Bolivia offers a very affordable cost of living, with a Cost of Living Index of 27.6 (NYC = 100). Groceries (28.7) and restaurant prices (22.3) are particularly low.

The housing market is moderate, with a Property Price to Income Ratio of 11.0 years. The Rent Index is very low at 8.1 (NYC = 100), indicating affordable rental options.

Purchasing power is low, with an index of 48.7 (NYC = 100), suggesting a limited ability to purchase goods and services compared to higher-income economies.

Bolivia operates a territorial tax system. Personal income tax (RC-IVA) is a flat 13% on Bolivian-sourced income, often offset by VAT credits for residents, effectively resulting in no net income tax for most. Expats may face progressive rates up to 25% on Bolivian-sourced income. The standard VAT rate is 13%, and municipal property taxes range from 0.35% to 1.5%.

Bolivia ranks low in ease of doing business (150 out of 190 economies in 2019). While the startup ecosystem is emerging with government support, challenges include a complex regulatory environment, bureaucracy, and limited access to capital.

Bolivia offers a free Unified Health System (SUS) for legal residents, covering basic medical care. It has a comprehensive pension system with contributory and non-contributory schemes. However, there are no statutory unemployment benefits, though severance pay is mandated for dismissed employees.

Deposits are protected up to 40,000 UFVs (approximately USD 18,679) per beneficiary under the Fondo de Protección al Ahorrista (FPAH), established by Law 393. The banking sector faces macroeconomic challenges, including dollar shortages and downgrades by rating agencies, leading to liquidity issues and state intervention in financial institutions.