Vanuatu stands out as an exciting destination to relocate to in the South Pacific, with the Vanuatu cost of living being a major factor in the country’s appeal. This guide provides detailed information on living costs in Vanuatu.
Vanuatu Cost of Living
Housing and accommodation costs
As archipelago, Vanuatu offers a range of housing options, but accommodation costs will vary depending on location, with prices generally higher in cities like Port Vila compared to more remote islands.
Renting in Vanuatu
The cost to rent property in Vanuatu is relatively high as, being a small island, it has limited real estate options. Additionally, an influx of foreign investors and residents has increased Vanuatu real estate demand.
According to Numbeo’s cost of living index, you’ll pay around $1870 per month for a modern one-bedroom apartment located in the city center and around $1,790 if located outside the city center. Monthly rent for a three-bedroom city center apartment is approximately $3,380 and around $2,060 if located outside the city center.
Buying real estate in Antigua
The Real Estate Option Program (REO) allows foreign nationals to buy approved real estate valued at least $200,000 to qualify for the Vanuatu citizenship by investment program, typically through real estate shares rather than sole ownership.
Approved real estate projects include:
- Pacific Springs in Rentabao, Efate Island
- Narpow Point Coral Bay in Narpow Point, Efate Island
- FPF Rainbow City Project in Narpow Point, Efate Island
- Milai on Espiritu Santo island
Besides property acquisition for citizenship, real estate such as a three-bedroom, two-bathroom harborfront apartment is available in Port Vila for $350,000. You can secure a spacious four-bedroom with a swimming pool in other parts Efate for $600,000.
Food and grocery expenses
Expats retiring to Vanuatu will find locally produced goods such as oranges, tomatoes, onions, coconuts, and local cheese at reasonable prices. The overall cost of groceries and basic necessities in Vanuatu is quite high.
Item | Cost |
Milk (1 liter) | $2.41 |
Eggs (12 regular) | $5.29 |
White rice (1kg) | $3.75 |
Fresh white bread (500g) | $2.81 |
Onion (1kg) | $2.89 |
Oranges (1kg) | $5.45 |
Chicken (1kg) | $16.85 |
Beef (1kg) | $17.01 |
Cheese (1kg) | $12.87 |
Bottle of wine (mid-range) | $16.85 |
Eating out
A meal at an inexpensive restaurant in Vanuatu typically costs $11, much cheaper than the average of $20 in the United States. Diners can expect to spend around $65 for a three-course meal for two people at a mid-range restaurant. You pay about $4.40 for a domestic beer at a local Italian restaurant or bar.
Healthcare and medical costs
Vila Central Hospital in Port Vila is the country’s primary medical facility. The country’s healthcare system is mainly funded by the government but is limited and lacks resources.
Though living in Vanuatu is safe, residents are advised to secure private health insurance with medical evacuation coverage, especially residents of more remote islands, as it’s not unusual to need medical care in other Oceanic nations such as Australia or New Zealand.
A short visit to a private doctor in Port Vila costs about $40. Companies like AXA Global Healthcare and Cigna Global Insurance provide private health coverage in Vanuatu. A middle-aged individual can expect to pay about $100 to $120 for a monthly Cigna Global health insurance policy. However, rates will vary significantly depending on the selected plan—Silver, Gold, or Platinum—and existing medical conditions.
Education and school fees
Public education in Vanuatu is not compulsory and is partially funded until 18 years of age. Yearly tuition for middle school students at Port Vila International School is $1,410 per term for citizens and $1,630 for foreign nationals. A diploma in Climate Resilience and Humanitarian Action at the National University of Vanuatu has a tuition fee of VATU 40,000 per course, with a total of eight courses.
Transportation costs
The way Vanuatu residents travel depends on their island and the available infrastructure. The most common and affordable way to travel around the island of Efate is on ten-seater minivans, with a one-way ticket costing VATU 150 ($1.20). Shared taxis are also a prevalent way to move around. The price is calculated per taxi at VATU 500 ($4) in Port Vila.
The many things to do in Vanuatu throughout the country’s archipelago make ferry rides between islands frequent. The Vanuatu Ferry, departing the island of Efate, costs VATU 12,000 ($97) to Espiritu Santo and VATU 9,000 ($73) to Malekula and Tanna.
Vehicle ownership
While Vanuatu taxes favor tax residents, vehicle imports are subject to high import duties and shipping costs. Shipping a vehicle from the USA or Japan costs between $2,000 and $5,000. Import duty can be up to 40 percent of the vehicle’s value, depending on the type and age. All imported vehicles are charged a 15 percent VAT. The annual vehicle registration fee is VATU 15,000 to 30,000 ($120 to $240).
Vanuatu’s Cost of Living Compared to Other Countries
From data produced by Numbeo, living expenses in Vanuatu are comparable to those in the United States and Australia. While rent tends to be higher in Vanuatu, the overall cost of purchasing a home is more affordable. Grocery prices in Vanuatu are generally lower than in the USA, but Australia’s grocery costs are usually cheaper. Basic utility costs in Vanuatu are pricier than in both the USA and Australia, though dining and entertainment costs are lower.
Item | Vanuatu | United States | Australia |
One-bedroom apartment (city center) | $1,870 | $1,740 | $1,320 |
One-bedroom apartment (outside the center) | $1,790 | $1,435 | $1,055 |
Apartment price per square meter | $2,730 | $2,970 | $5,620 |
Basic utilities (monthly) | $535 | $210 | $170 |
Milk (1ltr) | $2.41 | $1.05 | $1.48 |
Bread (500g) | $2.81 | $3.63 | $2.36 |
Rice (1kg) | $3.75 | $4.59 | $2 |
Chicken (1kg) | $16.85 | $12.13 | $8.19 |
Meal at inexpensive restaurant | $11 | $20 | $16 |
Preschool | $620 | $1,370 | $1,540 |
Personal income tax | No tax | 10 to 37 percent | 0 to 45 percent |
Take a look at our Vanuatu Citizenship by Investment Ultimate Guide
Frequently Asked Questions about the Vanuatu Cost of Living
How much do utilities cost in Vanuatu?
The cost of utilities in Vanuatu is relatively high. Basic utilities, including electricity, cooling, water, and garbage, cost $535 monthly. A 10GB mobile phone plan is quite affordable at $25 per month, but wired broadband internet comes at a hefty cost of $230 per month on average.
Is Vanuatu cheap or expensive?
Vanuatu can be considered affordable in some areas and expensive in others. Rent prices are high compared to other South Pacific islands, and many groceries, particularly imported ones, are expensive. However, real estate prices are fairly cheap, and the country does not impose income tax, lowering the overall cost of living.
How much money do you need to live in Vanuatu?
On average, a single person will need between $2,000 and $3,000 monthly to cover basic living expenses in Vanuatu. Monthly expenses for a family of four are between $2,500 and $4,000.
Is Vanuatu cheaper than Australia?
Vanuatu is quite expensive compared to Australia, though this depends on where you choose to live. The average cost of food, accommodation, and utilities is higher in Vanuatu, but eating out and entertainment are generally cheaper. Australia is more expensive for purchasing real estate.
What is the average salary in Vanuatu?
The average monthly salary in Vanuatu is about VATU 67,000 ($540).
Why is Vanuatu so expensive to live?
Vanuatu’s remote location jacks up the average prices for most goods and services due to high import costs. Imported fuel, food, electronics, and other everyday products are expensive. Additionally, the combination of limited infrastructure and a small population mean high utility costs and a narrower selection of housing.
