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There are many reasons for investing in Real Estate in Vanuatu. Some people wish to acquire a retirement home whilst others want to quality for residency requirements. Still others seek to buy property purely as an investment, particularly as the relatively high rents make property ownership attractive. |
For many investors however, it is more straightforward than that – they simply want to enjoy the lifestyle, to have a little piece of the untouched paradise for themselves.
Prices have been steadily increasing over the years and the buoyancy in the market which has been recently lost in many other countries has been retained here as a result of several factors: Hong Kong Chinese moving off shore before the hand over of the colony to China in 1997; Australians pulling out of Papua New Guinea, the perception by investors that the Vanuatu Government genuinely wishes to attract foreign investment, particularly in the tourism sector. In addition the recent uncertainty on the world currency markets has caused many investors to switch to the traditional refuge of “bricks and mortar”.
Real estate services
To any client, whether resident or foreigner, the local companies offer long-standing experience of Vanuatu, its laws and banking and company regulations together with familiarity with the customs of Vanuatu. All Real Estate transaction matters are handled in a professional manner that is personal, competent and discreet.
Land leases
No land in Vanuatu is freehold, therefore all land is leasehold. Leases usually extend for 50 or 75 years from the date of Vanuatu’s Independence in 1980, or sometimes from the date that a new lease is created. The urban leases are contained within the Municipal Zone of Port-Vila and Luganville. The lessor is the Government, acting on behalf on its people who are the Custom Owners or freeholders, and the buyer becomes the lessee when a transaction is completed. All leases are registered in the central government Land Records Department and all transactions on land leases must be registered.
Why Vanuatu
Tax haven
Because Vanuatu is one of the world’s few pure Tax Havens there is no Inheritance Tax and no Capital Gains Tax. You may also purchase in the name of a company (with or without a Trust) which can be easily arranged through any of the major reputable financial institutions.
Another advantage of Vanuatu being a Tax Haven is that the transaction may be carried out in any currency agreeable to both seller and purchaser.
Land ownership system
Until they understand how the system works, investors are sometimes concerned with the idea of leasing land as opposed to the Western concept of land ownership.
In fact, Western concepts of land ownership are hardly accurate. In most countries governments actually lease the land to individuals and companies but they call the lease payments "property taxes." If the "owner" fails to pay whatever taxes are assessed on the property, the government can and does confiscate the land. By contrast, in Vanuatu, the government can't take the land from the indigenous people under any circumstances. But the government can and does act as an efficient and fair mediator between custom land owners and foreign investors.
You do not have to be a resident of Vanuatu or have employment in Vanuatu to purchase commercial or residential property and generate income from this property. You will not pay income taxes in Vanuatu on any income that your investment earns although the company will have to participate in the sales tax process and pay other government fees such as businesses licenses etc.
Steps to buying property in Vanuatu:
1. Sign an "Agreement for Sale and Purchase" form.
2. Pay the deposit..
3. Sign the Lease Transfer.
4. Settle the transaction.
5. Pay a Stamp Duty of 2% to the Government.
6. Register the transfer at the Lands Records Department and pay 5% registration fee.
7. Pay Solicitor's fees (Negotiable, usually 1%). This step can be avoided, if desired, by allowing TransPacific Real Estate to complete the transaction.
These costs are not applicable if the current lessee is a company or trust and the buyer simply buys the shares of the company or buys the trust with all its assetts.
Source: www.transpacificproperty.com
