on its nature. US citizens face taxation on worldwide income regardless of residence, partially negating Vanuatu's tax benefits for Americans. Third, while Vanuatu doesn't tax income, relatively high living costs (especially imported goods) and mandatory private health insurance must factor into your overall financial calculation. Consulting an expatriation tax specialist before relocating is strongly recommended to secure your situation and legally optimize taxation.

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Healthcare: Basic System Requiring Private Insurance

Vanuatu's healthcare system remains relatively basic, reflecting limited economic development. Access to care is restricted, especially outside the capital, and medical infrastructure falls well short of Western standards. For expats, comprehensive international health insurance is absolutely essential, as the public system doesn't cover foreigners and private facilities are scarce and expensive. Serious conditions will likely require medical evacuation to Australia, New Zealand, or Fiji, underscoring the importance of coverage including such services.

Public Healthcare

The public system, managed by the Ministry of Health, provides free or low-cost care for ni-Vanuatu citizens, but expats generally lack access or must pay full costs. The main facility, Port Vila Central Hospital, operates approximately 100 beds offering general medicine, basic surgery, maternity, and emergency services. This facility suffers chronic shortages of qualified staff, modern equipment, and medications. Wait times can be lengthy and care quality variable.

Outside Port Vila, the Northern Provincial Hospital in Luganville is substantially smaller and less equipped, plus approximately 50 rural dispensaries across the islands. These peripheral health centers handle only routine medical issues, referring complex cases to the capital. Access to remote islands poses significant logistical challenges, with some areas relying solely on nurses for basic care.

Private Medical Facilities

Private options remain limited to Port Vila. A few private clinics offer general practice consultations, dental care, and basic laboratory tests. Medilink Clinic and several private practices welcome expats and tourists, with consultations costing VUV 5,000-10,000 (~USD 41-82). These facilities are better equipped than public structures, and medical staff—often trained abroad—typically speak English and sometimes French.

For specialized care (cardiology, neurology, complex surgery), virtually no local options exist. Patients require medical evacuation, representing considerable expense: evacuation to Australia can easily exceed USD 15,000. Pharmacies operate in Port Vila and Luganville, but medication selection is limited, particularly for specialized treatments. Bring sufficient supplies of prescription medications.

Disease Prevention

Vanuatu presents certain tropical health risks requiring serious attention. Malaria is endemic in some areas, particularly northern islands. Prophylactic treatment may be recommended depending on islands visited and season. Dengue fever is also present with regular epidemic outbreaks, especially during rainy season (November-April). No dengue vaccine is locally available, so prevention relies on mosquito protection.

Other tropical diseases like chikungunya and Zika virus have been reported sporadically. Recommended vaccinations for Vanuatu include: Hepatitis A and B, typhoid, tetanus-diphtheria-polio. Yellow fever vaccination is mandatory only if arriving from endemic countries. Consulting a travel medicine center before departure is strongly advised.

Food hygiene and water treatment standards vary considerably. In Port Vila and hotels, tap water is generally potable, but bottled water is preferable in rural areas. Gastrointestinal illnesses are common, especially during the adaptation period. Avoid raw foods in local restaurants and prioritize establishments with visible hygiene standards.

International Health Insurance

Comprehensive international health insurance is non-negotiable for any Vanuatu expat. Coverage must include: routine medical expenses and hospitalization (with high limits), emergency medical evacuation to appropriate facilities (Australia, New Zealand, Fiji), medical repatriation to your home country if necessary, and ideally dental and optical care.

Several international insurers offer expat packages for the Pacific, with annual premiums typically ranging USD 1,500-5,000 depending on age, coverage extent, and deductibles. Some contracts include 24/7 assistance and approved provider networks. Verify your policy covers Vanuatu and neighboring countries where you might be evacuated.

Practical Health Advice

Before relocating, complete a comprehensive health checkup in your home country and treat any existing medical issues. Build a personal pharmacy with common medications (analgesics, anti-diarrheals, antihistamines, antiseptics) and several months' supply of prescription medications. Keep original prescriptions to justify medication transport.

Upon arrival, identify medical facilities and English-speaking doctors in Port Vila. Save emergency numbers: 112 is the unified emergency number, though availability and effectiveness may vary. Always carry your international insurance details and policy number. In medical emergencies, contact your insurer first to organize care and evacuation if needed.

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Education: Limited Options for Expat Families

Vanuatu's education system reflects the Anglo-French condominium legacy, divided between francophone and anglophone schools. For expat families with children, options remain limited and concentrate in Port Vila. International schools are few, and tuition can represent significant expense. Education quality varies widely by school, and many expat families opt for distance learning or send secondary students to Australia or New Zealand. Carefully evaluating schooling possibilities before relocating with children is crucial.

Local School System

The ni-Vanuatu system divides into parallel francophone and anglophone streams. Education is theoretically free in public schools, though various contributions are requested. Primary education lasts 6 years, followed by 7-year secondary education divided into junior secondary (4 years) and senior secondary (3 years). The Vanuatu Secondary Certificate is awarded at secondary completion. Teaching language is either French or English depending on stream, with Bislama used locally.

Public education quality falls short of international standards, with often overcrowded classes, insufficient teaching materials, and not always qualified teachers. Primary enrollment is relatively high (~95%), but drops drastically at secondary level (~50%). For expats, local public schools generally aren't viable due to language barriers and educational standards.

International and Private Schools

In Port Vila, several private establishments welcome expat children. Port Vila International School (PVIS) is the reference international school. It offers English-language curriculum based on the Australian program, from kindergarten through Year 12. Tuition is substantial, generally exceeding USD 10,000 annually per child depending on grade, plus registration fees and various contributions. The school has adequate facilities and qualified teachers, often recruited internationally.

Lycée Français de Port-Vila (Lycée Louis Antoine de Bougainville) provides French education following national curriculum. This AEFE network member (Agency for French Education Abroad) enrolls students from preschool through high school, preparing for the French baccalaureate. Tuition is also substantial, varying by grade and student status (scholarship or not). This is the preferred option for French-speaking families.

Several other private schools exist, offering English or French instruction of variable quality: Vanuatu Ecole Privée Française, Malapoa College (anglophone), and several small Christian schools. Fees are generally lower than international establishments but academic levels may not meet international standards.

Distance Learning

Facing local system limitations, many expat families choose distance learning. Australia's distance education programs and New Zealand's Correspondence School offer courses from primary through secondary, allowing children to follow home country curricula while remaining in Vanuatu. This solution requires significant parental involvement, especially for younger children, and an environment conducive to independent study.

The advantage is maintaining academic standards aligned with home country education, facilitating eventual reintegration. The major disadvantage is child isolation and lack of peer interaction, though some families organize regular gatherings.

Secondary and Higher Education

For advanced secondary and higher education, Vanuatu options are virtually non-existent. Many ni-Vanuatu youth and expats leave for Australia, New Zealand, Fiji, or their home countries. The cost of this overseas education, including tuition, accommodation, and travel, represents significant investment that families must anticipate.

Vanuatu hosts a regional campus of the University of the South Pacific (USP), based in Fiji, called Emalus Campus. This facility offers limited university programs, primarily in education, administration, and development. For more specialized degrees, students must attend the main Suva campus (Fiji) or study elsewhere. The country also has Vanuatu College of Nursing Education (VCNE) for nurse training and several technical vocational education (TVET) centers.

Family Planning Tips

If considering Vanuatu relocation with children, planning their education beforehand is imperative. Contact schools directly to verify available places, exact fees, and enrollment processes, as some schools maintain waiting lists. Budget tuition into your overall living costs: expect USD 8,000-15,000 annually per child for quality international education.

Assess whether your professional situation or expatriation agreements include tuition coverage, often the case for international expatriation contracts. For teenagers, discuss the possibility of overseas secondary education and anticipate the financial and logistical aspects of such arrangements. If opting for distance learning, ensure reliable internet connectivity and adequate home workspace.

Housing: Limited Market and High Costs

Vanuatu's real estate market features limited supply and relatively high prices, especially in Port Vila. Expats face several challenges: scarce quality housing, strict property ownership legislation, and absence of structured real estate services. The traditional ni-Vanuatu land system prevents foreigners from purchasing land outright—only long-term leasehold arrangements are available. This particularity strongly influences the real estate market and requires solid understanding before any significant financial commitment.

Rental Housing

Renting is the preferred option for most expats, particularly during initial settlement months. In Port Vila, rents vary considerably by property quality, location, and amenities. A two-bedroom apartment in the city center costs VUV 120,000-180,000 monthly (~USD 1,000-1,500). Similar accommodation in suburbs runs VUV 80,000-120,000 (~USD 650-1,000).

Three-bedroom houses with yards in desirable residential areas typically rent for VUV 150,000-250,000 monthly (~USD 1,230-2,050), exceeding VUV 300,000 (USD 2,460) for premium properties with ocean views. Leases generally require one-year minimum terms, with two months' rent as security deposit. Utilities (electricity, water) are almost never included and can represent significant additional expense.

The rental market is poorly structured, with listings found mainly through word-of-mouth, expat Facebook groups, or local real estate agencies. Visit multiple properties and verify overall condition, plumbing, electricity, and internet access before signing. Construction standards vary widely, and some properties lack maintenance. Don't hesitate to negotiate rent, especially for long-term commitments.

Purchasing Property: The Leasehold System

Vanuatu's Constitution stipulates that land belongs to customary ni-Vanuatu owners and cannot be sold outright to foreigners. Non-citizens may acquire rights through leasehold arrangements, typically with 75-year maximum terms, renewable. This system means you purchase the building and improvements on the land, but lease the land itself from the customary owner.

Leasehold property prices vary enormously by location. In Port Vila, modern three-bedroom houses sell for VUV 30-60 million (~USD 246,000-492,000), with prices exceeding VUV 100 million (USD 820,000) for luxury beachfront villas. Apartments are less common but some secure residences exist, offering two-bedroom units at VUV 15-25 million (USD 123,000-205,000).

Before purchasing, engaging a local attorney specializing in property law is crucial to verify lease validity, customary owner identity, absence of land disputes, and renewal conditions. Land disputes are unfortunately common in Vanuatu, and several foreign buyers have lost investments following title challenges. Ensure the land has registered title with the Department of Lands.

Residential Areas

In Port Vila, several neighborhoods attract expats. The city center offers proximity to shops, restaurants, and services, but can be noisy. The Erakor, Pango, and Tassiriki areas are residential, quiet, and secure with beautiful lagoon views. They feature quality housing and a significant expat community. Bellevue and Freshwater, slightly inland, offer more affordable properties.

Coastal zones like Mele and Hideaway Island appeal through exceptional natural settings but are farther from the center and require vehicles. In Luganville, the second city on Espiritu Santo Island, the real estate market is much smaller and prices noticeably lower than Port Vila. Expat options are limited but the environment is more authentic and tranquil.

Utilities and Services

Properties in Port Vila generally connect to electricity (supplied by UNELCO) and potable water (SIWA), though some rural areas still depend on generators and rainwater tanks. Public sewerage is limited, with many properties using individual septic systems. Internet access improves progressively, with fiber optic available in some Port Vila neighborhoods and Starlink satellite now accessible throughout the archipelago.

Monthly electricity bills can be high, especially with air conditioning, ranging VUV 15,000-40,000 (USD 123-328) depending on property size and consumption. Water typically costs VUV 2,000-5,000 monthly (USD 16-41). Internet packages range VUV 5,000-15,000 monthly (USD 41-123) depending on speed and provider.

Practical Tips

Start your housing search with short-term accommodation (hotel, guesthouse, Airbnb) upon arrival, allowing time for on-site prospecting and neighborhood familiarization. Join Vanuatu expat Facebook groups where numerous listings appear and advice is available. Always visit properties before committing and verify essential equipment condition (kitchen, bathroom, air conditioning).

If purchasing, never proceed without independent legal assistance and beware of overly attractive offers. Take time to understand leasehold terms, customary owner obligations, and annual lease renewal fees. Allow comfortable financial margin as unexpected expenses (repairs, cyclones) can arise. Finally, secure home insurance including natural disaster coverage, essential in this cyclone-prone region.

Planning Your Move to Vanuatu

Relocating to Vanuatu represents a logistical adventure requiring meticulous preparation. Geographic remoteness, customs constraints, and high shipping costs demand careful consideration of what to bring. Most expats choose sea freight for essential belongings, supplemented by air baggage. Anticipating administrative procedures in your home country (contract terminations, deregistrations, notifications) and budgeting substantially for this transition is also important.

Pre-Departure Checklist

  1. Administrative procedures: Organize your departure by terminating contracts (utilities, internet, phone, insurance), notifying address changes to relevant organizations (banks, tax authorities, social security), and deregistering from electoral rolls if necessary. Request copies of all important administrative documents.
  2. Essential documents: Gather official documents (passports, visas, residence permits, degrees, birth/marriage certificates, vaccination records) and make several certified copies. Arrange official English translations if your documents are in other languages.
  3. Health: Complete comprehensive health checkup, update vaccinations, see your dentist and optometrist. Build several months' supply of prescription medications and secure international health insurance before departure.
  4. Finances: Open international bank account compatible with Vanuatu transfers, notify your bank of expatriation to avoid card blocking, and progressively transfer funds. Verify withdrawal and payment limits on your cards.
  5. Schooling: If you have children, finalize their enrollment in chosen Vanuatu establishment, request school withdrawal certificate, and retrieve complete academic records.
  6. Housing: Arrange temporary accommodation for initial weeks (hotel, short-term rental) if you haven't secured permanent housing. Prepare necessary rental documents (references, income proof).
  7. Vehicle: Verify international validity of your driver's license or obtain international permit. Research vehicle import conditions if considering bringing one.
  8. Pets: If bringing animals, start procedures several months ahead: updated vaccinations, microchip, international health certificate, Ministry of Agriculture import permit. Quarantine may be required depending on animal and country of origin.

Shipping Your Belongings

For sea freight, contact several international moving companies specializing in Pacific relocations for quotes. Transit time from Europe/Americas ranges 8-12 weeks, with costs depending on volume (calculated in m³) and service type (full 20 or 40-foot container, shared). Budget generally USD 3,000-8,000 for standard sea move of a 50m² apartment.

Pack carefully and create detailed inventory in English of everything shipped, with each item's value. This inventory is necessary for customs declaration. Prioritize shipping personal effects, sentimental furniture, books, clothing, and items unavailable in Vanuatu. It may be more economical to purchase basic furniture and appliances locally than ship them.

Air freight is much faster (days) but considerably more expensive, reserved for urgent or small items. Your accompanied airline baggage allows transporting essentials for the first weeks. Pack important documents, medications, change of clothes, and valuables in cabin baggage.

Customs Formalities

Vanuatu applies customs duties on imported goods, but exemptions exist for personal effects during relocation. You must prove you're a new resident (via residence permit or long-stay visa) and that imported goods have belonged to you for at least 6 months. Required documents include: completed customs declaration form, passport and visa/residence permit copy, detailed valued inventory, and maritime bill of lading.

Certain items are prohibited or regulated: weapons and ammunition, illegal drugs, pornographic materials, certain fresh foods (meats, dairy, fruits, vegetables), plants and seeds without phytosanitary permit, and live animals without prior authorization. Animal or plant products are particularly monitored to prevent disease or invasive species introduction.

Anticipate additional arrival expenses: port storage (charged daily), handling, possible customs inspection, and customs agent fees if employing one. A local customs agent can greatly facilitate procedures and avoid delays or complications, for fees around USD 200-400. Using one is highly recommended for first-time moves.

Budget Planning

Beyond shipping, budget substantial settlement funds for initial months: temporary housing (USD 1,000-2,000 for one month hotel/short-term rental), deposit and first month's rent on permanent housing (USD 3,000-6,000 depending on property), vehicle purchase or rental (from USD 3,000 for decent used vehicle), household equipment (appliances, bedding, utensils: USD 2,000-5,000), bank account opening and service fees (USD 500), and emergency reserve of at least USD 3,000.

Total budget between USD 15,000-25,000 for couple relocating to Vanuatu, excluding airfare. This amount can increase significantly with children or specific needs. Having this sum available in cash or easily mobilized is essential to avoid financial stress during initial months.

Adaptation and Integration

Once settled, take time to adjust to the local pace. Ni-Vanuatu culture values tranquility, courtesy, and respect for traditions. Learn basic Bislama phrases (hello = "halo", thank you = "tangkyu") to facilitate daily interactions. Join the expat community via Facebook groups, associations, and social events, while also opening to local connections.

Be patient with administrative delays which can be lengthy, and don't expect the same efficiency as in Western countries. Time perception differs in Pacific islands, and "island time" takes on full meaning. Take advantage to adopt a more relaxed lifestyle and appreciate the positive aspects of your new archipelago life.

Leisure and Culture: Traditions Meet Nature

Vanuatu offers unique cultural richness blending ancestral Melanesian traditions with Western influences. The archipelago particularly appeals to nature lovers with pristine beaches, active volcanoes, exceptional dive sites, and preserved biodiversity. Social life is tranquil, centered on community and outdoor activities. If you seek big-city cultural buzz, you'll likely be disappointed, but if you value authenticity, simplicity, and wilderness experiences, Vanuatu delivers. The calendar punctuated by traditional festivals and sporting events pleasantly structures the year.

Water Sports and Diving

With crystalline waters and exceptional marine life, Vanuatu is a true paradise for scuba diving. The most famous site is the SS President Coolidge at Espiritu Santo, considered one of the world's best accessible wrecks. This luxury liner converted to troop transport during WWII rests between 20-70 meters depth, offering spectacular diving. Million Dollar Point, also at Santo, allows exploring American military equipment deliberately submerged in 1945.

Around Port Vila, several dive centers offer daily trips to surrounding coral reefs, underwater caves, and vertical walls. Waters teem with tropical fish, sea turtles, manta rays, reef sharks, and occasionally dugongs. Exceptional visibility (often 30-40 meters) and pleasant water temperature (24-28°C year-round) make diving very comfortable.

For non-divers, snorkeling is accessible everywhere and allows admiring coral gardens from the surface. Erakor Lagoon, Mele Bay, and Hideaway Island beaches are perfect for this activity. Classic water sports are also available: sea kayaking, stand-up paddling, sailing, big game fishing, and waterskiing. Several operators organize boat excursions to neighboring islands and isolated spots.

Hiking and Volcanoes

Hiking and geology enthusiasts will find satisfaction with the archipelago's active volcanoes. Mount Yasur on Tanna Island is one of the world's most accessible volcanoes. You can approach the erupting crater and witness the impressive spectacle of incandescent lava explosions, especially at dusk. This unique experience attracts thousands of visitors annually and often constitutes a highlight of Vanuatu expatriation.

Ambrym Island hosts two active volcanoes, Marum and Benbow, accessible via more demanding multi-day treks. These expeditions, organized by local guides, reveal lunar landscapes of volcanic ash and boiling lava lakes. On Espiritu Santo, rainforest hikes lead to spectacular waterfalls like Millennium Cave and the Blue Holes—crystal-clear freshwater natural pools perfect for swimming.

Coastal trails also offer beautiful walks with ocean panoramas, notably on Efate Peninsula. Difficulty levels vary, allowing families and experienced hikers alike to enjoy the archipelago's lush nature.

Melanesian Culture and Traditions

Vanuatu possesses rich, living Melanesian cultural heritage. Traditional dances and custom ceremonies punctuate village life and sometimes welcome visitors. The most impressive spectacle remains the Naghol (land diving), bungee jumping's ancestor, practiced on Pentecost Island between April and June. Young men jump from 20-30 meter wooden towers, held only by vines attached to their ankles, in an ancestral ritual celebrating fertility and bravery.

Local markets, notably Port Vila Market and Luganville Market, allow discovering traditional crafts: wood carvings, woven baskets, painted fabrics, shell jewelry. You'll also find local agricultural products and can taste kava, this traditional relaxing beverage consumed during social ceremonies. Nakamals (kava bars) are important meeting places in local culture where people gather at day's end.

Vanuatu Cultural Centre in Port Vila offers exhibitions on the archipelago's history and traditions, plus library and archives. Kastom villages (reconstructed traditional villages) welcome visitors for ancestral lifestyle demonstrations, though these attractions are primarily touristic.

Festivals and Events

The annual calendar features several major events. Port Vila Fest in December celebrates year's end with concerts, dance performances, art exhibitions, and food stalls. Independence Day on July 30 commemorates the country's 1980 independence with parades, sports competitions, and festivities throughout the archipelago.

Fest'Napuan, typically held in September, showcases contemporary ni-Vanuatu music and hosts Pacific artists. Sports enthusiasts enjoy beach soccer, beach volleyball, and especially traditional outrigger canoe races that bring communities together. Tanna Tourism Festival on Tanna Island offers cultural demonstrations and allows exploring this emblematic island.

Social Life and Nightlife

Nightlife in Vanuatu is relatively quiet compared to Western capitals. Port Vila nonetheless features several restaurants offering varied cuisine (French, Italian, Asian, local), beachfront bars, and a few weekend nightclubs. The Waterfront groups several establishments popular with expats and tourists. Evenings typically end early, around 11pm-midnight.

Expats often gather for community events, beach barbecues, casual drinks, and group sports activities. Clubs and associations exist: rugby, tennis, golf, sailing, plus hiking and diving groups. The atmosphere is friendly and it's easy to build connections within the relatively small expat community.

For families, several parks and playgrounds are available, plus organized weekend activities: swimming lessons, children's creative workshops, film screenings. Port Vila cinema shows recent films, mainly in English. The Alliance Française regularly organizes French-language screenings, lectures, and cultural events.

Daily Life Essentials in Vanuatu

Settling in Vanuatu requires adapting to a different pace and sometimes limited infrastructure compared to Western standards. Basic services are available in Port Vila but can be unreliable in peripheral islands. Managing money, transportation, internet access, and routine purchases demand organization and flexibility. Understanding local operations and anticipating constraints will help you live more comfortably during expatriation.

Banking and Finance

Vanuatu hosts several banking institutions: ANZ Bank, Bred Bank, National Bank of Vanuatu, and Westpac Bank. These banks offer standard services (checking accounts, savings, bank cards, international transfers) but with generally higher fees than Western countries. Opening an account requires passport, Vanuatu residence proof (lease contract, utility bill), and sometimes employer reference letter or foreign bank recommendation.

ATMs exist in Port Vila and Luganville but are rare elsewhere. Withdrawals typically limit to VUV 50,000-60,000 per transaction (~USD 410-492), with banking fees each time. Visa and Mastercard cards are accepted in main shops, hotels, and Port Vila restaurants, but many establishments accept only cash. Prudently always carry vatu cash.

International transfers to Vanuatu can take several days and incur significant fees (USD 20-50 per transfer depending on banks). Transfer services like Wise or Western Union may offer better conditions and faster processing. For large sums, some expats use specialized currency brokers. Always verify applied exchange rates and total fees before proceeding with transfers.

Telecommunications and Internet

Two main operators share the telecommunications market: Digicel and TVL (Telecom Vanuatu Limited). Both offer mobile packages with calls, SMS, and data. Network coverage is good in Port Vila and main cities but limited in rural areas and some islands. Monthly packages cost VUV 1,500-5,000 (~USD 12-41) depending on data needs.

Fixed internet is available in Port Vila via ADSL or fiber optic in some neighborhoods, with variable speeds and reliability. Monthly subscriptions range VUV 5,000-15,000 (USD 41-123) for decent connections. Latency can be high due to distance from international servers. For poorly served areas or peripheral islands, Starlink (satellite internet) recently launched and offers high-performance alternative for initial investment around VUV 90,000 (~USD 738) for the kit, plus monthly subscription around VUV 13,000 (USD 107).

Wi-Fi is available in most Port Vila hotels, restaurants, and cafes, often free but with limited speeds. For remote work or regular connectivity, reliable home internet is essential.

Transportation and Vehicles

Owning a vehicle is virtually essential in Vanuatu, except when living in central Port Vila. Your home country driver's license is recognized during initial months, but you must then obtain a local permit by presenting at the Licensing Office with original license, ID photo, and tax payment. A driving test may be required. International permits facilitate initial procedures.

Vehicle rental is available through several Port Vila and Luganville agencies, with rates around VUV 7,000-12,000 daily (USD 57-98) for standard cars. Long-term, purchasing used vehicles is more economical. Prices vary considerably: budget VUV 500,000-2,000,000 (~USD 4,100-16,400) for decent used 4x4, the preferred vehicle due to sometimes difficult roads. Used Japanese cars (Toyota, Nissan, Mitsubishi) dominate the market.

Fuel (gasoline and diesel) is relatively expensive due to importation, at approximately VUV 180-200 per liter (USD 1.48-1.64). Vehicle maintenance can also cost significantly as spare parts must be imported. A few Port Vila garages handle routine repairs. Automobile insurance is mandatory, with annual premiums varying VUV 30,000-80,000 (USD 246-656) depending on vehicle and chosen coverage.

Public transportation is limited to collective minibuses circulating in Port Vila and on some main routes. Inexpensive (VUV 100-200 per trip, or USD 0.82-1.64), they operate without fixed schedules and depart when full. Taxis exist in Port Vila and Luganville, recognizable by yellow plates, but are quite expensive and generally lack meters (negotiate price before departure). For inter-island travel, plane (via Air Vanuatu) or cargo boats are necessary.

Shopping and Commerce

Port Vila offers decent range of shops, supermarkets, and stores. Main supermarkets like Au Bon Marché, LCM, and Cost Less stock local and imported food products, the latter being notably more expensive. One liter imported milk costs approximately VUV 350 (USD 2.87), one bottle of wine VUV 2,000-3,000 (USD 16-25). Local products (fruits, vegetables, fresh fish) are cheaper and good quality at the municipal market.

Port Vila Market is ideal for buying fresh local produce at reasonable prices: tubers (cassava, taro, yam), tropical fruits (papayas, mangoes, pineapples, bananas), vegetables, fish, and meat. Open daily but liveliest Saturday morning, it's also a meeting and exchange place with locals. Feel free to politely negotiate prices—it's culturally accepted.

For clothing, electronics, and household items, several Port Vila shops exist but selection is limited and prices high. Many expats order online from Australian or New Zealand sites and arrange delivery via freight services or during trips to those countries. Delivery times can be lengthy (several weeks) and customs fees apply beyond certain amounts.

Safety and Daily Health

Vanuatu is generally a safe country with low crime rates. Pickpocketing and burglaries exist nonetheless, especially in Port Vila tourist areas and evenings. Avoid displaying valuables, lock your vehicle and home, and avoid nighttime walks in isolated neighborhoods. Violent assaults against foreigners remain rare.

Natural disasters constitute the main risk. Vanuatu sits on the Pacific Ring of Fire and regularly experiences tropical cyclones (season November-April), earthquakes, and volcanic eruptions. Prepare by stocking water, non-perishable food, and fuel reserves, securing your dwelling, and following National Disaster Management Office alerts. Safety instructions must be taken very seriously as cyclones can cause considerable damage.

For daily health, protect against mosquitoes using repellents, mosquito nets, and wearing covering clothes in evenings. Food hygiene is important: thoroughly wash fruits and vegetables, avoid ice of dubious origin, and be cautious with seafood in unreliable establishments. For minor medical issues, Port Vila pharmacies can advise and dispense over-the-counter medications for common ailments.

Cost of Living: Budget Planning for Vanuatu

Living costs in Vanuatu are relatively high, particularly for imported products comprising a large share of daily expenses. The archipelago's geographic isolation and import dependence drive up prices across most categories: food, housing, transport, leisure. However, complete absence of income tax partially offsets these high costs. Required budget varies considerably by lifestyle: local frugal living costs notably less than expat lifestyle with imported products, regular outings, and international schooling for children.

General Overview

According to recent Numbeo data (August 2025), Vanuatu's overall cost of living runs approximately 10-15% below major English-speaking cities like London or Sydney, but with strong disparities by spending category. Food and imported consumer goods are often more expensive, while housing can be comparable or slightly cheaper depending on chosen neighborhood. Rent typically represents the largest expense for expats, followed by food and tuition for families with children.

The local currency, the vatu (VUV), trades at approximately VUV 122 to USD 1 (October 2025). This rate remains relatively stable but can fluctuate slightly by period. Prices below reflect average rates in Port Vila, with potentially higher prices in peripheral islands due to additional transport costs.

Monthly Budget for Single Person

Detailed expense estimate for single expat living in Port Vila with comfortable but reasonable lifestyle:


Expense Category

Monthly Amount (VUV)

Equivalent (USD)

Rent (1-bedroom apt, city center)

90,000

USD 738

Electricity, water, internet

25,000

USD 205

Food and groceries

60,000

USD 492

Dining out (2-3 times/week)

30,000

USD 246

Transport (fuel, maintenance)

20,000

USD 164

Mobile phone

3,000

USD 25

Leisure and entertainment

25,000

USD 205

International health insurance

25,000

USD 205

Miscellaneous and contingency

15,000

USD 123

TOTAL

293,000

~USD 2,400

Sources: Numbeo (August 2025), local observations

This USD 2,400 monthly budget supports comfortable lifestyle with decent housing, balanced diet mixing local and imported products, regular outings, and leisure activities. You can reduce this budget by choosing more modest suburban housing (saving USD 200-300), exclusively prioritizing local market products (saving USD 150), and limiting restaurant meals (saving USD 100), bringing total to approximately USD 1,600-1,800 monthly for more frugal living.

Monthly Budget for Family of Four

For family of four (two adults, two children), expenses increase significantly, primarily due to larger housing needs and especially international school tuition:


Expense Category

Monthly Amount (VUV)

Equivalent (USD)

Rent (3-bedroom house, good area)

200,000

USD 1,640

Electricity, water, internet

40,000

USD 328

Food and groceries

120,000

USD 984

Restaurants and family outings

40,000

USD 328

Transport (fuel, maintenance, insurance)

35,000

USD 287

Mobile phones (2 lines)

6,000

USD 49

School tuition (2 children, international)

200,000

USD 1,640

Health insurance (family)

60,000

USD 492

Leisure and children's activities

30,000

USD 246

Miscellaneous and contingency

30,000

USD 246

TOTAL

761,000

~USD 6,240

Sources: Numbeo (August 2025), PVIS and Lycée Français tuition, local observations

This substantial USD 6,240 monthly budget reflects true cost of comfortable family expatriation in Vanuatu. School tuition alone represents over one-quarter of total budget. Families choosing distance learning can roughly halve this expense, but at the cost of significant parental involvement in children's instruction.

Sample Prices

To better grasp living costs, here are sample Port Vila prices (October 2025):

Food (supermarket): Bread (500g) VUV 300 (USD 2.46), milk (1L) VUV 350 (USD 2.87), eggs (12) VUV 550 (USD 4.51), white rice (1kg) VUV 250 (USD 2.05), potatoes (1kg) VUV 280 (USD 2.30), chicken (1kg) VUV 1,100 (USD 9.02), beef (1kg) VUV 1,500 (USD 12.30), fresh local fish (1kg) VUV 800 (USD 6.56), imported cheese (1kg) VUV 2,500 (USD 20.49), bottled water (1.5L) VUV 150 (USD 1.23), local beer (500ml) VUV 250 (USD 2.05), wine (bottle) VUV 2,500 (USD 20.49).

Food (local market): Cassava (1kg) VUV 80 (USD 0.66), taro (1kg) VUV 100 (USD 0.82), bananas (1kg) VUV 100 (USD 0.82), papayas (1kg) VUV 120 (USD 0.98), tomatoes (1kg) VUV 200 (USD 1.64).

Restaurants: Inexpensive restaurant meal VUV 1,500 (USD 12.30), mid-range restaurant meal for two VUV 6,000 (USD 49.18), fast-food combo VUV 1,200 (USD 9.84), cappuccino VUV 400 (USD 3.28), draft beer (500ml) VUV 450 (USD 3.69).

Transport: Gasoline (1L) VUV 190 (USD 1.56), taxi base fare VUV 400 (USD 3.28), minibus ride VUV 150 (USD 1.23).

Services: Gym membership VUV 10,000/month (USD 82), cinema ticket VUV 1,000 (USD 8.20), diving outing (2 dives) VUV 14,000 (USD 115).

Budget Management Tips

To optimize expenses in Vanuatu, maximize local products available at market: fruits, vegetables, tubers, fresh fish. These items are not only cheaper but also fresher and better quality. Limit imported product purchases (cheeses, cold cuts, wines) to special occasions. Cook at home rather than systematically eating out, representing substantial savings.

Negotiate your rent and service contracts (internet, electricity), especially for long-term commitments. Share experiences with other expats to identify good deals and shops offering best value. Finally, take advantage of numerous free or inexpensive activities: public beaches, hiking, lagoon snorkeling, which will help offset high costs of certain expense categories.

In Brief

Vanuatu appeals through zero taxation, preserved natural environment, and recognized quality of life. The archipelago offers accessible residency programs, particularly for investors and retirees. While living costs can be high, especially for families with school-age children, tax advantages provide substantial compensation. Infrastructure remains basic outside Port Vila, and comprehensive international health insurance is essential. For those seeking tranquil lifestyle in exceptional surroundings while optimizing taxation, Vanuatu represents an attractive expatriation destination. Join the Vanuatu expat community on expat.com to exchange advice and experiences with those who've made the move.

We do our best to provide accurate and up to date information. However, if you have noticed any inaccuracies in this content, please contact us.

About

I fell in love with words at an early age After a break to focus on my studies, I rediscovered the joy of writing while keeping a blog during my years between London and Madrid. This passion for storytelling and for exploring new cultures naturally inspired me to create Expat.com, a space for my own reflections as well as for anyone wishing to share their experiences and journeys abroad.

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