Marshall Islands
Data updated Jul 8, 2026
Overall Score
49.1
Fair
Avg. Rent (1BR)
$767
-55% vs US Avg
Safety Index
62.8
COL Index
52.4
The Marshall Islands is a legitimate consideration for a very narrow profile: Americans who want to live somewhere genuinely off the beaten path, have no dependency on advanced medical care, and find meaning in extreme remoteness rather than being frustrated by it. The Compact of Free Association means Americans can live and work here without a visa, which removes the usual bureaucratic hurdle that dominates expat planning elsewhere. That said, this is not a retirement destination in any conventional sense. It suits someone who has done a stint in the Peace Corps, has a remote income in the $2,500 to $3,500 per month range, and genuinely does not need the infrastructure that most people quietly assume will exist.
The numbers suggest a monthly budget of roughly $1,300 to $1,500 for a single person once you add the $767 Majuro rent figure to the $547 in other living costs. That sounds affordable until you understand what is not included in those Numbeo figures. Nearly everything consumable is imported, and you feel that at the checkout. A can of goods that costs $1.50 in a US grocery store runs $3 to $4 here. Reliable electricity is not a given, and running an air conditioner or backup generator adds meaningfully to monthly costs. Internet connectivity is genuinely poor by any standard, with speeds that make video calls unreliable and remote work frustrating unless your job tolerates latency and outages. Budget $1,800 to $2,200 per month to live without constant financial stress, not $1,300.
The practical friction is significant. Majuro's Majuro Atoll has one hospital, the Majuro Hospital, which handles basic care but ships patients to Hawaii or the Philippines for anything beyond routine treatment. Medical evacuation insurance is not optional here, it is mandatory budgeting, and a policy with solid medical evacuation coverage runs $150 to $300 per month on top of everything else. Supply chains are slow and unpredictable. The islands sit in the western Pacific typhoon belt and face serious long-term sea level concerns, which affects property decisions and the general psychological calculus of putting down roots. Flight connections run through Honolulu, and a round trip to the US mainland typically costs $1,200 to $1,800 with at least one overnight stopover.
On the tax side, the Marshall Islands has no income tax, no capital gains tax, and no wealth tax on individuals. That sounds appealing but changes nothing for Americans. The US taxes citizens on worldwide income regardless of where they live, so your obligation to the IRS follows you. The Foreign Earned Income Exclusion lets you exclude up to $126,500 in 2024 earned income if you meet the physical presence or bona fide residence test, which is straightforward to satisfy here. Passive income, Social Security, and investment distributions do not qualify for that exclusion. There is no US-Marshall Islands tax treaty, so there is no foreign tax credit mechanism to offset what you owe, though since the Marshall Islands collects no income tax there is nothing to offset anyway. File your normal returns, claim the FEIE if applicable, and the structure is about as simple as US expat taxation gets.
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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🏙️ 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: ~$2,379/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.
🛒 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.
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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. Serious conditions often necessitate treatment abroad.
Insurance Insights:
International health insurance is essential to cover medical evacuations and overseas treatment.
🛂 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
🛡️ 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
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My Expat Taxes →☀️ 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 5-10 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.
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Veepn →Frequently Asked Questions about Marshall Islands
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