Catherine Boudier-Contant, Managing Director of First National Real Estate, provides the key to unlocking the Vanuatu property market, how to invest, and what to expect when you get there.

What are three routes of citizenship by investment which Vanuatu allows?

• VCP (Vanuatu Contribution Program)

• DSP (Development Support Program)

• Citizenship Real Estate Option Program
At present there is some talk around this third option, but it has not yet launched.

Can you give a brief overview of the programme and what role your company plays in this space?

The Government of Vanuatu offers foreign applicants access to citizenship through the Vanuatu Citizenship Development Support Program to help promote economic development in Vanuatu. Nominated candidates receive a citizenship certificate as well as a biometric passport.

The main benefits are:–

• Visa-free travel to 129 countries worldwide (including the 26 countries of the Schengen Area).

• As part of the Commonwealth, citizens are entitled to extra assistance from UK embassies.

• No income, corporate, capital gains, estate, wealth, withholding, gift, and other personal income taxes.

• Hereditary citizenship.

• No physical residence or language competency required.

• Citizens can apply for a National ID card, a driver’s licence, and a birth certificate.

We are registered agents who process applications and assist throughout the process. We have an experienced, multilingual team and we are able to assist our clients in French, English, Mandarin, Cantonese and Russian.

Why should investors consider putting their money into the Vanuatu property market?

Investing in Vanuatu property offers plenty of perks, including owning a second home in paradise, no property or personal income tax, a stable property market with the opportunity to earn back on your investment in returns.

How can international investors access the Vanuatu property market through a real estate investment and enjoy a place in the sun?

Investors can access the market through First National Vanuatu website (www.firstnationalvanuatu.com) and we can also organise online viewings as well as virtual tours, floorplans, etc. We go above and beyond to assist investors as we are their first point of contact with Vanuatu.

Can foreigners purchase real estate in Vanuatu, and what are criteria for Citizenship via Real Estate investment? 

Yes. There are no restrictions on foreign nationals 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 Investment Promotion Auth-ority (VIPA) 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 VIPA approval and a business licence in your name, or in the name of a local company.

The Citizenship via Real Estate Investment scheme has not yet started, as mentioned above.

What is the process for buying Vanuatu real estate? 

All land in Vanuatu, as it is around most of the South Pacific, is leasehold. When a property is registered it is registered as a leasehold title, and the maximum term of a lease is 75 years. When you buy an existing lease, you purchase the remaining term.

What other costs are incurred?

You will generally have lawyers fees of around 0.5% of the purchase price or by negotiation. Stamp Duty is 2% of the purchase price and Government Registration fees are 5% of the purchase price. If buying a business or property in a company name it is possible to reduce these down to 4% in total. Your lawyer or accountant will advise you of this at the time of purchase.

Can buyers borrow money from local banks to purchase a property?

Yes, you can. Currently ANZ, Wanfuteng, BSP, BRED Bank, and the National Bank of Vanuatu operate here. Usually on residential property you will require a 20% deposit and on commercial property it’s a 40% deposit. The bank lending criteria is generally on the same basis as in Australia or New Zealand.

Would they need to use a local lawyer?

A property transaction, especially when you live in another country, is a significant transaction. We strongly recommend using a Vanuatu based lawyer to handle your property purchase and give accurate advice if needed. First National Vanuatu can recommend several reputable lawyers to meet your needs.

What are the building codes in Vanuatu?

In Vanuatu you can build a house with thatched roof if you choose! The main thing to remember is that you will need a building inspection and certificate provided to insure against cyclone damage. This will also determine what can be built, ie. residential or commercial, setbacks from boundaries, standards fo construction, methods of waste disposal, etc. Generally, the rules are all designed to protect the buyer by maintaining reasonable standards. The key requirement is to submit plans to the local council for approval, which is a simple process, and then receive the building permit number.

What after-sales support service is provided by First National Real Estate?

The Team at First National will not only assist you with purchasing your new property but we are here to assist with contacts and living in Vanuatu. We have a wealth of local knowledge within our team and we can assist with contacts and information on subjects such as:– shipping; building; banking; schooling; shopping; lawyers and accountants; medical, etc…

Please ask us anything and everything about buying real estate or Vanuatu in general as our team is happy to share our knowledge and experience with you.