The cost of living in French Polynesia is very high, estimated to be 30-40% higher than in metropolitan France. The groceries index is 105.55 (NYC=100), indicating expensive food, while the restaurant price index is 64.96. The average monthly cost of living for a single person is around $1,699.

The property price to income ratio is 21.11 years, indicating a very expensive housing market. The rent index is 26.87, suggesting that renting might be relatively more affordable than purchasing property.

The average gross monthly salary is approximately $1,036.23 (₣145,975) as of March 2026. While the GDP per capita is around $22,000, the high cost of living leads to a moderate purchasing power for residents. The average salary after taxes is reported as $2,512, which covers living expenses for about 1.5 months.

French Polynesia has a favorable tax system for individuals, with no personal income tax on employment income. Salaries, wages, and pensions are subject to a Territorial Solidarity Contribution (CST). The standard VAT rate is 16%, with reduced rates of 5% or 8% for essential goods and 13% for services. Corporate tax is generally 30%, with incentives for specific sectors. Property taxes exist but offer exemptions for new constructions.

French Polynesia scored 74.1 in the World Bank's 2024 B-READY: Business Entry Overall Score, indicating a good environment for starting a business. There is a growing startup ecosystem, particularly in tourism tech, supported by initiatives like 'La French Tech Polynésie'. The regulatory environment benefits from French state stability and local adaptations.

French Polynesia has a comprehensive social security system managed by the Caisse de Prévoyance Sociale (CPS). This includes universal healthcare coverage for all residents, a pension system based on contributions, and unemployment benefits for eligible individuals. Family allowances are also provided.

Deposits in French Polynesia are protected up to €100,000 (approximately USD 117,000) per depositor under the French Deposit Guarantee Scheme (FGDR), as French Polynesia operates under the broader French banking system. The banking sector is stable, with S&P Global assigning 'A/A-1' ratings to French Polynesia in July 2024. Financial regulation is robust, aligning with French national laws and FATF recommendations for anti-money laundering.