Coral Atolls, Nuclear Legacy & Pacific Navigators
There is a wages and salaries tax on employment income (a two-tier system, commonly 8% on lower earnings and 12% above a threshold), withheld by employers. There is no broad worldwide personal income tax like the US system, and no separate personal capital gains, estate, or net worth tax.
Businesses pay a gross revenue tax — assessed on total turnover, not on net profit. There is no deduction for expenses, so low-margin businesses bear a proportionally higher burden. Import duties also apply heavily since most goods are imported.
The RMI has not historically operated a broad European-style VAT; consumption is taxed largely through import duties. Proposals to reform consumption taxation have surfaced over the years, so confirm the current position with Revenue and Taxation.
Yes. The US taxes citizens on worldwide income regardless of residence, and the Compact of Free Association does not change that. You generally must keep filing US returns and may need FBAR/FATCA reporting. The Foreign Earned Income Exclusion and Foreign Tax Credit can reduce double taxation — consult a cross-border tax professional.
The RMI runs one of the largest international ship registries (a flag of convenience) and hosts offshore entities. That is a separate international regime administered outside the country's day-to-day onshore tax system and does not govern your personal wages or a local business's gross revenue tax.
Do not assume tap or catchment water is safe to drink untreated. Many residents rely on rainwater catchment and either boil, filter, or drink bottled/treated water. Waterborne illness and limited freshwater are real concerns, especially during dry spells.
Majuro Hospital handles emergencies within its capacity, but serious or complex cases are typically stabilized and then referred off-island (often to Honolulu or Manila). This is why comprehensive insurance with medical evacuation coverage is essential before you relocate.
Availability of specific medications is limited and supply can be intermittent. Bring an adequate supply of any essential prescription plus documentation, and plan how you will restock — often via off-island trips or arranged shipments.
The country has a high prevalence of non-communicable diseases like diabetes and hypertension, ongoing tuberculosis programs, and mosquito-borne illness risk (such as dengue). There is also a long-standing health legacy from mid-20th-century US nuclear testing affecting specific communities. Standard tropical precautions and up-to-date vaccinations are advised.
Yes, largely — English is widely used in government, business, and Majuro daily life. But Marshallese is the mother tongue everywhere, and learning basic greetings (start with 'Iọkwe') earns real goodwill and helps outside the capital.
It is improving but still limited compared with big-city standards, and it varies a lot by location. In Majuro, remote work is increasingly feasible; on Ebeye and outer atolls it is unreliable. Confirm the actual speed at your specific home/office before depending on it.
Everyday costs run higher than a comparable US town because nearly everything is imported and dutied. The dollar is the same, but groceries, fuel, and goods cost more, and selection is narrower. Budget accordingly and buy staples in bulk.
The Marshall Islands is generally peaceful with a strong community fabric, and violent crime is uncommon. As anywhere, use common sense with petty theft and alcohol-related issues, respect local custom, and stay aware of natural hazards like flooding and strong sun.