Lesotho vs Vanuatu
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
๐ฐ Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country โ side by side.
๐ฑ๐ธ Lesotho โ Lesotho Tax System
Lesotho is a landlocked enclave within South Africa with progressive income tax up to 35%. VAT is 15%. The country's economy is closely tied to South Africa โ customs revenues from SACU (Southern African Customs Union) provide a major share of government income. Textile exports (especially to the US under AGOA) and diamond mining are key sectors. Water royalties from the Lesotho Highlands Water Project also contribute.
๐ป๐บ Vanuatu โ Vanuatu Tax System
Vanuatu has no income tax, no capital gains tax, no inheritance tax, and no withholding tax โ one of the world's most tax-free jurisdictions. Revenue comes from VAT at 15% and import duties. The Vanuatu Development Support Programme (VDSP) citizenship by investment programme is very popular. Port Vila is a growing offshore financial centre.
Lesotho vs Vanuatu: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ฑ๐ธ Lesotho has a higher top income tax rate (0โ35% vs 0%). ๐ป๐บ Vanuatu is more favourable for high earners.
๐ VAT/Sales Tax: Both countries have comparable consumption tax rates (15% vs 15%).
๐ข Corporate Tax: ๐ป๐บ Vanuatu offers a lower corporate rate (0% vs 25%), which can influence business location decisions.
๐ Capital Gains: ๐ป๐บ Vanuatu taxes investment gains at a lower rate (0% vs 25%), benefiting investors.