Marshall Islands
Taxes, residence and daily life for people moving to Marshall Islands: for a wealthy family, an expat employee and a remote worker. Researched .
Open Marshall Islands in the interactive guide
At a glance
For an EU-citizen family of five living off a €30M portfolio, the guide's default reader. The interactive guide recomputes everything for other passports and situations.
- Score for a wealthy family
- 60 / 100
- Tax on a €30M portfolio
- €48,600 a year
- Wealth tax
- none
- Children inherit
- tax-free
- EU member
- no
- Currency
- USD
- Capital
- Majuro
Tax on investments, inheritance and wealth
The Marshall Islands' Income Tax Act 1989 taxes wages and salaries (8% on the first USD 10,400, 12% above), business gross revenue (3% above USD 10,000), land lease income (3%) and non-residents' service fees (10%). There is no tax on an individual's dividends, interest or capital gains outside a business, and no inheritance, gift or wealth tax was found.
- Ordinary residence: Wages tax, gross revenue tax and land-lease tax; no tax on private investment income.
Inheritance law and trusts
The Marshall Islands follows a US-style approach and no forced heirship rule was found. Customary land (with its own inheritance rules) is outside ordinary wills. Trust and foundation law and the Hague Trusts Convention (not in force) were not fully sourced.
Daily life, scored out of 100
From public indicators (World Bank, UNDP, Transparency International and others); higher is better.
| Measure | Score |
|---|---|
| Political and institutional stability | 56 |
| Legal system and property rights | 69 |
| Healthcare quality and access | 38 |
| Education quality | 25 |
| Human development and quality of life | 47 |
| Infrastructure and connectivity | 66 |
| Business opportunities and economy | 35 |
Research notes
Marshall Islands — family-office tax dossier
Last reviewed: 2026-10-15 Tax year: 2026 Reviewer: research agent (Claude), unreviewed by a tax adviser
Summary
The Marshall Islands' Income Tax Act 1989 taxes wages and salaries (8% on the first USD 10,400, 12% above), business gross revenue (3% above USD 10,000), land lease income (3%) and non-residents' service fees (10%). There is no tax on an individual's dividends, interest or capital gains outside a business, and no inheritance, gift or wealth tax was found.
US citizens: US citizens remain subject to US federal income, estate and gift tax on worldwide income and assets wherever they live; the app adds the federal layer. Where local tax on portfolio income is nil there is nothing to credit against US tax.
Residence and eligibility
No tax on investment income, so no relevant residence test.
- Entry/residence permit (EU, US, OTHER): Not researched.
Capital gains
Standard regime
No capital gains tax: the Income Tax Act 1989 taxes only wages and salaries (s. 103), business gross revenue (s. 109), income from leased land (s. 116) and non-residents' services (s. 117).
- Important exceptions, statute references and announced changes: Lessors of land pay 3% on lease income, withheld by the lessee (s. 116).
- Tax year / confidence / verification: 2026 / medium / partially_verified (checked 2026-10-15)
- JSON numbers: headline 0% (0.0); listed domestic 0% (0.0); listed foreign 0% (0.0); private business sale 0% (0.0); local real estate 0% (0.0); foreign real estate 0% (0.0).
- How derived: 48 MIRC Ch. 1: no charge on capital gains of individuals outside a business. 'Gross revenue' (s. 102) covers receipts of a trade or business, including returns on the capital of the business.
- Trader recharacterisation: A business would pay 3% gross revenue tax on receipts above USD 10,000.
Dividends
Standard regime
No tax on dividends received by an individual outside a business.
- Tax year / confidence / verification: 2026 / medium / partially_verified (checked 2026-10-15)
- JSON numbers: headline 0% (0.0); domestic 0% (0.0); foreign gross 0% (0.0); foreign tax relief: not_applicable.
- How derived: Dividends of a private investor are not within any charge of the Income Tax Act 1989.
- Outbound withholding: No dividend withholding in the Act (non-resident tax applies only to service fees).
- Treaty network: No comprehensive treaties found (not verified). US dividends bear 30% US WHT.
Inheritance and gifts to children
Standard regime
No inheritance, estate or gift tax found (none in the Income Tax Act; no estate duty act found).
- Tax year / confidence / verification: 2026 / low / unverified (checked 2026-10-15)
- JSON numbers: basis none; children fully_exempt; exemption 0; brackets []; other transfer costs 0.0.
- Gift tax: No gift tax found.
Wealth tax
Standard regime
No net wealth tax and no recurring levy on financial assets.
- Tax year / confidence / verification: 2026 / medium / partially_verified (checked 2026-10-15)
- JSON: type none.
- Property tax (not a wealth tax): Not researched.
Special regimes
None found for wealthy new residents.
Company taxation (kept separate from personal tax)
Headline rate in JSON: null (unknown). No corporate income tax for domestic businesses: gross revenue tax of USD 80 on the first USD 10,000 and 3% above (s. 109). Non-resident domestic and international (offshore) corporations under the registry are a separate regime, not researched.
Cost of living notes
Not sourced.
Open questions
- Tax reform status (reported VAT/income tax modernisation) not verified.
- [standard/capital_gains] Whether a broader tax reform (e.g. a reported Tax and Revenue Reform and Modernization Act) has been enacted and brought into force was not verified.
- [standard/inheritance] Full legislation index not searched for estate duty. Land is customary and largely cannot be sold to non-citizens (not verified).
Sources
- Income Tax Act 1989 (48 MIRC Ch. 1), current consolidation: https://rmiparliament.org/cms/images/LEGISLATION/PRINCIPAL/1989/1989-0050/1989-0050_5.pdf
Change log
- 2026-10-15: initial research.
Residence and succession sources
- HCCH status table, Convention of 1 July 1985 on the Law Applicable to Trusts — HCCH
- Non-Profit Entities Act 2020 — PacLII
Tax sources are cited in the research notes above.