The Cost of Living Index (CPI) in Vanuatu is 77.87, indicating an expensive cost of living compared to NYC. Groceries are particularly expensive (92.52), while restaurant prices are more moderate (66.27).

The Property Price to Income Ratio is extremely high at 66.08 years, indicating a very expensive housing market for buyers. The Rent Index is 46.56, suggesting that renting might be a more affordable option than buying.

The Purchasing Power Index is very low at 14.49, indicating significantly lower buying power compared to NYC.

Vanuatu operates with no personal income tax, corporate tax, capital gains tax, inheritance tax, or wealth tax. Government revenue is primarily generated through indirect taxes, including a 15% Value Added Tax (VAT) on goods and services, and a 12.5% rental income tax for individuals on income exceeding VT 200,000.

Vanuatu offers a business-friendly environment for foreign investors with streamlined registration processes and no foreign ownership restrictions. The government actively promotes foreign investment and a growing startup ecosystem, though challenges like limited funding and market size persist.

Vanuatu has a compulsory pension scheme, the National Provident Fund (VNPF), with 4% employee and 4% employer contributions. The healthcare system is mixed, with public and private providers, but is limited in resources and quality (index 48/100). Serious medical conditions often require expensive evacuation to Australia or New Zealand, making private health insurance crucial for expats.

Vanuatu does not have a formal deposit insurance scheme to protect depositors. The financial sector is regulated by the Reserve Bank of Vanuatu (RBV) and the Vanuatu Financial Services Commission (VFSC), which are working to align with international standards like FATF and Basel II. However, concerns remain regarding high non-performing loans in some banks.