Marshall Islands — Tax Guide, Residency & Cost of Living for Expats

Oceania

Tax Score

70/100Territorial

Tax Data

Income Tax8% – 12%
Corporate Tax3%
Capital Gains0%
VAT/GST0%
Wealth TaxNo
Inheritance TaxNo

Residency & Visas

Golden VisaNo
Digital Nomad VisaNo

Cost of Living & Quality of Life

Cost of Living Index38
Safety6/10
Internet5 Mbps
Healthcare3/10

Tax Overview

Marshall Islands combines a territorial system with low rates, creating a highly favorable tax environment where foreign income is exempt and local rates are minimal.

Personal Income Tax

Personal income tax in Marshall Islands ranges from 8% – 12% progressively. Even the top rate is moderate by international standards.

Corporate & Capital Gains

The corporate tax rate is 3%, highly competitive globally. There is no capital gains tax — ideal for investors.

Indirect Taxes & Wealth

VAT/GST is 0%, low by international standards.

Crypto & Digital Assets

Marshall Islands takes a standard approach to crypto taxation (score 3/5). Gains are generally treated as capital gains or ordinary income.

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Residency Guide

Relocating to Marshall Islands is possible but with limited options. Visa options are more limited, but residency is achievable through standard pathways.

Visa Options

Marshall Islands does not currently offer a digital nomad visa or golden visa. Foreigners can explore work, investment, or family reunification visas.

Practical Considerations

As a non-LATAM destination, applicants should consider potential language barriers and cultural differences. Working with a local immigration attorney and verifying apostille/legalization requirements for documents is recommended.

Also consider: Vanuatu, United Arab Emirates, Cayman Islands

Lifestyle

Marshall Islands offers a low cost of living, enabling a comfortable lifestyle on a moderate budget.

Cost of Living

With an index of 38 (reference: 100 = New York City), Marshall Islands is significantly cheaper than major world cities. An expat can live comfortably at a fraction of what it would cost in the US or Western Europe.

Safety & Infrastructure

A safety score of 6/10 indicates a generally safe environment, with normal precautions recommended. Internet speed of 5 Mbps — may be limiting for video calls and intensive remote work.

Healthcare

A healthcare score of 3/10 indicates significant healthcare system challenges. Comprehensive private insurance is essential.

Pros & Cons

Pros

  • Territorial tax system — foreign income exempt
  • No capital gains tax
  • Very low cost of living (index 38)
  • Excellent value: affordable and safe

Cons

  • Limited healthcare system (3/10)
  • Slow internet (5 Mbps)

Frequently Asked Questions

Marshall Islands operates under a territorial tax system: only taxes income generated within the country — foreign-sourced income is generally exempt. The top personal income tax rate is 12%.

About this guide

Researched and maintained by the TuLugar team, based in Asunción, Paraguay.

Data sourced from PwC, Numbeo, UNDP, and Ookla.

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