Réunion: A French Island in the Indian Ocean
Réunion is a French overseas department located east of Madagascar in the Indian Ocean, making it administratively and culturally part of France despite its African geography. This status fundamentally...
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With a safety index of 54/100, Reunion offers moderate safety conditions for expats and their families.
Réunion Island, as a French Overseas Department, follows France's visa policy and is part of the EU but not the Schengen Area. Citizens of visa-exempt countries—including the United States, United Kingdom, Canada, Australia, and approximately 60 others—can enter for tourism or business without a visa for up to 90 days within any 180-day period. A valid passport is required, with at least 3 months validity beyond the planned departure date from Réunion, plus proof of onward or return travel.[1][2][4] For...
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17% below EU avg
Baselines based on EU averages. Source: Numbeo indices.
GDP
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HDI
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Quality of Life
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NYC baseline: 43
Purchasing Power
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NYC baseline: 42
Understanding the economic landscape is essential for evaluating living costs and opportunities in Reunion. This comprehensive overview covers key financial indicators including cost of living, housing markets, income levels, and fiscal policies that shape daily life and long-term financial planning.
Cost of Living Index
Expensive living costs with Groceries Index 85.3, Restaurant Price Index 66.7, and Rent Index 20.4. Inflation stabilized at 1.3% in 2024 due to high import costs and isolation.
Housing Market
Property prices average 7.5 years of household income, making ownership affordable. Rentals remain relatively low with index at 20.4 amid housing shortages.
Average Income Levels
GDP per capita around €24,000 supports moderate purchasing power, below metropolitan France levels. High poverty (42%) and unemployment (20%) limit overall income strength.
Tax System
Follows French progressive income tax up to 45%, VAT at 8.5% reduced rate (unique to overseas departments). Property taxes apply with regional adjustments for fairness.
Business Environment
Challenging due to high unemployment over 20%, bureaucracy, and isolation; benefits from French single market access. Tourism and agriculture dominate with limited diversification.
Social Security
Access to France's universal healthcare, comprehensive pensions, and unemployment benefits. Strong safety net despite high poverty, supported by metropolitan subsidies.
Réunion Island, a French overseas department in the Indian Ocean, features a tropical climate with warm temperatures year-round, ranging from 24°C in winter to 30°C in summer. It has two main seasons: a hot, wet summer (December-April) prone to cyclones and heavy rain, especially on the east coast and mountains, and a cooler, drier winter (May-November).
5 distinct climate regions — see full guide for details
Read full guideLife Expectancy
N/A
Population
Religions
Ethnic Composition
Currently under research
Research in Progress
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Réunion functions as an overseas department and region of France, fully integrated into the French Republic with representation in the national parliament. Local governance is handled by the Regional Council led by President Huguette Bello and the Departmental Council led by President Cyrille Melchior, under the oversight of a prefect representing the French state. Political dynamics feature a multi-party system with left-wing majorities in the regional council and right-wing influences in the departmental council.
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Data Source: Safety, crime, and quality metrics are sourced from Numbeo, a crowd-sourced global database of reported data.
All scores are relative comparisons on a 0-100 scale, where 50 = global average. Higher scores mean better than average, lower scores mean worse than average.