Published on and written by Cyril Jarnias
Moving or investing abroad is a dream for many expats. But when it comes to real estate, it’s not just about the “buy + rental yield” duo. In the Marshall Islands, this equation is completely upended: it’s impossible to buy land if you are not Marshallese, narrow market, major climate risks, unique tax system… Yet, the country is attracting more and more qualified professionals, diplomats, employees of international organizations, as well as entrepreneurs interested in its very specific legal and tax environment.
This guide for expats details the realities of real estate investment in the Marshall Islands: the possibilities, constraints, costs, and opportunities. It emphasizes that, in many cases, opting for a lease and wealth structuring is more advisable than buying a villa on the beach.
Understanding the Marshall Islands context before considering real estate
Before discussing rents, taxes, or investment licenses, it is essential to understand where you are. The Marshall Islands are neither a “new Dubai” nor a “new Mauritius,” but a very unique micro‑island state.
The Marshall Islands form a sovereign republic in the Pacific, made up of 29 atolls and a few isolated islands, totaling only 181 km² of land spread over nearly 1.9 million km² of ocean. The population hovers around 60,000 people, mostly Marshallese, in a traditional matrilineal society where land plays a central role in social and family organization.
The capital Majuro concentrates administrative and economic life, while Kwajalein Atoll forms another major urban center. The US dollar is the official currency, the legal system is largely inspired by US law, and English is the working language used in business and administration.
The economy is heavily dependent on the United States through a key agreement, the Compact of Free Association, which structures much of the financial aid and political relationship. Services represent more than three-quarters of GDP, and foreign investment is mainly concentrated in tourism, fishing, some financial services, and business registration activities.
This macroeconomic backdrop has direct consequences for the expat investor: small domestic market, strong external dependence, limited infrastructure, but a fairly readable legal framework for companies, particularly in international and “offshore” activities.
Land ownership: why you cannot buy land
For an expat used to buying an apartment or house in a destination country, the first reality that surprises in the Marshall Islands is radical: a foreigner cannot become a landowner here.
A land system entirely reserved for Marshallese
In this country, all land belongs to Marshallese owners, often through family lineages. This land structure is at the heart of the social fabric: whoever holds the land holds a significant part of status and rights within the community. Consequently, the law does not allow foreigners—whether individuals or companies—to acquire or hold any title to land.
Full ownership of real estate by a non-Marshallese is virtually non-existent, which constitutes a legal barrier explaining the absence of structured foreign investments in the residential sector, such as purchasing land or a villa for resale.
Long-term lease as the only real estate lever
However, this does not mean that no real estate transactions are possible for an expat. The only avenue is rental, sometimes for very long periods. Foreigners, whether individuals or companies, can enter into leases:
– for residential use (expat housing)
– for commercial use (business premises, hospitality, services, offices)
The terms of the lease must be negotiated directly with the Marshallese landowner. For the contract to be enforceable and provide minimal legal security, it must be registered with the local authorities.
In practice, real estate investment in the Marshall Islands therefore often takes the form of an entrepreneurial project based on a long-term lease (for example, for tourist accommodation, service premises, or a maritime project), but very rarely takes the form of purchasing a residence to spend retirement there.
A narrow, illiquid market heavily dependent on leases
Another specificity of real estate in the Marshall Islands lies in the size of the market and its liquidity. It is a niche market, narrow, with few transactions. Property values are strongly linked to:
– location (Majuro, Kwajalein, outer atolls)
– accessibility (roads, jetties, proximity to infrastructure)
– the presence or absence of stable players (government, international organizations, NGOs, established local businesses)
In the Marshall Islands, the real estate market is heavily structured by institutional tenants such as the government and international organizations, which occupy a significant share of quality housing and offices. The tourism sector offers some opportunities for beachfront accommodations, especially on Majuro or Arno Atoll, but it remains limited and far from a mass market.
The low liquidity has a direct impact for an expat investor: even if a structure based on a lease allows operating a building, the possibility of “exiting” quickly by reselling a right or a company holding the lease remains very limited. This is not a market where one counts on an easy resale in the medium term, but rather on long-term project logic, often tied to professional activity or a contract with a major player.
Renting to live: the daily real estate life of an expat
For the vast majority of expats, real estate in the Marshall Islands boils down to choosing rental housing. The question then is no longer “what property to buy?” but “where to rent, at what price, and under what conditions?”.
A central expense item in a country with modest purchasing power
The cost of living in the Marshall Islands is about 1.3 times higher than the global average. For an expat from Europe or North America, the impression can be mixed: some items are lower than in major Western capitals, but the local income level is very low (average net salary of about $489 per month) and many products are imported, hence expensive.
In this context, housing is by far the main expense for an expat, especially if the employer does not provide company housing.
Available statistics give an order of magnitude of rents in Majuro:
| Type of housing (Majuro) | Location | Estimated monthly rent (USD) |
|---|---|---|
| Furnished studio (≈ 45 m²) | Center | 600 – 800 |
| Standard apartment (≈ 85 m²) | Center | 1,200 – 1,800 |
| Apartment (≈ 85 m²) | Outside center | 800 – 1,200 |
| Standard government housing (unfurnished, for civil servants) | Variable | ≈ 750 |
For an expat seconded by an international organization or NGO, there is sometimes access to government housing stock, but these are often unfurnished and require an initial investment in equipment.
Utilities, electricity, and “Cash Power Cards”
In addition to rents, there are charges for basic services (electricity, water, garbage collection, air conditioning, etc.). For an apartment of about 85 m², the monthly bill for these services typically ranges between $133 and $250. Heavy use of air conditioning can quickly push the cost to the higher end of the range.
Electricity mainly operates via a prepaid card, the “Cash Power Card.” It is purchased and topped up at shops, hotels, or from the electricity provider. This system requires regular monitoring of consumption and may surprise those used to automatic deductions.
Types of properties available and micro‑geography of housing
On Majuro and its surroundings, the supply for expats is concentrated in a few types:
Discover our two categories of vacation rentals, designed to suit your travel preferences.
Small one-bedroom apartments with kitchen, located minutes from the airport and city center. Perfect for a short stay or a layover.
Houses or “beach houses” right on the beach, more geared toward relaxation, snorkeling, or fishing. Ideal for a restful vacation.
The most popular neighborhoods for foreigners and long-term residents in Majuro are mainly Delap, appreciated for its proximity to services and beaches, and Rita, quieter, favored by long-term expats and some remote workers. On Arno Atoll, there are a few beach houses, but it remains very low-key.
In any case, the supply of good quality housing remains limited. You often have to make compromises on finishes, insulation, or equipment compared to what you find in other more developed expat destinations.
Buying in the Marshall Islands: is it actually feasible?
In theory, some figures circulate about “prices per square meter” for apartments in town, around $600 per square meter in the urban center. But in reality, for a foreigner, these values are mostly theoretical: the land constraint makes traditional purchasing particularly complex.
When buying becomes a structured entrepreneurial project
For an individual expat, the idea of financing a house “of one’s own” to live in for retirement or as a second home is not realistic. However, for an entrepreneur carrying a specific project—boutique hotel, long-stay residence, logistics base, maritime or tourism activities—real estate investment can become a component of a broader setup.
In this case, the logic is as follows:
– creation of a structure (often a company)
– obtaining a Foreign Investment License
– negotiation of a long-term lease with a Marshallese landowner on a targeted plot
– development of a real estate project (construction, renovation, development) based on this lease
This is therefore not a “real estate purchase” in the usual sense, but a contractual right of use over time, anchored to a business plan and a productive activity intended to bring economic benefit to the country (employment, services, tourism, etc.).
The cost of credit: a major obstacle
Even if such a setup were considered, there remains the question of financing. In the Marshall Islands, credit is expensive. 20-year real estate loans are negotiated around 10.7% to 10.9% annual interest. Such a rate level makes long-term debt particularly costly and heavily weighs on the profitability of a real estate project.
Locally, banks are few (mainly the Bank of the Marshall Islands, a subsidiary of the Bank of Guam) and financing options are very limited, especially for non-residents. This situation contrasts sharply with markets where banks offer many options to foreign investors.
In practice, an expat who wants to structure a real estate project despite everything will often have to:
– either contribute a very significant share of equity
– or resort to external financing (international banks, refinancing of a property owned in their home country, etc.)
– or negotiate setups with local partners, for example via co-investment or a commercial lease where the owner finances part of the work in exchange for a share of future revenue
In most situations, for an individual expat or a family, renting therefore remains the most reasonable option, and buying is an exception related to very specific and structured projects.
Taxation: a unique environment for income and rents
The Marshall Islands are known to tax specialists and entrepreneurs for their territorial regime and “tax-neutral” environment for foreign income. For real estate, this translates into several specifics that must be well understood.
Income tax and taxation of rents
The personal income tax system is progressive. Several brackets coexist in sources, but we find:
– a rate of 8% on the first income brackets (for example up to about $10,000)
– a rate of 12% on the next bracket (up to $20,000)
– a rate of 16% above $20,001 in some sources
– elsewhere, a simplified scale indicates 8% up to $10,400, then 12% above
In addition, there are deductions, including a flat deduction of $2,000 per member of the tax household, as well as deductions for certain medical and educational expenses. Income tax on salary or local rental income must therefore be assessed based on this scale and these allowances.
Percentage of the specific tax that applies to real estate leases received by a local structure owned by an expat.
Corporate tax and territorial regime
Corporate taxation also shows disparities depending on whether the entities are purely domestic or “offshore”:
– some sources mention a corporate tax rate between 0.8% and 3% for resident companies
– others mention a rate of 15% for certain categories of local businesses
– for International Business Companies (IBCs) or non-resident entities not carrying out activity in the territory, tax on foreign-source income is zero
– offshore companies are generally not required to file local tax returns when they do not operate in the domestic market
The Marshall Islands apply a territorial tax regime. This means that income generated outside their territory is not subject to local tax, whether for individuals or non-resident entities. This characteristic has led the European Union to classify the country among non-cooperative tax jurisdictions.
For a real estate project focused on renting to tourists on site, this is local-source income, therefore potentially subject to Marshallese taxation (corporate tax, rental tax, specific local taxes).
Indirect taxes, imports, and wealth tax
Another peculiarity: there is no VAT in the classic sense, but consumption taxes and customs duties:
– no general VAT
– sales taxes between 2% and 4% on certain goods and services
– import customs duties generally between 5% and 12% of the value of goods
For real estate strictly speaking, the following points should be noted:
– a land tax on the land of about 1% of the estimated value may apply to landowners (Marshallese)
– there is no wealth tax
– there is no inheritance tax
Even if the expat cannot be a landowner, these elements indirectly affect rents and structures: a Marshallese landowner incorporates their own tax constraints into the price they ask.
Investment licenses and regulatory obligations
Any expat who wants to go beyond simply renting a home to live there and envisions a more ambitious project (accommodation, services, maritime activities, tourism operations) must deal with the local regulatory framework.
Foreign Investment Business License Act: the key for foreign investors
Foreign investments are governed by the Foreign Investment Business License Act. This system requires any non-citizen wishing to carry out a commercial activity in the country to obtain a Foreign Investment License. For real estate, this concerns for example:
– a tourist accommodation project
– managing a housing portfolio for expats
– operating commercial spaces, offices, or warehouses
Obtaining this license requires demonstrating:
– compliance with company formation and registration obligations
– the existence of a credible business plan
– proven economic benefit for the Marshall Islands (local jobs, skills transfer, capital inflow, etc.)
Certain activities remain reserved or regulated, particularly in small-scale retail trade, local services, or activities with a strong cultural dimension.
Economic substance, compliance, and reporting
In parallel, the country has implemented economic substance requirements for companies to meet international standards:
Entities in Mauritius must file an annual substance report via an online portal. Foreign companies not locally taxable are required to demonstrate their tax residence in another jurisdiction. Furthermore, compliance with international standards on anti-money laundering (AML) and know-your-customer (KYC) is mandatory.
For an expat considering using a Marshall Islands structure as a vehicle for international real estate investment (for example, holding property in another country through a Marshall Islands entity), these requirements impose a certain documentary rigor, even if the income is foreign-source and not taxed locally.
Specific risks: climate, reduced market, and logistical constraints
Investing, even via long-term leases, is not solely judged on a tax spreadsheet or theoretical yield. The Marshall Islands are one of the territories most exposed to climate change in the world.
Sea level rise and climate hazards
With an average elevation of about two meters above sea level, the country is on the front line of sea level rise. World Bank studies paint a worrying picture: more than half of the structures in the capital Majuro would be threatened in the medium term by risks of submersion and flooding related to climate change.
Projections indicate a significant rise in sea level, an increase in temperatures, and a higher frequency of extreme events (powerful cyclones, storm surges, coastal flooding, prolonged droughts), leading to degradation of coral reefs and pressure on freshwater resources by the end of the century.
For real estate, this translates into: developing sustainable projects, optimizing space, and integrating new technologies to improve energy efficiency.
– a physical risk to existing and future structures
– potentially high costs to adapt, protect, or rebuild infrastructure
– significant uncertainty about the long-term value of exposed coastal properties, yet the most sought after for tourism
– potentially high insurance premiums or difficulty insuring certain projects
A prudent investor will therefore incorporate a “climate risk” from the project design stage, carefully choosing the location, building design (elevation, materials, protections), and the duration of their commitment.
Remoteness: isolation as a cost factor
The Marshall Islands are located in a very isolated area of the Pacific. This geographic position has several concrete consequences for an expat investor:
The economic situation is marked by near-dependence on imports for materials, equipment, and consumer goods. This dependence leads to high logistics costs and long delivery times for goods from other continents. Furthermore, the limited local banking offer often forces managing accounts abroad for large financial flows.
For example, importing a vehicle from the United States can cost between $1,800 and $3,500, with a transit time of 4 to 7 weeks, excluding customs duties and taxes calculated on the CIF value (cost, insurance, freight). Customs formalities remain relatively heavy, requiring invoices, title certificates, certificates of non-immediate resale, and frequent presence of the owner during clearance.
For a real estate project requiring specific materials or heavy equipment (air conditioning, generators, furniture, hotel equipment), these logistical realities can eat into profitability or significantly extend timelines.
Real opportunities: where real estate can still make sense
Faced with these constraints, should we give up any idea of real estate investment in the Marshall Islands? Not necessarily. But you have to move away from the “classic buy-to-let” vision and focus on scenarios where the country offers a comparative advantage.
Niche projects in tourism and services
The government encourages foreign investment particularly in:
– tourism and hospitality
– fishing and aquaculture
– maritime services
– renewable energy
– certain targeted agricultural activities
In this context, an expat or group of investors can consider a real estate project linked to a hotel, guesthouse, dive center, or housing for technicians/seconded staff of foreign companies. The core of value creation lies not only in the walls, but in operating the activity.
Real estate is then: a key sector of the economy, encompassing the purchase, sale, rental, and management of real estate properties. This includes residential, commercial, and industrial properties.
A strategic approach to developing and securing essential real estate assets, integrating financing, tax optimization, and legal framework.
Acquisition or development of an essential real estate tool (building, accommodation, offices) for the company’s operations.
Financing or securing the asset through a long-term lease, ensuring operational and financial stability.
Optimized company structuring, taking into account the territorial tax regime and obtaining the necessary investment licenses.
Rental demand exists: civil servants, employees of international organizations, NGO volunteers, consultants, and also tourists, although their numbers remain modest on a global scale. The challenge is to calibrate the project to the size of the market rather than importing oversized models.
Wealth structuring and “offshore” companies
Another angle, less visible but very present, concerns using the Marshall Islands as a jurisdiction to structure international assets. The country is indeed widely used for:
– holding companies
– structures dedicated to holding assets (including real estate) in other countries
– projects involving cryptocurrencies and decentralized autonomous organizations (DAOs)
Company law is inspired by recognized legislations such as those of Delaware or New York. The country is a pioneer in the legal recognition of DAOs. It offers a high level of confidentiality: no public register of directors or shareholders, possibility of using authorized nominee services, and no obligation to publish accounts. Additionally, the territorial regime exempts income from foreign sources from tax.
For an expat who owns real estate in other countries, using a Marshall Islands structure as a holding vehicle can be an option to explore with specialized tax advisors. In this case, the “real estate investment in the Marshall Islands” does not materialize in an apartment in Majuro, but in a company registered there that holds assets elsewhere.
Why digital nomads remain an exception
Despite the fantasy of paradisiacal atolls where you can telework with your feet in the water, the Marshall Islands are not an ideal destination for digital nomads. The country does not offer a dedicated residence program and its isolation, combined with limited infrastructure, makes it a complicated base for fully online activities.
For these profiles, real estate is therefore generally limited to short or medium-term rentals, possibly in beach houses or apartments with WiFi, but without any structuring investment perspective.
Practical steps: visas, work, banking, settling in
A life or real estate investment project is never reduced to the sole financial brick. In the Marshall Islands, you also have to deal with:
– the absence of a residence or citizenship by investment program
– the need for a work permit to engage in professional activity
– specific administrative procedures for importing goods and vehicles
– a limited banking system with a few institutions, supplemented by accounts abroad
For a short stay, access is simple for many nationalities (visa exemption or visa on arrival), with a valid passport and an onward ticket. To settle and work, a prior job offer is necessary. The employer must apply for a work permit, demonstrate the absence of a qualified local candidate, then obtain an associated visa, typically valid for up to two years and renewable.
On the banking side, many expats keep at least one account in their home country or in a major financial center, in addition to a local account for daily expenses. International transfers often go through correspondent banks or fintech solutions.
How an expat can realistically approach real estate in the Marshall Islands
In summary, real estate in the Marshall Islands is not a playground for investors seeking easy returns or quick capital gains. For an expat, several realistic positions emerge:
For a primary residence tenant, the focus should be on negotiating location, comfort, and price, while planning for recurring costs like prepaid electricity and utilities. For an entrepreneurial project leader with a real estate component, one must accept long-term leases and high interest rates, targeting a niche (tourism, specialized services) rather than the mass market. Finally, for an international investor, using Marshall Islands companies as vehicles for structuring assets abroad is possible, subject to strict compliance with tax and substance rules.
To navigate this, guidance from professionals familiar with this type of jurisdiction (business lawyers, international tax specialists, expatriation advisors) is almost indispensable. It allows:
For a real estate investment in Switzerland, it is crucial to secure long-term lease contracts, verify the consistency of the legal and tax structures used, anticipate the effects of tax cooperation agreements and EU lists on banking relationships and financial flows, and properly assess the climate and legal risks weighing on the project.
In the Marshall Islands, investing in real estate as an expat is therefore above all about accepting to play by very different rules than in more classic destinations: no land title for foreigners, tiny market, major environmental risks, but also a sophisticated legal framework for international companies. Those who approach this territory with lucidity, realism, and appropriate advice can find opportunities, provided they give up the reflex of “I buy a property to rent it out” and instead think “I structure a project or international wealth by integrating the specificities of this unique atoll-country”.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
