Relocation intelligence
🇫🇲 Moving to Micronesia: tax, residency and cost of living
The Federated States of Micronesia levy a low wage tax of 6% to 10%, plus about 7.5% social security. The effective burden on an income worth roughly EUR 54,000 is around 17%. There is no classic corporate tax, but a 3% gross revenue tax. The country uses the US dollar and has a Compact of Free Association with the United States, but consists of remote islands with a small economy.
Thinking of moving to Micronesia? Here is the tax, residency, property and quality-of-life picture in plain numbers, with sources.
Key facts
- Top income tax
- 10%
- Corporate tax
- 3%
- Capital gains
- 0%
- Wealth tax
- No
- Inheritance tax
- No
- Cost of living index
- 45
- Safety
- 3/10
- Internet quality
- 2/10
- Visa-free destinations
- 52
- Foreigners can own property
- No
- Residency in
- 6 months
- Citizenship in
- 5 years
Taxes
Low wage tax 6% to 10% plus about 7.5% social security, effectively around 17% at EUR 54,000. No classic corporate tax, but a 3% gross revenue tax.
Residency and visas
Residence and work are accessible, though the remote location and small economy make settling impractical for most.
Property ownership
Land ownership is reserved for citizens; foreigners can generally only lease.
Cost of living and quality of life
Micronesia offers tropical islands and the dollar as currency, but is remote, with a small economy and limited healthcare.
Passport and mobility
The Micronesian passport gives visa-free access to about 52 destinations, with special access to the US via the Compact of Free Association.
Why people move to Micronesia
Low wage tax and the dollar
Wage tax rises to only 10% and the country uses the US dollar, limiting exchange-rate risk.
Special ties with the US
The Compact of Free Association with the United States gives residents special travel and work options.
Honest trade-offs
- Micronesia bestaat uit afgelegen eilanden met een kleine economie, beperkte gezondheidszorg en hoge invoerkosten.
- Naast de loonbelasting geldt een omzetbelasting van 3% op bedrijfsomzet, ongeacht winst.
- Grondeigendom is voorbehouden aan burgers; buitenlanders kunnen doorgaans alleen pachten.
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