Relocation intelligence
🇷🇪 Moving to Réunion: tax, residency and cost of living
Réunion is a French overseas department and outermost EU region in the Indian Ocean that applies the full French tax system, with progressive income tax up to 45%, corporate tax of about 25% and a flat 30% levy on capital gains. Residents receive a 30% income-tax réfaction capped at EUR 2,450, and a reduced VAT applies (8.5% standard, 2.1% reduced). The currency is the euro and the territory is part of the EU and EEA; it is the best-served and safest DOM with good infrastructure, though living costs are high.
Thinking of moving to Réunion? Here is the tax, residency, property and quality-of-life picture in plain numbers, with sources.
Key facts
- Top income tax
- 45%
- Corporate tax
- 25%
- Capital gains
- 30%
- Wealth tax
- Yes
- Inheritance tax
- Yes
- Cost of living index
- 78
- Safety
- 6/10
- Internet quality
- 7/10
- Visa-free destinations
- 194
- Foreigners can own property
- Yes
- Residency in
- 6 months
- Citizenship in
- 5 years
Taxes
The full French tax system with a top rate of 45% plus social charges (CSG/CRDS), but residents receive a 30% income-tax réfaction capped at EUR 2,450. VAT is reduced (8.5% standard, 2.1% reduced) and corporate tax is about 25%.
Residency and visas
As an outermost EU region, EU citizens reside freely; non-EU nationals follow French residence frameworks. Réunion has the largest and most diversified DOM economy, with tourism, sugar, public service and trade.
Property ownership
Foreigners may freely buy real estate under French law, with no nationality-based restrictions. The market is the most developed of the DOMs.
Cost of living and quality of life
Réunion offers spectacular volcanic scenery, a pleasant climate and the best French services of the DOMs, with relatively good safety, but living costs are high.
Passport and mobility
Residents are French citizens and travel on a French passport with visa-free access to about 194 destinations, and enjoy free movement within the EU and the Schengen area.
Why people move to Réunion
Best-served and safest DOM
Réunion has the most developed infrastructure, healthcare and economy of the French overseas departments, with relatively good safety.
Tax réfaction and reduced VAT
Residents receive a 30% income-tax reduction (up to EUR 2,450) and a reduced VAT rate of 8.5%, easing the burden.
Honest trade-offs
- De kosten van levensonderhoud in Réunion liggen fors hoger dan in het Franse vasteland, vooral door dure import, met een hoge werkloosheid.
- Het Franse toptarief van 45% plus sociale premies (CSG/CRDS) maakt de belastingdruk hoog, ondanks de réfaction van 30% die op EUR 2.450 is gemaximeerd.
- Ondanks een relatief goede infrastructuur is de arbeidsmarkt klein en de werkloosheid structureel hoog vergeleken met het Franse vasteland.
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