Yes. There are no restrictions on foreigners buying property. A non- citizen may be required to provide a "financial reference" and a "professional reference" from a local firm, for urban purchases, but that is the only distinction made between citizen and non-citizen buyers. You do not need a Vanuatu Foreign Investment Promotion Authority (VFIPA) Investor’s Certificate or a business licence to buy property in Vanuatu. If your purchase also requires a business licence (for example, when you buy an existing business) then you would need a VFIPA approval and a business licence in your name, or your trading name, or in a local company's name.

No. If a property is registered it is registered as a leasehold title. The urban areas of Port Vila and Luganville on Santo Island were declared "public" land in 1980 under the Land Reform Act (Cap 123), and certain other zones on other islands have been declared urban land. The Minister of Lands is the Lessor in the urban areas, and in many rural leases, especially those created shortly after Independence when the customary ownership was not yet established, or where customary ownership is disputed.

No. There is no requirement for property owners to live in Vanuatu, nor are holders of Vanuatu residency permits obliged to reside in Vanuatu.

1. Inspect properties in the usual way and choose one.

2. Make an offer to the agent and negotiate any conditions the offer may be subject to.

3. If the offer (conditional or unconditional) is accepted, a draft sale agreement is issued (usually by seller's side.)

4. Agent confirms the seller’s acceptance of the offer in writing.

5. Sign sale and purchase agreement then pay deposit (usually 10%) into agent's or solicitor's trust account.

6. Purchaser proceeds to meet any conditions in contract; for example • Obtain (VFIPA) Vanuatu Foreign Investment Promotion Authority approval • Confirm bank financing (if required) • Obtain planning permission (if required) • Lessor’s Consent to Mortgage (usually done by the bank’s solicitor) • Register for Value Added Tax (Commercial only)

7. Seller or seller’s agent applies for Lessor's “Consent to Transfer” lease title or arranges for share transfer.

8. Both parties are informed when “Consent to Transfer” is approved.

9. If all other conditions are satisfied a settlement date is arranged.

10. Pre-settlement inspection of property or last minute search of title is carried out by purchaser's side, if desired.

11. Settlement takes place, usually at the agent’s or vendor’s solicitor’s office.

12. Documents usually handed over to the purchaser at settlement include:- • 3 original Transfer deeds (or share transfers) already executed by Seller • Copy of the registered title • Settlement Statement • Last property tax (or rates) receipt • Last lease rent receipt • Tenancy agreement (if applicable) • Company documentation (if applicable)

13. Purchaser lodges the Transfer of Lease at the VFSC (Vanuatu Financial Services Commission) for stamping and pays 2% Stamp Duty to the VFSC (4% on share transfer).

14. Purchaser lodges the Transfer of Lease for registration at the Land Records Office and pays 5% registration fee to the Vanuatu Government. (This step does not occur if shares in a company are purchased because a lease title transfer).

15. In due course the person or company that lodged the documents collects or receives an “Advice of Registration” recording the transfer in the registry.

THE PURCHASER IS THEN THE REGISTERED OWNER (LESSEE) OF THE VANUATU PROPERTY THEY HAVE BOUGHT.

When you buy an existing lease title, you purchase the remaining term of that lease, you do not receive a new 50 or 75 year lease term.

In 2003 Parliament passed a law (the Land Lease (Amendment) Act No. 24 of 2003) enabling any urban Lessee to extend a Lease that is currently less than 75 years up to 75 years upon payment of the requisite Lease extension premium and administrative fees. Otherwise, any lease that is not renewed or extended prior to its expiry will be at an end. If such a situation were to eventuate, most lease title schedules say that the land and improvements are then returned to the lessor without compensation being payable to the former lessee (former property owner).

Yes. Lessees may surrender their lease either to subdivide land, re-zone (ie: residential to commercial; agricultural to tourism, etc..) or to extend the term (see Question 8 above). "Premium" payments and revised annual lease rents are likely to apply, which are negotiated between Lessor and Lessee.

The Vanuatu Parliament passed the Strata Title Act in 2000 (renamed the Strata & Community Titles Act in 2017) and has also approved the Strata Title regulations. This means it is possible to strata title existing buildings and to create Strata Titles for new apartment and commercial buildings. All such new lots within such a plan must be strata lease titles of 75 years.

Yes. Mortgages and "Cautions" are registered on the Leasehold titles as they would be on freehold and Leasehold titles in other countries, to secure bank lending and other facilities such as overdrafts. The Lessor’s “Consent to Mortgage”, which will have a fee payable, is needed for this.

Generally speaking, a typical transaction takes about 1 - 3 months. This varies depending on conditions that may be part of a particular transaction. Any transfer of a property title requires the Lessor’s “Consent to Transfer” and evidence that any fees payable to the local authorities and the lessor have been paid.

2% Stamp Duty

5% Title Transfer Registration If the buyer is purchasing an existing company, the Stamp Duty is 4% on the share transfer value, and because the shares in the lessee company are transferred, not the title itself, there is no 2% Registration fee.

Legal costs vary but they are typically 0.5% - 1.0%.

Residential property and vacant land capital gain has been best in prime areas such as the harbourfront. lagoonfront areas with good water and sunset views, and for commercial property, along the main street CBD of Port Vila have also seen steady increases in market value. Like other markets in other countries, Vanuatu has periods where the market is very active, and periods where it slows down.

For Residential property in and around Port Vila, Tassiriki, Elluk, the Harbourfront, First Lagoon, Second Lagoon, Bellevue, Malapoa and the oceanfront subdivisions near town such as Dream Cove, Angelfish Bay, Paradise Cove, Bukura, Narpow Point and Havannah Harbour .

Commercial – the CBD and main street and the central harbourfront.

Agricultural - Efate & Santo islands.

Good property typically rents well. There are many aid organisations and private foreign companies who prefer to rent for 1 - 3 year contracts rather than buy. These houses are usually furnished. Short stay property managers will be able to advise on the holiday market.

Yes. Our company has been doing property management of houses and commercial buildings for more than 25 years. This usually costs between 7% to 10% of gross income plus VAT.

Many tenants are employees of aid donor agencies, high commissions and other private and public organisations. Most contracts are for one year, but 2 and 3 year tenancies are also occasionally entered into. Typically, a good standard family home of 3 or 4 bedrooms would 4 rent for Vatu 150,000 to Vatu 250,000 per month, and sometimes higher, depending on location size and standard of the property.

There are several companies in Port Vila owned or managed by qualified builders. As in any other country it is important to select a builder carefully and to see other jobs they have done.

Engineering and survey reports may be requested from qualified people or companies operating in Vanuatu. For many years it has been impossible to obtain bank financing or full insurance (including against cyclone) on property without engineers’ and architects’ compliance reports.

No. Not to do the building for yourself on your own land title. You will still need to obtain your planning permission and building permit, and you will need to register as an employer with the VNPF (the Vanuatu National Provident Fund) if you hire any workers.

Naturally, this varies from builder to builder, and depends on the standard of construction, but a reasonably good guide is approximately VT 100,000 – 150,000) per square metre. Obviously where more luxurious fixtures and fittings are used, this price will be higher. It is wise to seek a few quotes and ask to see what the builder has constructed.

Banks typically require from the borrower 20% for residential loans and up to 50% of the loan for commercial loans (+ the buyer’s Government fees). This varies depending on the nature of the loan and the bank's assessment of the borrower.

Ten per cent is the standard contract deposit when a sale agreement is exchanged between a buyer and seller. Deposits are held in trust, till settlement, usually by the Seller’s agent or solicitor. 

The law does not oblige purchasers to use a solicitor, but for those contemplating buying a property or business it is very wise to seek legal advice and representation, especially if you are entering the Vanuatu market for the first time. Our laws and practices are likely to be different from your own country. Unless you specifically ask us to represent you as purchaser, our agency is engaged by the sellers, and our commission will be paid by the seller.

VAT (currently 15%) is not payable by the purchaser on residential property. VAT is payable by a builder if he sells a house he has built or if a property developer creates a land subdivision or strata titled project for sale.

As a rule, VAT will be payable by the purchaser on the sale of commercial property, because the seller will usually be VAT registered. He can then claim back the VAT if he is a registered VAT entity. A "one - off" sale of a commercial property where the seller is not registered for VAT and has not claimed back VAT for expenses on the property will not usually not be subject to VAT. Also a sale where the Seller has already de-registered from VAT is not subject to VAT. If the seller is not registered for VAT, then he cannot charge VAT and will not be asked to pay it. Specific enquires should be made to the VAT Office, or to a solicitor or accountant accustomed to dealing with VAT issues.

1. Municipal Property Tax (in the Urban Zones) paid every six months.

2. Annual lease rent, sometimes called “ground rent”.

3. Insurance.

4. Rent Tax on Residential property (or VAT on commercial) is 12.5% of gross income.

5. Maintenance or Management.

Most property is sold by Private Treaty or Tender. Auctions almost never occur. Occasionally the "Expressions of Interest" method is used, especially for a project or subdivision not yet done, but approved, where the developers wish to determine the level of interest in their project.

To reclaim land beyond the mean high water mark of any property, you require: 

1. Foreshore Development Act approval (from the Minister of Internal Affairs).

2. Negotiator Certificate from the Minister of Lands.

3. Lessor's approval if land is rural, or the Minister of Lands is not the Lessor.

4. Municipal Planning Permission in the urban areas.

5. Provincial Government Planning permission in the rural areas.

6. A PEA (Preliminary Environmental Assessment) and if recommended by the Environment Department, a full Environmental Impact Assessment. A jetty will require Department of Ports & Marine approval.

7. The permit fees payable are set out in the Foreshore Development Order No. 144 of 2016.

Yacht moorings are marked on a grid pattern within Port Vila Harbour. Department of Ports & Marine should be consulted about any rules and fees for mooring anywhere else in the country.

Private parties can agree to a sale in any currency acceptable to both sides. There are no restrictions in sending foreign currency into or out of Vanuatu, although the commercial banks, solicitors and real estate firms will require certain details about funds coming into or being sent out of Vanuatu in order to comply with Vanuatu’s Financial Intelligence Unit’s requirements.