Marshall Islands
Data updated Oct 14, 2026
Overall Score
49.1
Fair
Avg. Rent (1BR)
$767
-55% vs US Avg
Safety Index
62.8
COL Index
52.4
Overall Score
49.1
FairEstimated Cost
$1,380/mo
single person, incl. rent
Verdict
Best for retirees
based on our recommended destinations
The Marshall Islands works for a narrow type of person: someone already tied to the islands through the Compact of Free Association, a remote worker who wants isolation over amenities, or someone working a specific contract (military-adjacent, NGO, fisheries) that comes with housing sorted. It is not a retirement destination and not a digital nomad base. There is no retirement visa, no passive-income visa, and no digital nomad visa, so anyone without an existing work tie or local sponsorship has no real legal pathway to settle in long-term.
The cost numbers look cheap on paper and that is misleading. Budget $547 a month for everyday living outside rent, and $766.67 for a one-bedroom in Majuro's city center, you land around $1,300 a month, which sounds like a budget-traveler's dream. What that figure hides is everything imported: packaged food, appliances, electronics, vehicle parts, and most building materials arrive by ship and carry a markup that doesn't show up in a basic cost-of-living index. Day-to-day staples are manageable; anything beyond that gets expensive fast.
The friction is infrastructure, not price. Average internet speed sits around 5 Mbps, which rules out serious remote work unless you have a backup satellite connection. Healthcare index sits at 52.8, which means anything beyond basic care means flying to Honolulu, Manila, or further, and international health insurance with medical evacuation coverage is not optional, it's the thing that prevents a routine injury from becoming a financial and logistical emergency. Safety index is 62.8, decent for the region, but isolation itself is the bigger issue: limited flights, limited supply chains, and a market too small for most Western conveniences to exist locally.
For a US expat, the tax picture is straightforward on the Marshall Islands side: income tax tops out at 12%, with 0% up to $8,320, 8% up to $10,400, and 12% above that, and there's no capital gains tax and no dividend tax for residents. But you still owe the IRS on worldwide income. The Foreign Earned Income Exclusion for 2026 lets you exclude up to $132,900 of foreign earned income, and the foreign housing exclusion adds a base of $21,264 with a cap of $39,870 if your rent and utilities push past that threshold, which given $766.67 monthly rent is unlikely to matter much. There's no structured record of a US tax treaty with the Marshall Islands, so don't plan around treaty-based relief, lean on FEIE and the housing exclusion instead, and get a cross-border accountant involved before you assume anything is automatic.
Marshall Islands vs. the Oceania average
Scores out of 10, shown as the gap between Marshall Islands and the average of the 13 other countries in Oceania. 3 clear strengths, 2 clear gaps.
- Tax Friendliness+1.1
- English Speaking+1.1
- Residency Pathway+0.7
- Safety+0.2
- Healthcare+0.2
- Cost of Living-0.1
- Expat Community-0.1
- Public Transport-1.3
- Internet Speed-2.2
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Recommended Destinations in Marshall Islands
Best for Retirees
Best for Geoarbitrage
Best for Remote Workers
- Capital
- Majuro
- Official Language
- English, Marshallese
- Time Zone
- UTC+12:00
- Region
- Oceania
- Population
- 59,194
- Healthcare Index
- 52.8
- Internet Speed
- 5 Mbps
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Explore data visually
🏙️ Top Cities in Marshall Islands
Explore cost of living, walkability scores, and expat ratings for individual cities in Marshall Islands.
CoL Index: 52
Est. Total: ~$2,387/mo
How far does $2,000 go in Marshall Islands?
With a monthly budget of $2,000, you can live comfortably in Marshall Islands. After accounting for an average rent of $$767, you have approximately $1,233remaining for daily expenses.
Calculate your FIRE timeline with these costs →💰 Cost of Living in Marshall Islands
Relative to New York City (NYC = 100). A lower number means it's cheaper.
Estimate the cost of shipping your belongings to Marshall Islands →
See how Marshall Islands's cost of living compares with New Zealand
🛒 Grocery & Family Costs
Family Costs
Can I afford to live in Marshall Islands?
Comfortable (1.0×): balanced baseline lifestyle. Adjusts day-to-day costs only — rent is unaffected.
Marshall Islands
You could save
1,686/mo
Monthly Costs
Attractiveness Scores
Based on national averages. City-level costs may vary. Browse cities in Marshall Islands →
⚕️ Healthcare System
Our Top Pick for Nomads: SafetyWing
Flexible, subscription-based health cover for remote workers in Marshall Islands.
Get Covered with SafetyWing →Looking for more options? Check Ekta.
An estimation of the overall quality of the health care system. Higher is better.
Quality & Affordability:
The Marshall Islands' public healthcare system provides basic services, but facilities are limited. International health insurance is essential to cover medical evacuations and overseas treatment.
Insurance Insights:
International health insurance is essential to cover medical evacuations and overseas treatment.
See how Marshall Islands's healthcare compares with New Zealand
🛂 Visa & Residency Pathways
🛂 Visa Services
Ready to apply for a Marshall Islands visa?
Get help with your application — tourist, long-stay, and residency visas processed online.
General Overview
Process & Requirements:
Residency in the Marshall Islands is 'clear' and uniquely influenced by its relationship with the United States. Under the Compact of Free Association (COFA), citizens of the Marshall Islands can live and work in the US indefinitely, and conversely, US citizens can enter, live, and work in the Marshall Islands without a visa. This makes it exceptionally accessible for Americans. For citizens of other countries, a visa and an Alien Residence Permit are required, and the process is more traditional, typically tied to employment or business.
For non-US citizens, the process involves sponsorship by a local employer. There is no formal retirement or passive income visa, so the pathways are limited. However, the ease of access for US citizens under COFA is so significant that it warrants a higher score than other Pacific islands without such an agreement (URL: https://www.rmigovernment.com/immigration).
Residency & Citizenship Notes:
The pathway to permanent residency is 'clear' for non-US citizens after five years. For US citizens, COFA provides de facto permanent residence. The pathway to citizenship is also 'clear'. An individual can apply for naturalization after five years of residency. They must pass a test on the Marshallese language and civics. The Marshall Islands allows dual citizenship, meaning an applicant is not required to renounce their previous nationality. This makes the path to citizenship a viable option for long-term residents.
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Detailed Visa Options
🧳 Tourist & Short-Stay Information
Extension Notes
The ability to reside in the RMI is governed by the Compact of Free Association and is not a typical visa that is extended. Source: RMI Ministry of Foreign Affairs & Trade.
General Visa Notes
Under the Compact of Free Association, US citizens have the unique ability to enter, live, and work in the Marshall Islands without a visa for an indefinite period. A valid passport is required for entry.
Official Source: View Source
🌴 Retirement / Passive Income Visa
This country does not have a dedicated retirement visa, but the following notes provide guidance on pathways for retirees.
Income Notes
The Marshall Islands does not have a retirement visa program. Other than for citizens under the Compact of Free Association, obtaining long-term residency is difficult and not structured for retirees.
Official Source: https://www.rmiembassyus.org/visas-passports
Health Insurance Notes
The Marshall Islands does not have a formal retirement visa program. For long-term residency under an Entry Permit, proof of ability to cover medical expenses, typically through a comprehensive health insurance plan, is required.
Official Source: https://www.rmiembassyus.org/visas-passports
💻 Digital Nomad Visa
Income Notes
The Marshall Islands does not have a digital nomad visa program. Citizens of the United States can live and work in the RMI under the Compact of Free Association. Other nationals must obtain standard visitor or work permits. Source: RMI Ministry of Foreign Affairs & Trade.
📈 Investor Visa
Investment Details
Investment Options & Notes
The Marshall Islands does not have a formal residency by investment program. Residency for non-US citizens is handled on a case-by-case basis and there is no streamlined investor visa. Source: RMI Ministry of Foreign Affairs & Trade.
Path to Citizenship
Many long-stay visas require proof of health insurance. Compare international health plans before you apply.
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🛡️ Safety & Stability
An estimation of overall safety level. Higher is better.
World Bank political stability estimate, rescaled to 0-100. Higher is better.
Safety Notes:
Crime Rate: Low. The Marshall Islands experience low levels of crime, with occasional petty theft.
Types of Crime: Petty theft and burglary.
Kidnapping Risk: Very low; incidents are rare and typically not targeted at foreigners.
🏦 Taxation & Finance
🏦 Tax Snapshot
FEIE Interaction
FTC Utility: low
RMI imposes a low wage tax rate of 8% on the first $10,000 and 12% above that. The Foreign Tax Credit generates minimal offset against US tax liability because the RMI tax burden is substantially below US rates, making the FEIE the more efficient exclusion mechanism for most US expats in RMI.
Presence Day Count Notes
Standard 330-day physical presence test applies. RMI is a sovereign nation, not a US territory, so days spent in RMI count toward the 330-day requirement for the physical presence test. The bona fide residence test also applies for US citizens establishing domicile in RMI.
FBAR Trigger Notes
US persons with financial accounts in RMI exceeding $10,000 aggregate at any point during the calendar year must file FinCEN 114 (FBAR). RMI banking activity, including accounts at the Bank of Marshall Islands, triggers standard FBAR reporting. FATCA compliance applies. RMI is not on a FATCA Model 1 IGA list as of last review.
401k/IRA Treatment
Pension Income
Foreign pension income is not subject to RMI income tax. RMI's wage tax structure targets wages and salaries earned within RMI, not foreign pension income.
Not Taxed LocallySocial Security
US Social Security benefits received by US expats residing in RMI are not taxed by RMI. No bilateral social security totalization agreement or income tax treaty exists between the US and RMI. US taxation rules still apply to the recipient.
Not Taxed LocallyRoth Distributions
Roth distributions sourced from the US are not subject to RMI income tax. RMI wage tax applies primarily to locally earned wages, not foreign pension or retirement distributions.
Not Taxed LocallyUS 401k/IRA Distributions
RMI has no tax treaty with the United States. RMI does not tax foreign-sourced income for non-citizens under the general framework, and US retirement distributions sourced from the US are not taxed locally. No tax treaty exists to provide formal protection, but RMI's limited income tax scope means these distributions are not reached by RMI tax law in practice.
Not Taxed LocallyCapital Gains Tax
Marshall Islands does not impose a capital gains tax. There is no corporate or individual capital gains tax under RMI law. The islands operate as a tax-neutral jurisdiction for most investment income.
The Republic of the Marshall Islands (RMI) imposes no capital gains tax on individuals or corporations. Gains from asset sales are not subject to tax under RMI domestic law.
Dividend Tax Rate
RMI does not impose a withholding tax on dividends paid to non-residents. Domestic dividend distributions are generally not subject to a separate dividend tax. US persons receiving dividends from RMI-source entities remain subject to US tax obligations regardless of RMI treatment.
exempt
Rate: 0.0%
No dividend withholding tax under RMI law for non-residents or residents
Pick between Form 2555 (Foreign Earned Income Exclusion) and Form 1116 (Foreign Tax Credit) with an expat tax service.
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Fidelity →See how Marshall Islands's taxes compares with New Zealand
☀️ Climate & Environment
Our proprietary index for drinking water quality and sanitation. Higher is better.
Seasonal Variations:
The Marshall Islands have a tropical climate with high temperatures and humidity throughout the year. The wet season extends from May to November, while the dry season lasts from December to April.
😊 Quality of Life
Cultural Amenities:
Museums & Cultural Institutions
Alele Museum & Public Library in Majuro is the national museum and archive of the Marshall Islands, focusing on traditional navigation, crafts, and cultural heritage.
Performing Arts
Traditional Marshallese music and dance are integral to cultural performances.
Cultural Festivals
Manit Day is a celebration of Marshallese culture organized by the Alele Museum.
Culinary Culture
Marshallese cuisine includes dishes like coconut crab and pandanus fruit.
🌐 Infrastructure & Connectivity
Our proprietary ranking of public transit accessibility and reliability.
Internet Reliability:
Marshall Islands faces internet connectivity challenges due to remote location and limited infrastructure.
Speed & Quality: Fixed broadband averages 5 Mbps through satellite connections with high latency.
Availability: Limited coverage concentrated in Majuro and Ebeye, minimal outer island connectivity.
Cost: Expensive due to satellite dependency, around $50-100/month for basic high-speed plans.
Reliability for Remote Work: Challenging for remote work due to satellite latency, limited bandwidth, and high costs.
Transportation Network:
Marshall Islands has limited transportation infrastructure due to its scattered atoll geography and small population.
Roads: Individual islands have basic road networks, mostly unpaved.
Rail: No railway system due to the island nature of the country.
Domestic Travel: Small aircraft and boats provide inter-island transport; Majuro serves as the main hub.
Recommended services for Marshall Islands
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Traveling Mailbox →Frequently Asked Questions about Marshall Islands
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