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Vanuatu trust: how it works and how to set one up
A Vanuatu trust is a trust governed by the law of Vanuatu, in which you transfer assets to a trustee who holds them for the beneficiaries named in a deed. We coordinate the checks, documents and reporting around a local trustee. Get a quote.
Reviewed by a senior trust administrator, updated
Key facts
- Governing law
- No Vanuatu trust statute is listed in the PacLII consolidated Acts index[3]
- Trustee requirement
- The Trust Companies Act (Cap. 69) is the trust company statute of Vanuatu[1]
- Reporting to authorities
- Global Forum review (April 2026): Vanuatu rated largely compliant[2]
Numbers in brackets point to the Sources list at the end of this page.
Swipe sideways to see the whole diagram.
- SettlorSets up the structure and transfers assets into it
- transfers assets under a trust deedTrusteeHolds the assets and manages them under the trust deed
- holds and distributesBeneficiariesPeople who benefit from the trust under its terms
- Trustee holds legal titleTrust assetsThe property held in the structure
Roles and notes
| Part of the structure | What it does |
|---|---|
| Settlor | Sets up the structure and transfers assets into it |
| Trustee | Holds the assets and manages them under the trust deed |
| Beneficiaries | People who benefit from the trust under its terms |
| Trust assets | The property held in the structure |
- The settlor transfers assets to a trustee in Vanuatu under a written trust deed.
- The trustee is usually a Vanuatu trust company; we coordinate the papers and reporting around it.
- A letter of wishes guides the trustee's discretion; it is not binding on the trustee.
- Your lawyer and tax adviser review the plan, including how banks see the place, before anything is signed.
What a trust in Vanuatu is
Think of a trust as a deed-based relationship, not as a company. The settlor passes assets to a trustee; the trustee is then their legal owner but must run them under the deed for the beneficiaries.
The PacLII consolidated Acts index lists no Vanuatu trust statute (source: PacLII, Vanuatu consolidated legislation index). Your lawyer confirms which law governs your deed.
The Trust Companies Act (Cap. 69) is the statute for trust companies (source: PacLII, Trust Companies Act, Cap. 69). What it requires of a trust company is a question for your lawyer.
The law page lists the sourced facts, each with its date.
The common design is a discretionary trust. Distribution decisions rest with the trustee, who reads a letter of wishes that you write and may change. That letter guides but never binds.
A trust cannot hide assets or lift them out of the rules that apply to them. Banks, tax authorities and the trustee all have to know who is behind it.
Continuity is what a trust genuinely provides: a professional trustee keeps to the deed once the settlor has stepped back, become ill or died.
Who a trust in Vanuatu suits
It may suit a family that has already been pointed to Vanuatu and wants the risks explained before deciding. It does not suit someone who wants a place with no questions asked.
Reputation is the main issue. In the October 2026 update, Vanuatu remains on Annex I of the EU list of non-cooperative jurisdictions under criterion 2.2 (source: KPMG, ETF 585).
Being on Annex I can trigger defensive tax measures in EU member states (same source). Banks and advisers weigh this when they look at a structure.
A Global Forum review in April 2026 rated Vanuatu largely compliant (same source). The list is revised twice a year.
Prepare a short note before getting in touch: who would benefit, what would be transferred, and where each family member lives. These points drive each step that follows.
Every enquiry goes through our client acceptance policy, and we tell you early if we cannot take a case. Counsel at home must confirm that a structure in Vanuatu is suitable and lawful where you live.
If you are comparing Pacific places, read the Cook Islands trust guide and the overview for Samoa next.
What the trustee does
A trustee has to keep to the deed, act in the beneficiaries’ interests and maintain proper records.
A trust company in Vanuatu takes the trustee role, and its name is in your documents before you sign.
The trustee’s regular tasks include:
- holding title to the assets and keeping them separate from its own;
- trustee meetings with minutes for each distribution or major decision;
- accounts and an asset report that we send you;
- a periodic refresh of identity checks on the people connected to the trust;
- collecting the self-certification forms used for tax information exchange.
When a payment is requested, the trustee compares it with the deed and the letter of wishes, then minutes the decision and the reasons for it.
Three things remain yours: who the beneficiaries are, the letter of wishes, and any powers the deed reserves to you.
Together with the trustee, we run onboarding, documents and reporting. For legal and tax questions, turn to your own advisers.
Documents and steps to start
A fixed order of five steps applies. The deed is signed only after your lawyer has reviewed it and the trustee has confirmed that it will act.
- Enquiry, then client acceptance and identity checks.
- Design of the structure with your lawyer, including how your bank sees the place.
- Drafting of the deed and your letter of wishes.
- Signing and acceptance of office by the trustee.
- Transfer of assets to the trustee or to a company the trust owns.
We begin by collecting identity documents, evidence for the origin of your money and wealth, and the details of each beneficiary.
| What we ask for | Who it concerns | Why |
|---|---|---|
| Passport and proof of address | Settlor, protector, anyone who can direct the trust | Identity and address checks |
| Occupation and evidence of where the wealth came from | Settlor | To show where the assets came from |
| Names and details of beneficiaries | Beneficiaries | Identification; for a class, enough detail to identify them at payout |
| Incorporation papers and share register | Any company placed in the trust | To confirm ownership and control |
Basis: onboarding checklist, 2026-11-05.
The step-by-step guide lists the papers in order. After that, timing depends on third parties: your lawyer, the trustee, the bank and any registry.
The bank step may take longer for a place on the EU list. We give you a checklist and a list of open items, not a promised date.
Tax and reporting
Tax is tied to the people involved, not just to the trust. Your home country decides your treatment as settlor or beneficiary, so what you file is a question for your own tax adviser.
The draft deed and the asset list goes to your adviser, which keeps the advice grounded in the real documents.
We promise no tax outcome. The trustee collects self-certification forms at the start, which allows reporting deadlines to be planned from the first day.
What affects the cost
Costs have three parts: our work, the Vanuatu trust company’s fee, and third parties such as the law firm and the bank.
We publish the set-up fee for a standard trust; annual administration, event-based work and third-party charges are quoted after we review your case. The structure, the value of the assets, their kinds and the countries involved do most to move the total.
A written estimate states its assumptions and shows the trustee’s part separately. The cost page explains each part.
Vanuatu compared with other places
The clearest difference between places is how the law and the reputation of a place affect your plan, and who acts as trustee.
Weigh three things when you compare:
- How the place is seen by your bank. Banks form their own view, so ask yours early.
- Which statute governs the trust. Some places have a full trust statute; here your lawyer confirms the position.
- Where your family and advisers are. A place they know shortens drafting and review.
Your advisers are the right people for tax and legal comparisons, since your residence and your assets shape the result as much as the place does.
To see Vanuatu next to another place, open the side-by-side comparison tool.
Facts we reviewed, with source and date
| Field | What the source says |
|---|---|
| Trust law | The PacLII consolidated Acts index lists no Vanuatu trust statute. (PacLII legislation index) |
| Trust companies | Trust Companies Act (Cap. 69) |
| EU list | Vanuatu remains on Annex I under criterion 2.2 (October 2026) |
| Effect of listing | Defensive tax measures can follow in EU member states |
| Global Forum | April 2026 review rated Vanuatu largely compliant |
Basis: legislation from PacLII (Vanuatu) and the KPMG summary of ETF 585, October 2026, accessed 2026-11-05.
Short replies on reputation and banks are in the plain answers page. You can also browse every place we cover. Ask for a quote for Vanuatu and we reply with the next questions.
Frequently asked questions
Who can set up a trust in Vanuatu?
The settlor can usually live in another country, but who qualifies is a point your lawyer confirms for your case. We first check your identity, the source of your assets and the people who benefit. Your own lawyer confirms the structure suits you at home.
How do I start in Vanuatu?
Use the quote form to give the family, assets and aim, and our questions come back to you. The order is identity checks, structure design with your lawyer, drafting, signing and funding. Your own lawyer reviews the deed before you sign, and assets move only after the trustee has accepted office.
Who can help me start in Vanuatu?
We coordinate the process and a trust company in Vanuatu holds office as trustee. A law firm drafts the deed, and your own lawyer and tax adviser review it. The trust company and the law firm are named in your documents before you sign.
Is Vanuatu on the EU list of non-cooperative jurisdictions?
In the October 2026 update, Vanuatu remains on Annex I under criterion 2.2, and a Global Forum review of April 2026 rated Vanuatu largely compliant. The list is revised twice a year. Ask your lawyer and your bank how this affects you before you decide.
Is a trust in Vanuatu taxed?
Where you, the beneficiaries and the assets are located matters, as does the way the trust is built. We neither advise on tax nor promise a result. Before signing, your own tax advisers confirm the position, using the draft deed and asset list we send.
Sources
- PacLII: Trust Companies Act (Cap. 69) (Vanuatu), read 2026-11-05.
- KPMG: ETF 585, update of the EU list of non-cooperative jurisdictions (October 2026), read 2026-11-05.
- PacLII: Vanuatu consolidated legislation index, read 2026-11-05.