Vanuatu

Legal Framework

Vanuatu is one of the most progressive Pacific Island nations for digital asset regulation. The Virtual Asset Service Provider (VASP) Act passed Parliament on March 26, 2025, establishing a comprehensive licensing framework for crypto exchanges, transfer services, custodians, financial service providers, digital banks, and token issuers. The VFSC regulates VASPs alongside traditional financial dealers. A Fintech Sandbox Utility allows licensed entities to trial crypto services for up to a year before full implementation. The VASP Act aligns with FATF, APG, IOSCO, OECD, and EU standards. No AI-specific legislation exists but the digital asset framework is highly developed.

Key Laws & Regulations

• ◆Virtual Asset Service Provider (VASP) Act 2025
• ◆International Companies Act (Cap. 222)
• ◆Financial Dealers Licensing (FDL) Act
• ◆Companies Act (Cap. 191)

Business Formation

International Company (IC) under International Companies Act - no minimum capital, 20-year tax exemption guarantee. Limited Liability Company (LLC) under Companies Act. Financial Dealers License (FDL) for securities, FX, commodities, digital assets. VASP License (6 types: exchange, transfer, custody, financial services, banking, token issuance). No annual tax returns or financial statement filing required for ICs.

Tax Implications

0% corporate income tax. No capital gains tax, withholding tax, wealth tax, or inheritance tax. ICs guaranteed tax-free for 20 years. Fixed annual fee ~USD 300 regardless of profit. VAT at 12.5% on domestic goods/services. Rental income taxed at 12.5%.